Off-the-shelf SaaS or custom software? A practical framework for deciding
Not every need calls for custom development, and not every process fits a ready-made product. Four questions that draw the line.
Custom software makes sense for the processes that give you a competitive edge. For work everyone does the same way, an off-the-shelf SaaS product is both faster and cheaper. The trouble is that telling the two apart is harder than it looks.
Does this process set you apart from competitors?
If it does, the investment in customisation pays off. If it doesn’t, adapting a standard solution to your processes almost always has a lower total cost.
How fast does it change?
Where regulations or the business model change often, a SaaS model in which the provider takes care of updates significantly reduces the operational load.
Where will the data live?
Data ownership, export options and integration interfaces get expensive later if they aren’t settled at the contract stage. Work out the cost of leaving a product from the start.