The 21st century is the century of rapid digitalization, there is no doubt about it. Businesses all over the world no matter what is their domain, niche, or industry, are adopting digital solutions. Software to handle day-to-day ecommerce needs is one such major digital product that has seen wholesale acceptance. Whether start-ups or enterprises, everyone is looking for software solutions to tackle their challenges related to logistics, operation, management, or administration. But each business has its unique operational constraints, independent budgetary limitation, and peculiar operation needs, should they go for off-the-shelf software or custom software?
Studies have shown that software customized and personalized is the best answer to this puzzle. The most appropriate and the right custom software can help businesses meet their intended market goals and objectives.
But how can you find the right custom software? why should you need to invest more to find bespoke or customized software? what factors you should consider while partnering with custom development, how can you ensure the acquisition of secure and scalable custom software solutions? what is the cost of custom software compared with a packaged software solution? and many more questions are asked by customers.
Here is a detailed write-up covering all these burning questions, along with others. After going through this pillar post, you will have enough information to make informed decisions and navigate the software market with confidence and ease.
Ready?
Let’s start.
Let’s dig deeper and cover these questions in depth.
What is Custom or Bespoke Software?
Specialized software, customized software, bespoke software, or tailor-made software are names of the same class of software that is designed and developed for individuals and businesses to meet their specific needs.
Custom software solutions are designed and implemented in a way to provide specialized and business-specific capabilities such as managing customer relations of an IT company or financial transactions of an insurance company or bank.
Unlike Off-the-Shelf or packaged software, discussed in detail below, which are mass-produced and available for general use, bespoke software is designed and developed while keeping in mind the client’s specific needs, processes, and objectives.
All types of organizations, whether start-ups or established ones, are rapidly deploying custom software applications for various purposes, for instance, they are used for
- Automating the process of data entry and avoiding errors
- Voiding repetitive and duplicate tasks to reduce costs and minimize risks
- Freeing up highly-skilled human resources for advanced-level activities
- Facilitating data sharing and ensuring smooth resource management
These are some general uses of custom software; companies often ask development companies to add specific features to streamline operations with tailor-made software platforms.
Examples of Custom Software Applications:
Uber:
It is a customized software application that deals with on-demand transportation services for both riders and drivers. The features such as GPS, maps, payment systems, ratings, and other, helps both drivers and riders enjoy safe and speedy traveling.
Netflix:
This bespoke software application offers viewers online streaming of movies and TV shows. It deploys machine learning and artificial intelligence to provide personalized recommendations and other services.
MacDonald’s Point of Sale:
MacDonald’s POS is another on-demand tailor-made software application that manages point-of-sale services of restraints.
Likewise, some other examples of custom software solutions can be found in follows areas
- Aviation Software
- Custom eCommerce websites
- Voice recognition
- Business management
- Gaming
The list goes. With every passing day, custom software products are becoming the preferred choice for businesses across domains and industries.
Types of Custom-built Software:
Many enterprise-level organizations deploy custom software for optimizing workflow efficiency and streamlining operations. There can be multiple types of custom software. If you are looking to have customized software, here is a list of them for your information.
Enterprises Resource Planning (ERP):
ERP software applications are used to integrate various business processes into a single and unified system. ERP applications help businesses streamline inventory management, HR management, accounting, sales, automation, and other linked fields.
ERP custom-built solutions are no doubt a great way to ensure streamlining business operations and ensure resource efficiency. They are used in many industries such as manufacturing, distribution, industrial processes, healthcare, and more.
Customer Relationship Management Systems (CRM):
CRM systems have become a great means to optimize customer relations in a way to ensure maximum customer satisfaction and retention. All aspects of customer interactions, management, customer need assessment, sales funnel, customer base, and customer data analytics can be performed by CRM systems.
Custom-built CRM applications have found applications in a diverse range of fields such as retail, banking, hotel, insurance, IT consulting, etc.
Human Relation Management (HRM) Custom Software:
HRM tailor-made solutions have become key to ensuring streamlining operations within enterprises. All tasks which are linked with human resource management can be performed with these customized software applications.
