Build vs. Buy: Which Software Strategy Is Right for You?
Discover whether off-the-shelf solutions or custom-built software will deliver the best ROI for your business.
Choosing between building custom software or buying off-the-shelf isn’t easy.
Each path comes with trade-offs in cost, scalability, and long-term control. Our Build vs. Buy guide breaks down the decision with a clear framework, cost comparisons, and real-world examples—helping you make the choice that delivers the best ROI for your business.
Why This Guide Matters
1. Cut Through the Noise
Understand when off-the-shelf SaaS is the right choice and when custom software creates real advantage.
2. Know the True Costs
Beyond licenses, factor in adoption, scalability, and support.
3. Make Confident Decisions
Align your software strategy with long-term growth.
What’s inside the Build vs. Buy guide
- 3 Core Questions to ask before investing
- Decision Matrix to compare Build vs. Buy at a glance
- 4 Key Costs every business must evaluate
- Real-world examples from different industries
FAQs
How do I calculate 3–5 year total cost of ownership for build vs buy software?
Add up implementation and setup, licenses or subscription fees, training
and change management, integrations and data migration, hosting and infrastructure,
maintenance and support, upgrades and vendor price increases, and any
decommissioning costs. Compare both paths on the same 36–60 month horizon.
When is off-the-shelf SaaS better than custom software?
When your processes are standard, you need fast deployment, budget is tight,
vendor integrations cover most needs, and the software won’t be a core differentiator
for your business.
When should a company build custom software instead of buying?
When workflows are unique, compliance or data residency is strict, deep or bespoke
integrations are required, you need full roadmap control, or projected licensing costs
will exceed a one-time build plus ongoing maintenance.
How long does custom software take compared to buying?
SaaS can be usable in days to a few weeks after configuration. A custom MVP typically
takes 8–16 weeks, while a production system ranges from 3–9 months depending on scope,
integrations, and complexity.
How do I reduce vendor lock-in risk for build or buy decisions?
For SaaS: insist on data export rights, open APIs, and clear termination terms; favor
standards-based integrations. For custom: own the source code and repo access, document
the system, use open standards, and avoid hard coupling to proprietary platforms.
How do I calculate 3–5 year total cost of ownership for build vs buy software?
When is off-the-shelf SaaS better than custom software?
When should a company build custom software instead of buying?
How long does custom software take compared to buying?
How do I reduce vendor lock-in risk for build or buy decisions?
Make your next software decision a strategic one.
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