The discussion this time is quite classic, like an endless debate. Buy or Build Software? What will you choose if you get new money from investors or earn more revenue from a product or service? In this discussion, we will provide tips based on the situation you are experiencing as a business owner.
At the beginning of the discussion, we will discuss the problems faced in the industry and the interests currently developing to get the first reinforcing factor why you should Buy or Build Software.
Problem Facing Industry on Buy vs. Build Software
In the case of most small and medium-sized businesses, things are relatively straightforward: rushing to get things done. It becomes increasingly complex as decisions as the business size grows and increases in complexity.
Some businesses need a customized solution; most require a solution that can handle the maximum number of use cases to support blazing business speeds. Companies with a lot of resources may find it more efficient to build software solution, but is it better than buying in the end?
Today, many SaaS (Software as a Service) solutions are available to help businesses create the most suitable Software. SaaS providers are part of the subscription economy, which benefits businesses as they make an up-front payment to receive Software, support, maintenance, and all other necessary future upgrades.
Currently, the SaaS market is booming, especially in the United States. Based on google trends, a brand called Smartsheet has been successful in booming, with search interest increasing by more than 4500% in 3 months.
However, some companies may still avoid buying software solutions from SaaS providers due to many considerations and misunderstandings. SaaS provides an attractive alternative to building your own Software in a business environment. With SaaS, companies are authorized to order and use Software according to a predetermined period with a subscription fee.
Do you need clarification on having to buy or make? Pay attention to other factors.
Considerations When Buying Software
There are scenarios where building a solution is more appropriate than purchasing it. These scenarios include when the problem is closely tied to the core value proposition when there is potential for reselling the in-house solution when existing commercial products are not specific enough, and after thoroughly researching the market. However, building a solution still involves risks and should be carefully considered before proceeding.
When Deciding If You Should Build Software
Many businesses prefer to have custom-made solutions to address specific problems. Entrepreneurs with a long-term approach also prefer digital solutions that are highly customizable. This type of solution is ideal for the following:
- Need to tackle specific issues.
- Gain an edge over competitors.
- Growth plan.
- Handle sensitive information.
- Retain complete ownership of the product.
- Integrate it with other solutions.
- Implement new ideas.
Ask Yourself to Determine Whether to Build vs. Buy
When deciding to build vs. buy, here are some questions to think about:
- Does your company have the necessary internal expertise to handle the development of a solution, including its maintenance and support as it grows?
- Can you spare your engineers and developers from working on the main product?
- How will the organization sustain the Software in the long term? Will more resources be required, or will the workload for existing teams have to increase?
- What is the estimated timeline for designing, building, testing, and integrating the system into your existing product and workflow process?
- What is the extent of the problem that you are trying to solve?
- Is this an issue only your company faces, or is it a common problem for which a software solution already exists?
- How essential is the Software to the core operation of your business?
- Does the Software play a significant role in attracting paying customers? Can you develop a competitive advantage around it?
Should You Buy or Build Software?
This article aims to provide insight into the “buy vs. build” debate regarding software solutions. Organizations should initially search for commercially available software solutions to address their problem. Still, the building may be a better option if a suitable solution cannot be found or if the answer is central to their core product.
The ultimate decision should be based on the specific needs and circumstances of the company. If you want to discuss whether the buy or build route is appropriate for your situation, we invite you to schedule a free consultation.