Explain make-buy decision for management prerogative

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Reference no: EM1386779

Make-buy decision is the significant management prerogative. You are manager of software organization which has average software development cost of $20.00/LOC. You are thinking of the purchasing 5000-LOC software package which will cost $50,000. Initially, your technical staff points out that no modifications will be required for package to meet your specifications. Though, your software development group wishes to create similar software in-house. Must you make or buy? After further study, your technical group now finds that at least 1000 LOC will have to be altered or added to make package viable. Must you now make or buy? Carefully write any suppositions you have made in making decisions.

Reference no: EM1386779

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