Custom Software vs. Off-the-Shelf Software: Pros and Cons

Currently, the software market is so diverse that it sometimes seems like there are ready-made solutions for almost any industry and task. However, there are also numerous examples where off-the-shelf software for a specific enterprise or organization does not exist, or it requires such significant modifications that it is cheaper to order development “from scratch.” 

This was specifically discussed by participants of the online event “Software Market Trends in 2023 and Future Forecasts.” The event took place on October 2, 2023, under the auspices of the Software Ukraine association and the Intecracy Group. Serhii Balashuk, the company’s director and a Ukrainian information technology expert, participated on behalf of “IQusion IT”. The event participants highlighted the main advantages and disadvantages of custom software development services for clients.

In this article, we will list the main “PROS” and “CONS.” However, it’s worth starting with the difference between these concepts. Thus, an off-the-shelf product means that the software was developed as a universal solution suitable for most enterprises (in the opinion of the developer company’s marketing department). Custom software is created specifically for a particular enterprise and/or organization and will not suit others.

Custom Software: Advantages and Disadvantages

Arguments “FOR” (Pros)

1. Individuality and Flexibility

Direct competitors are likely using standard (off-the-shelf) software. A custom solution will allow you to work faster or better than them. The organization itself decides what and when needs to be changed in the software: in almost all business solutions, developers provide a kind of “constructors” that allow adding, changing, deleting functions, and adapting to new business needs. It is also worth noting that quite often, off-the-shelf software does not allow for modifications, or it is explicitly prohibited by licensing terms.

2. Speed of Operation

Custom solutions (custom software) work faster because they do not contain unnecessary functions, do not create additional requests, and are developed from the outset exclusively to solve specific business needs (tasks).

Arguments “AGAINST” (Cons)

1. High Cost

When developing a custom solution, the client has to pay the full development costs. The initial price will be higher than any monthly subscription or license purchase. Faced with this, enterprises often implement their own software gradually. Initially, only the most necessary functions are developed, then the software is evolved by adding additional capabilities.

But remember that in this case, you will most likely save not now, but in the long term. To verify this, you would compare the cost of your software and the cost of subscription software for the period you plan to use it. This refers to a perspective of 5-10 years or more (provided there is support and regular updates).

2. Development Complexity

Custom-made software requires time and organizational effort from the enterprise. First, it is necessary to plan the project, define the required functions, budget, and deadlines. Then comes development and implementation, where timelines can vary – on average from 3 months. To make a more accurate estimate, all project specifics and tasks must be considered.

IQusion IT LLC assists clients with project development, technical specifications, and is capable of performing the development itself. For this, we employ business analysts, architects, coders, etc.

Off-the-Shelf Software: Pros and Cons

Now let’s consider the advantages and disadvantages of standard software.

Arguments “FOR” (Pros)

1. Price and Speed

The cost of using off-the-shelf software at the start is many times lower than the process of developing from scratch. Product companies usually offer flexible pricing packages and free trial periods. In addition, models are often provided that allow paying exclusively for the number of workstations (accounts).

It is also important that to start working, it is enough to simply implement the software — this usually involves installation and user training (organization employees). Sometimes this entire process takes only one day.

2. Support and Updates

Many users have already worked with this standard software. Most likely, they have already encountered problems that you are not even aware of and that you will try to solve when you start using it. This ensures quick support for all issues. In addition, there are guides for the most popular settings, ready answers to frequently asked questions. Furthermore, the software developer regularly releases updates, allowing you to always keep up with the times.

Arguments “AGAINST” (Cons)

1. Necessity to Compromise

No matter how universal the software is, it usually does not fully meet the organization’s needs. There arises a need to adapt or even change business processes to fit the existing software. Unfortunately, this is not always possible, or it does not fully comply with regulatory requirements (especially in the public sector).

2. Dependence on the Developer

The organization risks becoming dependent on the activities of a third-party company over which it has no influence and cannot influence. Consequently, errors may appear after updates, sometimes necessary functions are removed or changed, and one has to find a way out of this situation. Also, if the software development company experiences financial difficulties, it may cease support and further development altogether.

What is the Optimal Choice?

Serhii Balashuk, director of IQusion IT LLC, assures that before starting a project, the company always analyzes the tasks and offers the client the most optimal solution. Often, it is a hybrid one. This is when custom modifications are made based on off-the-shelf software, incorporating the organization’s individual needs. For this, the UnityBase platform is optimal and convenient. In addition, it has already proven its resilience against hacker attacks and operability even when using weak hardware. “We have been working for over 10 years. We know how to develop custom solutions, adapt existing ones, and support their operation in any situation, even in crisis. We can expand and update existing functions, and also create hybrid solutions,” notes Serhii Balashuk.