When deciding to build or buy, the key factor is strategic importance. Never cede control of technology that is core to your unique value proposition to a vendor. Reserve outsourcing for necessary but commoditized functions that don't differentiate you in the market.

Instead of building a core platform like a CRM from scratch, companies should buy a robust, extensible one. Then, focus development resources on building lightweight, custom applications that connect to the core system, leveraging a stable data foundation while allowing for rapid innovation.

Before engaging external partners, decide your tech strategy. 'Build' in-house for a core competitive advantage. 'Buy' off-the-shelf enterprise solutions for broad utility. 'Borrow' expertise from agencies for specialized projects where you want to upskill your team.

Companies will adopt a hybrid "build vs. buy" approach. They will use AI agents to build bespoke, simple software "screwdrivers" for specific workflows on the fly, eliminating many niche SaaS tools. However, they will continue to "rent" large, foundational platforms like ERPs and CRMs, which serve as heavy-duty "trucks."

For decades, buying generalized SaaS was more efficient than building custom software. AI coding agents reverse this. Now, companies can build hyper-specific, more effective tools internally for less cost than a bloated SaaS subscription, because they only need to solve their unique problem.

Advocates for buying most AI agents off the shelf to leverage existing solutions. Building should be reserved for the small fraction where no suitable tool exists, where you can replace a mediocre incumbent, or where proprietary data is a key advantage.

When deciding whether to build or buy an AI tool, purchase stable, undifferentiated infrastructure (like a dialer). In-house resources should focus on building proprietary intelligence that creates a unique competitive advantage, such as a custom pre-call research model tailored to your specific customer profile.

For AI projects, decide whether to buy or build using a 2x2 matrix plotting business differentiation against implementation complexity. You should build projects that are highly differentiating but complex. Conversely, you should buy solutions that have low-differentiation and low-complexity.

With executive time valued at $1,000-$2,000 per hour, building a custom app that could be bought for $10,000 makes no financial sense. The justification to build must be a critical, strategic need for something unavailable on the market, not a desire to save on subscription fees.