Why retailers should use external solution providers
”We can do that ourselves” are some famous last words for retailers striving to adapt the latest retail solutions to their business. Whether it is a retailer with a single store, or a retail-chain consisting of hundreds of stores nationwide, using an external provider for retail solutions can be a great way to save both time and money.
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New retail solutions are being introduced to the market faster than ever before, a trend further fueled by the rise of new and refined technologies such as artificial intelligence, virtual reality, and advanced machine learning. And while there are plenty of benefits for retailers to gain from implementing advanced retail solutions, the benefits must outweigh the costs—and the solution should be valuable for the shopper as well.
So, while the retailer evaluates the wide variety of available options to determine which solution to implement, they must also decide how this solution will be created, and by whom. A common approach is to develop as much as possible in-house, and many mistakenly view the internal IT team as a know-it-all unit with the ability to create and integrate any related technology within a reasonable time frame. And although one should not underestimate the knowledge and competence of the IT department, modern retail solutions often require highly specialized expertise in order to be successful. So what are some of the benefits of using an external retail solution provider?
Reasons for using an external retail solution provider
Access to specialist expertise
Most modern IT solutions require niche knowledge, and internal IT teams typically have their own areas of expertise and responsibilities to manage. Adding another retail solution often requires additional skills—skills that external providers specialize in. These providers are experts in their specific fields and stay up to date with the challenges and opportunities related to the solution they offer.
Cost efficiency
While having an internal team dedicated to IT, new technologies, and retail solutions is a good idea, there are still limits to how many areas they can cover. Implementing a completely new solution requires a substantial amount of both time and money, including onboarding, training, and potentially new hires with the necessary expertise.
An external provider spreads these costs across several customers, meaning they can deliver the same capabilities at a significantly lower total cost of ownership.
Faster time-to-market
For some retail solutions, time is of high importance, for example due to market timing or competitive pressure. Since external providers already have frameworks, platforms, and best practices in place, this results in a faster time-to-market compared to developing a new retail solution in-house for the first time. Retailers who use an external provider do not have to start from scratch, which is valuable when fast delivery is essential.
Predictable scalability and reliability
Since external vendors possess substantial knowledge of the retail solution, they design the system to handle high workloads and complex integrations. Furthermore, because they are experienced with this type of solution, they include valuable components such as monitoring, incident processes, and other operational safeguards to enhance reliability.
Reduced operational burden
Retailers sometimes allocate a budget for creating and implementing a new solution, but forget to account for the upkeep and long-term operational costs. These ongoing activities can be more demanding than the initial development and rollout. This is why an external provider can be both a cost-effective and reliable alternative.
Lower risks and better compliance
Because external vendors have extensive experience within their specific field, they are typically better equipped to follow industry standards, recommended frameworks, and certifications. As new standards emerge, an external expert is also more likely to understand the implications of these changes and how to adapt to them effectively.
Focus on core business
Focusing on the core business should remain a priority for in-house teams—and this is a strong argument for assigning other retail technology projects to external vendors. Rather than reinventing commodity technologies, the internal team can devote their time to high-value activities closely connected to the company’s strategic direction.
Easier resource planning
Because external providers already have defined contracts, pricing models, and documentation for their processes, they reduce uncertainty around costs and delivery timelines. Many external providers also offer a level of customization, making it possible to influence total cost and schedule. This is helpful for in-house project managers who are working with a specific budget and may need to coordinate internal resources for integrations and related activities.
Continuous updates and innovation
A retail solution requires continuous upkeep, such as adaptations to new hardware, compatibility with software updates, or adding new functionality over time. This can become challenging for an in-house team due to limited time, budget constraints, or gaps in specialized knowledge. An external provider continuously invests in updates, new features, security patches, and platform improvements—ensuring the solution evolves in line with industry standards.
Future proofing
In-house systems can be a great way to incorporate internal knowledge and custom databases. However, if the business needs to change its solution, this can be difficult to accomplish. Modernization and upgrades can also be challenging, which may result in a system becoming outdated. With an external vendor, companies can rely on a solution that is continuously updated, with new features added when needed. And if the vendor no longer fits their needs, it is possible to switch.
Is an external provider always the best idea?
The short answer is – it depends!
As every retailer operates under its own set of opportunities, challenges, and strategic priorities, it means there is no universal answer to whether an external retail solution provider is always the best choice. In some cases, internal development may offer tighter control, deeper customization, or better alignment with long-term business strategy. For organizations with strong in-house technical capabilities and sufficient resources, building a solution internally can even be a competitive advantage.
However, for many retailers, the benefits of outsourcing are substantial. External providers bring specialized expertise, faster delivery, predictable scalability, and continuous innovation—advantages that are often difficult and costly to replicate internally. By leveraging a provider’s experience, retailers can reduce risk, lower operational burden, and focus internal resources on strategic, customer-facing initiatives rather than on complex technological upkeep.
“While outsourcing is not the automatic answer for every retailer, it is a highly valuable option worth serious consideration. Retailers benefit from carefully evaluating the opportunities, efficiencies, and long-term value that an external provider can offer—ensuring that the final decision supports both current needs and future growth.”, said Fredrik Englund, Managing Director at Datema Retail.
Regardless of whether the decision falls on an in-house team or an external provider to create and implement the retail solution, there are plenty of exciting new options available—with the potential to make everyday life easier for both retailers and their customers!
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