The build vs. buy decision is one of the most consequential technology choices a growing business faces. Here is a structured framework for making that decision.
When SaaS Makes Sense
SaaS platforms excel when your needs align closely with the tool's intended use case. If 80% or more of the features match your workflow, the speed of deployment and ongoing maintenance handled by the vendor make it the clear choice.
When Custom Software Wins
Custom development becomes compelling when your workflow is your competitive advantage. If your process is what differentiates you from competitors, encoding it into a custom system protects and amplifies that advantage.
The Hidden Cost of SaaS
Multiple SaaS subscriptions add up. Organizations with 15+ SaaS tools often spend more annually than a custom solution would cost, while also dealing with data silos, integration complexity, and vendor lock-in.
The Hidden Cost of Custom
Custom software requires ongoing maintenance, security updates, and feature development. Budget for 15-20% of initial development cost annually for maintenance when making your calculations.
A Practical Decision Matrix
Score each option on five factors: alignment with workflow (1-10), total cost of ownership over 3 years, time to value, data ownership and portability, and strategic importance. Weight the factors based on your organization's priorities.
The Hybrid Approach
Many of our clients adopt a hybrid strategy: SaaS for commodity functions (email, CRM, accounting) and custom software for core operational workflows that drive their unique value proposition.