Build vs. Buy vs. Integrate: Making the Right Application Decision

When you need new functionality, should you build a custom application, buy a commercial product, or integrate existing tools? A decision framework for SMEs.

The Three Options

Option 1: Buy (Commercial Software / SaaS)

What: Purchase a ready-made application from a vendor.

Advantages:

• Fastest time to value (days to weeks)
• Proven functionality used by thousands of customers
• Vendor handles maintenance, updates, and security
• Predictable subscription costs
• Built-in best practices and compliance features
• Community support and training resources

Disadvantages:

• May not perfectly fit your unique processes
• Ongoing subscription costs (may exceed custom long-term)
• Vendor dependency for features and roadmap
• Limited customisation options
• Data portability concerns
• Feature bloat — paying for unused features

Option 2: Build (Custom Development)

What: Develop a bespoke application tailored to your exact requirements.

Advantages:

• Perfect fit for your unique business processes
• Full control over features and roadmap
• No vendor dependency
• Can become a competitive differentiator
• No per-user licensing costs
• Intellectual property ownership

Disadvantages:

• Highest upfront cost (₹5-50 lakh+ for SMEs)
• Longest time to value (months to years)
• Requires ongoing development and maintenance team
• You're responsible for security, performance, and updates
• Risk of scope creep and budget overruns
• Technical debt accumulates over time

Option 3: Integrate (Connect Existing Tools)

What: Use integration platforms to connect existing applications and fill functionality gaps.

Advantages:

• Leverages existing investments
• Often the fastest and cheapest solution
• No new application to learn or manage
• Can be implemented with no-code tools
• Flexible and adjustable

Disadvantages:

• Limited by the capabilities of existing applications
• Integration maintenance overhead
• May create complex dependencies
• Workaround feel — not a purpose-built solution
• Performance limitations for complex workflows

Decision Framework

Factor 1: Strategic Differentiation

Question: Does this functionality provide competitive advantage?

• High differentiation → BUILD: Your unique process deserves unique software
• Low differentiation → BUY: Standard business processes use standard tools
• No differentiation → INTEGRATE: Connect what you have

Factor 2: Market Availability

Question: Do quality commercial options exist?

• No good options → BUILD: No choice but custom
• Several good options → BUY: Leverage vendor investment
• Partial fit with existing tools → INTEGRATE: Fill the gap

Factor 3: Budget and Timeline

Question: What can you afford, and when do you need it?

• Large budget, flexible timeline → BUILD is an option
• Moderate budget, medium timeline → BUY is likely best
• Limited budget, immediate need → INTEGRATE for quick wins

Factor 4: Technical Capability

Question: Do you have or can you hire development talent?

• Strong in-house team → BUILD is feasible
• Moderate capability → BUY and customise
• Limited technical resources → INTEGRATE with no-code tools

Factor 5: Maintenance Commitment

Question: Can you sustain long-term application ownership?

• Yes, committed team → BUILD is sustainable
• Prefer vendor management → BUY for lower overhead
• Minimal ongoing resources → INTEGRATE for simplicity

Decision Matrix

| Factor | Build | Buy | Integrate | |--------|-------|-----|-----------| | Time to Value | Months | Days-Weeks | Days | | Upfront Cost | High | Low-Medium | Low | | Ongoing Cost | Medium (dev team) | Medium (subscription) | Low | | Customisation | Unlimited | Limited | Limited by existing | | Maintenance Burden | High (you own it) | Low (vendor) | Medium | | Best For | Unique processes | Standard functions | Quick gaps |

Hybrid Approaches

Buy and Customise

Purchase a commercial platform that supports extensive customisation:

• Low-code platforms (Mendix, OutSystems, Appian)
• Highly configurable SaaS (Salesforce, ServiceNow)
• Open-source with custom extensions (Odoo, ERPNext)

Best for: Processes that are 70-80% standard with unique elements

Buy and Integrate

Purchase best-of-breed tools and connect them:

• Use an integration platform (Zapier, Make, n8n) to link tools
• Build custom API integrations for complex flows
• Create unified dashboards across multiple tools

Best for: Organisations with diverse needs and no single platform fit

Build on a Platform

Build custom applications on cloud platforms:

• Google AppSheet or Retool for internal tools
• AWS/Azure/GCP for scalable custom applications
• Airtable or Notion for semi-custom workflows

Best for: Teams with semi-technical users who need tailored workflows

Common Scenarios and Recommendations

Scenario: CRM

Recommendation: BUY. CRM is a solved problem with excellent SaaS options. SMEs should buy and customise (HubSpot, Zoho, Salesforce).

Scenario: Industry-Specific Quoting Tool

Recommendation: BUILD (if no niche vendor exists) or BUY (if a specialised vendor serves your industry). Check niche marketplaces first.

Scenario: Connecting Sales Data to Accounting

Recommendation: INTEGRATE. Use Zapier/Make to connect CRM to accounting software. No new application needed.

Scenario: Custom Workflow for Regulatory Compliance

Recommendation: BUY AND CUSTOMISE. Start with a compliance platform and adapt to your specific requirements.

Getting Started

• [ ] Define the functionality gap clearly
• [ ] Search for commercial solutions that address the gap
• [ ] Assess whether existing tools could be integrated to solve it
• [ ] Score the decision using the five-factor framework
• [ ] Estimate costs for all viable options (3-year TCO)
• [ ] Consider hybrid approaches
• [ ] Make the decision and document the rationale

Every application decision shapes your portfolio for years to come. Take the time to evaluate all options using a structured framework, and you'll make decisions that serve your business well today and remain sustainable for the future.