KEVOS® WORKOS · Business

Build or Buy Software

Should you build custom software or buy an existing product?

Compares total cost of ownership of custom software and a package, with fit and uniqueness ratings.

Open the calculatorRuns in your browser. No account needed.

How this tool works

Inputs, units and where to find them

InputUnitTypical source
Custom build cost$Quoted custom build cost
Custom annual support$Annual support, hosting and maintenance of custom software
Package setup cost$Package implementation and set-up cost
Package monthly cost$Package subscription per month
Comparison periodyearsComparison period
Off-the-shelf fit1–5 scoreRating of how well the package fits your process (tested with real scenarios)
Uniqueness of requirement1–5 scoreRating of how unique your requirement is
Need for control1–5 scoreRating of how much control you need over the system

Method and formulas

  1. Custom TCO = build + annual support × years
  2. Package TCO = set-up + monthly × 12 × years
  3. BUILD if need ≥ 4, fit ≤ 3 and custom TCO ≤ 1.5 × package; BUY if fit ≥ 4

Limitations

  • Undiscounted; delivery risk of custom builds is not priced

Typical uses

  • System selection
  • Custom development proposals

Who it is for

  • Owners and managers
  • IT and operations leads

What you get

  • BUILD, BUY or COMPARE IN DETAIL
  • TCO of each option

Interpreting the result

  • A fit-gap analysis is needed whenever the result is COMPARE IN DETAIL

WORKOS tools are screening and decision-support utilities. Verify important financial, engineering, safety, legal or operational decisions using appropriate professional standards and your organisation’s approved data.

Open the Build or Buy Software calculator