For instance, recruitment, training, payroll management, onboarding, performance assessment and evaluation, and employee record management are some tasks that are performed effortlessly with the help of these software solutions.
Content Management System (CMS) Software:
CRM applications are a great platform for creating, managing, and modifying digital content, such as websites, blogs, and online stores. They are more suitable for businesses related to blogging, marketing and sales, and news portals.
Other Types of Customized Software:
Likewise, some other types of custom software are as follows:
- E-Commerce Software
- Operation Management System
- Business Analytics & Business Intelligence Software
- Inventory Management Software
- IoT (Internet of Things) Software
How Much a Custom Software Cost?
Cost depends upon many factors such as the complexity, nature, and scope of the software project. Overall, since custom-built software is designed to meet the specific needs of businesses, they are a costlier option than off-the-shelf.
Some key factors that determine the cost of customized software are discussed below:
- Product Size & Scale
- Target Platform
- Infrastructure & Connected APIs
- The complexity of the software
- The Complexity of UI/XI Design
- Integration etc.
There is no single answer to this question. Depending upon the factors mentioned above, the cost can vary from $1000 to 500,000 US dollars and more. Here again, this is a rough estimate, the actual cost depends upon specific requirements and the scope of the project.
Many startups, and small, medium, and large enterprises are choosing custom software applications. But there is another class of software that we call as off-the-shelf. Is there any difference between them apart from what their names imply?
Let’s answer this question in detail.
Custom Software Vs Off-the-Shelf:
Off-the-shelf software applications or pre-packaged software solutions are developed for software development companies for the mass market. They are readily available for purchase and licensing. Both these types have their unique limitations and advantages. Their brief comparison is given below:
Customization:
As the name indicates, custom-built software solutions are highly customized, unlike Pre-Packaged solutions which are not customized.
Cost:
Off-the-Shelf software applications are cheaper, have a lower upfront cost, and do not demand any development cost. Contrary to this, custom software has steep upfront cost, because they are built from scratches that demand a lot of time, effort, and expertise.
Installation and Deployment:
Off-the-Shelf software solutions can be installed quickly and put into action immediately. On the other hand, custom software development is a long and time-consuming process.
Security:
The security and reliability of the software is another factor that sets these software types apart. Custom software is generally more secure and reliable because you can ask a software development agency or your in-house team of developers to incorporate all security features of your requirements, but you don’t have such luxury in Off-the-Shelf software. Hence, customized software is a secure and reliable solution.
Scalability:
Custom software solutions are more scalable in comparison with OTS software. Their scalability is due to the fact that they are designed to accommodate the changing needs of clients.
Risks:
Custom-built software is a risky investment. Their successful performance depends upon the developer company’s expertise and experience. Contrary to this, OTS software products are time-tested and they don’t pose such risks at all.
Post-Deployment Support:
The tailor-made software comes with specialized support as well. In other words, if you face any issue after the deployment of the software, the developer company would offer assistance to solve the problem.
OTS software solutions, on the other hand, don’t come with specialized support, though they come with generic support which could not be as effective as specialized ones.
Having discussed the major differences between Custom and Pre-Packaged software, now we discuss how can you select the right custom software most suitable for your needs.
How Can You Choose the Right Custom Software for Your Needs?
We can decide on these questions by answering two questions:
- What are your software requirements?
- How can you select a custom software development company?
We answer these questions one by one.
Define Your Requirements:
First thing first, define your requirements because this will help you direction and scope of your project. You should go through this process carefully and systematically to ensure that custom software applications meet your needs.
Here are some steps you can take to define your requirements.
a) Identify Business Goals and Objectives:
You should first identify the overall goals and objectives of your organization. This will help you work within the framework and set a specific task list that you want to perform with the help of tailor-made software.
b) Collect Inputs from Stakeholders:
This is the second important stage. Consult with your stakeholders, end-users, managers, and other relevant staff that chalk out some challenges that your organization is going through. Your extensive consultation would help you enlist functionalities and features that should be part of custom software.
c) Perform Thorough Analysis:
Conducting a thorough analysis of existing infrastructure is also important in choosing the right custom software for your needs. Existing processes, workflows, and systems must be thoroughly analyzed. This analysis will help you identify gaps or inefficiencies within your organization.
