The Benefits of Subscribing to Third-Party Technology Solutions versus Building Them In-House

Businesses that subscribe to third-party technology providers have several advantages over companies that build solutions in-house. They have better cost control, access to expertise, greater adaptability, and reduced risk.

Companies constantly search for the best ways to manage their operations and streamline their processes. Technology advancements have provided businesses with numerous solutions to help them achieve these goals. Once tech needs are identified, the next common question is: Should we buy or build the tech? Often, business departments lean towards finding and subscribing to a third-party technology solution, while in-house development departments would rather build. However, not all businesses can develop solutions independently, especially if they have competing internal technology initiatives. This is why outsourcing and subscribing to third-party technology solutions has become an increasingly popular option. This blog post will provide the main reasons why businesses continue to head in this direction.

An international survey by the Information Services Group (ISG) indicated that 46% of companies are using SaaS platforms, a 20% increase from the previous year.



One of the main reasons companies choose to subscribe to a third-party technology solution is that it is cost-effective. If you decide to have it built by an in-house development team, you will need to invest many resources. Such resources include hardware, software, and training programs. Moreover, you will have to bear salaries, benefits, and other expenses for the development team. When you choose a technology offered by an external company, you can achieve the same operational benefits at a fraction of the cost. In addition, you have better cost control over implementing a third-party solution that meets budgetary requirements.

Project Management Institute (PMI) found that 43% of IT projects exceed their initial budgets, 49% are late, and 14% fail altogether.


Access to Expertise

Third-Party technology solution providers cater to a broader range of clients and have exposure to various problems, and have identified approaches to those problems, ensuring that they provide the latest, most innovative solutions that have proven effective over a larger audience. Choosing to build a solution in-house may force internal resources to stretch their skill sets further than they have done in the past and will also, inevitably, require more trial and error, which impacts the budget and time to launch.

With purchasing a solution, you benefit from experienced developers who are tried and tested at setting up a specific slice of digital business software. You also give your teams access to expert support based on valuable benchmark data.


Better Allocation of Resources

By subscribing to third-party technology solutions, you can focus on other business aspects such as customer relationship management, marketing, and finance. Allowing a third-party provider to handle technical aspects of your business frees up your time to concentrate on fulfilling your core competencies. It also allows companies to focus on their long-term goals and strategies.

Regardless of the size of your company or the amount of talent on your team, your resources are finite—and you have to make careful decisions about how you utilize them.



Subscribing to a third-party technology solution often leads to greater adaptability and flexibility. As technology constantly evolves, businesses need the flexibility to upgrade their solutions quickly. By relying on a third party to provide your business with technology, you can put the responsibility on them to evolve as means to compete and stay relevant.

Tool functionality can be improved via a larger user base’s feedback, meaning you might end up with cool new features you wouldn’t have thought of on your own, and bugs can get resolved faster.


Reduced Risks

Businesses that rely on third-party technology solutions also have fewer risks to manage. With an in-house development team, your business bears the entire risk, including the cost of development, potential maintenance costs, and exposure to liability if the in-house technology causes breakage or exposure to customers. When subscribing to a technology solution, the provider bears the risk.

Half of all large IT projects—defined as those with initial price tags exceeding $15 million—massively blow their budgets. On average, large IT projects run 45 percent over budget and 7 percent over time, while delivering 56 percent less value than predicted.



In conclusion, businesses that subscribe to third-party technology providers have several advantages over companies that build solutions in-house. They have better cost control, access to expertise, greater adaptability, and reduced risk. Moreover, having a third-party technology solution allows businesses to focus on their core competencies and long-term goals. Companies willing to embrace new technologies can leverage the competitive advantage of using third-party tools while concurrently utilizing their internal teams to focus on identifying ways to grow.