You’re at a crossroads…

Option 1: Purchase off-the-shelf software that promises quick time to value. This option is tempting – to have a solution up and running fast, with relatively low upfront costs. But you wonder, will it truly fit your unique workflows? You’re concerned about being locked into a system that’s almost right, but not quite.

Option 2: Invest in custom-built software tailored to your specific needs and workflows. This path offers a ‘perfect fit’ – aligning exactly with your business needs and potentially providing a competitive advantage. But, you’re aware of the longer timelines and higher upfront costs of custom development. Plus, development is risky, how do you know the investment will truly pay off?

This choice isn’t just about software – it’s about something bigger. Your organization’s strategy and long-term goals. The decision to build or buy will significantly impact your operations, productivity, and long-term profitability.

In this two-part series, we’re breaking down the decision-making process with insights into each path’s pros and cons. Part 1 (what you’re reading now) will focus on the nuances of custom software development. In Part 2, we’ll shift gears to provide you with the ultimate guide to buying software, including a downloadable template to assist in selecting if you decide to go the off-the-shelf route.

We know what you’re thinking: a Build vs. Buy resource from a custom software development firm…what’s the catch? The truth is, there isn’t one. Contrary to a typical software development firm, we’ve actually advised clients against building before. Where typical firms are obsessed with flashy new products, we’re obsessed with our client’s growth. Sometimes, new products aren’t what’s necessary to get them there, in fact – building without being ready can hurt more than it can help.

Whether you’re weighing costs, evaluating time to market, or strategizing for long-term impact, we’ll help you understand when to build, when to buy, and how to align your technology investments with your business goals.

Build vs. Buy Factors

There are a few main factors to consider when making the decision to buy off-the-shelf products or build new:

Costs
Control & Flexibility
Scalability
Efficiency & Security

Costs: Immediate vs. Long-Term Value

Starting with one of the main considerations for buying existing software-as-a-service (SaaS) solutions, we need to acknowledge the elephant in the room – off-the-shelf software usually comes at a much lower price. Buying a product is often seen as a cost-effective solution, while building is considered more of an investment for a company.

When it comes to costs, both custom and off-the-shelf solutions have their own financial considerations:

Upfront Costs

Off-the-shelf software generally has lower initial costs, making it an attractive option for businesses with budget constraints or immediate needs.
Custom solutions typically require a larger upfront investment but offer tailored functionality.

Ongoing Expenses

Off-the-shelf solutions often have recurring costs for licenses, renewals, and user counts. These can add up over time, but they’re usually predictable.
Custom software may have lower ongoing costs but might require periodic updates or maintenance.

Return on Investment (ROI)

Off-the-shelf software can provide quick ROI for standard business processes.
Custom solutions, while more expensive initially, can offer significant long-term value through improved efficiency and alignment with specific business needs.

The easiest way to approach this decision is: If you need something quickly, and an off-the-shelf software’s capabilities solve the immediate needs within your business, buying may make sense given the immediate value.

While we acknowledge custom solutions aren’t usually the cheapest option in the software market, the greatest asset they bring to growing organizations is certainly a valuable and unique competitive edge.

At Frogslayer, our goal is to help clients find the solution that provides the best value, whether that’s through custom development or smart implementation of existing solutions.

Control and Flexibility: Balancing Convenience and Customization

When considering software solutions, it’s crucial to understand how different options might impact your ability to control and adapt the system to your needs. Both off-the-shelf and custom solutions offer varying degrees of control and flexibility, each with its own set of trade-offs:

Functionality

Off-the-shelf software offers a wide range of features that work for many businesses out of the box. This can be ideal for standard processes.
Custom software allows you to build exactly what you need, which can be crucial for unique or complex business processes.

Adaptability

Off-the-shelf solutions update based on the vendor’s roadmap, which can bring new features but may not align perfectly with your needs.
Custom software gives you control over the development roadmap, allowing for adaptations as your business evolves.

