When we talk to prospects and existing partners about problems or pain points with their programs, we often hear them ask the same question: “Should we build a solution in house, or should we partner with a technology vendor who already creates the solution?” It’s not a light decision—it’s one that can significantly impact the trajectory of a program’s success.

Decision-Making Process

If this sounds like your company, here are some questions to ask yourself: 

1. What’s the problem we’re trying to solve? 

First, figure out the core problem, including its scope and size. Let’s look at an example. Say you’re enhancing an existing practice test for your program. Your core problems here are the need to improve the candidate’s experience, increase company revenue, and ensure the test’s effectiveness. With these priorities in mind, you realize that you want to update the practice test so that it not only prepares candidates more effectively for certification but also positions the test as a valuable asset. That way, you can attract more candidates and generate additional revenue streams. 

2. Do others we know have a similar problem? Have they solved this problem? 

Fortunately, in the assessment industry, we’re constantly learning from others and sharing information. Leveraging other companies’ experiences, you can determine what problems they’ve encountered and how they chose to solve them. If they’re in the process of solving a particular problem, just like you are, you can connect with those companies and decide if what works for them will work for you. 

3. What’s our timeline for getting a solution in place? 

If this is an urgent project, you’ll most likely want to work with a vendor that has already built something. If you have plenty of time, you may decide that you want to build it yourself. Let’s go back to our example. When updating the practice test, since one of the primary goals is to improve the candidate’s experience, you want to get it right; so, you decide that you will take the time to make it right. This fact impacts whether you build the technology or use someone else’s pre-built system. With more time, you can evaluate the vendor options that are available if you decide not to build it yourself. 

4. How much time and money are we willing to spend on this? Can we quantify the problem? 

Find out how much you’re willing to invest in solving this problem. Determine what data and metrics can be used to measure this problem’s impact. Again, our example: if increased revenue is one of the reasons for bringing on a practice test for your program, you need to determine the potential cost and investment to spin up the test. Once you’ve quantified the problem, you can focus on the solution and what the cost to the end user will be. Then you can demonstrate the net gain to the company’s overall revenue and the return on investment. 

5. Does this problem need a technological solution? Or can the problem be solved by a process change? 

Some problems and issues can be solved by process change. Once you’ve answered question 1 and know the root of the problem you’re trying to solve, you can know if there’s a need for a new or better piece of technology or a need to redesign the relevant process. In our example of enhancing the practice test, the problems we are solving are improving the candidate’s experience, increasing company revenue, and ensuring the test’s effectiveness. If the practice test exists in house already, it might not be a major lift to make a process change or technology enhancement; keep in mind your goals. If the practice test is already with a vendor, perhaps it’s time to consider an alternate vendor. 

6. Do we have the resources needed to support the solution in the long term? 

If you’re aiming toward an in-house solution, you’ll need the right people and processes currently in place within your company, and you need to make sure they’re ready to support a long-term in-house solution. If you’re thinking about the outsourced solution, make sure the people and processes are in place to connect with that vendor. Maybe you need to build out more processes, hire additional employees, or increase the knowledge and skills of existing employees. Either way, you’ll need to research, update, support, and maintain the solution throughout its lifespan. 

7. Are there companies that specialize in solving this type of problem already? 

Can we leverage someone else’s experience and expertise? If so, who are they? Once you know the companies that are out there, you can evaluate if they would be a good fit for your company and for solving your problem. Make sure their business and mission align with yours. It’s also helpful to learn and to understand what their customers say about them. Check website testimonials, have direct conversations with their customers, or, if you’re in a more formal process of evaluating and information gathering, review references. 

Now that you’ve considered these key questions, let’s get into both options in more detail. 

Building In-House Technology

Building a solution in-house gives your company complete control over the development process, customization, and integration with existing systems. It fosters a deep understanding of the technology within your team, which can be beneficial for maintenance and future development. 

However, this route can be resource-intensive, requiring significant investment in staff training and development. You need both time and money. It may also take longer to bring a solution to the market, and there’s a risk that the final product may not meet all your needs if your in-house team lacks a certain expertise. Or it could take less time if your team has the knowledge, experience, and bandwidth to build out your required solution. 

Here are two notable comments that we’ve heard in conversations this year that illustrate the range in decision-making: 

• “We are big on controlling our own destiny.” — a pro to building in-house 
• “We have got to get out of the software business. We are not software developers.” — a con to building in-house 

Partnering with a Technology Provider

Partnering with a technology vendor can offer you a wealth of expertise and resources that may not be available internally. A vendor can provide multi-level and multi-layered support. They often bring specialized knowledge and experience, which can accelerate the development process and provide access to the latest technologies. Plus, outsourcing can free up your internal resources, allowing your company to focus on its core competencies. 

However, in this approach, you could become dependent on the vendor for updates and support. You lack some control in this approach, and your project may take longer than you’d wish. But, if you keep your timeline in mind during your evaluation of vendors, you may find that it takes less time to implement and that it’s nice not to be in complete control.  

Cost is another factor to consider. Depending on the requirements of your software solution, outsourcing technology could potentially cost more. If the requirements are more straightforward and don’t require customization but instead rely on setup and configuration, the cost may be significantly lower than attempting to build and support an in-house technology solution. 

Selection Process Advice

Moving beyond evaluation, you’ll work to either select a partner or create a plan to build an internal team. Take the answers to the questions you asked yourself in your evaluation and return to the core problem. From there, you’ll be able to guide your teams to the next best steps to take.  

Some advice in this process: Be honest with yourself. Be honest when you decide: 

• What your goals are 
• How this aligns with your company’s priorities 
• What you truly have available within the company 
• What you’re willing to support 
• What you’re not willing to support 
• Who the specific people leading this effort are and what their tasks and assignments will be 
• If those people are ready to support this process in the way that you envision it, knowing that things will most likely change over time 

Now, having answered all the questions, evaluated your internal teams and resources, and/or vetted several technology vendors, it’s time to decide. 

The Choice is Yours

Ultimately, the decision to go with a vendor or build in-house should be informed by a thorough analysis of your company’s needs, capabilities, and strategic goals. It’s a balance between control and convenience, cost and expertise, and it should align with the long-term vision for your program’s growth and evolution. 

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