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Custom Software vs SaaS: When Should Your Business Switch?
A simple framework to decide when investing in custom software makes more sense than SaaS subscriptions.
Signs you need custom software
- Your workflow is unique and no SaaS fits 80%+ without workarounds.
- Monthly SaaS cost > 6–12 months of custom development.
- Your data is highly sensitive (health, finance, B2G) and needs full control.
- The SaaS locks you in with a vendor you don’t trust long-term.
Signs SaaS is enough
- Standard workflow (CRM, accounting, HR) — use HubSpot, Xero, or similar.
- Team < 50, priority is go-to-market, not IT.
- No clear PMF yet — too expensive if you’re still pivoting.
Hybrid: SaaS + custom layer
The pattern we most often recommend for mid-size companies: use SaaS for standard modules (accounting, CRM, ERP), and add a custom layer on top for differentiation (customer portal, unique analytics dashboards, internal integrations).
