The Major Benefits of Custom Software Development in 2023

benefits of custom software development

Everything You Wanted to Know About The Major Benefits of Custom Software Development in 2023

Technology is a necessary tool for modern businesses. Software or custom software development can improve efficiency and cost-savings in almost every aspect of a company, and the right programs will give a considerable boost over the competition. While countless products are in ready-made software development, these won’t work for everyone. Custom software development is a valuable option that delivers personalized solutions tailor-made to your Software or custom software development specifications. If it’s the right path for your business, there are a variety of advantages to choosing software or custom software development over something off-the-shelf. This article will explain software or custom software development, compare it to off-the-shelf custom software development, and explain the advantages and disadvantages of creating your software applications development.

What are the best outsourcing countries in the world Frequently Asked Questions About The Major Benefits of Custom Software Development in 2023

What Is Custom Software Development?

Rather than choosing pre-made custom software development, businesses can have software or custom software developed for their needs. Also known as bespoke software or custom software, it’s built to the specifications of the business. This could be tweaking existing software or custom software, modernizing older applications, or creating new ones from the ground up. Some companies use software or custom software development for specific areas and off-the-shelf for others, have a variety of custom software applications for different purposes, or use a single bespoke solution that ties all of their data together. There is no one answer; you can build your custom software development to do precisely what you need in the way that you want.

Bespoke software development can be developed in-house or by a third party. The best route depends on the specifics of your business. For example, if you already have a custom software development branch, having them build custom applications might not be a considerable jump. If your business doesn’t typically develop custom software, consider the costs of building that infrastructure against those of hiring an outside developer. In-house development gives you more control over the product, but outsourcing could yield more cost savings and higher-quality work. Take for example healthcare, this ever-growing industry is constantly updating systems and processes to better serve the masses, it’s important they have the ability to update or build new healthcare apps when needed (

Custom Software vs. Off-the-Shelf custom software

In contrast to custom software, off-the-shelf custom software is pre-built and ready for immediate use. It’s built to appeal to a broad audience within its niche. Some typical off-the-shelf software applications include:

  • Microsoft Office (Word, Excel, PowerPoint, etc.)
  • Oracle
  • Adobe Photoshop
  • Norton Antivirus
  • Windows operating system

The appeal of off-the-shelf software is its ease of use, wide availability, and cost. Pre-made software packages have a lower up-front cost and are ready to use right off the shelf. All of the maintenance, updates, and security are handled by its developer. The developer will likely offer customer support and service and online user communities that share tips and tricks. Your employees might be familiar with your off-the-shelf applications, saving the time and cost of training them on a custom product (1).

“Off-the-shelf software serves audiences with similar needs, but sometimes you want a solution that can handle your business’s unique requirements.”

– Business News Daily

However, some disadvantages may be hard for some companies to overcome. You’re dependent on the developer to keep the product working and at their mercy if something happens to make them drop support of the package altogether. While there’s often some customization available, you may need help to make it meet all your needs. You could find yourself paying for features you don’t use with no way to opt out of them. Off-the-shelf options work well for some businesses, but it’s worth considering if custom software development might be a better route.

What Is the Advantage of Custom Software Compared to a Software Package?

The advantage of custom software compared to a software package is personalization and efficiency. While off-the-shelf software might be quicker, it will be less efficient in the long run if it doesn’t work for your business. Compare it to having a Phillips screwdriver when removing flathead screws. You might find a way to make it work, but it will take time and effort. It could result in stripped screws, a broken screwdriver, or even injured fingers. It would be faster and more cost-efficient to go out and buy the right screwdriver instead. If your business has unique needs, off-the-shelf custom software might not fit without wasted time and energy, if it ever fits at all.

