logo
logo
Sign in

Off-the-Shelf vs Custom Software: What suits your business?

avatar
Raman Sama
Off-the-Shelf vs Custom Software: What suits your business?

In the past 20 years, a lot of emphases has been put on providing education related to information technology. This has led to the coding and programming part of the norm. We can not only access readily available software, applications, and websites but also make or commission one that is custom built to perform a specific function. 

For a business, technology has played an incredibly important and useful role in getting day-to-day activities done rather efficiently because of certain specific software. Employees can now easily complete, record, store, and share their work on one software. And with cloud technology, employees who work remotely or frequently travel can access and complete their work from anywhere. 

However, while choosing what software fits the operations of their business best, business owners must understand the difference between off-the-shelf software vs custom software. In the following segment, we will break down off-the-shelf and custom software and discuss some of their differences. 

What is off-the-shelf software? 

Commercial off-the-shelf software (COTS) or simply off-the-shelf software are software products developed for a mass audience. They are made in response to a big market's needs and wants and offer many functions and features. The best example of off-the-shelf software is the Microsoft Office Suite, which is designed to fulfil many general office-related functionalities. 

Off-the-shelf software is incredibly useful to new businesses. This is because a new business operates in an unstable environment, and until a business has reached some level of stability, they wouldn't be able to ascertain if their business requires custom software. 

Characteristics of off-the-shelf software 

  • Off-the-shelf software is readily available and is easy to install and use. 
  • This software is cheaper to acquire than commissioning custom software development because off-the-shelf software caters to a large audience. 
  • Off-the-shelf software can be customized to fulfil specific functions with add-ons and plug-ins. 

What is custom software? 

Custom software or bespoke software is developed and designed to fulfil a specific set of functions performed by a small audience. Unlike commercial off-the-shelf software, custom software isn’t created to meet a wide audience's requirements and is not developed for commercial distribution.

Custom Software is either developed by in-house software developers from the IT department or is outsourced to third-party developers. To develop custom software, the developers will perform the following 3 steps- 

  • Application customization
  • Application modernization
  • Application management

These steps are performed to make software that eliminates the use of many applications to complete a task and fits the business' ecosystem. 

Characteristics of custom software 

  • Custom software is developed to fulfil specific functions. Therefore, they are easier and quicker to navigate than off-the-shelf software, which requires customizations and adjustments. 
  • They can handle and meet privacy, security, and data requirements specific to the industry or line of business for which it is developed. 
  • It is cheaper than off-the-shelf software in the long term because, with custom software, you don’t have to pay for monthly subscriptions, licensing, and legacy costs. 

Difference between Custom and Off-the-Shelf Software

 To further ease the decision-making process while choosing between custom and off-the-shelf software, we will highlight stark differences between the two kinds of software in the following segment. 

 

  • Uniqueness 

 

Software, applications, and websites play an incredibly important role within a business, and that is fulfilling a particular operational requirement. Sometimes the requirements are extremely specific to your line of work and industry. 

 With custom software, your business can easily meet those unique requirements because they are developed in accordance to fulfil these unique requirements. Whereas the same is not the case with off-the-shelf software because these are designed keeping in mind the needs of a large audience.   

  • Accessibility 

A significant difference between custom and off-the-shelf software is that of accessibility. For a business to ascertain the need for custom software and then commission one to be developed is time-consuming. At the same time, commercial off-the-shelf software is more readily available and easy to install and use.  

  • Cost 

Not only do custom software take a long time to develop, but they also require a significant upfront investment. On the other hand, commercial off-the-shelf software or COTS is comparably less expensive.  

  • Features 

Although off-the-shelf software has a wealth of features, it might not be helpful to fulfil the operational requirement of the business. Off-the-shelf software may require heavy customization to fulfil requirements. On the other hand, custom software is uniquely tailored to meet the business’ operational requirements.  

  • Access to comments and reviews

Since off-the-shelf software is developed for a wider audience, there is public discourse, and the user can access reviews and comments. Not only that, but they can also look for solutions to any problems or issues they are facing on online forums. 

 On the other hand, a custom software user cannot access any suggestions online if they face issues and are entirely at the mercy of the software developers.  

  • Compatibility 

Since custom software is developed to fit your business system requirement, the business won't face any compatibility issues. However, off-the-shelf software may sometimes not be compatible or supported across all systems.  

  • Competitive Edge 

Custom software gives you a competitive edge over your competitors. This is because custom software is uniquely tailored around your business requirements, and this increases operational efficiency.  

On the other hand, off-the-shelf software is easily accessible to all your competitors and thus doesn’t help your business establish a competitive edge.  

  • Modification 

Since you own the software in case of custom software, modifying and expanding it to meet the requirements of a dynamic business landscape is easier. Whereas to modify an off-the-shelf software to meet the new needs of your business is not possible because you don't own the software. And thus, they can't control the kinds of changes and upgrades that will be made. 

 In conclusion, choosing between custom software and off-the-shelf software needs to be made after much deliberation, as each software system has many attractive advantages and many damaging disadvantages. 

 

 

 

collect
0
avatar
Raman Sama
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more