Short answerBuy when the process is standard and the product covers almost everything you need. Build when the process is part of how you compete, when you pay for several tools and still work around them, or when you need to own the data and the roadmap. In practice most companies end up with a mix: standard products for standard work and custom software that connects them and covers what makes them different.
There are really three options
- Buy: use a product as it is. Fast and cheap at first, but you adapt to it.
- Configure: use a platform (CRM, ERP, low-code tool) and customise it heavily. Flexible up to a point; beyond that, expensive.
- Build: software designed for your process. Slower and dearer at first, but it fits and it's yours.
The questions that decide it
| Question | Points to buying | Points to building |
|---|---|---|
| Is the process standard in your industry? | Yes, everyone does it the same way | No, how you do it is an advantage |
| How much does a product cover? | Almost everything | Well under three quarters, with workarounds |
| How many tools are involved? | One | Several, joined by people |
| How do licences grow? | They stay low | Faster than the value |
| Do you need to control the roadmap? | No | Yes, it changes with your business |
| When do you need it? | Weeks | You can invest months |
What you don't see when buying
When a product covers only part of the process, people fill the gap with spreadsheets, copy and paste and memory. That time rarely appears in a budget, but it's paid every day. Before choosing a product, add up the hours spent working around it.
What you don't see when building
Custom software needs maintaining: security, dependency updates, hosting, bug fixes. And it needs someone who understands it. If a supplier builds it and disappears with the knowledge, you have a problem. Insist on documentation, repository access and a maintenance plan before starting.
The mixed option
Use products for the commodity parts (accounting, email, payroll). Build the layer that is only yours: the process that makes you competitive, the integrations between products, the internal tool that removes the spreadsheets. That way custom development goes where it pays off.
If a product fits, we'll tell you. It's cheaper for you and it's the honest answer.
Published: · Digrow Technologies