What is a build versus buy decision?

Definition

A build versus buy decision considers whether a problem justifies custom implementation. Buying can provide mature features, support, and lower maintenance, while building can fit a distinctive workflow or connect existing services in a way that standard products do not.

The comparison should include total cost, security, reliability, integration, ownership, switching risk, and long-term maintenance. The mere ability to generate a custom tool does not make building the better choice.

ELI5

A build versus buy decision compares making custom software with adopting an existing product. The right choice depends on how unusual the need is and what each option costs to operate over time.

For example, a company may buy a mature payroll service instead of generating its own because payroll needs security, legal updates and long-term support. Building can make sense for a distinctive workflow, but the team must include maintenance, integration and switching risk rather than counting only the first implementation.

Acronyms and aliases

build-or-buy decision synonym

Frequently asked questions

When is buying software usually better?

Buying is attractive when a mature product already solves the common need safely and cheaply with acceptable integration and control.

When can custom software be worthwhile?

Building can be worthwhile when the workflow is distinctive, strategically important, poorly served, or needs a small integration around existing tools.

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