Building vs APIs: Why APIs win in the long term

When it comes to developing new features, products, or tools, businesses often face a critical decision: build a custom solution from scratch or leverage existing APIs. At first glance, building your own solution may seem appealing, offering the promise of complete control and a bespoke fit. However, as we'll explore, the costs—both upfront and long-term—often outweigh the perceived benefits.

In this article, we'll break down the true costs of building your own solution compared to using APIs, and why APIs are not only more cost-effective in the long run but also reduce development headaches, eliminate infrastructure overhead, and keep your business agile. Let’s get into it.

1. Upfront costs: Custom building vs ready-to-use APIs

Building a custom solution sounds like the ideal way to meet your exact needs. But here’s the rub: the development phase alone can be costly and time-consuming. According to a study by Clutch, small business websites can cost anywhere from £5,000 to £35,000 to develop, and that’s just for basic web functionality. When you start factoring in complex features like integrations, data processing, or specialised tools, costs escalate quickly.

In contrast, APIs allow you to tap into ready-made solutions without the hefty development costs. Whether you need a file compression and conversion API or a mortgage calculator API, you can access fully functional tools for a fraction of the cost of custom-building.

With APIs, you’re not starting from scratch, which means no need to spend valuable time and money on a development team trying to reinvent the wheel. Instead, you can plug into existing services that meet your needs instantly. For companies looking to reduce upfront costs and quickly implement solutions, APIs are the clear winner.

2. Development time: Save months with APIs

Time is money, and building your own solution can drain both. The timeline to build a fully functional product from scratch can range from months to even years, depending on the complexity. Beyond the initial development, there are inevitable delays due to testing, debugging, and unforeseen issues that arise during the process. In fact, according to McKinsey, 45% of large IT projects go over budget and are delivered late.

APIs, on the other hand, offer the speed businesses need. With APIs, development timelines are slashed because the core functionality is already built. Need to offer a salary calculator on your site? You can use an existing salary calculator API and integrate it within days, not months. The quicker you can deploy your solution, the quicker you can generate revenue, boost engagement, or capture leads.

Using APIs helps your development team focus on what matters—your product’s unique value proposition—rather than spending precious months coding standard features. Time to market is crucial in today’s competitive environment, and APIs can be your key to staying ahead.

For further insights into why speed matters, read our guide on how APIs help reduce time to market.

3. Ongoing maintenance: Say goodbye to development headaches

Building your own solution doesn’t end with the final product. Once built, you are responsible for the ongoing maintenance and upkeep. Software isn’t static; security patches, bug fixes, updates, and compatibility adjustments all demand continuous attention from your development team. According to IBM, 50% of the total cost of ownership for software comes from maintenance.

With APIs, you eliminate much of this ongoing burden. API providers handle the maintenance and updates, ensuring that their tools remain secure, functional, and up-to-date without you having to lift a finger. This means fewer headaches for your developers and fewer unexpected costs for your business.

For example, a holiday calculator API automatically adjusts for changes in holiday dates, saving you the hassle of constant updates. This not only ensures accuracy but also gives your team the freedom to focus on other important projects.

4. Infrastructure and scaling costs: API providers handle it for you

When you build your own solution, you’re also on the hook for the infrastructure that supports it. Hosting, servers, security, and scaling all add to your costs. If your solution experiences a surge in users, you’ll need to ensure that your infrastructure can handle it—otherwise, you risk downtime, which can cost you both in revenue and reputation.

APIs offer a way out of this infrastructure nightmare. Because APIs are hosted by third-party providers, they’re responsible for scaling, performance, and uptime. This is particularly valuable if your business experiences seasonal traffic spikes or fluctuating user demand. You can rest easy knowing that your API provider has built-in scaling, often at no additional cost to you.

For instance, with APIs like the employee time off management API, you won’t need to worry about infrastructure even as your business scales, because the API provider has already designed the solution to handle large volumes of data and usage.

5. Security and compliance: APIs come with built-in safeguards

Security is a major concern for any business operating online. If you build your own solution, ensuring that it’s secure and compliant with data protection regulations (such as GDPR) is entirely your responsibility. This requires security audits, constant monitoring, and sometimes third-party certifications—all of which cost time and money.

API providers, however, take care of these security concerns for you. Most reputable API providers offer high levels of encryption, data protection, and compliance with industry regulations. By using a well-established API, you can significantly reduce your exposure to security risks without having to make a large investment in security infrastructure.

For example, APIs that handle sensitive financial data, like the mortgage calculator API, already come equipped with industry-standard encryption and security protocols, which are maintained by the provider, not your team.

6. Flexibility and future-proofing

Building your own solution might seem like the best way to future-proof your business, but in reality, tech evolves quickly. What you build today might be outdated tomorrow, and keeping up with the latest technology trends can be both expensive and exhausting.

APIs, however, are continuously updated by their providers to stay current with new technologies. When a provider improves their API’s functionality, you benefit from these updates without any additional cost or effort. This future-proofs your business without the need to constantly overhaul your tech stack.

Additionally, APIs offer flexibility. If a specific solution no longer suits your needs, it’s easy to switch to another API or add additional functionality by integrating multiple APIs. With a range of solutions available, such as the full stack HR API, you have the freedom to adapt as your business grows and changes.

7. Opportunity costs: Focus on what makes your business unique

Every hour your team spends building a tool that could have been sourced via an API is an hour they’re not spending on what makes your business unique. The opportunity cost of custom-building is significant, especially for smaller companies with limited resources.

By using APIs, you can shift focus to areas that truly differentiate your business from the competition. Let your team work on creating the next big feature or improving user experience, while APIs handle the routine tasks. For instance, tools like our cost-of-living calculator API can easily be implemented into your system without taking away from your core product development time.

This approach maximises the potential of your business, ensuring that you’re spending time and money where it matters most.

In the debate between building from scratch versus using APIs, the winner is clear: APIs provide a more cost-effective, scalable, and flexible solution. They reduce development time, eliminate the need for infrastructure management, and future-proof your business in a constantly evolving tech landscape. Ready to explore the benefits of APIs for your business? Visit our API marketplace to get started.