The modern economy is becoming more and more centred on the fruits of technological innovation. From the macro to the micro scale, the application of information technology has become one of the key factors in determining commercial success. It is therefore unsurprising that many start-up companies, as well as established ones, are trying to develop a business model or expand their current one to incorporate IT at its heart. Companies must consider whether they would benefit from developing their own technology, or if they should utilise technology from a proven success.
Many established companies now possess in-house development teams, and therefore the temptation is to build an IT platform from scratch and maximise the investment poured into the in-house team. But is that the most rational decision? Engaging in a lengthy and costly development process purely to justify the expenditure on the in-house tech team is far from guaranteed to bring the best results. Licensing a software system from a specialist firm can grant a company access to resources and expertise that would otherwise be unavailable from the in-house team.
Furthermore, in-house development of an IT platform for start-up firms can also be tricky. Unfortunately for some start-up companies, the time, knowledge, and resources required to develop start-of-the-art information technology from scratch can pose quite a challenge. As for established companies, although capital may not always be the issue, time and previously scheduled resources may delay development if the decision to build is made.
Although many companies possess in-house development teams, there is often not enough manpower or resources to truly be effective. This particularly poses a problem for SMEs, where the software development and management teams may only contain a handful of people. If the decision is made to conduct an in-house build, the project may take up all their time, meaning that other software management concerns will fall by the wayside. Utilising a specialist licensing firm gives you access to their large team of experts, meaning that your in-house team can focus on other issues. Moreover, if a member of the in-house development team leaves the company, you are saved the hassle of finding and retraining a new employee. Outsourcing provides security that a well-trained and up-to-speed software expert will always be on hand.
The capital and time requirements are dramatically reduced when the technology is already available. Licensing software from a proven success significantly reduces the time and costs of integrating a new platform into a company’s business operations. With fewer financial risks, a considerably shorter implementation time, and a lower capital requirement, the potential return on investment from adopting a new software platform is vastly increased. When a company licenses from a proven product, there is no need to invest time and money in a lengthy technological development process, which frees up resources for a company to make their product or service more innovative, effective, and efficient. Licensing essentially increases the potential ROI, whilst also reducing the time it takes to realise the ROI.
Companies across the corporate world can benefit from licensing a software platform from a specialist firm. If you are interested in licensing a software platform for your company, contact us today.