Most businesses regularly rely on digital tools and services to connect their teams and operate more efficiently. This is critical, especially for companies structured with remote workforces or who rely heavily on the cloud when servicing their customers.
The great thing about third-party tools is that they’re easy to access, cost-effective, and scalable. However, over time, as the needs of your business shift, you may have to make an important decision – should you continue using off-the-shelf software solutions or design your own?
There is a lot to consider before choosing which direction is best for you. However, by weighing the pros and cons of each, you’ll have more information to work from.
What’s the Appeal of Third-Party Tools?
So many businesses today rely on third-party tools day-to-day. But there are several reasons for this. Some of the most common are:
- They’re More Scalable – The majority of businesses have digitized their operations. To support this effort, they need to have highly scalable solutions that can grow and evolve with their businesses. Third-party tools are easy to manage and integrate into current tech stacks and often don’t require long-term commitments. This makes them highly appealing for businesses.
- They Simplify Business Finances – Not all businesses may be able to afford to structure large accounting or finance departments as they scale. Cloud-based financial management solutions provide a more cost-effective solution by giving organizations the tools they need to manage complex finance needs like payroll, inventory management, budget forecasting, and tax filing.
- They Help Teams Stay Connected – With so many organizations having isolated remote teams, third-party collaboration platforms make it easy to keep everyone on task and working together, regardless of where they’re located. The great thing about these types of solutions is that you typically only have to pay per “seat” you use, which prevents businesses from having to pay for more than they actually need when running the business.
Things to Consider When Thinking About Starting an In-House Development Project
Even though chances are you’re able to find a third-party tool for just about every type of business need, this doesn’t mean it’s your only option. Designing your own custom software solution gives you even more flexibility and options to choose from without having to compromise on the features that matter most to your business. Still, there are some pros and cons worth weighing if you’re considering going this direction:
Pros
No Limitations on Customization
It can be frustrating when you invest in an off-the-shelf tool to find out that it offers a lot of value, but seems to be missing one or two features that would make it perfect. They may also be limited when it comes to customizing their layouts or integration capabilities.
When you design your own solution, you’re in the driver’s seat when building out the features you need. It’s similar to investing in a home remodeling service that lets you customize every element of a specific room in your home. You have full control over every design element from start to finish.
Better Long Term ROI
Even though many subscription tools and services have very affordable monthly fees, these fees can add up considerably over time. While the short-term investment costs are low, your long-term expenses could be considerable.
A custom design project reverses this script, sacrificing some short-term financial pain for long-term gains and better ROI.
Only Design What You Need
A common issue with off-the-shelf software is that it comes loaded with “helpful features” that you may not need or want. This can make the software feel clunky and even cause performance issues with the features you actually want to take advantage of.
Custom software development projects let you choose the features to include or leave out. This gives you a final product that your teams can use and extract full value from. Whether you want something simple or complex, you get to decide what elements are most important to your day-to-day operations and incorporate them.
Cons
High Upfront Costs
While custom software may seem like a no-brainer for some businesses due to the value it can bring, that value comes at a cost. Custom projects can require significant upfront costs to get off the ground. Custom-built software can come with 5-figure or even 6-figure price tags depending on your business’s needs.
Delays Using the Product
Another challenge with taking on a custom-build project is the time it can take before you’re able to benefit from your efforts. Most software development projects have long build cycles and testing phases that can mean you’re waiting several months before you’re able to use the product you’ve invested so heavily in.
Practical Strategies for Choosing the Right Solution Type for Your Business
While you might already have an idea of which software solution is best for your business, it’s still a good idea to follow a few strategies that will help you validate your choice. Below are some practical steps you should follow before making a final decision:
1. Recognize all the Costs Involved
The first thing you want to do is get a handle on all the costs involved with a custom development project. Compare these costs with the long-term expenses of third-party tools. Map out what your total implementation expenses will look like and a budget that makes the most sense for your business.
2. Think About How Much Control You Need
Think about how much customization or control you actually need with your software. Just like when using home renovation services, you’ll want to remember that while it’s definitely nice to have every single feature you want, you may not really need all of these “nice-to-haves.” Decide if the cost savings of third-party tools are worth the trade-off of these features or if you need certain features that only a custom solution will provide.
3. Look to See What’s Currently Available
Before you start planning out your custom design project, take the time to really research the market and look at currently available tools. There may already be an affordable tool available that provides you with the features or benefits you’re looking for. This could potentially save you a lot of time and resources rather than jumping into a new project.
4. Break Down Your Short- and Long-Term Needs
Ultimately, your decision should really be centered around what your short- and long-term business needs are. If your business is rapidly evolving, you may want a more scalable solution at your disposal that doesn’t lock you into long-term spending. However, if you’re confident about what the long-term needs of your business are, you may want to start a custom project sooner rather than later so you’re able to see a favorable ROI as your business continues to grow.
Choose a More Sustainable Path Forward
Whatever decision you make surrounding your software choices, it’s important to consider how they’ll impact your business now and in the future. By considering the pros and cons of a custom development project, you’ll be able to make the right investments that lead to more sustainable business growth moving forward.
