Build, Buy, or Both: Making the Right Technology Decision

The False Binary

"Should we build or buy?" is the wrong question. Most successful implementations involve elements of both—custom logic layered on standard platforms, or SaaS tools integrated with bespoke workflows.

The real question is: "What should we build, what should we buy, and how should they work together?"

When to Build

Custom development makes sense when:

Your Process Is Your Advantage

If the way you do something is genuinely differentiated and creates competitive advantage, protecting that through custom software may be worthwhile.

Nothing Exists That Fits

Sometimes the market simply hasn't caught up with your needs. This is increasingly rare but still happens, especially in specialized industries.

Integration Is the Core Value

When the value comes from connecting multiple systems in novel ways, custom integration logic may be unavoidable.

You Have the Capacity

Building requires:

Development talent (in-house or contracted)
Ongoing maintenance budget
Product management capability
Willingness to iterate over time

When to Buy

Off-the-shelf solutions make sense when:

The Problem Is Well-Understood

Solved problems have mature solutions. Payroll, accounting, CRM—these are commodity capabilities that don't need reinvention.

Time to Value Matters

SaaS solutions are typically faster to deploy. If speed matters more than customization, buying wins.

You Want to Outsource Complexity

Keeping up with security patches, compliance requirements, and infrastructure management is someone else's problem when you buy.

The Vendor Ecosystem Is Strong

Mature vendors have integrations, training, support, and communities that multiply the value of the core product.

The Build-Buy Spectrum

Instead of binary choices, think about where on this spectrum each capability falls:

Pure SaaS - Use as configured, minimal customization
Configured SaaS - Significant configuration, no code changes
Extended SaaS - Custom code on SaaS platform (Salesforce apps, Shopify plugins)
Integrated Components - Multiple SaaS products connected with custom logic
Custom on Framework - Custom application using open-source frameworks
Fully Custom - Purpose-built from scratch

Most organizations need capabilities across this spectrum.

The Decision Framework

For each capability, evaluate:

Strategic Importance

How central is this to your competitive advantage?

Core differentiator: Consider building
Necessary but not differentiating: Consider buying
Nice to have: Consider buying or skipping

Market Maturity

How well does the market serve this need?

Many mature options: Strong buy signal
Emerging options: Evaluate carefully
No real options: Build or wait

Change Velocity

How often will requirements change?

Stable requirements: Buy (vendors handle updates)
Rapidly changing: Build (more control over roadmap)

Integration Complexity

How does this connect to other systems?

Standalone: Buy (simpler to implement)
Deeply integrated: Consider build (more control over interfaces)

Common Mistakes

Building What You Should Buy

Custom-building commodity capabilities (authentication, payment processing, email) is rarely worthwhile. The maintenance burden alone exceeds SaaS costs.

Buying What You Should Build

Forcing processes into ill-fitting SaaS tools creates workarounds, frustration, and hidden costs.

Underestimating Integration

Both building and buying require integration work. This is often the hardest and most underestimated part.

Ignoring Total Cost

Building has ongoing maintenance costs. Buying has subscription fees that compound. Calculate both over 3-5 years.

Need help evaluating build vs. buy for a specific capability? Try our Build vs. Buy Worksheet or schedule a conversation.