Examples of Custom Software

  • Electronic health records with telemedicine — Healthcare companies have strict security and privacy standards. More practices are investing in custom healthcare software development to give patients online access to their records and the ability to see doctors through telemedicine. Bespoke software provides these functions in a well-designed user interface while protecting patients’ privacy.
  • Mobile banking — Most financial institutions have an app that their customers can bank with. Typically it includes checking account balances, transferring money, locating branches and ATMs, depositing checks, getting support, and more. As with healthcare, banking requires strong security. Banks can have custom software developed for these apps that includes all the functions their customers expect, the branding of the institution, and appropriate security measures.
  • Streaming apps — All of the extensive video streaming services have bespoke applications. They needed custom apps with their branding, preferred method of serving content, algorithms for suggestions, and security to protect users’ login and payment information. While the apps serve a similar function, they’re all unique.

7 Benefits of Custom Software Development

Personalized Solution

The main attraction of custom software development is personalization. You have the opportunity to request precisely what your company needs. You can decide everything about the custom software; the design, its compatibility, the user interface, whether it communicates with other custom applications, and anything else you can think of. You have total freedom to create what works best for your business (2).

“The developer could design the software so that it can be compatible with the commissioning company’s branding, infrastructure, and requirements, and only that organization could have access to the software.”

– Linkedin

Exclusive Ownership

Custom software developed for your company will solely belong to you. That gives you much say in making changes, pushing updates, and determining security measures. You won’t be at the mercy of another developer for price changes or lack of support. If your bespoke software has use outside your company, you could license or sell it to others for profit.


While off-the-shelf software might have a lower up-front cost, custom software development is a wise investment to save money long-term. As your business grows, you can scale your custom software without added expense. For example, if you need more licenses from your off-the-shelf custom software package, you might be stuck “upgrading” for a higher cost. You have control over the licensing of bespoke software for your company. Many developers are switching to monthly subscription models, as well. Depending on your usage, that cost alone can make custom software development worth the price. 

Security and Reliability

Mass-produced software is inherently less secure than custom software. Many applications sacrifice some security in favor of ease of use. Widely known software is also more vulnerable to attacks as bad actors dig for weaknesses and watch for bugs. The security of your bespoke software package is up to you, and if the code is unknown to outsiders, they’re less likely to find a way in. Some industries have higher security requirements and exclusively use custom-built software. Healthcare, government, and schools are some examples. Speaking of security and healthcare, its important to understand how software development in healthcare differs versus other industries.


Increased Productivity

Returning to the screwdriver analogy, you will remove screws much faster with the correct tool. The same goes for your software. Productivity drops when applications don’t work correctly or won’t work how you need them to. Work can slow, and frustration can rise. Smooth, easy-to-use custom software solutions also mean happier employees. They’re free to focus on the aspects of the business that matter most rather than wrestling with technology all day. Happier employees tend to be more productive employees, too. 

Support and Maintenance

With off-the-shelf software solutions, you’re dependent on the original developer for support and maintenance. In many cases, that’s not an issue. In others, support is unhelpful, or maintenance suddenly stops. With custom software for your business, you’re in charge of its future. You can upgrade as you see fit and maintain it most efficiently for your company. Even if there needs to be downtime, you can schedule it outside your business hours. Your support will come directly from the developers who know the project inside and out. If an in-house team created it, help could be down the hall.

Customer Satisfaction

This won’t apply to all businesses, but those interacting with customers likely know the frustration of poorly fitting software. It’s difficult for the employees to use and for customers to understand why things aren’t moving faster. Developing bespoke software for your customers’ needs gives you the power to make them happy. Your company knows what will work best with your consumers.

Disadvantages of Custom Software Development

Though there are many advantages, custom software development has some disadvantages. Take these into account as you decide between custom applications and off-the-shelf software. Custom development might not make sense for some businesses, especially those starting. Remember, you can continuously adapt as your needs change and switch to customized programs in the future. According to Forbes (3):

“The key is to apply the necessary amount of customization to your technology without overspending on unnecessary functions and features.”

