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Custom Software By Updated: 6 min read

Build vs buy: how to decide

Every business hits this question eventually: subscribe to an off-the-shelf tool, or have something built to fit? Both camps have loud advocates. The honest answer depends on four things you can actually measure.

The four questions that decide it

Strip away the vendor pitches and the decision comes down to fit, total cost, lock-in, and differentiation:

  • Fit: how much of your process does the tool cover as-is? If a standard tool covers 90 percent and the rest is cosmetic, buy it. If it covers 60 percent and your team fills the gap with spreadsheets and retyping, you are not buying a tool, you are buying a workaround factory.
  • Total cost over five years, not year one. A subscription looks cheap next to a build quote, until you add five years of per-seat fees, paid add-ons, and the hours spent working around the missing 40 percent. Custom software is a larger number once and a smaller number forever; our builds start at EUR 12,900 with maintenance from a fixed monthly fee.
  • Lock-in: what does leaving cost? With bought tools, ask how you get your data out and what happens when the price doubles. With custom software, ask who else could maintain it. Good answers exist on both sides; the mistake is not asking.
  • Differentiation: is this process how you win? Nobody wins deals because of their accounting software. Buy the commodity. But if your quoting speed, scheduling, or customer experience is why clients choose you, renting the same tool as your competitors caps your edge at theirs.

The hybrid path most SMEs actually take

In practice the best answer is rarely pure. The pattern we see work: buy the commodity layers, connect them, and build the one thin piece where your business is different. A bought CRM plus a custom quoting engine that feeds it often beats both a bloated all-in-one suite and a fully custom platform. If the categories themselves are still blurry, website, web app or custom software sorts them out, and what custom software costs puts numbers on the build side of the comparison.

Key takeaways

  • Compare five-year totals including workaround hours, not the licence price against the build quote.
  • Buy commodity processes; build only where your way of working wins you business.
  • Below roughly 80 percent fit, an off-the-shelf tool quietly becomes a workaround factory.
  • The hybrid answer, bought tools plus one custom piece, beats both extremes for most SMEs.
  • Revisit the decision when headcount or subscription costs change materially.

Practical advice

Make the comparison concrete before deciding. List your current tools and their annual cost, then estimate the weekly hours your team spends on the gaps between them. Price the buy option over five years at your expected headcount. For the build option, get a fixed-scope proposal rather than a vague day rate, and check what ongoing maintenance costs so year two holds no surprises.

If you want a second opinion on the numbers, that is a normal use of our free discovery call. We build software for a living and still tell people to buy when buying is right; it happens more often than you would think.

FAQ

Build vs buy, answered.

Is buying always cheaper than building?
In year one, almost always. Over five years, often not. Subscriptions scale with seats and usage, and the manual work around a poorly fitting tool is a hidden salary line. Compare total five-year cost, including the hours your team spends working around the tool, not just the licence price.
What is the risk of building custom software?
The classic risks are vague scope, a builder who disappears, and a system nobody maintains. All three are manageable: fix scope in writing before work starts, choose a partner with a maintenance offering, and name an internal owner. The risk of buying is quieter but real too: lock-in, price rises, and a workflow bent around someone else's product.
Can I combine buying and building?
That is what most sensible SMEs end up doing. Buy the commodity layers like accounting, email, and payroll, and build only the thin layer where your business is genuinely different. Integrations between bought tools and one custom piece often beat both extremes.
When should I revisit a build vs buy decision?
Whenever the subscription bill or the workaround hours change materially, typically every year or two. A buy decision made at five employees is not automatically right at twenty-five. Treat it as a recurring check, not a one-time verdict.

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