Why might an organization choose to buy a product from a supplier instead of building it in-house? Choose TWO reasons: 1 - Organization's immature…

The decision to buy a product instead of building it is a strategic sourcing choice. An organization may choose to buy if its internal product development processes are immature, as this mitigates the risk of project failure, delays, and poor quality. Sourcing from a supplier with mature processes and proven expertise provides a more reliable outcome.

Additionally, when compliance with specific standards and policies is essential, buying a pre-certified product from a specialized vendor is often a prudent strategy. This leverages the supplier's expertise, reduces the significant risk and effort of achieving and maintaining compliance in-house, and can accelerate time-to-market for the service.

2 - Predictable and repetitive product development tasks: While this can be a factor (suggesting a commodity product), it can also be an argument for building in-house, as the predictability may allow for efficient internal development or automation.

3 - Product development relying on internal knowledge: This is a primary reason to build a product in-house, not buy it. Outsourcing development that requires proprietary or unique internal knowledge would be inefficient and risky.

1. AXELOS, ITIL® 4 Specialist: Create, Deliver and Support, 2020.

Section 4.3.1 Sourcing options: This section outlines the key factors in a build-versus-buy decision. It states, "Does the organization have the required skills and knowledge, or does it need to source them externally?" This directly supports reason 1 (Organization's immature product development processes) as a driver for buying.

Section 4.3.1 Sourcing options: The same section lists "Risks" as a key factor, explicitly mentioning "compliance risks." It notes that suppliers may have "specialist skills and knowledge." This supports reason 4 (Essential compliance to standards and policies), as buying from a specialist vendor is a key strategy to mitigate compliance risks.