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Custom software or off-the-shelf? A decision guide for businesses

Not every process needs custom software, but forcing the processes that set you apart into a generic package means giving up room to grow.

ujans team··2 min read

When digitising a business process, the first question is usually: should we use an existing product or build software of our own? The right answer depends on how differentiating the process is for your business.

Strengths of off-the-shelf software

  • Fast to deploy with low initial cost.
  • Brings industry best practice for standard processes such as accounting, payroll and email.
  • The vendor handles updates and maintenance.

Weaknesses: You adapt your processes to the software, per-user licence costs grow over time and flexibility for special needs is limited.

Strengths of custom software

  • Fits your processes exactly, with no unnecessary features or screens.
  • Turns the methods that set you apart into software.
  • Allows deep integration with your existing systems.
  • Licence costs do not grow with users; the software is your asset.

Weaknesses: Higher initial investment and time, and you need a reliable team for maintenance and development.

6 questions to decide

  1. Is this process different from competitors', or the same in every company?
  2. What percentage of our needs do existing products cover?
  3. What is the five-year total cost (licences, customisation, training, maintenance)?
  4. Which systems must it integrate with, and does the product allow that?
  5. How will users and data volume grow?
  6. How much control do we need over our data?

Often the best answer: both

In practice, the most effective setup uses strong off-the-shelf products for standard processes such as accounting, email and ERP, and builds custom modules and portals that integrate with them for the processes that differentiate you. You get both speed and flexibility.

Reducing risk in custom projects

Start with a small, valuable first release (MVP), gather user feedback in short cycles and make sure the contract states that the source code and documentation belong to you.

ujans defines the right structure through needs analysis and builds custom web applications, portals and integrations that work with off-the-shelf products.

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