The “buy versus build” debate is central to digital transformation, particularly in AI adoption, and hinges on an organization’s unique goals and industry context.
Shifts in technology, driven by advancements in cloud computing, market consolidation, and integration, are reshaping this decision-making process. Research from Deloitte and nCino highlights how cloud-based solutions like SaaS, PaaS, and IaaS offer scalable, cost-effective alternatives, reducing the need for in-house development.
Gartner’s report cited in Deloitte’s white paper predicts that by 2024, over 45% of IT spending on infrastructure, software, and outsourcing will shift to cloud solutions. Updated projections from 2022 suggest this figure will surpass 50% by 2025, showing an acceleration in adoption. These rapid shifts add complexity, particularly in regulated sectors like healthcare.
For instance, Penn Medicine leaders Kevin Mahoney and Raina Merchant detailed in a case report how they developed custom tools, such as COVID Watch and the Virtual Results Clinic, to enhance patient outcomes and align with existing systems. While 90% of Penn Medicine’s technology is externally sourced, their experience underscores that custom solutions can be the optimal choice for improving operational efficiency and achieving specific goals.
