Illustrative decision study

Engineering

Custom software or SaaS: when should a business build?

Start with the workflow that needs to change, then compare the cost of fitting and building.

Name the workflow first

A request to build software often starts with a tool in mind. Write down the work the team needs to do, the users involved, and the parts that existing products handle poorly.

Compare the full cost

A subscription can be quicker to adopt and easier to maintain, but may require compromises or integrations. Custom software can match a distinctive workflow, while bringing ongoing responsibility for security, hosting, updates, support, and future changes.

Check the fit before building

Compare configuration options, integration needs, data ownership, implementation time, and the cost of changing course. If an existing product covers most of the work, a smaller integration may be enough.

Build when the difference matters

Custom development is easier to justify when the workflow is central to the business, meaningfully different from standard practice, and valuable enough to support for years. Treat the decision as an operating choice, not a badge of ambition.

Back to all Field Notes