For years the debate has continued on the question of “build vs. buy?” when it comes to e-commerce platforms. One of our main arguments for investing in an outsourced e-commerce platform been a very straightforward one: the options today are so sophisticated and mature, Web merchants can easily adopt a packaged application that takes care of core e-commerce functionality (and even offers a host of pretty cool multi-channel marketing capabilities), so their IT departments and Web teams can focus their efforts on fine-tuning other aspects of the Web and multi-channel customer experience and truly differentiate themselves from their competition.

It’s pretty rare for an e-tailer to speak candidly and publicly about their decision to move off an in-house platform. So we were eager to read Nick Lansley’s thoughts as he offered insight on Tesco’s recent decision to re-platform (full disclosure: They are moving to ATG).

Lansley, one of the founders behind Tesco’s online business, acknowledged his team has been able to stay ahead of competitors by continually developing e-commerce software with a certain amount of “special sauce” built into it, which others couldn’t copy for themselves. Yet his thinking behind the switch to an outsourced platform provider is captured quite succinctly with the following:

However, recently we had to think about our business. What are we doing? Are we here to provide customers with a convenient home delivery service? Or are we a computer software company?

Sure, we loved reading the complimentary things he had to say about ATG after that – but the main point that stuck with us is one that isn’t specific to us but instead applies to the bigger “build vs. buy” debate:

If you think we’ve been successful when we’ve been writing core systems, imagine what we can do when we’re freed from that job!

Simply put, Tesco realized it should focus its IT resources on enhancing the organization’s core competencies, rather than building core e-commerce functionality. Now that they can focus on the ‘sexy’ stuff instead (his words, not ours), they are in a fantastic position to keep growing and keep delighting their customers.

We’re looking forward to it!