Today, organizations depend on software systems for efficient product and service delivery. However, keeping up with existing knowledge and adapting to new software development capabilities poses challenges. While technology enables efficient access to distributed knowledge, it is also becoming more complex, with software systems expected to support user interactions and intricate company processes. Consequently, leveraging existing knowledge by adopting a “not-reinventing the wheel” strategy can be beneficial in software development. Organizations face make-or-buy decisions regarding which components to purchase or contract externally, making this evaluation crucial. This book delves into make-or-buy decisions in software development, examining the strategic factors influenced by management, project-level considerations, and the choices made by software developers. By focusing on the state of the art, the discussion incorporates bounded rationality and cognitive biases that impact these decisions. The goal is to enhance understanding of decision-making processes in general and the role of external software artifacts in software development specifically.
