Custom development or SaaS: how to choose?

Custom development or SaaS: how to choose?

Choose a SaaS solution when your need is standard (accounting, email, payroll) and a market product covers more than 80% of it. Choose custom development when the process sets you apart from competitors, requires specific integrations, or when subscriptions become more expensive than a solution you own. In many cases the right answer is hybrid: SaaS for standard functions, custom software for what makes you different.

What a SaaS solution brings

  • Fast setup: a few days or weeks.
  • Low entry cost, paid by subscription.
  • Updates and maintenance handled by the vendor.

The limits: little customisation, vendor dependency, costs that grow with the number of users, and sometimes difficult integration with your other tools.

What custom development brings

  • A tool that fits your processes, instead of adapting them to software.
  • Ownership of code and data.
  • Full integration with your information system.
  • A competitive advantage when the tool carries your know-how.

The limits: a larger initial investment, build time and the need to plan maintenance.

6 questions to decide

  1. Is the process standard in your industry, or specific to your company?
  2. Does a market product cover at least 80% of the need without workarounds?
  3. What will subscriptions cost over five years, with the expected growth in users?
  4. Which tools must communicate with the solution, and do they have APIs?
  5. Must your data stay hosted in a specific country or environment?
  6. Will the tool be part of your offer or your competitive advantage?

If the answers lean toward uniqueness, integration and ownership, custom development is probably the right choice.

Compare costs over the right period

Comparing a monthly subscription with a development quote makes no sense. Compare total cost over three to five years: subscriptions, extra licences, customisations, integrations and time lost in workarounds, versus the cost of building, hosting and maintaining a custom solution.

The hybrid approach

A modern architecture often combines SaaS building blocks and custom developments connected through APIs: an off-the-shelf CRM, for example, completed by a custom customer portal and a dashboard consolidating the data. This is also the principle of composable and headless architectures.

Our approach at STEPS

STEPS delivers custom web development and integrates market solutions when they are the right choice. For new products we often recommend starting with an MVP to validate the need before investing more. To study your case, book a scoping session.

Frequently asked questions

When should you choose custom software over SaaS?

When the process is specific to your company, requires particular integrations, when you want to own code and data, or when subscriptions become more expensive than a dedicated solution over time.

Is custom software more expensive than SaaS?

It costs more upfront, but over three to five years total cost can be similar or lower, especially when user numbers grow or the SaaS needs heavy customisation.

Can SaaS and custom development be combined?

Yes. A hybrid approach is often the most effective: SaaS for standard functions and custom developments connected through APIs for what sets you apart.