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Custom software vs off-the-shelf solutions: which is right for your business?

2 minutes read
Custom software vs off-the-shelf solutions: which is right for your business?

Choosing between custom software and off-the-shelf solutions depends on how differentiated your business processes are. Off-the-shelf solutions have low upfront cost and fast setup but tie you to the vendor's roadmap. Custom software requires more investment but models exact workflows and grows with the company. Tipping point: 5-year TCO and business evolution speed.

Custom software or off-the-shelf: which one is better?

Companies often face the choice between custom software and SaaS (Software as a Service) solutions. Both options have pros and cons, and the decision depends on the specific needs of the business.

Advantages of custom software

  • Total adaptability: Built to fit your specific business needs.
  • Higher security: Complete control over data and features.
  • Scalability: The software evolves with the company's growth.

Advantages of off-the-shelf solutions

  • Lower costs: No initial development investment.
  • Immediate deployment: Faster activation times.
  • Support and updates included from the provider.

Conclusion

If your business has specific needs and aims at a competitive advantage, custom software is the better choice. For standardised needs, a SaaS solution can be more cost-effective.

Frequently asked questions

When does it make sense to invest in custom software?

When processes are differentiating compared to the sector, the company evolves fast, the 5-year TCO of off-the-shelf exceeds the custom investment, or you need integrations with specific systems impossible on the standard.

How much does a custom business application cost?

Typical range for SMEs: 30k-200k€ for first release, depends on process complexity and user count. Annual maintenance: 15-25% of initial cost. Custom typically pays off over off-the-shelf above 50k€ TCO.

Can you start with off-the-shelf and migrate to custom?

Yes, it's a pragmatic middle ground. Start with an off-the-shelf solution with open APIs, develop custom modules for differentiating processes, and migrate fully when justified. Works if the vendor doesn't block integrations.

Related questions

  • When does custom software pay off vs standard?
  • How much does custom software cost?
  • Can you start standard and then customise?
  • Custom software: lock-in with the software house?

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