05-21-2026IMPACT COUNCIL

27 frameworks: Build versus buy

Cost, expertise, time, and ownership are all variables to consider.

[Photo: Getty Images]

The Fast Company Impact Council is an invitation-only membership community of top leaders and experts who pay dues for access to peer learning, thought leadership, and more.

BY Fast Company Impact Council

Building versus buying capabilities in-house or deciding whether to outsource them is a strategic decision. And it’s not a decision all executives think about the same way. So much depends on your company’s goals and strengths. It’s important to have a structured way to think about this decision, though, so when you need to incorporate a capability, you know how to make the decision. We asked our Fast Company Impact Council members how they decide when to build capabilities in-house versus outsourcing or partnering. It was a popular question, and we had to limit the responses—to just 27! There is wisdom in these words that you can apply to your situations.

1. PARTNER FOR COMPLEX CAPABILITIES

AI has shifted the equation—there are now far more things you can use easily, rather than build in-house. For many companies, that means partnering for complex capabilities instead of trying to recreate them internally. The challenge isn’t access; it’s prioritization. With so many nice-to-have services now available, the key is identifying which ones become true need-to-have capabilities that drive real outcomes. — Kevin Laymoun, Constructor

2. DEPENDS ON COMPETITIVE ADVANTAGES

I decide based on where real competitive advantage comes from. If a capability is strategically differentiating and tied to proprietary data, judgment, or know-how, I want it in-house. If it is more commodity and a partner can deliver it faster or better, I will partner. I tend to think about AI as two races: one to adopt what is becoming broadly available, and another to build what will actually set you apart. — Todd James, Aurora Insights

3. ONLY BUILD WITH EXPERTISE

Never build something you don’t properly understand. You need to be able to judge the work, and to understand the craft and process behind it. Without that, you’re slightly kidding yourself. So the choice is fairly simple: Either hire someone you trust implicitly to lead it, or work with people who already know what they’re doing. — James Greenfield, Koto

4. BUILD CRITICAL CAPABILITIES IN-HOUSE

We are leaning more toward building critical capabilities in-house, especially where they touch core workflows, professional judgment, and client relationships. Much of the startup world is trying to build around expertise firms like ours, which have developed over decades, so we have to be careful not to give away part of our value system. We will still partner where it accelerates us, but we want to build internally where the capability shapes delivery, strengthens our people, and directly supports the value we create for clients. — Mike Sewell, Gresham Smith

5. UNDERSTAND YOUR VALUE PROPOSITION

When thinking about AI capabilities, for instance, the decision depends on both the company’s situation and the daily evolution of AI knowledge. Right now, it’s a bit of a fast-moving Wild West, with few standards, so building in-house requires sustained investment in talent that can keep up. To make this decision, leaders need to first understand their value proposition. If AI is central, building internally may make sense. If not, seeking a partner is often the smarter path. Many companies benefit from AI operationally without needing to own the capability, making partnerships more efficient and adaptable. — Andrea........

© Fast Company