The Pros and Cons of Custom Software Development
Whenever you need to enhance one or several aspects of your business operations or employees' productivity, there's always a chance that there’s a software solution that can help. It is common for business leaders to define and refine manual work processes and implement software solutions into their operations but later face unseen barriers.
In this case, you require software to optimize operations but need help finding the best solution for your unique needs.
Here's where the big question starts to linger. Will you opt for a custom-developed software or software-as-a-service (SaaS) solution?
Choosing between the two options can be extremely difficult since no one-size-fits-all universal software solution exists. Like other business solutions, custom software has pros and cons, and so do SaaS solutions.
Implementing customized applications and off-the-shelf software requires a significant investment in cost and time. Also, remember that these solutions will impact the company's operations for years. Going in the wrong direction may create chaos and reduce workplace efficiency.
Understanding the advantages and disadvantages of tailor-made software is best before deciding. By evaluating the pros and cons of customized software, you can find the right solution that will positively impact your employee productivity and workplace experience.
Custom-written software is the most viable option for companies with the right kind of people who offer highly personalized and flexible services that are seamless to use and maintain. Otherwise, a ready-built software solution can save you time and the huge initial investment you need for customized software.
Luckily, several factors will determine the choice between canned and custom software. The top considerations include your tasks' complexities, future growth plans, the organization's size, and the solutions' financial viability.
In this article, we answer the question of what custom software is and discuss in detail the advantages and disadvantages of tailor-made software to give you an idea of what to expect. Let's look at the reasons you may want to implement customized software.
With Hundreds of Off-The-Shelf Solutions, Why Bother With Custom Software?
Regardless of your industry, niche, or business size, there is an off-the-shelf software solution you can use to optimize your operations. They are developed for standard use and may not suit your unique needs. Before you rule out the need for a custom-built application or solution, ask this critical question: What percentage will the SaaS solution meet our company-defined needs?
The best solution should meet around 80% of your needs. In industry practices, reaching 80% is extremely difficult; even the best solution only offers about 60% efficiency. When you implement off-shelf products, you make several compromises that can affect your revenue. Balancing the costs and benefits is the best way to do this.
SaaS software will typically cost less initially, and you can implement them quickly. They are the best option for startups with a small budget for their software solutions. However, if the product fits poorly to your business operations, you may need to implement other workarounds or invest in extra software.
To evaluate if SaaS software is the right fit for your business, consider the following factors:
Top Software Advantages Include Improving Your Business Efficiency and Workplace Productivity
If it doesn't fit into your processes, you must change your internal processes regularly to match how the off-the-shelf software works. The small changes you make every month or yearly can be worth the cost savings of the software solution, but a major overhaul is time-consuming and expensive. Additionally, the processes that you already optimized and work well may have to change to adapt to the mass-market standard leading to unintended consequences on your operations.
The Solution Can Also Be Bloated With Several Extra Features You Don’t Need
Most SaaS solutions come with numerous features to match the needs of as many customers as possible. Your company has to pay for these features to use the software even when you don't need them. They can also get in the way of your team, limiting productivity.
Training Is Difficult
Anyone implementing a SaaS solution knows how much time and effort employees need to learn the ins and outs. Sometimes, with software updates, things lose simplicity, and you start from scratch again.
You Want to Have Complete Control of How the Solution Changes and Evolves
SaaS software solution manufacturers change their software based on what is trending and what most customers need. Their drastic changes can leave your company with a huge problem that can be costly.
Every business requires ample room for growth. Custom software is the best solution for the seamless growth and onboarding of new employees and clients. Let's now look at some of the top custom software advantages.
What Are the Advantages of Tailor-Made Software?
The off-the-shelf software solutions are built on a generic basis to suit the requirements of a large customer base. In most cases, businesses need unique solutions to solve issues specific to their operations.
Custom-built software is the best and most popular option for these companies. Here are some of the top custom software development benefits.
Customized Approach
One of the significant tailor-made software advantages is offering a particular approach you need for your business operations. Off-the-shelf solutions are not designed to your specific needs and objectives.
Custom software solutions for your business guarantee that the software you get will fit your particular requirements and employees’ needs. You will have chances to improve your process throughout the custom software development for easy implementation and employee training.
