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Developing an IT project in-house requires huge effort and resources. Describe some of the efforts required for in-house development of IT solutions. How does risk play a role in the decision to develop IT solutions in-house? How can these risks be assessed? Use examples or scenarios to support your answers. Not all companies are able to develop in-house software applications. Although developing IT applications within a company leads to a greater probability of keeping the applications proprietary, it also means that smaller companies may need to extend their resources to enable in-house development.

Assuming you are in charge of a small company, when do you believe the company should utilize its IT development potential to develop an in-house solution? When do you think your company should resort to an external contractor? Provide examples that illustrate both the cases and report the outcomes of the cases. Find out whether the companies were still able to stay in business after developing in-house IT solutions. Was the proprietary nature of the software maintained when the company resorted to a contractor?