Top 5 Reasons to Not Build In-House

  1. You are not a developer

We thought we would start with an obvious one, but you are probably going to counter with ‘but we have a tech team on staff!’.  Great, and we are sure they are wonderful but are they subject matter experts? IT staff usually have broad knowledge to match their wide variety of responsibilities for your organization. What will their learning curve be to fully understand the problem you are trying to solve in order for them to develop a perfect solution? Not to mention, do they have the time?


  1. Outsourcing takes to much time

Okay, so we’ve talked you out of using your internal staff. Easy enough, you will outsource the development of your home built system to another firm.  They are experts and they get paid to develop tools for people, it is their only job.  But we still have the learning curve issue, and add to that the extra effort it will take to communicate and coordinate.  Then there is the cost, and if you think it is just a one time cost versus monthly or annual subscription fees keep reading.


  1. The cost to maintain it is grossly underestimated

You have crunched the numbers and yes, building your own system is going to be expensive, but it is yours and if you compare your one-time build it cost to the monthly bills you would get from a SaaS provider, let’s say over the next 5 years, well it is a no-brainer.  And we would agree with you except you have forgotten something, the cost to maintain your system is usually 75% of the total cost of ownership. You will need to correct bugs, modify it for changing business processes, perfect it over time, and enhance it.


  1. Security is a moving target

And keeping you data in your newly built system secure is a constant and costly effort. You also have to consider any security requirements or concerns your clients might have if you are using your system to deliver a service to them.  For those in the Government market, a move towards FedRAMP security for your system can cost a hundred thousand dollars, minimum.


  1. Code bases evolve and degrade

Here is the crux.  Let’s say you have developed your own tool, put up with the issues of bug fixes and the extra cost of enhancements once you really started getting your hands dirty with the product, awesome you’ve made it past many hurdles.  But what happens when your code base is no longer compatible with other systems? Are you prepared to go through the whole development cycle again?


A SaaS provider can take all of these burdens away from you and your team.  Especially SaaS providers that are subject matter experts.  Think about it, it is their job to make sure they are delivering a tool that works, is secure, is current, and has continued enhancements and improvements.  If they couldn’t knock all of these things out they would be out of business.

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