Developing software internally, as opposed to outsourcing or purchasing off-the-shelf solutions, involves utilizing an organization’s own employees and resources. This approach entails the complete software development lifecycle, from initial concept and design to coding, testing, deployment, and ongoing maintenance, being managed within the company itself. For example, a large retail chain might choose to build its own inventory management system using its internal IT department.
Maintaining control over the entire development process offers strategic advantages, including enhanced security, customizability, and intellectual property protection. Historically, organizations often opted for internal creation to address unique requirements not met by commercial software. This approach, while potentially resource-intensive, allows for solutions precisely tailored to an organization’s specific operational needs and can foster internal expertise.