Custom software development: What it is and when to ask for it?

Nowadays, for a company, it is very important to adopt tailor-made IT solutions. This allows you to keep up with the times and to stand out in your niche of reference. For this reason, the development of customized software for your company is an opportunity to evaluate.

What you'll find in this article

  • What is custom software
  • Tailor-made software or standardized software?
  • The advantages of customized software
  • When to request customized software?
  • What considerations need to be made before applying for it?
  • The development times of customized software
  • Agile vs Waterfall
Custom software development: What it is and when to ask for it?

What is custom software

Custom software development is an intricate process involving the design, development, and maintenance of software applications. Custom software is designed to meet the precise needs of a company. More specifically, this process often leads to the creation of a software system from scratch, or to the integration of existing software components, to optimize business operations.

With a view to ensuring perfect synergy with business processes, cutting-edge programming languages and technologies are used during the development of customized software. In addition, agile development methodologies and software lifecycle management (SDLC) tools are used. This ensures that the customer-supplier relationship produces an optimal result according to the expectations of both.

The objective of this process is the creation of a powerful and performing tailor-made software solution. It must not only meet the specific needs of the company, but also guarantee an impeccable and intuitive user experience, contributing to the company's success.

Custom software or standard software?

In the field of software for companies, we have two categories: custom-made and pre-packaged. The differences between customized and standard software directly affect the user experience, in addition to the efficiency and flexibility of business operations. Starting with standard (or packaged) software, they are available for almost any activity. The functionalities are as follows:

  • Ease of use: standard applications are designed to meet the needs of a large audience that shares common needs and objectives. An emblematic example is Microsoft Word, a widely used word processing application, characterized by a series of features and customization options that can be used by a wide variety of organizations. These are solutions designed to be generic and multipurpose, able to adapt to the needs of a large number of users, without specific customizations.
  • Easy access for purchase and download: pre-packaged software is easily accessible, since they can be purchased in-store in physical format, or downloaded directly from the manufacturers' websites. In addition, they may also be available through cloud subscriptions.
  • Availability: there are standard software packages available for every platform your business uses, such as Windows PCs, Macs, and Linux.
  • Adaptability: tailor-made software packages, such as Microsoft Office, offer the possibility of customizing certain functions to optimize the software according to the team's needs.

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The advantages of customized software

Despite the wide availability of standard software, there are cases in which companies find themselves having such specific needs that they cannot be met by generic solutions available on the market. So here is where customized software comes into play. Custom software offers a number of advantages over pre-packaged software.

  • Unique features and functions: when a company requires the development of customized software, a team of developers will be responsible for understanding and collecting the customer's needs and carrying out the project. A tailor-made product is created, designed specifically for the use of the requesting company. This exceeds the ability of standard software to meet specific business requirements.
  • A solution designed exclusively for the company: The advantage of customized software lies in the fact that it is designed to integrate perfectly with the infrastructure, the company's look-and-feel and branding and the specific needs of the company. In addition, no other organization could have access to the application.
  • Increased security: another important advantage of developing customized software is the security of data and business processes. Because custom software is tailor-made for a specific company, it is possible to integrate cutting-edge security measures, such as specific authentications and authorizations according to specific business policies. In addition, you have complete control of your data and systems, which reside exclusively on the systems managed by the customer, thus protecting sensitive information.
  • Scalability and flexibility: the development of customized software allows companies to easily adapt their software to growing needs. By adopting software with scalability, companies can ensure that their systems can handle growing workloads, without compromising performance. Therefore, customized software can be easily modified and updated with new features, ensuring continuous long-term flexibility.

When to request custom software development?

When considering the opportunity to invest in the development of customized software, it is essential to fully understand the magnitude of the commitment required. This process involves collaboration between the development teams and the client company. It is necessary to precisely define the requirements, the detailed design and the accurate implementation. But then, what are the signs that make a company understand when it needs customized software?

The team is hampered by ineffective processes and temporary solutions

A customized software solution should be considered when employees are faced with an excessive amount of documentation. Another indicator is the amount of alternative solutions that the team must find to complete daily tasks. These inefficiencies can have a negative impact on productivity and employee morale. More specifically:

  • Stretched processes: if employees are struggling with an excessive amount of documentation, bureaucratic iterations and required steps, then there is a need to make improvements. Technology should facilitate processes and activities, for this reason it is appropriate to consider the development of customized software.
  • Excessive workarounds: if the company has relied on legacy software or a standard one, and employees need to resort to multiple solutions to complete the required activities, there is a problem. For example, do employees need to export data from an internal software application and import it elsewhere before they can proceed with their duties? Do they need to make efforts to make reports presentable? In these cases, customized software can be evaluated.

