Contact us

When Can You Make Build or Buy Software Decision?

March 1, 2024 by
  • Custom Solutions
  • Software Development

Build or buy software decision? Some companies may face difficult choices and make even more complex and risky decisions when new software is needed. Decision makers in companies may be at a loss to decide whether to continue using off-the-shelf software solutions or to develop custom software solutions. A build or buy software decision is a difficult thing to make. In this post, Kapsys will help you make the build or buy decision, and we will explain when building your own software makes sense. Read Custom Software Vs. Off-the-Shelf Software

What Indeed Calls for Customization?

Suppose the software currently available in the market does not contain the features or services your company needs to reach the required business level. It makes sense to build custom software in-house or with a custom software development outsourced team.

The developers will have the room to integrate all the features and qualities needed for your company's customized software when they use the custom software. So, in this case, building your own makes sense. 

When Is the Cost of Ownership Lower?

Some off-the-shelf software solutions may require fees or monthly/yearly subscriptions. And when calculating the total cost over the long term, it may be more expensive than developing custom software for your company. So, in this case, it makes sense to build your own custom software, and you should mind your own business software.

So how to make a build or buy software decision? In some industries, off-the-shelf software solutions may require expansive annual fees and could run into thousands of dollars. In this case, you may pay a little more to customize a software solution for your company, but you will not have to pay it yearly; therefore, develop your own software less in the long run. It makes more sense to build the app themselves instead of buying an off-the-shelf app.

Are There Integrations Required with the Company's Current Systems?

When the available options do not integrate with the systems already in use in the company, you need to customize the software for your company. Mergers are one of the most critical factors companies must consider when making a build or buy software decision. Using software that does not integrate effectively with other tools your industry requires to work with will damage user experience and disrupt workflow, making it sense to develop your own software.

What Are the Security Needs of the Company and Software?

Security concerns about available commercial software are legitimate and common. Creating something customized to the exact specifications required is safer as it gives you the necessary control over primary factors such as access control if you are running a high-security risk organization. If your company has a joint business with government entities, ministries, or embassies, data is highly confidential and highly dangerous. Or if your company is a government entity in its own right, a non-governmental organization. Or a highly targeted position by hackers and other cybercriminals, it is not recommended at all to use ready-made programs, no matter how secure they are. Thus, it makes sense to build and develop your own software; this is the time to mind your own business software.

Is Brand Identity a Concern?

Having software specially developed according to the organization's exact needs makes it easy to integrate the brand identity into the user interface. In addition, some commercial off-the-shelf software does not give its users the privilege to customize user interface colors, icons, and other features. Suppose that the brand identity and design are not in line with the user interface in the ready-made software. In this case, you'll spend a lot of money on the design, but you won't get what you want. See Benefits of Small Business Custom Software Development In addition, you may be similar to competitors in your industry because you use the same ready-made software design. By doing so, you have lost the element of distinction that puts you ahead of your competitor. Therefore, it makes sense to develop your own software, and a build or buy software decision may be made already.

Is the Developer of the Software a Competitor?

What if your competitor is a software developer? In this case, your competitor will choose to build their own custom software, especially when the software requires a profit.  Most prominent tech companies custom-build the tools they use in their daily tasks. They can't trust those built by their competitors. This is due to the possibility of exposing their company to the risk of losing its competitive advantage. For example, if Facebook (or Meta) wanted a tool for working and meeting remotely, they probably wouldn't turn to Google Meet because Google is one of their main competitors. Thus, they will need to create their own custom software. Or at least they'll go for one that doesn't compete with them. So, it makes sense to make your build or buy decision. It would be best to develop your own custom software to overwork your competitors. 

When Can You Make Build or Buy Software Decision: Conclusion

It would help if you took the time to consider the customized software's pros and cons. Custom software may have many advantages for businesses, but you must be sure that your business requires custom software. If your requirements are not many, off-the-shelf software solutions will meet your needs; perhaps it will be the perfect solution. Kapsys can help you to know how to create your own software and explain when building your software makes sense. Contact us if you can't make the build or buy software decision.