Skip to content

Why You Earn More by Spending Money on Custom Software Development

Is custom software development more expensive than a ready-made solution? As far as the price is concerned, building software has never been cheap. However, out-of-the-box applications have hidden drawbacks that in the end are likely to result in greater expenses and even reputation loss.

In this article, you’ll learn more about the advantages of custom software development over an out-of-the-box solution and how to estimate the development cost.
custom software development

Custom Software Development vs. Out-of-the-box Solutions

Let’s define what is the difference between the two.

Out-of-the-box software

Out-of-the-box is a type of software that was designed to cover particular business demands, fulfill particular business functions and processes. For example, it could be enterprise resource planning, customer relationship management, human resource management, business process management, accounting, construction, customer services, and many others.

As a rule, out-of-the-box solutions offer a general set of functionality and aren’t customized for any specific needs of a particular company. For example, Microsoft Office, MS Dynamics, Atlassian project management tools, Salesforce, etc. They can be acquired as a monthly/yearly subscription, one-time purchase, or even for free.

Custom Software Development

It allows building applications that are tailored to the business needs of a certain company. It means that software developers can include in your application the functionality that can help your company to improve its business processes, enhance customer experience, and increase brand recognition.

Therefore, when you choose custom software, you ensure that you get only those features that will be helpful for your company’s development.

Here is a quick comparison of out-of-the-box and custom software.choose custom software

Ready-made software can be a great solution for some businesses. However, there’re many cases when your company needs a custom software solution. Your own business application can work as a brand representative and a custom software program could help to enhance inner workflow in your company.

Here are some more examples when custom development exceeds out-of-the-box solutions. With custom software you:

  • Pay only for the features needed for your business processes which results in high application ROI. While in off-the-shelf apps you pay for a subscription for unnecessary functions.
  • Adapt your application for the current business needs and the requirements of your customers. Out-of-the-box solutions aren’t very adaptive and their customization usually requires extra investments, employees’ training, and they still won’t perfectly meet your business demands.
  • Do one-time payments for your application upgrading while ready-made software is sold for you on subscription terms. It means that you don’t own the application you’re subscribed for which can end up in data loss when the subscription is over.
  • Can build your unique brand which stands out in the market. Consistent brand development allows you to attract new customers and keep customer loyalty high, resulting in higher revenues.

Custom Software Development Cost

When considering custom development many businesses think that it’s expensive. However, even startups with tight budgets could afford custom software development services as their cost depends on many factors. Some of them are:

Application size

The size-cost relationship is quite obvious. The price of a simple app with an internal database for several employees will differ much from an E-Commerce site that needs to keep extensive data on products and customers in one place.

Besides that, you need to consider the size of your software architecture, whether you need to build a lightweight or a heavy one. The database size and architecture complexity are always based on software requirements. Therefore, before searching for a software development company, make a list of features you want to include in your software or an application.


The second point that significantly influences the software development cost is its complexity. The more sophisticated an app’s architecture, the higher is the price. Besides the architectural design, it’s important to consider which features you want to include in your software. For example, a simple calculator will be easy to embed, while including a chatbot or CMS will require