Build vs buy software decisions depend mostly on the process being supported. Buy when the process is standard and a product fits most requirements; build when the process differentiates the business or integration is complex. Compare both on five year total cost of ownership, including exit costs.
White paper · Technology decisions
Build or Buy: A Decision Framework for Custom Software and SaaS
Key findings
What this paper shows
Process first, technology second
The strongest predictor of the right choice is whether the process is standard or differentiating.
Compare five years, not year one
License growth, workarounds, maintenance and exit costs only appear over a multi year view.
Hybrid is often best
Buying the standard core and building extensions and integrations through supported APIs combines speed with fit.
Exit is part of the price
Data portability and switching costs belong in the decision. EU rules on switching cloud providers have applied since September 12, 2025.
Prove before committing
A proof of concept, pilot or MVP tests the riskiest assumption before the large spend.
Executive summary
The summary
Few technology decisions shape cost and capability for longer than the choice to build or buy. Get it wrong one way and the business bends its processes around a product that does not fit, paying for workarounds and licenses that grow every year. Get it wrong the other way and it spends heavily to rebuild something the market already sells.
The right answer depends less on technology than on the process being supported. Where a process is standard, buying is usually faster and cheaper. Where it differentiates the business, involves complex integration or must scale in ways licensing punishes, building often wins. Many of the best outcomes combine the two: buy the standard core, build what makes the business different.
This paper sets out the criteria for each path, a five year total cost of ownership model that puts both options on the same footing, a weighted scorecard and a seven step decision process that ends in a small proof before a large commitment.
Who this is for
Executives, product leaders, CIOs and finance leaders deciding whether to develop software, buy a packaged product or combine the two.
Inside the paper
- When to buy, when to build
- Total cost of ownership over five years
- A weighted scorecard
- A seven step decision process
- Common mistakes
- Decision checklist
- How Inventh can help
- Sources
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