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Build vs buy: when should we custom-build vs adopt vendor platforms for sales ops infrastructure?

📖 293 words⏱ 1 min read4/29/2024

Direct Answer

Build only for 5–10% of workflows (unique competitive moat). Buy 90–95% (CRM, analytics, compensation). Build-vs-buy decision matrix: if 3+ vendors exist and solve 80%+ of use case, buy; otherwise build.

Operator Approach

Most sales ops teams waste 18–24 months on custom builds they could buy in 3 months. Industry standard: build once you've bought and configured everything else.

Buy: Non-negotiables

Build: Only when

  1. Vendor doesn't exist or all options cover < 60% of requirement
  2. Competitive moat is real (proprietary algorithm, rep workflow magic)
  3. ROI payback in < 18 months vs build cost
  4. Maintenance burden is < 0.5 FTE ongoing

Avoid building:

Build-vs-buy table:

Tool CategoryVendor ExamplesBuild CostBuy CostDecision
CRM CoreSalesforce, HubSpot$500K+$2–10K/moBUY
ActivityOutreach, Salesloft$300K$3–10K/moBUY
AnalyticsTableau, Looker$200K$2–5K/moBUY
Custom WorkflowN/A (unique)$150–250KN/ABUILD if ROI clear
CompensationSpiff, Motivate$100K + legal$500–3K/moBUY

Red flags for custom builds:

Mermaid: Build-vs-Buy Decision Framework

flowchart TD A["Define Requirement"] --> B{"3+ Vendors Solve 80%+?"} B -->|Yes| C["SELECT VENDOR"] B -->|No| D{"Competitive Moat Clear?"} D -->|No| E["Wait for better vendor"] D -->|Yes| F{"Build Cost ROI < 18mo?"} F -->|No| G["Revisit in 12 months"] F -->|Yes| H{"< 0.5 FTE Maint Burden?"} H -->|No| I["Don't build; buy best-fit"] H -->|Yes| J["BUILD (but integrate tightly)"] C --> K["Vendor license + config"] J --> L["Custom build + vendor API layer"] K --> M["Deploy & measure adoption"] L --> M

Sources: SaaStr Tech Stack Spend Study, Pavilion Benchmarks, OpenView Build-vs-Buy Analysis

TAGS: build-vs-buy,vendor-selection,infrastructure,custom-development,ROI-analysis,competitive-moat,tech-stack-decisions

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