In digital product development, every tech team is faced with a decision sooner or later: Build vs. buy? - In other words, whether you should develop a software solution yourself (build) or use an existing product (buy). The decision is often more complex than it seems at first glance. In this article, we shed light on the most important considerations and provide you with a decision-making aid.
1. what does "build vs. buy" mean?
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- BuildYou develop a component or function internally - customised for your needs.
- BuyYou use an existing tool or platform (e.g. SaaS) that you integrate into your system.
Both approaches have advantages and disadvantages, and the right choice depends heavily on your specific use case, your team and your long-term strategy.
2. the most important decision factors
a) Core competence & differentiation
"Is that part of your USP?"
Only build what really differentiates your product in the market. If a component is part of your core expertise, you should develop it yourself.
Build if:
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- The component that is decisive for your business model is
- You want to create innovations
- You need full control
Buy if:
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- They are generic functions (e.g. authentication, payment)
- The market offers established solutions
- You have no resources for in-house development
b) Costs & time
Development is expensive - not only in terms of implementation, but also in terms of long-term operation and maintenance.
Buy saves timeespecially in the early phases. You can often go live within days.
Build is more expensiveBut it pays off if you need independence and flexibility in the long term.
c) Technical complexity & maintenance
Some components are extremely complex to build and require in-depth specialised knowledge - e.g. video streaming, real-time communication or ML infrastructure.
Ask yourself:
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- Do we have the expertise in the team?
- How high are maintenance costs and reliability?
3. typical components: Build or buy?
| Component | Recommendation | Reason |
| User authentication | Buy | Security is critical |
| Payment processing | Buy | High regulatory requirements (e.g. PCI-DSS) |
| CRM systems | Buy | Complex, but rarely differentiating |
| Recommendation Engine | Build | If it's a core feature that sets you apart from the competition |
| CMS | Buy/Build | A headless CMS is sufficient for simple sites; for complex content workflows, Build |
| Analytics & Tracking | Buy | Tools are ready for use more quickly |
| DevOps tools | Buy (mostly) | High complexity, many solutions available |
4. hybrid approaches
In many cases, a combination makes sense: you start with a purchased solution and replace it later with an in-house development when your product is more mature and your team is larger.
Conclusion: Think strategically instead of acting reflexively
"Buy early, build later" is often a good compromise - especially in the MVP phase. The further you scale, the more you should think about control, data sovereignty and customisation.
Most importantly: Make a conscious decision. Because what you "buy" today can slow you down tomorrow - and what you "build" today can hold you back unnecessarily.
Quick check for your decision:
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Question |
If "yes", then... |
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Is it a central part of your product? |
Build |
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Are there established solutions on the market? |
Buy |
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Do you need to go live quickly? |
Buy |
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Do you want to be independent in the long term? |
Build |
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Is it safety-critical or regulatory sensitive? |
Buy (first) |
Get your free Build vs. Buy Cheatsheet now! All the important decision-making factors summarised in compact form - so that you always know when it is better to develop yourself and when you should buy.