Choosing Between Third-Party Applications and Internal Development

When deciding whether to use a third-party application or develop a solution in-house, several factors come into play. If a third-party solution meets your needs entirely, it’s often the best choice due to its reliability, cost-effectiveness, and the transfer of maintenance responsibilities.

However, third-party solutions may not always align with your requirements, or they may not exist. In cases where a third-party tool lacks the necessary features or speed, like integrating Maropost with Shopify at a faster sync rate, developing an in-house solution becomes a viable option.

Concerns about in-house development often center around maintenance. While initial development may encounter bugs or misunderstandings, thorough testing can iron these out. Maintenance fears are often exaggerated; most tools connect to APIs, which are versioned and provide ample time to adapt to changes.

The major benefit of in-house development is customization. You can tailor the solution to your exact needs and adjust it over time as requirements evolve. This flexibility allows for ongoing refinement, ensuring the solution remains aligned with your business objectives. Unlike third-party applications, which might dictate specific workflows or functionality, an internally developed tool puts you in control, providing the agility to adapt to changes in your industry or company operations.

If you are a small business, it’s wise to start with predominantly external tooling, as this allows you to save on costs, focus on your core offerings, and benefit from the reliability and support of established tools. However, if you are a disruptor in your industry, then almost by definition, you will need some custom tooling to support the unique processes that set you apart. As your business grows, you may naturally become more rigid due to the layers of complexity and bureaucracy that come with expansion. This rigidity makes custom tooling increasingly essential, providing the flexibility and adaptability needed to maneuver within a competitive landscape. Custom solutions enable you to maintain a degree of agility, ensuring that your business can respond effectively to market changes and sustain its competitive edge.

In summary, the decision to build in-house versus buying a third-party solution should weigh factors like cost, time-to-market, maintenance, and customization needs. By evaluating each option’s pros and cons, businesses can make strategic decisions that align best with their operational goals. In general, outsource when:

  1. An existing tool fulfills > 90% of your needs.
  2. The provider is a trusted and reputable player in their domain.
  3. It is financially viable.

If any one of these criteria is not met, serious consideration should be given to internal solutions.