In today’s digital world, no software lives on an island. To build a powerful, seamless experience for your users, you need your app to communicate with other tools. This is where third party integrations come in. They are the essential glue that connects different software, allowing them to share data and automate tasks. Let’s break down what they are, why they matter, and how to manage them effectively.

What Are Third Party Integrations?

A third party integration is the process of connecting your software with an external application or service to exchange data or trigger actions. Think of it as creating a bridge between two separate programs so they can work together as a unified system. In an environment where the average enterprise uses around 1,295 different cloud services, these connections are vital to prevent data from getting trapped in isolated silos. See our comprehensive guide to API integration to choose the right approach.

In fact, a staggering 84% of businesses consider integrations a key requirement for their customers. This is because effective third party integrations allow different tools to function as one. For example, you can link your e commerce store to a shipping provider’s API, so new orders are automatically registered for shipment without any manual work.

Third Party vs. Native Integrations: What’s the Difference?

It’s important to distinguish between the two main types of integrations you’ll encounter.

Native Integrations

Native integrations are connections built directly into a software product by its own development team. These are often the “out of the box” options you can enable with just a few clicks in the settings menu. They are designed for a seamless, tailored experience between two specific applications. While they offer deep functionality, they can also be limiting, sometimes offering reduced visibility into data logs and increasing vendor lock in, making you dependent on a single provider’s roadmap.

Third Party Integrations

Third party integrations, on the other hand, use an external platform or middleware to connect different systems. These are perfect when you need to link multiple, diverse tools or want a central hub to manage all your connections. They offer flexibility and speed, often using pre built connectors to get you up and running quickly. Most companies use a hybrid approach: native integrations for simple, core connections and third party solutions as their tech stack grows more complex.

A Real World Example of a Third Party Integration

A classic example is connecting your Customer Relationship Management (CRM) system, like Salesforce, to your email marketing platform, like Mailchimp. Instead of manually exporting a list of new leads and importing it into your email tool, a third party integration can automate the entire process.

Whenever a new lead is added to your CRM, the integration automatically sends that contact’s information to your email marketing app. This keeps your data perfectly in sync and saves a tremendous amount of time. Tools like Zapier make this incredibly easy, connecting over 5,000 apps to create countless automated workflows.

These connections deliver real business value. For instance, companies that integrate their CRM with marketing automation see 59% higher close rates on deals because data flows seamlessly between sales and marketing teams.

Types of Third Party Integration Platforms

When you decide to use third party integrations, you’ll encounter several types of platforms designed to help. These tools exist to solve the massive challenge of data fragmentation caused by the explosion of SaaS applications.

Workflow Automation Platforms

These are user friendly tools that let anyone automate tasks between apps without writing code. Platforms like Zapier or Make allow you to create simple “if this, then that” rules. For example, “if a new file is added to a specific Google Drive folder, then send a notification to a Slack channel.” They are fantastic for automating routine tasks and empowering non technical team members. The adoption of these no code and low code integration tools has surged by 41% as businesses look to free up their IT departments.

Enterprise iPaaS (Integration Platform as a Service)

Enterprise iPaaS is a comprehensive, cloud based suite designed for large scale integration needs. Think of it as a complete toolkit for building and managing all connections across an organization. Platforms like MuleSoft or Dell Boomi offer high scalability, robust security, and the ability to connect both cloud and on premise systems. This is critical for large companies, where IT teams can spend over a third of their time just building and maintaining integrations.

Unified APIs

A unified API is a single API that gives you access to multiple services within a specific category. For instance, instead of building separate integrations for Salesforce, HubSpot, and Zoho, you could integrate with a single, unified CRM API that connects to all of them. This drastically reduces development effort, cutting the time to add new integrations from months to days. This strategy can help you expand into new markets, a benefit realized by 52% of organizations that leverage integrations.

Embedded iPaaS

An embedded iPaaS is an integration platform that is “white labeled” and built directly into a software product. This allows a SaaS company to offer a wide range of “native feeling” integrations to its customers without having to build each one from scratch. The SaaS vendor can quickly roll out hundreds of connections using pre built connectors, making their product more valuable and “sticky” for users.

The Business Impact of Smart Integration

Implementing a strategy for third party integrations isn’t just a technical exercise; it has a profound impact on business outcomes. Explore recent projects where integrations reduced churn and drove revenue.

Data Silo Reduction

Data silos, or isolated pockets of information, are a major headache for nearly 90% of organizations. When your sales, marketing, and support teams all have different, inconsistent customer records, it leads to inefficiency and poor decision making. Integrations break down these barriers by allowing data to sync automatically, creating a single source of truth across the company.

Developer Time Saving

Building and maintaining custom integrations is a massive time sink for developers. The average enterprise spends a whopping $3.5 million per year on integration related labor. Using third party integration platforms with pre built connectors can reduce the time it takes to launch a new integration from months to just a few days, freeing up your engineering team to focus on core product innovation. If you need to build out integrations quickly without diverting your team, a partner like Bricks Tech can help you connect to over 100 APIs as part of a rapid development cycle.

Client Retention Improvement

Products that fit seamlessly into a customer’s existing workflow are harder to replace. The data proves it. One study found that customers of the SaaS product Freshworks who used at least one integration were 30% less likely to churn. For those with five or more integrations, churn was reduced by up to 80%. Offering robust third party integrations makes your product indispensable.

TAM (Total Addressable Market) Expansion

Each new integration you offer can open up a new customer base. For example, in our Taraki case study, a jobs marketplace scaled rapidly through smart integrations. If your app integrates with Shopify, every Shopify merchant becomes a potential customer. This is a powerful growth strategy. On average, companies generate about 27% of their revenue from APIs and related integrations, showing a direct link between connectivity and income.

