Most organizations rely on technology to support a wide range of business functions. Whether it’s managing order processes, streamlining shipping and logistics, or coordinating their finances, without the right technology solutions, it would be hard to get things done effectively.
However, at some point, as your business continues to grow, you may eventually need to make an important decision: to continue purchasing third-party tools or build your own software solution.
Unfortunately, there’s no right or wrong answer here since there are a number of variables you’ll want to consider, including the advantages and disadvantages of starting your own in-house project.
Advantages of Building In-House
Starting your own in-house software design project can be incredibly rewarding for the business. Below are some of the advantages that going this route can bring:
Full Creative Control
One of the challenges that businesses face when relying solely on third-party solutions is that they’re limited to one degree or another. Very few off-the-shelf products have all the necessary elements businesses might want to have to streamline their processes or simplify workloads for their employees.
Unfortunately, the only way around this is to either sacrifice certain wants and needs or invest in multiple solutions at once. This can present its own challenges of having to manage disparate platforms while trying to keep costs under control.
Custom build projects are completely different. You, as a business, get to call the shots on what types of features you want and make sure that every element gets built so that you can extract full value from the solution. It’s much like starting a home renovation project. Instead of sticking with outdated features or layouts that no longer make sense, you can decide exactly how the platform looks and functions.
Unique Knowledge of Your Business Needs
While many SaaS platforms have a lot of skills and expertise to offer in various industries, none of them will ever truly understand your business the way that you do. This is why when you conduct your own technology development project, you’re likely to have much better alignment with developers and be more satisfied with the final product.
The reason for this is that your own teams are much more knowledgeable about the types of challenges your business currently faces. This may include battling with too many systems and databases that don’t have useful integrations, or maybe isolated teams that need a better solution when staying connected and collaborating on projects.
Developing software in-house means you can address these important issues head-on while introducing features that actually provide a lot of value to your teams.
Better Long-Term ROI
Subscription services may be convenient, but they’re also a recurring operational expense that may or may not work well for your business long-term. In this case, you’re essentially renting a platform that will never become a company asset that helps you see tangible ROI long-term.
However, when you develop your own solution, you’re creating a highly unique and proprietary company asset that stays with you as you scale. While this may require a larger upfront investment than subscription services, it also means that you’ll get much higher long-term value as these costs will pay for themselves and more over time.
The Challenges of Building In-House
Although there are many advantages of building software in-house, there are also certain disadvantages worth noting before you decide if it’s right for you.
Additional Time and Resources
If you’ve ever started a home renovation project, you already know that while you might have a good plan in place, rarely do things go as smoothly as you’d like. This is the same with custom software development projects. It’s easy to underestimate the total financial resources and time commitment necessary before you’re able to get a finished product.
It’s also important to keep in mind that while a development project can take several weeks or months to complete, you still won’t have access to a functional tool. This means you may also need to account for the additional expense of using temporary tools and solutions before you’re able to transition over to your own platform.
Additional Hiring and Management Requirements
One of the biggest challenges you’ll run into when deciding to build your own custom solutions is who will manage the project. If you don’t already have an in-house design team, then you’ll need to factor in two different options: hiring additional employees or outsourcing the work.
Hiring dedicated software developers and project managers will likely be a considerable investment on its own. These specialist employees often require much higher salaries than entry-level staff, and you’ll need to know how to vet their qualifications effectively. You’ll also need to consider the additional resources required to train and manage this staff in the long term.
While outsourcing development work to external teams may be a more straightforward solution, it also presents its challenges to consider. These outside teams won’t have the same intimate knowledge of your business as internal teams do, and you may find it harder to coordinate schedules between key stakeholders and outsourced teams to keep on track of projects and discuss necessary timelines.
You Are Responsible for Everything
When you decide to build your own solution, it means you’re responsible for how it functions and maintaining it over time. Most software requires ongoing maintenance to ensure it functions properly, especially when relying on integrations from other sources.
This is a permanent commitment on behalf of your company and can come with certain risks if you decide to take on your own project. This is why it’s crucial to consider whether you’re ready and willing to support the platform long-term.
Make the Right Investment for Your Business
Ultimately, deciding between buying or building your own custom software will come down to the size of your business, the extent of your budget, and the time and resources you’re able to put in. By weighing both the advantages and disadvantages of a custom design project, you’ll make sure you’re getting the right return on your investment while setting your business up for long-term success.
Author Information
Author Name: Dalip Jaggi
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