Fig. 01 · Answer
Is it cheaper to build your own software than to keep paying for SaaS?
CFOs and CTOs pricing an internal build against subscription fees.
The short answer
Sometimes - but rarely at the price the first spreadsheet shows. Practitioner consensus puts the true cost of owned software at a multiple of the naive build estimate once maintenance, dependency updates, and ownership staffing are priced over five years. AI-assisted development cut the cost of the first draft, not the cost of the years after it.
What informs this answer
Selected results from related operator-led engagements, by industry and scale:
- Diagnostics priced flat - the recommendation carries no build upside
What to ask next
What costs do build-vs-buy spreadsheets usually miss?
Years two through five: maintenance and refresh, dependency and security updates, the salary of the named owner, and the risk cost of that owner leaving. The build is usually the cheap part.
Does the best-documented insourcing case show cost savings?
No - and that is the honest base rate. Norway's NAV brought 100+ systems in-house successfully, but peer-reviewed researchers could not find clear evidence of the projected savings. The benefits that materialized were ownership, speed, and quality.
Answered by Justin Leader · Human Renaissance · Updated 2026-04-30 · Research methodology
