Buy vs. Build
Know whether to buy or build before you commit to either.
Building software got easier. Deciding whether to build did not. Score a build, a vendor, or a vendor plus the parts you would build yourself against the same requirements.
The question
Building got accessible. Evaluating it did not.
Your team can now build software that used to take a vendor. What nobody has is a way to judge that option. Is it right to build at all? How does a build compare with a vendor? And what about a vendor whose product covers most of what you need, when you could build the rest?
What nobody has a method for
Four questions without a method
Is it right to build?
Some needs are common enough that a vendor has solved them. Some are yours alone.
How does a build compare?
A build has no demo and no reference customers. It still has to be judged on the same requirements.
How much weight does it get?
Cost over time, time to value and upkeep count differently for a build than for a subscription.
What about the gaps?
A vendor that misses a few requirements may still be the answer if you can build what is missing.
The framework
One set of requirements. Every option scored against it.
Start with what the business needs, weighted by the people who own each need. Then score each option on the same scale: a vendor, a build, or a vendor plus what you would build yourself. Fit comes first. Cost over time, time to value, upkeep and risk decide between the options that fit.
Read how Zamil Group weighed custom-built software against off-the-shelf
- Fit
- How much of what you need does each option cover?
- Cost over time
- The subscription, against the build and what it takes to keep it running.
- Time to value
- When each option is in use, not when it is signed.
- Upkeep
- Who maintains it, and what happens when that person leaves.
- Risk
- What you depend on, and what it costs to change course.
Side by side
The vendor, the build, and the vendor plus what you would build
Put all three in one comparison. For each requirement a vendor misses, note whether you would build it. The result is a decision you can explain: which option covers what you need, and what each one leaves you to own.
For advisors
A build recommendation your client can trust
If you advise on the decision and could also do the building, your client will wonder whose interest the recommendation serves. When the build sat in the same evaluation as the vendors, scored on the same requirements, the recommendation stands on the scores.
Questions
Questions about build versus buy
When does it make sense to build software instead of buying it?
When the need is specific to how your business works and no vendor covers it well, and when you have people to maintain what you build. If a vendor covers most of it, compare buying it and building only the gap.
How do you compare a custom build with off-the-shelf software?
Score both against the same weighted requirements, then compare cost over time, time to value, upkeep and risk. A build that fits perfectly can still lose on upkeep.
Can you buy a product and build the missing parts?
Yes, and it is often the answer. Score the vendor on what it covers, list what you would build, and compare that combination with the other options.