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Home Pragmatic Blog Outsourcing/Collaboration What is custom software development?
Outsourcing/Collaboration
Updated: Jul 22,2024 Published: May 31,2022
11 min read

What is custom software development?

What is custom software development?

Custom software development is the process of creating software specifically for a particular customer or client. Unlike off-the-shelf software, designed to be general and usable by as many people as possible, custom software solutions are created with a specific user or organization in mind. As a result, it can be tailored to their particular needs and requirements, making it more efficient and effective than general-purpose software.

Customized software development can be used for various purposes, from developing bespoke applications and software to integrating different systems or creating small tools and utilities to help automate specific tasks.

No matter the purpose, custom-built software can provide a massive boost to productivity and efficiency for your company.

Understanding the differences between nearshore and offshore software development outsourcing can help you make an informed decision about where to find the best talent for your custom software project. Read our comprehensive guide on nearshore vs offshore software development outsourcing for more insights.

What are the examples of custom software?

There are countless examples of custom software, as it can be used for any purpose that specific software is required. Some common examples include:

  • Developing an internal CRM (customer relationship management) system for a company
  • Creating a tool to help automate a specific process or task
  • Building a bespoke application for a particular industry or sector
  • Developing an eCommerce platform for a unique business model
  • Creating a system to integrate different software applications
  • Creating a bespoke reporting system
  • A custom eCommerce platform that allows for special product customization
  • A customer relationship management system specifically tailored to a company’s needs
  • Specialized software for a specific industry or sector
  • Small tools and utilities that are created to help automate specific tasks
  • Combining existing solutions to achieve better efficiency
  • etc.

As you can see, custom software can be used for various purposes. Custom-made software is the best solution if you have a specific task or process for which you need software.

What are the types of custom application development services?

Different custom software development services are available, depending on your specific needs and requirements. Some common types of custom software development services include:

Web application development: This involves creating bespoke web applications and software tailored to the client’s specific needs.

Mobile application development: This type of service involves creating mobile apps for smartphones and tablets.

Desktop application development: This involves creating software for desktop computers and laptops.

Software systems and software integration: This type of service helps to integrate different software applications, making them work seamlessly as one system.

Industry-specific solutions: These are custom software solutions designed for specific industries or sectors.

Small tools and utilities: These are small applications or tools that help automate specific tasks.

Internet of Things (IoT) custom solutions: This service helps connect different devices and sensors to share data and work together.

All or some of the above combined: This is a custom solution that combines two or more services above to create a sizeable bespoke software solution.

sticky notes

Who needs custom software development?

Anybody who needs specific software for a particular task or process can benefit from custom-built software.

A custom solution is designed to be more efficient and effective than general-purpose software, so it can help boost productivity and save time.

Custom software is particularly beneficial for businesses with specific requirements that cannot be met by off-the-shelf software. It can also be used to develop bespoke applications and software for particular industries or sectors. It could be enterprise software and a simple solution that ensures small business operations and business continuity.

Custom software is the best solution if you have a task or process for which you need software.

If you’re not sure if custom software development is the right choice for you, check this article: Do you need custom software?

What are the benefits of custom software?

There are many benefits of custom software, which include:

Improved competitive advantage: Custom software can give businesses a competitive advantage, as it is designed to meet their specific needs.

Software tailored to your specific needs: Custom software is designed to meet the client’s particular needs. This means that it will be more effective and efficient than general-purpose software, as it is designed for a specific purpose.

Improved productivity and efficiency: Custom software can help to improve productivity and efficiency, as it is designed to automate specific tasks. This can save time and money for businesses.

Better security: A custom software development project can be more secure than general-purpose software, as it can be designed with security features specifically for the client’s needs.

Scalability: Custom software can be designed to be scalable to grow with the client’s business.

Flexibility: Custom software can be designed to be flexible, so it can be changed or adapted to meet the client’s changing needs.

What are the drawbacks of custom software?

There are some potential drawbacks of custom software, which include:

Higher initial cost: Custom software can be more expensive to develop than general-purpose software, as it takes longer to develop and is designed to meet specific requirements.

Longer development time: Custom software can take longer to develop than general-purpose software, as it is designed from scratch.

Potential for errors: There is a potential for errors when developing custom software, as it is complex.

Dependency on developers: A custom solution can be dependent on the developers who created it, as they will have specific knowledge about the code. That could be avoided thanks to good code quality and documentation. You still need to have a development team or use external custom software development services from a custom software company to develop custom software, make customizations, and keep your software up to date.

What are the phases of custom software development?

Depending on the development methodologies used by software developers, phases of software development may vary. Usually, the stages of custom software development include:

Requirements gathering and UX research

The first phase of custom software development is to gather the client’s requirements and carry out UX research. This involves understanding the needs of users and the business processes they are using and designing a solution that meets those needs.

Design the product

The next phase is to design the solution to reflect the business processes analyzed before. This involves creating wireframes and prototypes of the software and testing them with users to ensure they meet their requirements.

The design could be done at two levels: low fidelity and high fidelity designs.