In this way, you will be able to set specific goals like improving efficiency, streamlining work operations, or enhancing customer satisfaction for custom solutions to meet.
d) Define Technical Requirements:
The above-discussed steps would help you define the functional capabilities of the bespoke software. For instance, tasks that need to be performed, data that need to be gathered and analyzed, and the like. Now turn your attention to technical requirements.
All kinds of technical specifications and constraints need to be enlisted. This includes operating systems, platforms, hardware requirements, and more importantly integration with existing IT infrastructure and systems.
e) Consider Future Growth and Scalability:
While specifying technical and functional functionalities, you must anticipate the future growth of your business. The software can only be the right custom software if it can adapt to the growing nature of business without any significant modifications.
In this regard, response time, system capacity, and ability to handle increased user loads should be given serious consideration.
f) Document Your Requirements:
You must document all your requirement in a structured and organized manner. This document will serve as a reference for the development team and everyone will have a clear understanding of what they need to deliver.
Furthermore, this document will also help you to ensure that delivered custom software has all requirements you had demanded.
g) Determine The Budget and Timeline:
Custom software can be costly and if you don’t prioritize your budgetary limitations, the expenditure would be very high. Likewise, custom software solutions take some time to develop. You must set your budgetary and timeline-related limits to make sure that you don’t end up spending too much with little outcome.
Here are some factors that you should consider systematically to determine the scope and requirements of your project. Now we move to the next question how you can ensure that you are betting on the right custom software development company?
How to Find the Right Custom Software Development Company:
When you are investing a significant amount of capital, time, and resources to outsource a custom software development project, the stakes are no doubt very high. In particular, when there are thousands of companies that are offering enterprise-level and small business-level custom software development services and the like, the puzzle becomes even more harder to solve.
Don’t worry. We have come up with some steps after consultations with software architects and professionals to help you make an informed decision concerning which firm is best suited to meet your needs.
a) Shortlist Software Development Companies:
After you have decided on the list of functionalities and features that your custom software solution would be going to have, now you should research and shortlist custom software development companies.
There are many resources available that can help you make a list of potential software development companies.
You can get referrals from people who have outsourced the custom software development process. It will help you fast-track the narrowing down of the potential list of custom software developers, you get also honest feedback and reviews.
You can also use Google in this regard. You can use both paid and organic results. You can also browse reviews and rankings of software development companies through Clutch. This will help you filter the result based on location, minimum project size, average hourly rate, and more.
You should be very careful about company size and structure, its experience with similar projects, workflow, technical expertise, and the like.
If any company fulfills these criteria, enter them into your list. Now start reaching out to them through emails or other means.
b) Judge Their Expertise and Skills:
Now you should check the portfolio of these shortlisted companies for comparing them. You can ask them to provide a portfolio or check customer reviews to determine the level of their expertise and skills.
You should give special focus on whether the company in question is using a modern technology stack, has a highly-skilled team of software architects, and executed a project similar to yours.
Though some companies could not provide their executed projects previously due to non-disclosure agreements, they can provide you with a broad outline of completed projects.
More importantly, make sure that outsourced know fully the specific needs of your domain or industry. They should have acted like a true partner rather than an aloof external agency. If the company is not taking much interest and not investing time in fully understanding your peculiar requirements, you should move on. The more questions they ask concerning your business environment, the better.
c) Determine If Company Specializes in What You Need:
It is a fact that every software development company specializes in developing applications for certain fields and has expertise in certain technologies.
Concerning this, it is suggested that you should choose a company that believes in and have expertise in the latest technologies. They have demonstrated their capabilities to quickly develop expertise in new and emerging technologies and are ahead of their competitors. They are ready to update and change their technology stack in case of the arrival of new technologies on the market.
