In-House Development

In-House Development

In-house refers to conducting an activity or operation within a company, instead of relying on outsourcing. A firm uses its own employees and time to keep a division or business activity, such as financing or brokering, in-house.In-house software is a software that is produced by a corporate entity for purpose of using it within the organization. In-house software however may later become available for commercial use upon sole discretion of the developing organization. The need to develop such software may arise depending on many circumstances which may be non-availability of the software in the market, potentiality or ability of the corporation to develop such software or to customize a software based on the corporate organization’s it is a really easy method for business men.

Software is what makes companies what they are today. Some companies are entirely based upon their software; they are their software. This includes some of the most important of the Internet companies, of course, like Google and Facebook.

Other companies obviously would not exist without their software; that includes other Internet darlings like Amazon and eBay in the US, and their equivalents Taobao, Ali Baba and Yihaodian in China.

But traditional companies like WalMart would not exist without software to manage their inventory and their relationships with suppliers. Indeed, the entire outsourcing industry, including Indian giants like Infosys and Wipro, American outsourcing vendors like IBM and Accenture, as well as specialist firms like Infotech, are all dependent upon software to allow clients to observe performance and manage risk.

Not all software is created equal

By definition, strategic software is strategically important.

Surely there is a large class of operational software that is important but not strategic. I’m certain that most of us would neither notice nor care if our employers changed their payroll software, or their tax and accounting software, or their human resources/benefits office software. As long as it functions properly all commercial offerings are pretty much acceptable.

But there is a large category of software that is unique to the firm. This software needs to be aligned with the strategy of the firm and the needs of its clients and customers. Again, it’s not surprising that Amazon’s interfaces are unique to Amazon, and that their recommendation systems and shopping cart maintenance software is uniquely theirs.

But every airline’s frequent flyer system and every hotel’s frequent guest relationship management system is just slightly different to meet the individualized needs of each brand’s guest. Reservations within the Marriott family are differentiated, with reservations at Ritz Carlton being treated differently from reservations elsewhere in the group.

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