Navigating the Challenges of Integration

While the benefits are clear, implementing third party integrations comes with its own set of challenges and requires careful planning and governance.

Technical Expertise Requirement

Building robust integrations traditionally requires skilled engineers who understand APIs, data formats, and security protocols. This expertise can be hard to find and expensive. The rise of low code platforms has lowered the barrier for simple connections, but complex, mission critical integrations still demand experienced professionals. For startups and lean teams, partnering with a development agency can provide the necessary expertise without the overhead of a full time hire.

Performance Visibility Limitation

A common issue, especially with native or black box integrations, is a lack of visibility. If an integration slows down or fails, you might not know until your customers complain. It’s crucial to use platforms that provide dashboards, logs, and alerts so you can monitor the health and performance of your data flows.

Third Party Vendor Risk

When you rely on an external provider for integration, you’re also taking on their risks. If their service goes down, your connected processes might stop working. This dependency makes it essential to vet vendors carefully, check for security certifications, and have a clear understanding of their reliability and support.

Best Practices for Managing Integrations

To succeed with third party integrations, you need a solid governance framework. This ensures your connections are secure, reliable, and aligned with your business goals. Our process outlines how we scope, test, and ship integrations quickly.

Pre Production Testing

Never roll out a new integration directly into your live environment. Always test it in a controlled, pre production setting using sandbox accounts and test data. This allows you to catch mapping errors, performance issues, or security flaws before they can impact real customers.

Integration Error Monitoring and Alert Sync

Things will inevitably go wrong. An API might go down or a data format might change. You need systems to monitor for these errors in real time and automatically notify the right people. Syncing alerts to tools like Slack or PagerDuty ensures that issues are addressed immediately, not days later.

Integration Performance Analysis

Beyond just monitoring for errors, you should regularly analyze the performance of your integrations. Are they fast enough? Can they handle your data volume? Analyzing metrics like latency and throughput helps you optimize your connections and plan for future scaling needs.

Designated Integration Tool Owner

Avoid a chaotic free for all where anyone can build integrations. Assign a specific person or team to be the “owner” of your integration strategy. This owner is responsible for choosing the right tools, setting standards, and providing governance to ensure consistency and security. Today, only about 54% of organizations have a formal, centralized integration governance framework.

Phased Rollout with Limited Integrations

Don’t try to connect everything at once. Start with a few core, high impact integrations. Test them, stabilize them, and then gradually add more in subsequent phases. This iterative approach reduces risk and makes troubleshooting much easier, and it’s the backbone of our MVP development approach.

A Governance Framework for Success

A formal governance process brings order to your integration efforts, ensuring every connection is secure, strategic, and well managed.

Disable Self Install Policy

To prevent “shadow IT,” many companies implement a policy that prevents users from installing or integrating new software on their own. Instead, all requests must go through a central approval process, ensuring every tool is properly vetted.

Integration Approval and Governance Process

This is a formal workflow for evaluating and approving all new integration requests. It ensures that stakeholders from IT, security, and the business review each request to confirm it’s necessary, secure, and compliant with company policies.

Software Catalog

Maintain a centralized catalog of all approved applications and integrations. This acts as an internal app store, showing employees what tools are available and officially supported. It promotes transparency and prevents teams from building redundant connections.

Periodic Review

Integrations aren’t “set it and forget it.” Conduct regular reviews (quarterly or annually) of all existing integrations. This helps you identify connections that are no longer needed, require security updates, or could be optimized.

Integration Request Workflow

Establish a clear, simple process for employees to request new integrations. This is often done through an IT service management tool like Jira or ServiceNow. A formal workflow ensures all requests are captured, prioritized, and tracked from idea to implementation.

Ready to build a product that seamlessly connects with the tools your customers already love? Schedule a free consultation with Bricks Tech to see how they can build a powerful, integrated MVP for you in just a few weeks.

Frequently Asked Questions

1. What is the main purpose of a third party integration?

The main purpose is to allow separate software applications to communicate and share data automatically. This eliminates manual data entry, reduces data silos, and creates more efficient, automated workflows for users.

2. Are third party integrations secure?

Security depends on the specific integration and the platforms involved. Reputable integration platforms and APIs use security measures like OAuth and encryption. However, it’s a shared responsibility. Your organization should always follow a governance process to vet third party vendors and ensure data is handled securely.

3. How long does it take to build third party integrations?

The timeline varies greatly. A simple connection using a workflow automation tool like Zapier can be set up in minutes. A complex, custom integration between an enterprise ERP and a CRM could take months. Using pre built connectors on an iPaaS or working with an agency like Bricks Tech can significantly accelerate this process. For a realistic breakdown of phases and speed, see our guide on how long it takes to build an MVP.

4. Can non technical people set up integrations?

Yes, for certain types of integrations. No code workflow automation platforms are designed specifically for non technical users (often called citizen integrators) to create simple connections between common cloud apps without writing any code.

5. Why do integrations sometimes break?

Integrations can break for several reasons. The most common cause is a change in one of the connected applications’ APIs (an API update or deprecation). Other causes include network issues, authentication errors (like an expired API key), or changes in data formats. This is why ongoing monitoring and maintenance are so important.

6. What’s the difference between an API and an integration?

An API (Application Programming Interface) is a set of rules and tools that allows different software applications to communicate with each other. An integration is the practical application of using one or more APIs to connect systems and create a functional workflow. The API is the doorway; the integration is the act of walking through it to pass information back and forth.