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Custom software or ready-made SaaS? How to decide

Five questions that tell you when to build and when to buy.

  • By the Supervention team
  • 4 min read
In this article
  1. Is this a common job, or special to you?
  2. Does this software help you win customers?
  3. How well does a ready-made product really fit?
  4. What will each option cost over three years or more?
  5. How much control do you need?
  6. You can mix the two
  7. A quick guide
  8. Mistakes to avoid
  9. What to do next

Sooner or later every growing business needs software for a job, and has two choices: rent a ready-made product, or pay a team to build one. Both can be right. The mistake is choosing without asking the right questions first.

Two terms, in plain words. SaaS (software as a service) is software you rent by subscription and use in a browser or an app, such as online accounting, CRM (customer relationship management) or HR tools. Custom software is built for your business and your way of working. If your contract says so, you own it.

This article gives five questions. Answer them honestly and the right choice is usually clear. As a general rule, look at ready-made products first, and build only when they truly do not fit.

1. Is this a common job, or special to you?

Payroll, email, accounting and video calls are jobs that thousands of businesses do in much the same way. Building your own version of a common tool rarely makes sense. But if the job is special to you, such as how you price, schedule or deliver your service, a ready-made tool may force you into someone else's process.

2. Does this software help you win customers?

Ask whether the software is part of what makes your business different, or only part of running it. Software that supports the business is a good candidate for buying. Software that is your product, or a key part of your edge, is a good candidate for building, because you decide how it grows and no competitor can rent the same thing.

3. How well does a ready-made product really fit?

Test this before you decide.

  • List the ten steps that matter most in your daily work.

  • Try one or two products on a free trial, with real work and not demo data.

  • Count the steps that need a workaround, such as a side spreadsheet or copying data by hand between tools.

If a product covers most steps and the workarounds are small, buy it. If you would pay for the product and also pay people every week to patch its gaps, building may cost less in the end.

4. What will each option cost over three years or more?

A subscription looks small at first, but it repeats every month and often grows with the number of users. Custom software costs more at the start and also has running costs: hosting, updates, security fixes and support. Neither option is cheaper by default. Add up the real numbers for your case.

For SaaS, include the fee for every user, paid add-ons, setup, training, and the time your team loses on workarounds. For custom software, include the build, hosting, maintenance, and the time your own staff spend on it.

5. How much control do you need?

Ask these questions about any ready-made product before you commit:

  • Can I export all my data in a usable form?

  • What happens if the price rises, or the product changes or closes?

  • Can I get a change made when my business needs one?

  • Where is my customers' data stored, and who can see it?

With custom software you decide what changes and when. You also carry the duty to keep it secure and up to date, or to pay someone who does.

You can mix the two

You do not have to choose all or nothing. A common approach is to buy the standard tools and add a small piece of custom work where you need it: a link between two tools, a customer portal, or an automation that removes manual copying. This keeps the build small and puts it where it matters.

A quick guide

  • Buy when the job is common, a product fits most of your steps, and you can live with its limits.

  • Build when the software is part of your edge, no product fits, or workarounds cost you more than a build would.

  • Mix when most of the job is standard but one part is special to you.

Mistakes to avoid

  • Building because 'our business is different', without trying the ready-made options.

  • Buying a product and then paying to change it so much that you have custom software you do not own.

  • Forgetting that custom software needs care after launch.

  • Ignoring the exit: how you would leave if the product stopped working for you.

What to do next

If you are not sure which way to go, send us your requirement. We reply with a written proposal showing scope, timeline and quote, and it costs nothing until you agree. You can lay it next to the ready-made options and compare. If we build it, you own the code, the accounts and the documentation.

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