Your business is growing, and your current tools are no longer keeping up. Excel files are piling up, information isn’t flowing smoothly, and every task requires three steps. Sooner or later, the question arises: should you opt for an off-the-shelf solution or develop a bespoke tool? This dilemma between SaaS and customised business software applies to both SMEs and large corporations.
There is no one-size-fits-all answer. The right choice depends on your processes, your budget, your ambitions and your sector. In this article, we provide an objective comparison of the two approaches. We also set out specific criteria to help you make an informed decision.
Understanding the two approaches
A SaaS, which stands for Software as a Service, is software hosted by a provider and accessed via a subscription. You use it via your web browser, with no installation or maintenance required on your part. Tools such as Salesforce, HubSpot and Odoo operate on this model. The concept is clearly explained on Wikipedia.
Conversely, a customised business software is designed specifically for your organisation. It incorporates your processes, your terminology and your specific constraints. You are usually the owner of the system, and it evolves in line with your needs rather than according to a software vendor’s roadmap.
Between these two extremes, there are also hybrid solutions. We will come back to these later, as they often represent the most sensible compromise.
The real benefits of SaaS
The main advantage of SaaS is how quickly it can be implemented. It can sometimes take just a few days to set up an entire team. The initial investment is low, as you pay a monthly or annual subscription fee. For a start-up that needs to manage its cash flow carefully, this is a major selling point.
Maintenance is also handled by the software provider. Updates, security and hosting are no longer your responsibility. As an added bonus, you benefit from new features developed for all customers.
Finally, SaaS solutions are often based on tried-and-tested best practices. A recognised CRM system incorporates years of business experience gained from working with thousands of companies. For standard requirements such as accounting or email, there is rarely any point in reinventing the wheel.
The limitations that become apparent over time
Problems usually arise when your business operations go beyond the scope envisaged by the software provider. A SaaS solution is designed to cater for the widest possible audience. Your business-specific requirements, however, are by definition unique. You therefore end up adapting your processes to the tool, when the reverse would be the logical approach.
Cost is another common pitfall. A modest subscription for five users can quickly become a significant expense for fifty. Add-ons, premium options and annual price rises further drive up the bill. Over five or ten years, the total cost of ownership may far exceed that of a specific development.
La dependence on the publisher is also worth considering. Your data is stored with a third party, subject to their terms and conditions. If the provider changes its pricing, removes a feature or ceases trading, you are left to deal with the consequences. Migrating to another solution then becomes a time-consuming, costly and risky process.
Problems with’integration often complete the picture. On average, a company uses a wide range of different tools that do not communicate well with one another. Teams spend valuable time re-entering information from one platform to another.
The benefits of bespoke business software
A tool developed for you fits your needs perfectly business process. Every screen, every field and every automation meets a genuine need of your teams. This makes adoption easier, as users can work in their natural way. Careful attention to UX/UI design further enhances this user experience.
La ownership of the code represents a major strategic asset. Software becomes an asset of your business, just like a patent or a customer database. It can even increase your company’s value during a fundraising round or a sale.
L’upgradability is another key benefit. Your tool grows in step with your business, without having to wait for a software provider to prioritise your request. You add a feature when you need it – and only that one.
Bespoke software can also become a real competitive advantage. Take, for example, Lensea, a business-critical application designed for the medical optics sector. No off-the-shelf tool could have met such specific requirements with the same level of precision. Similarly, Homeprespective now has a order management module tailored to its internal operations and suppliers.
Challenges to anticipate
Let’s be honest: bespoke solutions require a greater initial investment. The design and development phase also takes several weeks, or even several months. This timeframe must be factored into your schedule from the outset.
Maintenance must also be taken into account. Software is a living entity, and it needs to be updated, secured and developed further. Choosing a reliable partner who can support you over the long term is therefore essential.
To minimise the risks, a step-by-step approach works very well. Start with a MVP or a proof of concept enables you to validate the essentials whilst keeping costs under control. Secondary features are then added, based on concrete feedback from users.
Five questions to help you decide
To get a clearer picture, start by asking yourself a simple question. Are your processes standard, or are they truly specific to your business? If an existing tool meets 90 % of your needs, SaaS is probably the right choice.
Next, consider the time horizon. A one-off or temporary need rarely justifies a full-scale development. On the other hand, a core tool that will be used for ten years warrants a thorough financial analysis.
The number of users is a third key factor. The higher this number, the greater the impact of per-licence subscriptions on your budget. Once you exceed a certain threshold, bespoke solutions often become more cost-effective.
Also bear in mind the strategic nature of the tool. If this software embodies your expertise or sets you apart from your competitors, it is best to retain full control over it.
Finally, assess your integration requirements. A tool that needs to interface with your ERP system, your website and your mobile apps often requires a bespoke solution.
The hybrid approach, which is often the most appropriate
In practice, many companies combine the two approaches. They use well-established SaaS solutions for their standard requirements, such as accounting or email. At the same time, they develop bespoke tools for their core business activities.
These building blocks are linked together via APIs and the’task automation. Data flows automatically, without the need for re-entry or human error. This architecture offers the speed of SaaS and the precision of a bespoke solution.
Some companies go even further. They turn their in-house tool into a product that can be marketed to other companies in their sector. The development of a SaaS platform thus becomes a new source of income.
Financial support to ease the burden of investment
In Belgium, there are several government schemes to support the digitalisation of businesses. In Brussels, hub.brussels supports entrepreneurs with their development projects. In Wallonia, Digital Wallonia coordinates initiatives relating to digital transformation. In Flanders, the agency VLAIO offers various forms of support to innovative SMEs.
These grants can significantly reduce the cost of bespoke software. However, the conditions vary depending on the region, the size of the business and the nature of the project. Our pages dedicated to subsidies in Brussels, in Wallonia and in Flanders set out the main options.
Choose the tool that best suits your strategy
The debate between SaaS and customised business software It is never simply a question of price. Above all, it is about choosing the tool that will support your strategy in the long term. A well-chosen SaaS solution helps you get off to a flying start. A well-designed bespoke software solution supports your growth and protects what sets you apart.
At iterates, we support Belgian businesses in this process from our Brussels office. We analyse your needs impartially, then recommend the most suitable solution, even if it involves an existing tool. Are you torn between several options? Contact our experts for an initial free consultation and an objective assessment of your project.
