contact@dedicatted.com

Ehitajate tee 110
Tallinn, Estonia 13517

Building vs buying software: what to choose?

23.12.2022

7 minues

Software Build VS Buy

Are you struggling with a dilemma about whether to go for a custom-made or off-the-shelf solution?

If your need is common, chances are there are multiple software solutions available to you. However, if you have unique or very specific business requirements, developing your own software might be worth considering.

Software applications can streamline many business processes, such as accounting, marketing, sales, supply chain management, etc. In fact, the enterprise software market is the fastest growing segment in the information technology industry, with year-on-year growth frequently exceeding 10 percent.

The build-or-buy software debate can be complex, involving many factors. The decision is not an easy one and you must understand all the intricacies involved.

Let’s explore the pros and cons of building software versus buying it so you can choose the best option for your company.

Custom software development vs. off-the-shelf software: what to choose?

When deciding whether to build or buy software, it’s important to examine the long-term impact of both. Here are the most important considerations to weigh up.


Custom software
Off-the-shelf software
Cost

The initial costs of building your own software are high, but doing so can offset costs over time.Ready-made solutions can be more expensive in the long term because you have to constantly pay for the product.
Functionality

Custom software is unique to the business and tailored to its  requirements.Off-the-shelf software packages may not offer all the features your business requires.
Coherency

You can build a product that will be coherent with the tools already in use.A new solution may conflict with existing systems and require a complete overhaul of present workflows.
Time

The custom software takes time to build, as it is created from the ground up.Off-the-shelf software is designed for quick setup. It can be used immediately after installation.
Security

If you’re building a custom software application, you’ll be able to ensure that only authorized employees and third parties have access to the system.If you choose an off-the-shelf product, you may need to trust that the vendor has made all necessary security precautions for their product not to compromise your sensitive information.
Scalability

You can add and change features as required without worrying about disrupting other parts of the program or breaking something else in your system.Off-the-shelf solutions do not imply any major adjustments. They are built with a fixed set of features and do not give you the option to add or remove anything once the software has been purchased.
Rights

Custom software is an asset – it’s your intellectual property. In the long term you can transform it into a commercial product and sell it.All rights to an application belong to the company that developed it. This means that you cannot distribute your own version or make any changes

Businesses can choose from a range of off-the-shelf software packages to meet their needs. You can start by determining whether any of those solutions is sufficient to meet all your functional requirements. For businesses with complex or unique projects, a custom software development may be the best option.

Off-the-shelf software: pros and cons to consider

Buying software is a big decision for any company. Here are some pros and cons to consider before you make your purchase.

Off-the-shelf software advantages

  • Implementation of a ready-made solution doesn’t take much time, it can begin bringing value immediately.
  • Off-the-shelf software packages often include a broad range of tools, so you can find something that meets your needs at a reasonable cost.
  • Off-the-shelf software can be licensed in many different ways, which makes it easier for you to get exactly what you need without having to pay extra for features you don’t want or need.
  • You won’t have to go through the process of hiring a team of developers to build your own customized software solution.

Off-the-shelf software disadvantages

  • One of the main disadvantages is a complete dependence on the vendor for software maintenance and upgrades.
  • Off-the-shelf software often has less sophisticated functionality than a custom-built solution.
  • Subscription fees can add up to tens or even hundreds of thousands of dollars per year.
  • Buying off-the-shelf software may limit your ability to gain a competitive advantage.

When to opt for off-the-shelf software?

Off-the-shelf software is a great option if you’re looking for:

  • a standardized product that you can quickly get your hands on, rather than custom-build something from scratch;
  • an easy way to get started on a project without having to hire an engineer to build it from scratch;
  • an existing solution that already works for similar problems, so you don’t have to reinvent the wheel.

Custom software development: pros and cons to consider

Although custom software has been an attractive option for companies wishing to create a tailored product, it is not without drawbacks.

Custom software development advantages

  • Custom software will fit seamlessly into an organization’s existing technology framework and won’t conflict with other business tools.
  • You can choose which data-security technology is most appropriate for your business and integrate it into your software.
  • As your business grows and new requirements arise, custom software can easily be updated to handle them.
  • Custom software can offer all of the capabilities your company needs.

Custom software development disadvantages

  • Software development is a complex process that requires considerable resources, planning, and expertise.
  • Software development involves many risks, including the possibility of failing to meet deadlines or exceeding budgeted amounts.
  • Beyond development, you will also be responsible for maintaining the code and supporting users.
  • Hiring developers with the skills and experience needed can be a time-consuming process.

When to opt for custom software development?

Customized software can benefit a company if:

  • there is no “off-the-shelf” solution to your problem;
  • existing solutions have limited functionality;
  • privacy and security are of utmost concern.

Hybrid approach

A hybrid approach, combining buying and building, may also be appropriate in some situations.

For example, you may opt for customizable open-source software to build on an existing framework. This can be done by choosing among the software options that are available and then customizing them to fit your needs.

You’ll still need to hire a capable development team to do this, but you won’t get all the ownership benefits of owning your own proprietary tool.

And one more option is to use an off-the-shelf solution to fulfill an immediate business requirement while simultaneously building your own application. You can get the benefit of a ready-made solution in the short term, while also creating something unique and customized for your organization’s long-term needs.

Making to best choice for your business

Building software is time-consuming, but it’s also an investment in the future of your business. On the other hand, using an off-the-shelf solution is a much faster option, but such an application may not be as customizable or scalable as what you could build yourself.

At Dedicatted, we know that the decision to build or buy software isn’t easy. And our experts are here to help you find the solution that is best for your business requirements.

Our team can assist you with custom application development, including design, development and deployment. We also offer DevOps services to ensure your application is running smoothly.

If you have any software-related questions, you can reach out to us via contact@dedicatted.com

Previous publications

Contact our experts!



    or


    By clicking on the "Call me back" button, you agree to the personal data processing policy.

    Discuss the project and key tasks

    Leave your contact details. We will contact you!



      or

      By clicking the "Call me back" button, you agree to the Privacy Policy


      Thank you!

      Your application has been sent, we will contact you soon!