Make vs. Buy: Custom Development or Standard Software?
June 19, 2025
11 min read
Jonas Höttler
Make vs. Buy: The Most Expensive Decision Nobody Analyzes
"We need a custom solution" – this sentence has cost many companies hundreds of thousands. Just like: "Standard software will be enough" – when it wasn't.
The make-vs-buy decision is among the most consequential IT decisions. And among the least analyzed.
Why This Decision Goes Wrong So Often
The "Custom Development" Trap
Initial underestimation: "It's just a CRUD system"
Scope creep: New requirements every week
Maintenance costs ignored: After 3 years, maintenance costs more than rebuilding
Dependency: The one developer who understands it quits
The "Standard Software" Trap
Customization costs: "Out of the box" rarely means without customizing
Process adaptation: Eventually you adapt to the software
Vendor lock-in: Switching gets more expensive each year
License cost explosion: What started cheap scales expensively
Survey the market – What standard solutions exist?
Plan POC – Test 2-3 options
Understand process costs: Before choosing a solution, understand the true costs of your current situation with our Process Cost Analyzer.
Conclusion: Analysis Beats Gut Feeling
The make-vs-buy decision is too important for gut feeling. With a structured analysis of the seven criteria and an honest TCO calculation, you make informed decisions.
And sometimes the best decision is: Don't decide yet. First understand the process, then clarify requirements, and then evaluate options.
Facing a complex make-vs-buy decision? Our AI Adoption Audit helps you understand the strategic implications and make the right choice.
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