– Forbes


Time to Deliver

As stated earlier, off-the-shelf software is ready to use immediately after purchase. You can purchase, install, and run it within a few hours. Custom software, on the other hand, takes time to develop. Even before development, the planning phase is lengthy but essential. It would help if you considered at least the following:

  • The problem this software needs to solve
  • How can the application solve the problem
  • Survey the business and determine the scale of the project
  • Decide on the user interface
  • Ensure compatibility with current systems
  • When and how will the software be deployed

Software development can take months or even years. If an off-the-shelf software package can meet your needs, that may be a better option. IBM recommends turning to pre-made software if it meets more than 80% of the functions needed to support your company’s processes, handle industry-specific data, complete your security standards, integrate with current systems, replace existing solutions for lower cost and higher productivity, facilitate opportunities or advantages, and grow to your business’s changing needs (4).

“With custom software, a business needs to go through a Software development process that may take weeks, months, or with bigger projects, years. Bugs accidentally introduced by software developers, and thorough testing to iron out bugs, may impede the process and cause it to take longer than expected.” 

– LinkedIn

High Initial custom software Costs

Custom software development can be expensive. While it tends to be a better long-term investment than off-the-shelf software packages, the up-front price is higher. This is true whether you have in-house development or decide to outsource it. If you have your development team, you’ll also need to consider the overhead for them to continue support for the software. These high initial costs might not make sense for a company whose needs are met by commercially available software.

Technical Proficiency

Using bespoke software requires more technical proficiency in general. While employees will be familiar with many off-the-shelf packages, they’ll need training and time to learn your business’s custom applications. There won’t be the same resources and information you see with widely-used programs. If you don’t have a strong IT support team or have employees that struggle with technology, you might see people stumbling over the custom software. Even if you decide to outsource the development, you still need strong technical proficiency. You’ll have a better product and working relationship if you can meaningfully contribute to the planning and development process. It’ll also help you choose a vendor; some less scrupulous companies take advantage of clients who need help understanding the tech.

The Best for Your Business in software solution

There are plenty of advantages and a few disadvantages of custom software development. The most important factor, however, is your business. Every business is unique and has its way of operating. There is no one-size-fits-all solution for software. Bespoke software is a great way to improve efficiency, save costs long-term, and get ahead of the competition. That doesn’t mean that everyone should jump into it, however.

Reasons NOT To Get Custom Software

Let’s end with a few wrong reasons for seeking custom software development. Some ideas may sound good but aren’t worth the time or money.

  • Creating the next big thing: While you may have a good idea for the next Twitter or LinkedIn, essential software to run your business might not be the best place to try it out.
  • Looking for a quick fix: If a company is struggling with organization, losing money, experiencing high turnover, or any other major issue, it’s tempting to think the “right” software will fix it. Unfortunately, it probably won’t. Uncover the root of these issues before sinking time and money into the “perfect software.”
  • Brand recognition: Some companies create heavily-branded software to promote themselves or inspire employee loyalty. Often, an off-the-shelf product will work equally well for less money, just without the logos.
  • Consolidation: Many businesses use more than one application. It might sound more efficient to create a single program that takes care of everything. You can run it by your developers, but some functions are spread across applications for a reason; you might end up with a jumbled mess that no one likes using.


  1. Off-the-shelf software serves audiences with similar needs, but sometimes you want a solution that can handle your business’s unique requirements. – Business News Daily Quote
  2. The developer could design the software so that it can be compatible with the commissioning company’s branding, infrastructure, and requirements, and only that organization could have access to the software. – Linkedin Quote
  3. The key is to apply the necessary amount of customization to your technology without overspending on unnecessary functions and features. – Forbes Quote
  4. With custom software, a business needs to go through a Software development process that may take weeks, months, or with bigger projects, years. Bugs accidentally introduced by software developers, and thorough testing to iron out bugs, may impede the process and cause it to take longer than expected. – LinkedIn Quote