Outsourced partners can readily examine the full range of procedures and then analyze your business to offer highly optimized automation solutions. Ultimately, this will increase productivity and pay you financially in the long run.
Greater Return on Investment
Companies usually require a significant amount of investment in terms of capital, time, and effort to develop custom software. Initially, the cost will be high due to the research and talent you need for the development process. The same applies when you want to create an internal team for creating and maintaining your software in-house.
With a customized software application, you are sure the solution will pay for itself over time by offering better results. Although the custom software may require a significant initial financial commitment, the expenses will quickly dissipate once you implement it into your strategies.
Also, compare it with other licensing fees and concerns associated with an off-the-shelf software solution to make the right decisions. Consider the recurring expenses, security and privacy problems, or compatibility with your existing systems to develop a solution that fits perfectly without disruption.
Compatibility
Each company relies on unique tools that are specific to its operations. Ensuring all your tools connect efficiently to boost productivity through easy data sharing and team collaboration is crucial. You can achieve this by creating custom interfaces to facilitate data transmission from one system to another or across applications.
Getting these features from a commercially available tool is challenging and sometimes impossible. The only solution offering the features you need could be customized off-the-shelf software that is not easy to come by. Other off-the-shelf software may provide integration possibilities for programs you don't use. A custom software application is ideal to ensure all your in-house systems are compatible.
Advanced Software Security
Generally, hackers prefer infiltrating companies operating with commonly available commercial off-the-shelf software (COTS). They find it easy to identify vulnerabilities and get into your company systems. A custom-designed software lets you include the security features your organization requires right by the code.
With in-house software, you maintain the use within your organization. This reduces the possibility of infiltration to keep your systems protected.
Flexibility
A highly scalable software solution will keep adapting to the company's evolving needs. A tailored solution gives users total flexibility to develop applications and solutions that can engage with customers and capture new leads without hassle. This is one of custom software development's top and most obvious benefits.
Typically, ready-made applications are usually fixed and are not easily optimized. You have to wait for the manufacturer to create an update and release it to all their users. Waiting for these new features can take an extended time, while other competitors use custom software that they can adapt instantly to trends and needs when they arise.
Customized application software eliminates these issues by accommodating all your demands and adding new features whenever required. Also, it will leave room for more customization, integration opportunities, and the potential to scale when your business grows. If your site needs to scale up or down, you can assign the task to your custom development team to work on it as soon as possible.
Convenient to Use
A customized software package is usually easy to operate as they are not bulky and only contains the features you need for your operations. Depending on the set criteria, off-the-shelf software has several capabilities with features that you may not require.
The simplicity of custom software solutions enhances your team productivity while lowering your business expenses on the features you don't require. Ultimately, you will make more money and spend less to maintain your software.
Avoid Running Into Potential Problems in the Long Run
Building custom software eliminates long-term risks that are typical with off-the-shelf solutions. Manufacturers can discontinue support for the previous versions of their software solution when they release newer versions. Also, the company may go out of business and cease offering assistance or updates to its software.
While you may continue to use the feature after they discontinue the assistance, it will not evolve with changes in your workplace. Custom software is readily accessible, and you can update it as often as required.
Enhanced Software Assistance
Customized software packages are created by software teams that focus on your business and its needs instead of the needs of a wide array of customers simultaneously. The dedicated team will always look after your software needs and offer the solution required immediately. Whether you outsource or hire the development teams in-house, they will provide ongoing support to maintain the software.
It limits the time you need to make changes to the software to eliminate business downtime. The quick response and resolution time are guaranteed by including Service level agreements (SLAs) when you sign the contract. You will be in charge of the assistance offered, not the other way around.
Being Competitive in the Market
Customized software applications cater to the specific requirements of your company. The systems you create will have unique features that your competitors cannot access with commercially available tools. By implementing a one-of-a-kind solution in your operations, you will stand out and gain a competitive edge over your rivals.
Ready-made software is usually inflexible and will not adapt to your needs. You have to adjust your operations to fit around it. The ideal solution for your workplace should become your company's USP (unique selling proposition).
On the other hand, bespoke software solutions fit your business solutions. Your staff will have an easy time focusing on other critical business aspects and meeting your customer demands. As a result, you impress your customers and increase your business revenue in the long term.
What Are the Cons of Custom-Made Software?
