The ROI of Custom Software vs Off-the-Shelf Solutions

One of the most critical decisions a modern business makes is deciding between buying off-the-shelf software (SaaS) or building a custom solution. The wrong choice can bleed your budget dry or stifle your growth.

The Case for Buying (SaaS)

For commodity problems, **always buy**. If your problem is a solved problem—like accounting (QuickBooks), CRM (HubSpot), or email (Gmail)—building your own is a waste of resources.

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The Case for Building (Custom)

Build software when it touches your **core differentiator**. If a piece of software gives you a competitive advantage, you shouldn't rely on a tool that your competitors can also buy.

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Calculating the ROI

The ROI of custom software isn't just about cost savings; it's about **opportunity creation**.

2. **Revenue Growth:** A custom customer portal might increase retention by 10% or upsells by 15%.

3. **Risk Reduction:** Owning your data and platform reduces the risk of a SaaS vendor changing pricing or shutting down.

Our Recommendation

**Buy** for the back office (HR, Accounting, Generic CRM).

**Build** for the front office (Customer Experience, Core Product, Proprietary Workflows).

If the software *is* the business, or directly powers the unique value you deliver to customers, custom is usually the right path for long-term growth.