Complaints Handling | Quality Control | Operational Intelligence
Operational workforce management has significantly evolved, driven by changing customer expectations, digital self-service adoption, and technological advancements. Businesses often face a critical strategic question: Should we build internal solutions or buy ready-made software?
Let’s explore this decision guided by industry best practices and expert insights, highlighting why adopting a balanced approach may offer the greatest advantage.
Measuring What Matters: Core Metrics for Success
Effective management hinges on accurately measuring performance. Harvard Business Review emphasises that clear metrics and measurement practices are essential to strategy execution (HBR, 2023).
Three fundamental metrics every organisation should prioritise include:
- Throughput: Efficiency of operational output.
- Quality: Adherence to standards and regulatory compliance.
- Cost: Optimisation of resources to maximise profitability.
Balancing these elements ensures operational excellence, necessitating agile and responsive management systems.
Key Factors for Decision-Making
When evaluating a “build versus buy” scenario, consider the following critical factors:
1. Time
Time is a critical factor in today’s fast-paced business environment. Internal software development projects often exceed deadlines, increasing costs and delaying benefits. Gartner notes that more than half of internal software projects are delayed, leading to substantial losses . In contrast, off-the-shelf solutions typically offer rapid deployment through established frameworks.
Advantage: Buy
2. Knowledge and Skills
Complex operational management software requires specialist skills—software architects, experienced developers, and seasoned testers—that many internal teams lack. McKinsey & Company highlights the importance of investing in digital capabilities to ensure sustainable growth, a challenge many businesses face internally (McKinsey). Specialist vendors offer these critical capabilities, ensuring higher quality and reduced risks.
Advantage: Buy
3. Capacity
Internal development demands significant resources, potentially disrupting operations and diverting attention from core business activities. Vendor solutions provide dedicated resources, ensuring stable operations during implementation and beyond (TechRepublic).
Advantage: Buy
4. Risk Management
Internally developed solutions carry substantial risks, such as scope creep, technological obsolescence, and regulatory non-compliance. Deloitte Insights recommends carefully weighing these risks, highlighting that external vendors typically reduce these exposures through regular updates, compliance management, and expert technical oversight (Deloitte).
Advantage: Buy
5. Cost, Quality, and Continuous Development
Approximately 70% of software costs accrue post-deployment, a critical aspect often overlooked by internal teams. InfoWorld identifies this as the Total Cost of Ownership (TCO), emphasising that externally sourced solutions frequently provide better long-term value due to economies of scale and continuous improvement (CIO).
Advantage: Buy
Thoughtful Integration of AI Capabilities
Artificial Intelligence (AI) increasingly contributes to operational workforce management effectiveness. Effective integration of AI can provide substantial benefits, such as:
- Automating routine tasks to focus human resources on strategic objectives.
- Improving predictive analytics for accurate forecasting and resource planning.
- Streamlining complaint categorisation, prioritisation, and resolution.
- Enhancing quality control through proactive anomaly detection.
Integrating AI tools within purchased solutions enables organisations to leverage these advantages without significant upfront investment or disruption.
The Best of Both Worlds: Customised Off-the-Shelf (COTS)
The optimal approach combines external expertise with internal customisation—known as Customised Off-the-Shelf (COTS). Organisations benefit from the reliability of professionally developed software while customising dashboards, workflows, and reports according to their unique needs. IBM Cloud advocates for COTS as an ideal balance, offering proven architecture alongside essential flexibility .
Key advantages of the COTS approach include:
- Proven foundational software and architecture.
- Flexibility for internal tailoring and customisation.
- Reduced risk and shorter deployment timelines.
- Built-in security, scalability, and compliance.
Evaluating Total Cost of Ownership (TCO)
A comprehensive cost assessment should include:
- Acquisition Costs: Initial licensing, integration, and hardware.
- Operational Costs: Maintenance, training, upgrades, and scalability.
- End-of-Life Costs: Disposal and data migration.
- Indirect Costs: Compliance audits, sustainability goals, and unexpected expenses.
A robust TCO calculation, as recommended by Forbes, ensures businesses accurately measure their investment, leading to informed strategic decisions .
Conclusion: A Balanced and Informed Decision
While internal software development may initially seem appealing, external solutions generally offer superior value, lower risk, and faster implementation. Adopting a customised off-the-shelf approach—integrated thoughtfully with suitable AI capabilities—delivers the optimal combination of flexibility, innovation, and operational efficiency.
Interested in learning more about how the right operational workforce management solution can transform your business? Get in touch today—we’d be delighted to discuss your unique needs and help you make an informed decision.
