Build vs. Buy: What Companies Get Wrong in Tech Decisions
blog/build-vs-buy-what-companies-get-wrong-in-tech-decisions
2025-06-11
When companies evaluate new systems, a question that will often arise is “Should we build a custom solution or buy something off the shelf?”
While the conversation may seem straightforward, the wrong decision can cost months of progress, strain resources, and derail the broader technology strategy.
Despite how common this fork in the road is, many companies still make this call based on instinct, internal politics, or misleading assumptions—rather than sound planning.
Let’s break down where companies go wrong, and how to approach the build vs. buy question with clarity and intention.
Where the Decision Goes Off Track
#1: Mistaking customization for competitive advantage
Too many teams assume that building something from scratch will give them a strategic edge.
In reality, much of what businesses need—like payroll, time tracking, CRM, or project management—has already been solved well by existing platforms.
#2: Underestimating long-term cost and complexity
Building in-house may seem cheaper upfront, especially if internal developers are available.
But ongoing maintenance, updates, integrations, and compliance costs rarely show up in early spreadsheets.
#3: Overlooking scalability and support
A system built for today's needs might not flex with tomorrow’s growth.
Off-the-shelf tools often include infrastructure, security, and ongoing updates—things custom solutions may lack without significant investment.
#4: Skipping the broader strategy conversation
The build vs. buy decision often happens in isolation—without considering how the system supports broader goals like digital transformation, integration with existing tools, or user adoption.
🚀 Not Sure Which Direction to Take?
Before you commit to building or buying, make sure your decision supports your long-term strategy, not just a short-term need.
Red Pill Labs helps organizations evaluate software options with clarity—so you avoid costly detours and pick the right path from the start.
🔍 Explore our early-stage advisory services
Get in touch for a consultation →
A Framework for Smarter Tech Decisions
Here’s a simple decision-making framework companies can use early in their planning:
Step 1: Clarify the Business Needs
What core problem are we trying to solve?
Is this a common business challenge or something unique to our operation?
How critical is this system to our value proposition?
Step 2: Assess Internal Capabilities
Do we have the in-house skills to build and maintain this system long-term?
How will internal development impact other IT priorities?
Step 3: Evaluate Time-to-Value
How soon do we need this solution operational?
What’s the risk of delay if we go the custom route?
Step 4: Analyze Total Cost of Ownership (TCO)
What are the long-term costs of build vs. buy (licensing, support, upgrades)?
Will custom development require ongoing vendor or contractor support?
Step 5: Consider Integration and Flexibility
Does the solution need to integrate with payroll, CRM, or ERP?
Can we get 80–90% of what we need from an existing solution with slight customization?
Step 6: Think Strategically
How does this decision align with our broader IT and business strategy?
Are we solving for now, or planning for scale?
Thoughtful Tech Planning Starts Early
The smartest organizations don’t ask “Should we build or buy?” in a vacuum.
Instead, they treat the question as part of a broader, intentional technology strategy.
They understand that speed, scalability, and alignment matter more than ownership for ownership’s sake.
Whether it's HR software, an ERP system, or field service tools, companies that win with technology are those who:
Plan before selecting
Question assumptions
Think beyond the implementation
Making the right call isn’t about building vs. buying—it’s about solving the right problem the right way, at the right time.
Looking for a team of experienced problem solvers? Reach out Red Pill Labs today to get started.