Custom software or off-the-shelf? When you need custom software

As a business grows, work gets spread across Excel files, WhatsApp groups and several programs that aren't connected to each other. At that point there are two routes: buy an off-the-shelf program from the market or have custom software built for your business. Either can be right; what's wrong is deciding without knowing which one you need. This article covers the differences, which one suits which situation and what to look for when choosing a custom software company.

#What is custom software?

Custom software is software developed from scratch for a particular business's needs. With an off-the-shelf program you adapt to the workflow it offers; with custom software, the software is built around your workflow. An admin panel, a booking system, an integration connecting two programs, or a small service that does a repetitive task automatically: all of these are custom software.

#Off-the-shelf programs and custom software compared

#When is an off-the-shelf program enough?

• When your work follows a standard workflow that is common in your industry: basic bookkeeping, e-invoicing, basic stock tracking and the like.
• When you have few users and the subscription fee isn't a strain.
• When the things the program can't do don't stop your work and only call for a small change of habit.
• When you need to start quickly and aren't yet sure what you need.

#When do you need custom software?

• When the same data is entered by hand in several places: An order is copied from email into Excel, then into the accounting program, then into the shipping panel.
• When an off-the-shelf program covers only half your work: And spreadsheets and notes are kept for the other half.
• When your pricing or business rules are specific to you: Such as calculations that vary by distance, vehicle, customer or contract.
• When your programs don't talk to each other: And an employee does the work in between by hand.
• When the software itself is what sets you apart from competitors: When the service you offer customers is delivered through this system.

#You don't have to build everything from scratch

For most businesses the most sensible route is a mix of the two: standard work such as accounting and e-invoicing stays in an off-the-shelf program, a small piece of custom software is developed for the part that is specific to your business, and the two are connected by an integration. That way you only pay development costs for the part that makes you different. An example of what the business-specific part looks like: the multilingual booking platform with real-time price calculation that we developed for a transfer company.

#What to look for when choosing a custom software company

1. Scope document: Is it written down what will be done, what won't be done and the delivery dates?
2. Source code: Are the source code and documentation handed over to you at delivery?
3. Live examples: Can you see systems the company has built that are running today?
4. Process: At which stages is your approval sought, and how are change requests handled?
5. After launch: Who will handle maintenance, backups and support, and on what terms?

We cover these questions in more detail, along with the differences between freelancers, agencies and software teams, in how to choose a software company.

#What determines the cost?

The cost of custom software depends less on the number of screens than on the complexity of the business rules, the user roles, the number of systems to connect and the reporting needs. The one-off development fee and recurring costs such as server and maintenance should be considered separately; you can see which items a quote includes on our pricing page. If you would like to work out the right structure for your business together, take a look at our custom software and automation service.