Integration

Many off-the-shelf solutions offer integration capabilities, though they may be limited.
Custom software can be designed to integrate seamlessly with your existing systems, potentially offering a more comprehensive data flow.

Scalability: Growing with Your Business Needs

While control and flexibility are crucial, the ability of your software to grow with your business is equally important. After all, if software is supposed to enable growth, it’s important you consider its scalability when making your decision.

Both custom and off-the-shelf solutions can support business growth, but in different ways:

Scalability

Quality off-the-shelf solutions are often designed to scale, allowing you to add users or modules as you grow.
Custom software can be built with your specific growth trajectory in mind, potentially offering more tailored scalability.

Feature Development

Off-the-shelf software evolves based on market trends and user feedback, which can bring innovative features to your business.
Custom software allows for the development of unique features that could provide a competitive edge.

The primary ‘con’ we see with off-the-shelf solutions is the mindset that software is somehow static. At Frogslayer, we don’t see products as ‘finished,’ because they never really are. In contrast, custom solutions aren’t only based on the required features that need to be created, but they’re also built – and grown – to support and improve existing workflows.

Product Strategy

Efficiency and Security: Meeting Your Specific Needs

When evaluating software solutions, efficiency, and security are critical factors to consider. Both off-the-shelf and custom solutions offer different approaches to these crucial aspects:

Workflow Alignment

Off-the-shelf software often requires adjusting your workflows but can introduce best practices.
Custom software can be designed to match your exact processes, potentially increasing efficiency.

Security

Reputable off-the-shelf solutions typically have robust security measures in place and benefit from widespread testing.
Custom software allows for security measures tailored to your specific risk profile and compliance needs.

It’s worth noting that both types of solutions have their own security considerations. While off-the-shelf software benefits from widespread testing, it may also be a more common target for attacks due to its larger user base. Custom software, while potentially less of a target, still requires mindful security practices throughout the development and maintenance process.

The In-House Option: Leveraging Internal Resources

When considering software solutions, many companies explore the possibility of building in-house. This approach can offer unique advantages but also comes with its own set of challenges. Let’s examine the key considerations:

Resource Availability and Expertise

Two primary factors to consider are:

IT Team Capacity: Most IT departments already manage a full plate of responsibilities. Adding a major software development project can be a significant undertaking.
Specialized Skills: Custom software development often requires expertise in areas like software architecture, UX/UI design, specific programming languages, and project management. Your IT team may need additional training or support to successfully execute a custom software project.

With the number of time and resources you’ll need to devote to build internally, you need to be absolutely certain that investment is going to produce results.

Making the Decision

Choosing between custom and off-the-shelf software isn’t always straightforward. It depends on various factors, including your business needs, resources, timeline, and long-term strategy.

TL;DR

Consider off-the-shelf software when:

You need a solution quickly
Your processes align well with industry standards
You have budget constraints
You need widely-used features and don’t require unique functionality

Consider custom software when:

You have unique business processes that off-the-shelf solutions can’t adequately address
You need deep integration with existing systems
You want full control over the features and development roadmap
You’re looking for a long-term solution that can evolve with your business

What’s Next?

If you think an off-the-shelf solution is the best fit for your business at this time, we recommend checking out Part 2 of this blog series, our Ultimate Guide to Buying Software. This guide will include a downloadable template for comparing off-the-shelf software options.

We understand that for many organizations, the decision isn’t always straightforward. When you factor in user experience, integrations with multiple systems, ongoing projects, current features, stakeholders’ attitudes towards change, and more…the picture becomes significantly more complex.

For decisions that go beyond these basics, organizations might need a more comprehensive approach. At Frogslayer, we’ve developed a unique approach that helps businesses understand the long-term implications of their situation while gaining a deep understanding of their current state.

What is a Comprehensive System Evaluation?

Resources for Clients

Custom vs Off-the-Shelf Software: Frogslayer’s Build vs Buy Analysis