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Custom software or off-the-shelf: how to decide
By Micah Ondiwa, Senior Software Engineer 1 min read
Buy where your processes are standard, build where they set you apart — and count the full cost of ownership either way.
Few organisations should build everything, and few can buy everything. The useful question is not “custom or packaged?” but “which parts of our operation are standard, and which are ours?”
When off-the-shelf software fits
Accounting, payroll and email follow well-established rules, and mature products handle them well. If a product covers most of your needs through configuration, adapting a few processes to the software is usually cheaper and faster than building.
When custom software makes sense
- The process is how you compete or serve clients, and packaged tools force a worse way of working.
- Several existing systems need to share data and no product connects them.
- Per-user licence costs become significant as the organisation grows.
- You need full control over your data, hosting location or integrations.
The hybrid that often wins
Many organisations keep a packaged core — accounting or HR — and add custom applications and integrations around it. This limits what has to be built while removing the manual re-entry between systems.
Compare the full cost, not the price
Packaged software has subscription or licence fees that recur for as long as you use it, plus configuration and training. Custom software has a build cost followed by ongoing maintenance, security updates and hosting. Compare both over three to five years.
Questions to answer before deciding
- Which processes must the system support, and which are unusual to us?
- Which existing systems must it exchange data with?
- How many users will it have now and in three years?
- Who will support it, and how will changes be made after launch?
If the answers point towards building, our software and digital systems team can help scope it.
About the author
Micah Ondiwa
Senior Software Engineer
Micah Ondiwa writes about software engineering — application architecture, APIs and integration, data and AI-assisted development, and reliable delivery.
