Should Universities buy a SaaS solution or develop custom software?
As part of their digital transformation journey, many universities face a key decision: should we buy a ready-made SaaS solution or invest in developing custom software? While the first option is often faster and more cost-effective, the second allows institutions to design functionality tailored to their unique processes.
But what if the best answer lies somewhere in between? Increasingly, institutions are choosing a hybrid model that combines the strategic purchase of SaaS tools with custom-built solutions and integrations.
Buying a SaaS solution: fast, proven, and efficient
Today, many universities opt to purchase off-the-shelf solutions to address specific needs like academic management, assessment, proctoring, CRM, or e-learning platforms. Why?
- Lower initial cost: Providers have already invested in developing and scaling the platform. This gives institutions access to robust technologies without starting from scratch.
- Faster implementation: A SaaS solution can be up and running in weeks—compared to the months (or years) required for custom development.
- Ongoing improvements: These platforms are continuously updated based on market trends and user feedback.
- Specialized expertise: Many vendors focus on the higher education sector, allowing them to deliver well-rounded solutions based on industry best practices.
Developing custom software: personalized, scalable, and aligned
Although buying an existing solution is often the first choice, some universities choose to develop their own software when they have specific needs or seek a strategic differentiator.
Key advantages of this approach include:
- Perfect fit for institutional processes: From academic workflows to assessment or student engagement, the system is built specifically for the university’s needs.
- Scalability: A proprietary platform can evolve with the institution, adding features and integrations as new needs arise.
- Competitive differentiation: A custom solution can give universities a unique edge over others with more generic systems.
The best of both worlds: A hybrid approach with integrations
Many universities are adopting a modular architecture based on microservices, combining specialized SaaS tools with custom development. This enables them to:
- Leverage proven technologies: Use tried-and-true tools for standard needs (ERP, LMS, CRM, etc.) and develop only what sets the institution apart.
- Build a flexible tech stack: APIs and microservices allow different systems to work together within a scalable and integrated ecosystem.
- Stay agile: With a strong integration strategy, institutions can add or swap technologies without disrupting their entire infrastructure.
The importance of a clear technology architecture
Whether an institution decides to buy or build, a well-defined technology architecture is essential to ensure long-term sustainability. This includes:
Mapping out business processes before selecting technology.
Avoiding overlapping functionalities between tools.
Ensuring a strategic vision where technology supports institutional goals.
Partnering with tech experts who bring higher ed experience and insight.
Final thoughts
The choice between buying a SaaS solution or developing custom software isn’t black and white. In most cases, the smartest move is a mix of both: use robust off-the-shelf tools and complement them with custom-built components that reflect your university’s unique needs and strategy.
Are you facing this decision at your institution?
If you're weighing your options and would like to share them with us, we’d be happy to talk and offer our perspective. Let’s chat—coffee’s on us!
