Retool 2026 Build vs Buy Report: 35% of Enterprises Already Replaced SaaS, 78% Plan More — Shadow IT Surges

Retool·medium signal

Retool's survey of 817 builders reveals 35% of teams have already replaced at least one purchased SaaS tool with custom-built software, and 78% plan to build more in 2026. Workflow automations (35%) and internal admin tools (33%) are the top replacement targets. The shadow IT dimension is alarming: 60% built software outside IT oversight in the past year, and 25% do it frequently. The economic logic has flipped — teams can prototype tailored replacements in days rather than pay thousands annually for generic tools.