SoftwareFor: Businesses weighing a standard product against in-house development

Custom or off-the-shelf software: which is worth it?

Off-the-shelf software is ready to use tomorrow and tested by a thousand other companies. Custom software fits your process exactly, but costs time and money. Which is better depends on your business, hardly at all on the technology.

PageLeo editorial team · · 5 min read

When off-the-shelf software is the better choice

Writing invoices, managing appointments, running payroll: there are mature programs for all of this. They are up and running in a few days, the vendor keeps maintaining them, and if you are unhappy, you switch. Custom development only pays off here once demonstrable requirements are not covered by the available solutions.

When custom software makes sense

A custom solution is more worthwhile if …

  • you are better than the competition at exactly this process,
  • your team has been working around the standard software for years, with Excel lists and slips of paper alongside,
  • data is retyped between programs because they don't talk to each other,
  • your customers should get something of their own, such as a portal showing their order status.

Looking at costs and maintenance

Custom software costs more at the start and has to be maintained afterwards. Off-the-shelf software looks cheaper, but the licence gets more expensive with every user and every extra module. Calculate both over three to five years. The picture often looks different then.

The middle path

Most of the time you end up in the middle. Accounting stays in the standard program, and a small interface makes sure orders from the web form arrive there without anyone retyping them. You only build the piece that is really missing.

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