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custom vs off the shelf software
Iryna Kravchenko Iryna KravchenkoChief Editor
Technology·

Custom development vs off-the-shelf software: What is the main difference?

Up-to-date business needs efficient software to solve a scope of critical tasks, from data management and customer service improvement to all sorts of internal processes. The market offers a wide range of paid and free readymade software products. Many companies create custom platforms or integrate with the services of third-party developers in unique ways. Which option is best for your company? 

Custom software vs off the shelf

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Custom software vs off the shelf

Here you will find the answer and understand what works best for you. So, let’s cover the main aspects of comparing custom software vs off the shelf solutions, which should help you make a well-informed choice. 

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Custom software development definition 

Custom solutions are created from scratch based on the individual demands of a particular business, adapted to existing business processes, and allowing you to quickly launch new digital workflows. A personalized product, developed according to the client’s wishes, is usually intended for internal use, not for sale or distribution. 

Specialized features and unique tools are custom-made and owned by the same company. And the great thing is that pinpointed capabilities are usually employed to the max, guaranteeing the top level of effectiveness and no excessive functionality or hidden costs. The interface is designed specifically for employees and clients of the particular company, and the functionality can be changed in accordance with shifting business requirements. 

Custom development involves either creating a new application or extending the capabilities of an existing one. The process can be handled by both internal and external teams. 

Learn more about our custom software development services.

Pros and cons of custom software

Before you decide whether you need a unique software product or not, you should clarify all the sides of the bargain. 

Pros and cons of custom software

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Pros and cons of custom software

Custom software advantages 

Custom software disadvantages 

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When should you consider custom software development?

A custom approach is your win-win solution in cases where readymade software pieces just don’t do the trick to fully satisfy your requirements and the expectations of your customers. So, if you are looking for a custom-tailored and high-performing solution, the custom software is your best bet. 

From the perspectives of designing, building, maintaining, and promoting products, a bespoke solution will be unique in the long run and provide a competitive advantage for your company. Here are the most frequent use cases of custom software development services: 

  1. You run a complex, very specific business that calls for unique software functionality. 
  2. The workflows in your organization are dynamic and may shift periodically.  
  3. Multiple tools are needed to handle different stages of the same process. 
  4. You need tech capabilities that can be easily integrated with other software systems. 
  5. You are looking for the most gradual learning curve so that the finished solution is easy-to-use for employees or customers. 
  6. Your business features the use and work with highly personalized data. 
  7. The company workflow needs to be modernized, digitized, or automated. 
  8. Your existing software systems and IT infrastructure need an upgrade. 
  9. You struggle using tons of readymade software pieces for various business operations. 
  10. Your business grows and requires more capabilities for scalability. 

Custom software grows and develops along with your business, making it the best long-term solution in many cases. 

Examples of custom software 

Bespoke software offers solutions adapted to your business specifics. Most often, it is used in the following fast-growing niches: 

Highly successful market giants commonly prefer custom (or heavily customized) solutions — for instance, Amazon, eBay, YouTube, Netflix, Uber, etc. 

Custom software costs

Custom software development is more expensive than readymade software and takes more time to implement. But there is no universal method for determining the total cost of ownership. The following factors usually affect the price: 

The cumulative cost of all these elements during the software lifecycle determines the final cost of owning a custom platform. It is clear that we are talking about both relatively small and completely astronomical amounts. 

Read how to estimate software development costs.

Off-the-shelf software definition

Off-the-shelf solutions are completely readymade products with expanded functionalities that satisfy many users. They are not unique but universal and designed for mass commercial use, so they can usually be easily integrated with existing systems without complicated configurations. 

A large selection of software modules allows you to meet different needs, but standard features are not always enough for complex specific tasks. You can customize them, but you will not be able to fully adapt to all requirements with most off-the-shelf products. 

Pros and cons of off-the-shelf software

Readymade solutions have a range of significant advantages that make them an attractive option for most startups, medium- and even large-scale enterprises and organizations. Let’s look at both sides of the bargain to get a balanced picture. 

Pros and cons of off-the-shelf software

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Pros and cons of off-the-shelf software

Off-the-shelf software advantages  

Off-the-shelf software disadvantages  

Off-the-shelf software use cases 

Multi-purpose solutions are perfect for companies that need to quickly present and develop a project in the face of a lack of budget and in-house IT specialists. A cheap and cheerful solution, as they say, with no unnecessary risks and worries involved. 

This is why off-the-shelf products are heavily preferred by startups, companies embarking on a digitalization journey, and cautious entrepreneurs who do not want to invest too much in their products before serious adjustment of business processes. 

In general, readymade fits those who intend to cost-efficiently meet the bulk of their business needs, optimize routine activities, and save vital resources. That is why complete products are preferred by the overwhelming crowd of companies today. 

Most of them will be subject to updates that you can use for free. To some extent, this even allows you to stay in the digitalization trend and discover new ways to solve your business problems. 

Examples of off-the-shelf software 

Off-the-shelf software solutions are designed for a broad audience of users, so they are always distinguished by their extraordinary ease of use and almost absolute accessibility. Such solutions may include: 

Cost of off-the-shelf solutions

Off-the-shelf software development is cheaper than buying and maintaining a specialized software infrastructure. Fixed payment can be paid monthly, quarterly or yearly according to the subscription plan. Also, the software provider may charge you for the initial installation and configuration according to your needs. As a rule, there are no hidden fees. Well, unless there are license fees. 

You pay for all available functionality by default, although you are unlikely to use everything you get. Inconsistencies and incompatibility with your systems can cause workflow interruptions, leading to certain time/cost losses. Most importantly, you don’t get much of a boost to your competitive edge. Still, whether it is worth saving when choosing custom vs off-the-shelf software is solely up to you. 

Summary 

Both custom and off-the-shelf products are used quite widely, although the choice is primarily determined by the scale, goals of ongoing projects, and the needs of specific businesses. Understanding the difference between the concepts, you are often left to decide which type to choose and which professionals to turn to on your own. 

At DICEUS, we can guide you across software solutions that make the best fit for all relevant industries and build exactly what you need, guaranteeing high quality, strict deadlines, and reasonable costs. Get a free consultation to figure out the intricacies of choosing off-the-shelf vs custom software and achieve a perfect solution for your business. 

FAQ

What is custom development?  

Custom development is the process of designing, building, deploying, and maintaining tailored software for a specific set of users, functions, or organizations. Unlike commercial off-the-shelf software (COTS), custom development focuses on a highly specialized set of requirements. 

What is off-the-shelf software?  

Off-the-shelf describes any software solution, usually a commercial one, developed for the mass market. It is a readymade product that you can buy freely, but not created specifically for your needs. 

Why is off-the-shelf software more expensive than custom SaaS? 

More specifically, off-the-shelf software can be bought for less than custom-made software, but you will have to renew your subscription or pay license fees in the future. Also, in the long run, you will have to bear the cost of additional solutions to make up for the lack of functionality or incomplete compliance with the requirements. 

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