Describe situations in which an organization should buy rather than build software components

What will be an ideal response?

It is invariably cheaper to buy reusable components and very expensive to develop them. Software vendors can afford to invest heavily in developing components because they hope to recoup the expense in the marketplace. Businesses who develop software for in-house use, with few exceptions, cannot afford to do so. Besides, you can spend tens of millions of dollars to create an in-house data management system, but it is unlikely that the resulting product would compare favorably with a battle-tested DBMS from established vendors, even if it has some interesting or clever features. On the other hand, using an off-the-shelf component means that the continued health of your system is now dependent on the continued health of the outside vendor and its ability to provide timely updates.