Custom system or off-the-shelf software: when do you need each?

Not every business needs a custom system. If your processes are close to what most businesses in your field do, a good off-the-shelf product may be enough, and you can start using it within days at a lower initial cost.

But some signs say off-the-shelf software no longer fits. The first is that your team works around the software instead of with it: side spreadsheets for what it does not support, manual steps between two screens, and reports reformatted every month. The second is that it does not handle Arabic well, or does not match the payment, fee and invoicing practices you are used to. The third is that you need to connect it to other systems and it will not allow it.

Then there is ownership. With off-the-shelf software you pay an ongoing subscription, your data sits on servers you do not control, and any change in price or terms is imposed on you. With a custom system you own the code and the data, and you decide where it is hosted and when it is developed.

A custom system is not free of cost: it needs time for analysis and building, a larger initial investment, and ongoing maintenance and updates. So we suggest two questions before deciding: which process costs you the most time or mistakes today? And does an off-the-shelf product solve it without changing the way you work entirely?

If the answer is yes, start with off-the-shelf. If not, a custom system that starts with that one process is usually the smarter step.