Should we build it, or should we buy it? This is a common question when considering a new software solution. Making that decision between utilizing Software as a Service (SaaS) or building a custom solution in house has many considerations, although more and more, SaaS solutions are the clear winner. Companies must do the research and crunch the numbers to decide what is best for them.
The following is helpful to help you to decide which is the better choice for your organization. Do we buy it, or do we build it? Consider the following:
Cost and Time to Implement
A system built In-house and a ready-made SaaS solution both require you to pay the cost of services over a significant period of time, but just how much is that?
For an in-house built system, defining requirements, meetings, disagreements, hiring or assigning developers or consultants, testing and more testing and implementation all require a considerable amount of time and money, over a very long period of time. Let’s also not forget about training time and cost. Some systems can take years and hundreds of thousands of dollars to design and develop. All of a sudden, the system you needed a year ago is really not the system you need now, and you have to start the process again.
A McKinsey survey found that on average, cost overruns happen in software development projects 66 percent of the time. This survey also indicated that “17 percent of IT projects go so bad that they can threaten the very existence of the company”. These are indeed staggering figures!
A SaaS model is ready made. The initial work has been done for you to a certain degree, and all you have to do is implement. Well this is what SaaS companies want you to believe, however in reality, there is configuration required if you want a system that works with your unique workflow. The question here is HOW MUCH configuration is needed and how much is that going to cost? A great SaaS system is easy to configure, doesn’t require the use of multiple IT resources for extended periods of time, can be implemented in days, not months and has an attractive monthly cost. Factor in the fact that by using a company that does a Proof of Concept, and you have a cost effective, custom configured software for a much lower cost than trying to do it yourself.
Budgets love SaaS!
Maintaining your Software
Once you have built an in-house software solution, you need to maintain it and ensure that the software is up to date with the latest releases. Now you need to assign more IT resources and need to manage the process.
SaaS solutions do all this for you. You are the user not the owner and this in itself, comes with time saving peace of mind and budget relief.
How much is your time worth?