Off-the-Shelf Package or Custom Software? 5 Criteria to Consider When Deciding
Off-the-shelf software gets you started quickly; custom software fits your business. Five concrete criteria to help you determine which one is right for you.
Alp2 min read
When a new software need arises, businesses usually face the same question: should they use an off-the-shelf package available on the market, or have a system developed specifically for the business? There are situations in which each path is justified. What matters is making the decision based on measurable criteria rather than habit.
1. How standard are your processes?
For processes defined by legislation, such as basic bookkeeping or payroll, off-the-shelf packages are usually sufficient. By contrast, if you have an operational flow that is specific to your business and sets you apart from your competitors, an off-the-shelf package forces you to fit into its own mold.
2. Total cost of ownership
With off-the-shelf packages the initial cost is low, but per-user license fees add up over the years. With custom software the investment is made up front, and afterwards only maintenance and development costs arise. Making the comparison over a period of at least three years gives a sounder result.
3. Integration needs
If the new software needs to exchange data with your existing systems, examine the integration options offered by the package in detail. A limited API means manual data transfer down the road.
4. Your pace of change
If your processes change frequently, how quickly the software can adapt to that change is important. With an off-the-shelf package, the vendor sets the roadmap; with custom software, you set the priorities.
5. Data and ownership
Where your data is stored, in what format it can be exported and what will happen when the contract ends should be made clear from the outset. With custom software, the data and the source code are under your control.
A practical rule: use an off-the-shelf package for the standard part of your business and custom software for the part that differentiates you, and connect the two through integration.
At the point where you remain undecided, you can contact us to evaluate the scope together.