Off-the-shelf software

• Off-the-shelf software aims to target a broad set of requirements for a mass audience, making it impossible for you to customize the software according to your specific business requirements.
• Off-the-shelf software is designed for a large variety of users, so it may only meet only 70-80% of your business needs. For example, an average MS-Word user deploys only 20-30% of its features.

With packaged software, you get what’s in the box. It will (hopefully) do what it advertises (call as-is), be it a database server or a photo editor, etc. The cost of such is fixed and everyone gets the same price for the same capabilities.

Custom software

What is a custom software?

Custom software development is the designing of software applications for a specific user or group of users within an organization. Such software is designed to specifically address these users' needs better than more traditional and widespread off-the-shelf software can. Custom software is typically created just for these specific users by a third-party or in-house group of developers and is not packaged for resale.

• Custom software development is the creation of unique technology solutions.
• Custom solutions are typically more expensive than out-of-the-box software options.
• Custom software development requires a detailed plan.

• Custom software development provides you the option to make changes according to your business needs, as it targets a specific set of users.
• The customized solution addresses your exact business needs. Since it is designed specifically for you, all of its features and functionalities are essential for your business.

Customized software is instead written to client specifications. Meaning, it has to do what no other software already does, exactly the way the client wants it to. This requires programmers, whether company employees or consultants, to create the software for the first time. The cost varies according to difficulty, effort and time required, and it’s never cheap.

Where do custom software projects go wrong?

It's always about requirements. Most reasons why projects go wrong are:

• Requirements are unknown and as they are being defined budget and schedule are impossible to meet
• Requirements change a lot during implementation which leads to burning time and resources to create code that is thrown away
• Requirements are communicated poorly (leaving too much place for interpretation) which leads to big difference between expectations and outcome
• Requirements are defined as a list of functions rather than goals (they say how-to-do not why-and-what-to-do)

There's a lot of issues leading to projects failure but deep analysis is always bringing us back to understanding of requirements.

How much does custom software development cost?

If we are not talking about something too cheap, too simple, and too low-quality, it will be somewhere between $40k to $300k. The range is wide, but since there was not much detail in the question, I guess it is fair. Windows’ Notepad is software too, but it won’t cost you $300k.

Custom software development cost affected by:

• The size. The more screens or pages you need - the bigger the size. Small applications range from 10 to 25 screens and cost around $40-100k, medium - 25-40 screens and $100-200k, and large is anything over 40 and up to $300k and more.
• The complexity. It is not the same as the size, though an app that performs a lot of heavy analysis can be viewed as a large one. But size is about screens, and complexity is about nuances and permutations.
• The design. The budget of about $5-20k will typically be enough for creating a design and even going through a few re-designs (if needed).
• Integrations with other systems. Sometimes they are effortless, sometimes they are extremely difficult, so they add variables to the equation.
• Migration of existing data. Done through custom scripts that take data out of your old system, dust it off and reshape it so it can fit into your new system.

Yet, the software may be built to fit a certain budget. This is usually done by lowering priority items or not including some items in the project at all.

Final word

Custom development will give you good chances to stand out among competitors and attract potential customers. The website or an app created with the business objectives, brand image, and target audience in mind have more potential to multiply conversions and sales. The benefits are not only with visuals. Custom development offers more possibilities in the convenience also, creating a more satisfactory user experience adapting to the needs of customers.

While custom development sounds exciting in terms of customization, scalability, flexibility, and security, it is not for everyone. If you have a limited budget or timeframe, and you know for sure that limited functionality and typical flow will serve you well, maybe you should consider no code or a pre-made solution.