Secondly, avoid jack-of-trade-sort companies, not everyone can claim command of everything. Find a company that is offering specialized services in the domain you are working on.
d) Prioritize Scalability and Flexibility:
It has earlier been discussed that it is important to have custom software that can accommodate future needs of business expansion. Discuss with the development what is their approach to scalability and flexibility. You must make sure that delivered custom software solutions is flexible and scalable enough to meet anticipated needs without any significant modification.
e) See Development Methodologies:
Every company has a slightly different understanding of agile development methods. You should check their development methodologies whether Scrum or another agile method. If a company has a well-documented and well-planned custom software development process, it ensures efficiency and quick address of challenges that pop up along the development path.
The custom software development company must have transparent communication and modern communication tools, adaptive planning, and frequent updates to make sure that custom-built software meets the expectations of users or clients.
f) Know The Security Practices:
Security is also a serious concern when outsourcing custom software development. You have to share sensitive information; therefore, you must ask the company in question what security practices they follow to ensure data security.
Make sure that development companies ensure the protection of data, products, and confidential material appropriately through various measures. For instance, data encryption, authentication and authorization, compliance with applicable laws and regulations, and regular security audits should be adhered to and practices by custom-built software developer companies.
Security of product development is also important. You should look into how the security of product development is being ensured, what level of security measures are being practiced, and the like. You should ask detailed questions and make sure that company has put in place effective safeguards against potential data breaches and unauthorized access.
g) Look into Quality Assurance and Maintenance/Support Services:
QA is a very important aspect of developing the right custom software because it ensures bug-free products. You should ask the developer company about the Quality Assurance and testing mechanisms that have been put in place. You should communicate with them candidly and know their policy towards testing and how they ensure the QA throughout all stages of software development.
Secondly, you should ask the developer company whether they add backup, maintenance, and support services in the contract, and if yes, how long they will provide these services.
In conclusion, selecting the right software development company is crucially important. You should consider many factors apart from technical skills and expertise. Make sure that the developer company meets all these requirements. Apply rigorous criteria, the more you invest time and effort in finding the most suitable option, the better, and less strain and stress you suffer due to mismatched and poor-performing custom software solutions.
We have discussed in detail how to find the right custom software, now we move on to discuss another pertinent question: who should use that solution? We will spell out some scenarios that demand as costly and high-end solutions as customized software applications.
When You Need Custom Software Solutions?
Organizations often have to decide whether go for a custom-made solution or a pre-packaged one. This is a critical decision and could have repercussions on the overall viability and resource efficiency of organizations.
Before we enlist some specific industries where custom applications should be given serious thought, we will discuss here some common reasons for deploying custom-developed software solutions.
When You Need to Open New Sale Channels:
Custom sale and marketing software solutions are very helpful in reaching target and new audiences. Hence, if you are going through expansion and need to enhance your outreach and effortless management of the sale funnel, you should consider deploying a custom solution.
Custom sales and marketing applications help businesses innovatively achieve this target. They send push notifications and share information concerning special offers, promotions, and other incentives to enhance outreach, strengthen engagement, improve conversions, and boost sales and revenue.
When You Plan to Expand into Different Geographical Markets:
If you plan to expand your businesses into geographical markets. You need to ensure brand recognition, introduction of your products and services to a new audience, and other tasks. In this context, you should go for custom applications because they are instrumental in achieving these tasks effortlessly.
When You Need to Streamline Business Operations:
Companies all over the world use various systems to perform tasks such as Content Management systems, order processing systems, accounting systems, and more. This disconnected and decentralized business management can cause resource inefficiency and many other problems. In this case, you can go for a custom application to offer you a centralized platform to perform tasks effortlessly and in an organized manner.
Hence, when you need tech capabilities to integrate various pieces of software for performing various business processes, prefer deploying custom-built options.
