By Julie Ford on May 11, 2023
3 minute read

A Comparative Guide for Internal Communication Professionals 

Internal communications professionals are always looking for ways to improve their communication strategies and keep their teams connected. One of the major decisions they face is whether to build an internal comms solution in-house or adopt an internal comms platform by an external vendor. 

In this blog post, we will explore the advantages of using external software vendors versus building software internally and provide some examples of large organizations that have made this choice. 

Advantages of Using External Software Vendors 

Expertise and experience: External software vendors specialize in developing software solutions and have a team of experts with the necessary skills and experience to create high-quality software. This expertise and experience can lead to more efficient and effective software development, which can save time and money in the long run. Additionally, vendors have knowledge of the latest technologies and can bring that expertise to their clients. 

Cost savings: Using an external software vendor can often be more cost-effective than building software in-house. Vendors can leverage economies of scale and have established processes that can reduce development costs. Additionally, the cost of maintaining and updating the software is usually included in the vendor's pricing, eliminating additional expenses for the organization. 

Time-to-market: External software vendors have already developed software and can provide a pre-built solution or a head start on development. This can significantly reduce the time-to-market, allowing organizations to quickly implement the software and start seeing results. 

Reduced risk: Developing software in-house can be risky, as it may require a significant investment of time, money, and resources. External software vendors have established processes and methodologies to manage risks, such as quality assurance, testing, and project management. This can reduce the risk of project failure and ensure the success of the software implementation. 

Focus on core business: Developing software in-house can take focus away from an organization's core business activities. By using an external software vendor, organizations can concentrate on their core competencies while leaving software development to the experts. This can lead to better overall performance and productivity for the organization. 

Studies Support the Use of External Software Solutions  

Studies have shown that using external software solutions can provide numerous benefits.  

"Companies that choose to build their own software to support their unique business processes end up with 40% higher costs, due to the effort required to maintain and enhance the software," according to a study by Gartner.  

"Over 70% of CIOs prefer to work with an external vendor for software development projects, due to the cost and time savings, as well as the access to a broader range of skills and expertise," found a survey by Accenture.  

"Organizations that use external software vendors for application development experience 50% faster time-to-market, 33% fewer defects, and 20% lower development costs than those that develop software in-house," stated a report by Forrester.  

A study by Deloitte found that "nearly 70% of organizations surveyed were more likely to outsource software development to external vendors, due to the benefits of cost savings, access to specialized skills, and faster time-to-market."  

"Citing cost savings as the primary reason for outsourcing software development to external vendors, 60% of IT leaders surveyed by 40% cited access to specialized skills and expertise."  

Benefits of Adopting External Internal Communications Platforms for Companies 

Companies are benefiting from adopting external internal communications platforms in several ways, including:  

Improved employee engagement: With internal communication platforms, companies can reach out to their employees with regular updates, news, and events. This helps to keep employees engaged and informed about what's happening in the company, which can lead to higher job satisfaction and lower turnover rates.  

Better collaboration: Communication platforms provide a central location for employees to share ideas and collaborate on projects. This can help to break down silos within the company and encourage cross-functional teamwork.  

Increased productivity: By streamlining communication and reducing email overload, internal communication platforms can help employees to work more efficiently and effectively. This can result in increased productivity and better overall performance.  

Enhanced company culture: Communication platforms can help to foster a sense of community and belonging among employees. By providing opportunities for employees to connect and engage with each other, companies can build a strong company culture and improve employee morale.  

Improved decision-making: With real-time access to company news and information, employees can make more informed decisions. This can lead to better outcomes and a more successful business overall. 

Make the Right Choice for Your Organization  

In conclusion, there are many advantages to using external software vendors versus building software in-house, including expertise and experience, cost savings, time-to-market, reduced risk, and focus on core business. By using an external platform for internal communications, organizations can take advantage of these benefits and improve their communication strategies, keeping their teams connected and productive. 

Discover the benefits of Sparrow Connected. 


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