Comparison · Build vs Buy
Custom software or off-the-shelf ERP
Build a tailored tool or buy a ready-made ERP: what actually pays off for an SME, weighing total cost, time-to-live and lock-in.
In brief
For most SMEs, a ready-made ERP wins on standard processes (accounting, inventory, basic HR): cheaper upfront and live fast. Custom software only makes sense where the process is a competitive advantage, where the package forces you to bend your work around the software, or where 3-year license costs exceed the build. The right answer is often hybrid: standard ERP on commodity, custom on the core of the business.
Option A
Custom software (build)
You develop an application or tool built exactly around your process, instead of adapting your process to a standard package.
Pros
- +Fits the process 100%: no workarounds and no useless modules
- +No per-user license fee that grows with headcount
- +Integrations built to fit the systems you already use
- +Your process advantage stays protected and can't be copied by competitors running the same software
Cons
- −Higher upfront cost and time on standard processes a package already covers
- −Maintenance and evolution stay on you over time
- −Risk of over-engineering things that give no advantage (accounting, payroll)
- −Needs an internal owner to steer requirements and roadmap
Best for
- Core processes that are a competitive advantage
- Companies where no ready package fits the real flow
- Cases where 2-3 year license cost would exceed the build
Option B
Off-the-shelf ERP (buy)
You buy a pre-built package (ERP, vertical software, SaaS) and configure it to your processes.
Pros
- +Live fast: a standard module running in weeks, not months
- +Lower, more predictable upfront cost (per-user license)
- +Maintenance, updates and regulatory compliance handled by the vendor
- +Industry best practices already baked into the product
Cons
- −You bend your process to the software, not the other way around
- −Recurring fee that grows with users and modules, year after year
- −Lock-in risk: data and customizations are hard to take away
- −Features you don't need and missing features you can't add
Best for
- Standard, common processes (accounting, inventory, basic HR)
- SMEs without an IT team that want to start now
- Companies where the process is not a differentiator
| Criterion | Custom software (build) | Off-the-shelf ERP (buy) |
|---|---|---|
| Time to go-live | Weeks-months (build) | Weeks (configuration) |
| Upfront cost | Higher (development) | Lower (license) |
| 2-3 year cost | Maintenance, but no per-user fee | Growing recurring fee |
| Process fit | Total | Partial (you adapt the process) |
| Lock-in | None (your code) | Possible (data and config) |
| Maintenance | On you | On the vendor |
The verdict
It's not one or the other for the whole company. Buy the ready-made for what is commodity (accounting, payroll, inventory): it costs less, goes live faster, and maintenance isn't your problem. Build custom only where the process is your competitive advantage, where no package covers the real flow, or where the 2-3 year license fee would exceed the build cost. The right question isn't 'build or buy' in the abstract, but 'is this specific process an advantage or a commodity?'.
FAQ
What people usually ask us.
How do I tell whether to build or buy a process?
How much does starting with custom software cost?
If I build custom, do I stay dependent on the vendor?
Can I mix the two approaches?
What if it doesn't work?
Not sure which one fits your case?
20 minutes with the CEO to work out the right choice for your processes. No pitch, no obligation.