When You Run a Complex and Specialized Business:
In case the business you are running is complex and specific, the Off-the-Shelf software applications would not help you a lot. In this case, you must go for custom-built applications to ensure efficient business management.
When you want to reduce software overheads:
When you are tired of paying software subscription and licensing fees, custom-built software applications would be a great idea to reduce costs under this head.
When you need to replace a legacy system:
If you are looking for a replacement for a legacy system or to upgrade your IT infrastructure, custom software integration for a legacy system would be a good choice with immediate dividends in the form of seamless integration and performance optimization.
When you need data analytics and insights:
When you need some advanced level data analytics and insights, OTS software cannot provide you with much help. The right custom software for data analytics and insights should be considered for this purpose. It provides you with a competitive edge, enhances data security, and ensures cost-effectiveness in the longer run as you don’t have to pay for license fees, subscription costs, and upgrade-related expenses.
These are some scenarios, among others, where you need to go for personalized and customized software development rather than a ready-made software solution.
But which domains, industries, or niches need to invest in hiring the right custom software? We have made a list of some industries, but that list is not exhaustive and final, it is on-ground working conditions that determine what software should be used for what purpose.
Applications of Right Custom Software:
Here is a short list of industries/domains where custom-developed software proves secure and scalable solutions.
Custom Software Applications in Healthcare Industry:
The highly unique, regulated, and extremely diverse nature of the healthcare industry defies the one-size-fits-all solution. Therefore, custom software application in the healthcare industry is crucially important for performing tasks such as the management of electronic health records, patient information, medical billing, etc.
Furthermore, since healthcare is a sensitive field that is highly regulated and its laws and regulations vary from region to region, country to country, and even state to state. This warrants specialized software solutions equipped with special capabilities and features. That necessitates implementing custom-built software solutions.
For instance, Electronic Health Records (EHR) system can be designed and implemented as per the specific needs of hospitals to ensure smooth patient data management, appointment scheduling, and other tasks.
Bespoke Custom Software Solutions for Small Businesses and Startups:
Though bespoke custom software solutions for businesses can prove costly initially. But using a custom software application should be given serious thought because it helps them accrue many advantages. For instance, tailor-made solutions are more suitable for their unique requirement, scalability needs, competitive advantage, data security, integration, and workflow optimization.
The same is the case with start-ups. But you should make sure that there should be affordable custom software development for start-ups. In this regard, you can define clear requirements, adopt a Minimum Viable Product (MVP) approach that involves scaled-down versions of custom software with essential features, optimize technology, and outsource software development to find affordable custom solutions for start-ups.
Custom Software Development for Ecommerce Platforms:
Like in other types of industries and domains, custom-built software applications can be helpful in ecommerce as well. But overcoming challenges in the way of applying the right custom software solutions for ecommerce platforms is important. For instance, there is upfront investment costs, longer development period, incompatibility issues, and over-dependence upon vendor or development companies are such problems. These issues need to be handled and overcome in a careful and well-planned manner.
Enterprise-level Custom Software Solutions:
Custom software solutions can have many advantages for large organizations and corporations. These enterprises can overcome their challenges and complex needs with sophisticated and high-end custom software applications. If you hire an enterprise-level custom development service-providing company, your organization can ensure scalability, easy integration with existing IT structures, advanced data management, automated workflow, and process optimization, among other dividends.
Wrapping Up:
Organizations irrespective of their size, domain, and industry, are choosing custom software applications due to their benefits and advantages. But the growing number of custom software development companies makes it harder for organizations to find the right custom software to meet their needs.
You should consider many factors before signing contracts with a developer company, and even before that, define your requirements clearly and systematically. You must take time and choose the company offering enterprise-level and small-scale custom software development services with due deliberation, consultation, and research.
In this age of face-paced and ever-evolving needs of the business landscape, you must keep a competitive edge in the market. Whether you are a small-scale business looking for bespoke software or a large organization desirous of having advanced and sophisticated custom software, you should move carefully and in an organized way.
Thanks for your reading. We do hope that this write-up would help answer many of your questions and queries.