Low fidelity designs are sketches or wireframes that are less detailed and may not be to scale. They can be used to test out design ideas and get feedback from users quickly.

High fidelity designs are more detailed and accurate and can be used for final presentations to clients or stakeholders.

You may need both, first low fidelity designs to test the general idea of your custom software solution and then high fidelity designs to test the particular look and feel of your software solution.

Develop the first version of the software

The next phase is to develop the software. This involves coding the software and testing it.

The first version of custom-built software should not include all of the features and functionality that the client requires. This is because it is important to get feedback from users as soon as possible and make sure that the software meets their needs.

After the first version of the software has been released, it is important to continue to develop it. This involves adding new features and functionality and fixing any bugs that are found.

Keeping the software up to date with the latest technology is also important. This ensures that it is always able to meet the needs of users.

Deploy the first version of the software:

The next phase is to deploy the software. This involves making the software available to users and testing it to ensure it works as expected.

You should do this early and repeat it with the next versions of your custom software product as often as possible. It’s essential to get feedback from users as soon as possible, collect it, and make sure that the software meets their needs.

Aside from users’ feedback, you should collect empirical data. It will give you information about how users interact with the software, what errors they encounter, and so on. You can use this data to improve the next versions of your software.

Monitor and evaluate

The next phase of custom software development is monitoring and evaluating the software. This involves tracking how users are using the software and making changes to improve it. Collecting data about how the software is being used will help you make decisions about improving it.

Customized software development is an iterative process, which means that it is constantly evolving. New technologies should be adopted to keep the software up to date as new technologies emerge.

Iterate and develop the next versions of your custom software solution

The final phase is to iterate and develop the next versions of the software. This involves making changes and improvements to the software based on feedback from users. This process is repeated until all necessary user requirements are satisfied with the software solutions.

Ongoing development and maintenance

After the software has been deployed, ongoing development and maintenance will be done. Maintaining software involves making changes and additions to the software as needed and providing support to users.

This process is ongoing and ensures that the software is up-to-date and meets the changing needs of users.

How much does a custom-built software cost?

The cost of custom software varies depending on the size and complexity of the project. Generally, custom software development costs more than general-purpose software development. This is because custom-built software is designed from scratch to meet specific requirements, which takes more time and effort. The cost also depends on the skills of the developers and the rates they charge. For example, custom application development in the US can cost $85-$250 per hour. In India, the rates are lower, at $25-$80 per hour. In Poland, rates are $55-$100 per hour (as of May 2022).

To create custom software, you need to spend time and money on its development. But you may get a better return on investment (ROI) as custom software is designed to meet your specific needs. And it can be further customized as your business grows and changes.

desk with computers

What factors influence the cost of custom application development?

The complexity of the custom software project is one of the main factors that influence the cost of development. The more complex the project, the more time and effort it will take to develop, and the higher the cost will be.

Some factors that can influence the complexity of a custom build software project include:

  • The number of features and functionality required
  • The size and scale of the project
  • The number of platforms the software needs to be compatible with
  • The level of integration required with other systems
  • The deadline for the project
  • The number of developers needed to work on the project
  • The skills and experience of the custom software developers
  • The development process that software engineers will use

All of these factors can influence the cost of customized software. To get an accurate quote for your project, contact a custom software development company and discuss your specific requirements.

Should I build my development team or hire a custom software development company?

There are advantages and disadvantages to building your own team versus hiring an outsourced team from a custom software development company.

Building your development team gives you more control over the project and development process. You can hand-pick the developers who will work on your project and manage them directly. This can be beneficial if you have very specific requirements for your project.

However, building your own team can be costly and time-consuming. You will need to recruit and train developers, which takes time and money. And if you don’t have experience managing software development projects, you may run into difficulties.

Hiring a custom application development company gives you access to a team of experienced developers and a well-tested development process they are familiar with. These developers have the skills and experience needed to develop high-quality software. They also usually have a good understanding of the latest software development trends.

Another advantage of hiring a dedicated team from a custom software development company is that they can take on all aspects of the project, from research to design, development and testing. This can save you time and effort as you don’t need to manage the project yourself.

However, hiring a custom development agency can be more expensive than building your own team. And you will need to carefully select a reputable and experienced company that you can trust to deliver a high-quality project.

Summary

Custom software development is the process of creating software that is designed specifically for your business. It can be more expensive and time-consuming than pre-made software, but it can also provide a better return on investment.

The cost of the custom application depends on various factors, including the complexity of the project and the skills and experience of the developers.

You can either build your own development team or hire a custom software development company to create your software. Each option has its own advantages and disadvantages.

When deciding whether to build or buy custom software, consider your specific business needs and objectives. If you need help making a decision, contact experts for advice.

If you’re looking for a custom software development company to create software for your business, contact us today. We have a team of experienced developers who can create high-quality software to meet your expectations.

Article author

Wiktor Żołnowski

Wiktor Żołnowski

Co-CEO at Pragmatic Coders

CEO & Co-Founder of Pragmatic Coders. Agile Coach, Scrum Master, Software Developer, Trainer, and Consultant with more than 15 years of experience in Agile Software Development.

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