Internal Software Development Cost Study

This document is an internal cost study focused on software development, particularly addressing the dilemma faced by executives regarding whether to build solutions in-house or utilize enterprise software. It outlines the challenges faced by companies, especially in sectors like banking and insurance, when integrating systems while adhering to regulatory requirements. The study highlights the high costs and extended timelines associated with in-house software projects, providing specific examples of potential expenses and durations. The Standish Group's CHAOS reports are referenced, indicating a significant failure rate in internal software projects. The document also discusses the advantages of using pre-existing software solutions, such as reduced risk, access to expertise, and the ability to keep pace with rapid technological advancements. Kingland's approach, including its CMMI level 5 maturity appraisal, is presented as a viable alternative to traditional in-house development, emphasizing efficiency and cost-effectiveness in software implementation.