Build-or-Buy Calculator

How this calculation works

• Internal delivery cost equals internal hours multiplied by hourly cost, plus the selected overhead percentage.
• First-year outsource cost equals annual supplier cost plus one-off transition cost.
• The recommendation compares first-year internal cost against first-year outsourcing cost.
• Criticality, internal capability and supplier market availability influence the risk message and recommended next steps.
• This is a commercial estimate, not a final sourcing decision. Actual outcomes depend on service levels, contract terms, supplier performance and implementation quality.