Document automation build vs buy: What to consider

Efficiency and productivity are becoming more and more important. There are many tools to help you eke out gains in many areas.

Some of the most important tools deal with document automation. Because of their importance in creating legal documents, it’s tempting to build it in-house to perfectly match your needs.

The question is, is that the best option?

This guide will help you answer that question by walking through all the things you may need to consider before making a decision.

Understanding Document Automation

Document automation refers to the use of software and technology to create, manage, and process documents with minimal human intervention.

This technology streamlines tasks such as data entry, formatting, and document generation, which are traditionally time-consuming and prone to errors.

Document automation tools can extract data from various sources, apply predefined templates, and ensure consistency and accuracy in the final output.

This process is particularly beneficial for organizations dealing with large volumes of repetitive and standardized documents, such as contracts, invoices, reports, and compliance documents.

Key Benefits of Automating Document Processes

Automating document processes offers numerous benefits.

Firstly, it significantly enhances efficiency by reducing the time required to create and manage documents.

Automation eliminates manual data entry and repetitive tasks, allowing employees to focus on more strategic and value-added activities.

Secondly, it improves accuracy and consistency, as automated systems apply standardized templates and rules, minimizing the risk of human errors.

This leads to higher-quality documents and reduces the likelihood of costly mistakes.

Additionally, document automation enhances compliance by ensuring that all documents adhere to regulatory standards and internal policies.

It also provides better tracking and audit capabilities, as automated systems can log every action taken on a document, ensuring transparency and accountability.

Common Use Cases and Applications

Document automation is widely used across various industries and applications.

In the legal sector, it streamlines the creation of contracts, legal agreements, and case management documents, ensuring consistency and compliance with legal standards.

In finance and accounting, automation facilitates the generation of invoices, financial statements, and tax documents, improving accuracy and efficiency.

Human resources departments use document automation for employee onboarding, benefits administration, and performance reviews, reducing administrative burdens.

Additionally, document automation is crucial in healthcare for managing patient records, billing, and regulatory compliance.

Other common use cases include marketing content creation, sales proposals, and customer communications.

By automating these labor-intensive document processes, organizations can enhance productivity, reduce costs, and improve overall operational efficiency.

The Build Option

Advantages of Building In-House

Building document automation software in-house offers several advantages. One of the primary benefits is customization.

Developing the software internally allows you to tailor the solution to meet your specific needs and workflows, ensuring a perfect fit with existing processes and systems.

This level of customization can lead to higher efficiency and better user adoption.

Additionally, in-house development provides greater control over the software’s features and updates.

You can prioritize enhancements and modifications based on your unique requirements and business goals.

Building in-house also enhances security, as you can implement security protocols and control access to sensitive data.

Furthermore, the in-house team gains deep expertise and knowledge about the software, facilitating faster troubleshooting and support.

Challenges of Building In-House

However, building document automation software in-house comes with significant challenges. One of the main hurdles is the high initial cost and resource investment required.

Developing a custom solution involves hiring skilled developers, purchasing development tools, hiring UI/UX designers, and dedicating substantial time to the project.

If you or your organization doesn’t have expertise in working with developers, you may overpay for inexperienced developers that further extend the timeline required to successfully deliver the project.

This can be a considerable burden, especially for smaller organizations with limited budgets.

Additionally, in-house development can lead to longer development cycles. Creating a robust and fully functional automation solution from scratch requires careful planning, extensive testing, and continuous refinement, which can delay implementation.

Maintenance and scalability are also concerns. As the organization grows, the software must be updated and scaled to accommodate increasing demands, requiring ongoing investment and resources.

Moreover, keeping up with technological advancements and security threats necessitates continuous development efforts, which can strain the in-house team.

Overall, while building in-house provides customization and control, it requires a significant commitment of time, money, and expertise.

The Buy Option

Advantages of Buying a Solution

Buying a document automation solution comes with several distinct advantages. One of the primary benefits is the speed of implementation.

Pre-built solutions are typically ready to deploy, allowing you to start using the software much sooner than if they were to develop it in-house.

This quick turnaround can lead to faster realization of efficiency gains and return on investment.

Additionally, commercially available solutions are usually developed by specialized vendors with expertise in document automation, ensuring a high level of functionality, reliability, and security.

These solutions often come with regular updates, support, and maintenance, reducing the burden on your IT team.

Furthermore, buying a solution can be more cost-effective in the short term, as it eliminates the need for extensive development resources and upfront investment.

It also provides access to a community of users and a wealth of documentation and training resources, which can facilitate smoother adoption and troubleshooting.

Challenges of Buying a Solution

Despite the advantages, buying a document automation solution also presents challenges.

One of the main drawbacks is the potential lack of customization. Off-the-shelf solutions may not perfectly align with your specific workflows and requirements, leading to compromises in functionality or efficiency.

Integration with existing systems can also be a concern, as pre-built solutions may not seamlessly fit into your current IT infrastructure, necessitating additional customization or middleware solutions.

Another challenge is vendor dependency. Relying on an external provider means you’re subject to the vendor’s pricing, update schedules, and support policies, which can sometimes lead to increased costs or disruptions.

Additionally, data security and compliance are critical considerations, as using third-party software may require sharing sensitive information with an external entity. Thoroughly vet the vendor’s security practices and ensure compliance with relevant regulations.

Lastly, while commercial solutions offer support, the level of support can vary, and you may still need to invest in training and change management to ensure successful adoption.

Key Considerations for the Build vs Buy Decision

Cost Analysis

When deciding whether to build or buy document automation software, cost analysis is a crucial factor. Building in-house typically involves higher upfront costs due to the need for development resources, tools, and infrastructure.

This includes hiring skilled developers, designers, and project managers, as well as ongoing maintenance and updates.