After examining the numerous custom software development benefits, it's time to consider the disadvantages of custom software development. Consider these factors carefully before you decide to develop your custom software.
High Investment
Custom software solutions require a substantial financial commitment. Typically, the process costs vary from a few thousand dollars to multi-million dollar investments. If you hire an in-house team to build software, it will cost you more. You must hire, onboard, and keep the team.
The long-term benefits of custom software development may outweigh your initial expenditure. Ensuring your ROI is good before investing in custom software development is essential.
Development Time
Developing custom software for your company requires significant time and effort. For custom software, you may need to wait months or years for the team to develop the best solution unique to your business. Off-the-shelf products usually offer instant results as you purchase and install them.
The company must devote significant effort and monetary resources to this process to develop a perfect solution. The product will also undergo testing, analysis, and evaluation from the users' viewpoint—all these add to the time needed to achieve the intended results.
If you are working with an outsourced or internal team, they have to collaborate with other departments to go through the various stages of software development.
Maintenance and Management
After developing and implementing custom software in your operations, it enters the maintenance phase. Custom software maintenance is one of the most important aspects to ensure it offers the required results. The maintenance services include:
Feature updates
Backups
Bug fixes
Performance optimization
Maintaining software solutions can be time-consuming and challenging for your team. The team members have to spend time checking on the performance of the software, collecting data, and analyzing them to improve it. According to the program's complexity, a typical customer software maintenance service will involve the following:
Priority assessment and analysis
Testing
Updates on delivery and paperwork
Detection and tracking of issues
Design and Implementation
Requires More Team Involvement
Just like the development and maintenance will require a significant amount of time, it will call for more involvement from the company management. Custom software development comes with numerous options for every aspect of the business. The management teams must discuss these options and appoint leaders to oversee the development.
The process will take time until they develop a solution that fits the company culture and operations. The goal is to ensure the result leaves everyone involved in the process feeling glad they invested their time and effort into the project.
Steps To Success When Building Custom Software
After thoroughly analyzing the project's complexity, available resources, and company needs, custom software application development will finally begin. If you work with an outsourced team, you don't have to worry about this process, as they will do the analysis themselves. Here are some of the best practices to use when considering custom software development for your company:
Set Clear Business Goals and Requirements
Establish your company's objectives and success metrics you want for the project beforehand to manage your expectations. You can do this by breaking the project management process into three critical questions you ought to answer before the project begins.
Why is this software important to your operations?
How much time do you have to finish the projects?
What are the desired development workflows for this project?
Recruit the Right Software Development Partner
If you want to save money during the project, consider the team you hire. You can't save money when your in-house team has to work 24 hours a day, seven days a week, all alone.
It is essential to manage business processes and workflows effectively for the success of custom software development. In the initial phase, you have the option to:
Create an in-house development team
Hire freelancers
Get a custom development firm with the best portfolios to do the job
You may outsource the entire project to a development partner that will work closely with your staff to create reliable software through the support of experts. Choose a firm with a proven track record of designing and building custom software.
Create Realistic Milestones
You can achieve the desired results if you set realistic goals for the project. This ensures that you provide the development team with all the required resources to focus on the goal.
It would help if you also had a detailed business plan for the project. It lets your team track their project performance and has clear strategies to help achieve desired goals in one step.
During the development phase, review and get feedback from the immediate users at each stage to check whether the goals are met. Arrange the timeliness and budget appropriately to avoid making errors and stopping the project before completion.
Conduct a Wide Range of Testing
You can further prevent failures and defects in the final solution by addressing testing throughout all stages of development. Ensure you conduct each type of testing and keep track of issues that appear.
As you test, provide feedback to the development team so that the feedback can be incorporated into the upcoming development. This feedback is crucial for the success of the project.
Final Thoughts
After learning the build vs. buy software pros and cons, it is clear that the choice depends largely on what you need as a company. The benefits of custom software development outweigh its disadvantages, so it offers the best solution when you want software that grows and evolves with your business.
Before making the final decision, it is crucial to understand the advantages of custom software development to check if it's the best fit for your operations.
At Mach One Digital, we aim to offer our clients reliable solutions to adapt to their changing needs and give them an edge in the existing global market. We have the expertise and resources to turn ideas and innovations into valuable digital assets and supercharge your success. Schedule a discovery call with us today to learn more about our offerings.