For most businesses today, software isn’t an option – it’s a necessary component of helping the organization grow. Companies of all sizes and across multiple industries depend on software applications daily to manage everything from supply chains and finances to project timelines and customer relationships.
However, the more a business grows, the closer it gets to having to make an important decision. Should they continue relying on off-the-shelf software or invest in building a custom solution?
There's no easy answer to this question, and every business will need to weigh various things before deciding on the best path forward. However, by understanding the strengths and weaknesses of each approach, it’s easy to make an informed choice that aligns with your business objectives.
What Is an Off-the-Shelf Software Solution?
It doesn’t matter what type of software you’re looking for – almost every business problem has a corresponding software solution designed to help. And there is a good chance that there are multiple off-the-shelf software solutions to choose from.
These solutions, sometimes referred to as "enterprise solutions” or “SaaS (Software-as-as-Service) solutions,” are built to be useful for businesses of all sizes.
One of the major benefits of these solutions is their immediate usability. Once you've set up an account or paid your subscription, you're essentially good to go. Depending on the software's function, your organization could quickly see improvements in areas like customer relationship management, data storage, analytics and business intelligence, or cybersecurity.
While an off-the-shelf software solution can address different business needs, it does have inherent design limitations. Because the primary goal of these solutions is to support a broad spectrum of businesses and industries, they often include a range of more general features, some of which may not be relevant to all business needs.
How is In-House Software Design Different?
Unlike off-the-shelf software, which caters to a wider audience, custom software solutions are specifically designed to align perfectly with your company's specific requirements.
The primary objective of custom software design is to maximize the value of your investments in business productivity and efficiency. Instead of purchasing a generic software package with numerous unused features, a custom-built solution provides a much more efficient system that can help address your exact needs, minimizing waste and maximizing usage.
Naturally, developing a solution from scratch to support your business involves a higher cost. Custom software projects can range from thousands to hundreds of thousands of dollars for larger organizations. However, the potential return on investment can be substantial, as these solutions allow businesses to achieve their full potential by streamlining operations, increasing productivity, and giving them a more competitive edge.
How to Choose Between Buying or Designing Business Software?
When it comes to software solutions, there's no one-size-fits-all answer. The decision to build or buy depends entirely on your business's specific needs and budget constraints.
To help you navigate this choice, consider these four key questions:
How Are You Planning to Use the Software?
Each software solution is designed with a specific goal in mind. It's crucial to ensure this aligns with your company's objectives.
Many businesses share common needs, like improved financial organization or smoother team communication. But remember, software isn't one-size-fits-all. Some solutions might lack industry-specific features necessary for your success.
If the software offers the tools and advantages you need to grow, it's probably a good investment. But if it misses the mark on essential functions, a custom solution might be a better fit.
What Are Your Business’s Unique Characteristics?
When considering a custom software development project, it's important to evaluate your organization's current structure and capacity. Smaller businesses or those with limited resources might find it challenging to manage such an undertaking. Even with outsourcing, significant internal collaboration and resources are necessary to ensure a successful outcome.
Before starting a custom-build project, think about whether your company has the necessary infrastructure and personnel in place to support it. If not, using an off-the-shelf software solution might be a more suitable option until your organization has scaled enough to support larger-scale projects.
Is a Custom Design Your Only Option?
Integrating a pre-existing software solution into your business isn't always a seamless process. Similar to home remodeling projects, you'll likely encounter limitations on how much you can customize the software to your specific needs.
It's important to carefully consider your "must-haves" versus your "nice-to-haves." Making compromises on desired features is different from lacking the core functionalities needed to increase your business efficiency.
If your research tells you that many off-the-shelf solutions fall short of your expectations, consider exploring custom software options.
What is Your Budget?
When choosing between custom-built software and off-the-shelf solutions, budget is a crucial factor. Off-the-shelf software usually offers more upfront clarity about the total investment required by providing clearer monthly and annual costs. Think of it like buying a ready-to-assemble piece of furniture – the price tag tells you most of what you need to know.
Custom software, on the other hand, is more like a home renovation. You might start with a plan and a budget, but unexpected costs can pop up throughout the process – from development to ongoing maintenance, performance upgrades, and security improvements.
However, custom solutions also give you the freedom to design the roadmap yourself. You decide how much to invest in each feature, customizing the software exactly to your needs. While an off-the-shelf solution might seem cheaper initially, the long-term costs of customization and potential limitations could make custom software a more cost-effective choice in the long run.
Make the Right Decision for Your Business
With countless software options to choose from, it's easy to get overwhelmed. Before committing to a new solution, though, take a step back and carefully consider your business needs and goals. This careful evaluation will help you determine if investing in custom-built software might be the most beneficial option for your business.
