What is Make-or-Buy Analysis?

The Make or Buy Analysis is analogous to determining whether to cook a meal from scratch or buy it ready-made, but for project components rather than food. It’s a procedure in which you balance the advantages and disadvantages of producing something in-house (doing it yourself) vs purchasing it from a third party (having someone else do it). For example, if you’re building a house, you’d consider whether it’s best to hire a construction crew or try to do it yourself. This study assists project managers in determining the most cost-effective and efficient approach to obtain the essential components or services for a project, whether it is made inside your team or purchased from outside providers.