Build vs. Buy: Technology Costs for In-House vs. Solution Providers - HighGround


Build vs. Buy: Technology Costs for In-House vs. Solution Providers

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So you’re debating whether to build your own recognition and rewards technology solution OR outsourcing the task to a best-in-class provider. Our last blog post addressed how the complexity of your organization needs to be considered. Today we will discuss the different areas of technology that are required to develop and maintain a system.

First, an in-house system requires continuous maintenance by software engineers, whereas a multi-faceted SaaS solution updates automatically and seamlessly. Many companies, no matter the size, simply do not have the manpower, expertise or equipment to handle ongoing support. Furthermore, the Society of Human Resource Management estimates organizations that spent at least 1% of payroll on their recognition system saw a positive impact on ROI, productivity, branding, employee relationships, engagement, etc.

Internal systems take time to build and require IT time and support, oftentimes at the expense of other higher priority, customer-facing projects. This can eventually result in unhappy customers or even worse, have a negative impact on a company’s bottom line. In addition, for a home-grown approach to be successful, ongoing QA, maintenance and development are imperative. Developing a comprehensive platform necessitates thorough planning; privacy and security must be accounted for, while infrastructure requirements are additional, unavoidable considerations.

Our next blog post explores the importance of keeping your technology up-to-date with the latest HR best practices.

Sally Scannell is a Sales Solution Engineer at HighGround, working with customers to establish key performance indicators and helping them achieve program goals. She contributes information both internally and externally by keeping abreast of industry news, research and studies. Sally serves as a trusted advisor to HighGround customers, helping them envision and drive continuous improvement in their employee engagement programs.