Once a company determines whether to Build or Buy (or some combination), the cross-functional team needs to evaluate specific software applications for suitability, functionality, ease of use and customization, projected shelf life, and other business factors. Some companies develop applications from scratch, while others customize off-the-shelf packages or hire a software service provider.
Construction refers to building applications from scratch. Companies may choose Construction when there are no commercial packages available to meet the requirements.
Customization refers to purchasing an off-the-shelf software package from a vendor or consultant that can be adapted, modified, and tailored to a company's specific business operations.