Build vs Buy: Choosing Between Custom and Off-the-Shelf Software

Start with differentiation

If a process gives you a competitive advantage, such as how you quote, schedule or serve customers, custom software lets you encode that advantage. If it is a commodity process like payroll, buy.

Compare total cost over several years

Subscriptions look cheaper at first but grow with every user. Custom software costs more up front but has no per-seat fees. Compare three to five years of ownership, including customisation, integration and support.

Count the workarounds

The hidden cost of off-the-shelf software is the spreadsheets and manual steps people build around its gaps. Ask staff how much time those workarounds take.

Consider a hybrid

Often the best answer is both: buy the commodity platform and build integrations and extensions around it, so your process is encoded without reinventing the core.

• Buy: accounting, HR, email, document storage
• Build: your unique workflows, customer experience, key integrations
• Integrate: so data flows once and stays accurate

Check ownership and exit

Ask who owns the data and code, how you would export if you left, and what happens if the vendor changes pricing or closes.