Custom Software vs Off-the-Shelf: Which Is Right?
The "build vs buy" decision is one of the most expensive choices you'll make. Here's how to get it right.
The decision paralysis is real
A framework for the decision
Neither option is universally better. The right choice depends on your specific situation, competitive landscape, and growth trajectory.
Choose Off-the-Shelf When
Your workflow is standard, time-to-value matters most, you're not trying to differentiate on this capability, budget is constrained.
Choose Custom When
The capability is core to your competitive advantage, existing tools require painful workarounds, you need deep integration with other systems.
Consider Hybrid
Off-the-shelf for commoditized functions (email, CRM basics), custom for differentiated capabilities.
Questions to Ask
What's the total cost of ownership? How much will we bend our process to fit the tool? What's the switching cost if this doesn't work?
They actually talked us out of custom development for one project. Said off-the-shelf would work. That honesty is why we came back for the project that really needed custom.
Common Questions
Everything you need to know before moving forward.
Isn't custom development always more expensive?+
Not necessarily. Off-the-shelf tools have licensing fees, customization costs, and workflow inefficiencies. Over 3-5 years, custom can be cheaper for the right use cases.
What about maintenance?+
Both require maintenance. Off-the-shelf: vendor upgrades that break customizations. Custom: your team maintains code. Neither is "free" long-term.
Can we start with off-the-shelf and switch to custom later?+
Yes, and this is often the smart play. Validate the need with existing tools, then build custom once you've proven the value.
How do we know if a capability is "core to competitive advantage"?+
If competitors doing it better would hurt your business, it's core. If it's table stakes everyone needs, it's probably not.
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