Conversely, buying a solution usually requires a subscription or licensing fee, which can be more predictable and manageable, especially for smaller organizations.

However, it’s essential to consider the long-term costs associated with both options, including potential hidden costs such as customization, integration, and scaling.

Time to Implement

Building a custom solution in-house can be time-consuming, often taking several months or even years to develop, test, and deploy fully.

This extended timeline can delay the benefits of automation and impact overall efficiency.

On the other hand, buying a pre-built solution typically allows for quicker deployment, enabling you to start using the software and reaping the benefits much sooner.

Rapid implementation can be particularly advantageous in dynamic industries where time-to-market is crucial.

Customization Needs

Building in-house offers the highest degree of customization, allowing you to tailor the software precisely to your specific workflows, business processes, and requirements.

This can result in a solution that perfectly fits the organization’s needs.

However, many commercial solutions offer configurable options that may meet most customization needs without the need for full-scale development.

It’s important to evaluate whether the available customization in off-the-shelf solutions can adequately address your requirements.

Internal Expertise and Resources

Developing a custom solution requires a skilled team with experience in software development, project management, and security.

If your organization lacks these resources, it may face significant challenges in delivering a high-quality solution.

Buying a solution can alleviate the need for specialized internal expertise, as the vendor typically provides the necessary support and maintenance.

However, you should still have a team capable of managing the implementation and ongoing usage of the software.

Maintenance and Support

Maintenance and support are ongoing considerations for both building and buying. Building in-house means that you’re responsible for all maintenance, updates, and troubleshooting, which can be resource-intensive.

This requires a dedicated team to ensure the software remains functional and secure.

In contrast, buying a solution often includes vendor-provided maintenance and support, which can reduce the burden on internal teams.

 However, the quality and responsiveness of vendor support can vary, so it’s important to evaluate the vendor’s support capabilities and service level agreements.

Integration with Existing Systems

Building in-house allows for seamless integration with current IT infrastructure and business applications, as the development team can design the software to fit perfectly within the existing ecosystem.

However, many commercial solutions are designed with integration in mind and offer APIs and connectors to facilitate interoperability.

When buying a solution, it’s essential to assess its compatibility with existing systems and any potential challenges that may arise during integration.

Vendor Reliability and Reputation

When opting to buy a solution, vendor reliability and reputation are important considerations.

Partnering with a reputable vendor ensures that the software is reliable, secure, and regularly updated.

It also means that you can expect a certain level of support and service quality. Conducting thorough research, reading reviews, and seeking references can help assess the vendor’s track record and reputation in the industry.

Choosing a vendor with a strong history of delivering quality solutions can mitigate risks associated with software adoption.

Making the Decision: A Step-by-Step Guide

Assess Your Needs and Objectives

Start by identifying the specific problems you aim to solve with document automation.

Determine the key functionalities and features required to meet your business processes and workflows.

Engage stakeholders from various departments to gather their input and ensure that the solution addresses their needs.

Clearly define the goals you want to achieve, such as improving efficiency, reducing errors, enhancing compliance, or saving costs.

A thorough understanding of your needs and objectives will provide a solid foundation for making an informed decision.

Conduct a Thorough Cost-Benefit Analysis

Next, perform a comprehensive cost-benefit analysis to compare the financial implications of building versus buying.

Calculate the total cost of ownership for each option, including initial development or purchase costs, ongoing maintenance, support, and potential customization expenses.

Factor in the costs associated with internal resources, such as hiring developers or dedicating staff to manage the project.

Compare these costs against the expected benefits, such as increased productivity, reduced operational costs, and faster processing times.

Consider both short-term and long-term financial impacts to determine which option offers the best return on investment for your organization.

Evaluate Potential Vendors and Solutions

If you lean towards buying a solution, the next step is to evaluate potential vendors and their offerings.

Research and identify vendors that specialize in document automation and have a strong track record in the industry.

Request demos and trial versions of their software to assess usability, functionality, and compatibility with your existing systems.

Evaluate the level of customization offered and ensure that the solution can be tailored to meet your specific requirements.

Check vendor references and read reviews to gauge their reliability, support quality, and customer satisfaction.

Selecting a reputable vendor with a robust solution is critical to the success of your document automation initiative.

Plan for Implementation and Transition

Whether you decide to build or buy, planning for implementation and transition is crucial.

Develop a detailed implementation plan that outlines the timeline, key milestones, and responsible parties.

For in-house development, ensure that you have the necessary resources, including skilled developers, project managers, and IT support.

For purchased solutions, work closely with the vendor to plan the deployment, customization, and integration processes.

Prepare your organization for the transition by communicating the benefits and changes to all stakeholders.

Provide training and support to ensure a smooth adoption of the new system. A well-structured implementation plan will help mitigate risks and ensure a successful rollout.

Monitor and Review Post-Implementation

After implementation, you’ll need to monitor and review the performance of the document automation solution.

Establish metrics and key performance indicators (KPIs) to measure the impact on productivity, accuracy, and cost savings.

Regularly review these metrics to ensure that the solution meets your initial objectives and continues to deliver value.

Gather feedback from users to identify any issues or areas for improvement.

Continuously evaluate the software’s performance and stay updated with new features or updates from the vendor.

If you built the solution in-house, ensure that maintenance and updates are performed regularly to keep the system efficient and secure.

Monitoring and reviewing post-implementation will help you optimize the solution and maximize its benefits over time.

Conclusion

There’s no right or wrong answer for whether you should build or buy a document automation solution. There’s only the best answer for your situation right now.

This guide has walked you through all of the things you need to take into consideration when choosing a route that works for you.

If you decide to go with an integrated document automation solution, be sure to check out DoxFlowy.