Buying vs Building Software Solutions
To build or not to build….how do we know when to buy software vs build software?
Digital transformation is driving companies into a new era. Consistent and accurate communication across all company channels is no longer a desire but a need. When deciding whether to buy or build software, there are a few factors to consider.
Let’s look at the 4 C’s: Control, Customizability, Capabilities, and Cost.
Buying
Control & Customizability
There are pros and cons for control and customizability when purchasing off-the-shelf software. Buying software takes a lot of research and evaluation of different platforms, but if executed properly, it is easy to select software that will complement the needs of your business. However, it will never be a 100% fit. Buying software means a limited scope of customization. Companies may find themselves having to trade-off or prioritize certain features over others to find their best SaaS match. With minimal control over what features vendors choose to improve or introduce along the way, companies who buy software cannot prioritize what features they need to improve. Granted, these software platforms still offer access to new features and tools since external software vendors are regularly upgrading their systems. But, if your company doesn’t need (or want) a ton of bells and whistles, buying software may be the best fit.
Capabilities
One issue with purchasing software is that it may not be compatible with other software in your stack. As a result, many companies will find themselves hiring a third party to integrate the software into their pre-existing systems. Another downside is that buying software won’t set you apart from competitors. Companies that opt to purchase pre-existing software will often find themselves with the same tools and features as those around them, acting as a missed opportunity for competitive advantage.
Cost
Many SaaS vendors offer their services through a subscription fee. All the support and maintenance needed will be included in one cost and can usually be found at pretty reasonable prices. Subscriptions save your company both money and effort towards additional support and maintenance. Another benefit is that off-the-shelf software can be implemented very quickly, and depending on the complexity of the requirements, many companies have full use after just a few weeks.
Building
Control & Customizability
The most considerable benefit to building software for your company is access to 100% control and customizability. The ability to develop features that are specific to your business is appealing to many as companies may find buying software off the shelf doesn’t fulfill their company’s unique business needs. Another advantage is that custom-built software can match your company’s growth. Complete control and customizability will allow the software to grow and adapt alongside your business. There is no relying on external updates or trying to fit your company into a specific subscription box. If, along the way, you find the software lacks a feature that your company needs, you can prioritize adding that feature. However, if your company does not have unique or complex software needs, the benefits of control and customizability may be overwhelming.
Capabilities
Here’s the beauty of building software: your capabilities can be anything you’d like. You can develop and integrate your software seamlessly into existing systems and add (or remove) specific features that highlight services only your company offers in the marketplace. With this, your company grabs a competitive advantage that will place you and your capabilities above others in the market.
Cost
Building software is no small feat. Which usually translates into costing a lot of money. Building unique software systems can become quite costly. There will be costs for initial building, ongoing maintenance and support, bug fixes, upgrades, etc., which can add up quite quickly, and once you’re in the process, there is not much option but to finish the work.
Then there is the time cost. There will need to be an internal team lead to evaluate company needs and convey decisions to those building the software. Assigning (or, in some cases, explicitly hiring) a point person may take valuable resources away from other core tasks. As well, the process of building software from start to finish takes time. There will be multiple versions created and tweaks made along the way to ensure it is exactly what your company needs, but this can take a while, meaning that time to implementation can be stretched over months (however, many companies find the time put in upfront pays off in the long run).
Making the Decision
Deciding whether to buy or build your software depends on your company’s needs, and it is important to understand there will be trade-offs for both options. Choosing to buy software when you’d be better off building you may miss out on value that pushes your company forward and beyond competition. On the other hand, choosing to build when you’d be better off buying can cost your company a lot of time and money. Many businesses face the question of ‘to buying or build?’ (or doing it at all) but in the end, the answer doesn’t come down to just evaluating Control, Customizability, Capabilities, and Cost; it also involves looking at effectiveness, efficiency, and your company’s goals.
Be sure to research and evaluate all possible options before making a decision, or give our team a call. We would be happy to answer any questions you may have about building or buying software!
