Build vs. Buy: Why This Decision Isn't Always as Easy as You Think

Build vs. Buy: Why This Decision Isn't Always as Easy as You Think

Every IT executive faces a critical decision when a new business requirement emerges: Should we buy a pre-built solution or build a custom one? The conventional wisdom leans toward buying—after all, off-the-shelf solutions are market-tested, supposedly easier to maintain, and can be deployed quickly. But reality often tells a different story. Buying a solution can come with high licensing costs, long implementation timelines, excessive functionality you don't need, and vendor lock-in risks. On the other hand, building a solution may seem overwhelming but has become easier, faster, and more cost-effective thanks to modern platforms like SAP Business Technology Platform (BTP).

The Pitfalls of Buying

Purchasing a solution might seem like the safer bet, but organizations often face hidden costs and limitations that weren’t part of the original plan:

• High Costs: Licensing fees can be exorbitant, and implementation costs may double or triple the initial budget.

• Rigid Functionality: Most off-the-shelf solutions include unnecessary features, making them cumbersome and difficult to adapt to your specific needs.
• Long Implementation Timelines: Despite being “pre-built,” many solutions require extensive implementation, customization, integration, testing and training, leading to delays.
• Vendor Lock-in: You’re at the mercy of the provider’s pricing model, support limitations, and future updates.

The Case for Building

Many hesitate to build due to concerns over maintenance and complexity. But with SAP BTP, building custom solutions has never been easier. The old stigma around “custom” SAP solutions being expensive and difficult to maintain no longer applies when best practices and clean-core principles are followed.

Here’s why building can often be the smarter choice:

• Lower Total Cost of Ownership (TCO): Instead of paying millions in licensing fees, you can develop a custom-built solution for a fraction of the cost.
• Flexibility & Scalability: As business needs change, your solution can evolve with you—without waiting for a vendor’s roadmap.
• Full Control: No vendor lock-in means you decide who maintains the system and how it's improved.
• Seamless SAP Integration: SAP BTP allows you to extend your ERP capabilities natively and efficiently.

The Cost Comparison: A Real-World Scenario

Consider a typical case:

• Buying an "off-the-shelf" solution: $300K per year subscription, plus $600K in implementation costs.
• Building a solution: $300K one-time development cost and $24K per year in hosting.

Even after implementation, a purchased solution still requires ongoing maintenance—whether through internal resources or an external vendor at an additional cost.

Key Questions to Ask Before Deciding

1. What is the business ROI? What is the value of solving this problem, and what magnitude of cost does it justify?
2. What are the true implementation and licensing costs? Compare this against the cost of development, hosting, and long-term support.
3. Am I locked into a vendor? Can I easily migrate away in the future, or will I face escalating costs and dependencies?
4. How well does the solution fit my needs? Will it require extensive (and expensive) customization to work for my business?
5. Do I really need every bell and whistle this solution has? If not, you may be overpaying for features that add complexity without real value.
6. How easily will this solution integrate with my other systems? Seamless integration is critical for maximizing efficiency and usability.
7. How can I access this data for cross-system reporting? Ensure the solution supports easy data access and interoperability with your reporting tools.

Final Considerations

In the end, the same choice doesn't apply to every case, and the final decision will depend on the considerations mentioned above. It would be disingenuous to say buying is always better, just as it would be misleading to claim building is always the right move. Building is often dismissed too quickly due to a negative perception of "customizing", but in reality, many organizations find great success with this approach when implemented correctly.

How Redfig Can Help

At Redfig, we specialize in finding the best solution for your business needs. Whether it's building a custom solution or selecting the right off-the-shelf product, we ensure your choice aligns with your budget, scalability, and operational goals.

With deep expertise in SAP BTP, we make custom development efficient, cost-effective, and easy to maintain while ensuring seamless integration with your existing systems. If purchasing a solution is the better path, we guide you through vendor selection, implementation, and cost management to avoid unnecessary expenses and delays.

🚀 Ready to make the right choice? Let’s discuss how Redfig can help your business succeed.