The company needs an internal Excel expert to interpret the data

Many businesses spend a great deal of time and resources manipulating financial data related to customers and sales within spreadsheets.

Thanks to the adoption of customized software, this process is automated, interfacing directly with its data sources, such as point of sale systems, and quickly generates reports and computer graphics. This saves time and resources, and makes it easier to make decisions based on data, rather than wasting time processing them.

The company operates with specific and proprietary processes

If the company is in an emerging sector, or offers an innovative product, service or process, there may not be a ready-made solution on the market suitable for the needs.

Or, you want to introduce new approaches within your activities. An example comes from Uber, which had to develop customized software for its drivers and customers. Although the business model already existed with taxis, the introduction of a new app-based ride-sharing process was a novelty.

Need for secure data access for remote employees and outsiders

Requiring the development of customized software leads to total protection for sensitive data. When it is necessary to provide the external sales team or remote employees with access to sensitive data, it is often necessary to resort to the use of cloud-based collaboration platforms that may not guarantee the required level of security.

Instead, by adopting customized software, this can be configured to create a secure collaboration platform. Profitable collaboration is therefore guaranteed, without compromising the security of company data.

The company is growing

As the company grows, it is right to request the development of customized software. The implementation of a customized software application can be essential to maintain or improve customer satisfaction, reduce errors and increase sales during the business growth process.

Since this is a customized solution, it is possible to adapt it and add users, locations and functionalities according to the needs that emerge with the development of the company.

What considerations need to be made before requesting a custom development

Once you understand that your business needs customized software, you need to make some considerations before requesting it. One of them concerns choosing the right custom software development company. You need to make sure that you select a company or professional that offers the right ratio between price and level of service.


Usually, it is advisable to meet potential software development partners to clarify needs and assess the amount of work needed to create the customized solution. Next, candidates must submit proposals based on development time and related costs.

However, the offers are not necessarily final, as some projects may require additional resources in terms of time and money.
It is necessary to avoid focusing exclusively on the most convenient proposals. It is essential to choose a company that best meets the company's needs.

Here are a few tips:

  • Look for developers who follow clean, error-free coding practices.
  • Review previous projects carried out by potential partners, focusing on the industries served and the size of the projects.
  • Pay attention to companies with a track record of on-time deliveries.
  • Make sure to establish effective and transparent two-way communication.
  • Define who will have possession of the developed intellectual property.
  • Verify that special attention is given to the user experience.
  • Make sure that appropriate security measures are in place.
  • Clearly establish expectations regarding post-development support and maintenance.

In addition to choosing the company that will be responsible for the development of customized software, it is necessary to fully understand the current business process and identify what the future needs are. For this reason:

  • The current process must be analyzed, without making hasty assumptions. Industry experts who are in direct contact with daily work should be involved. The objective is to collect as much detail as possible on the activities, challenges and critical points of the existing process.
  • At this point, it is essential to identify the issues to be solved. Never assume that adopting new solutions will automatically solve problems. It's important to test assumptions and gather feedback from stakeholders at all levels of the organization.
  • Finally, the criteria for success must be defined. It is therefore necessary to outline what results you want to obtain with the customized software. This includes designing optimized workflows and other processes that the software must support, to ensure that it covers all business needs.

The development times of customized software

On average, the development of customized software can take from weeks to a few months, and even several years.

This time changes depending on the complexity of the project and the availability of resources. It is therefore important to set realistic expectations and to work with a development team that defines appropriate planning. More specifically, the factors that modify the timing of the development of customized software are

  • The complexity of the project: the more complex a project is, the more time it will take to complete, given the greater amount of work.
  • The size of the development team: the bigger a team is, the faster it will be able to complete the work.
  • The availability of requirements: a clear definition of requirements and the availability of all useful information can accelerate the development process.
  • The budget: the availability of economic resources changes the timing for the development of customized software. A higher budget allows you to use advanced technologies or use more resources.

The development process: Agile or Waterfall

With a view to the development of customized software, it is essential to choose the methodology to be adopted during the work. Usually, the choice falls between two different approaches, Agile and Waterfall. Both serve to manage the software development lifecycle, but with different perspectives. Let's look at the differences more specifically.

  • Waterfall Model: it is the longest-running method in the history of software development. Characterized by a linear and sequential approach (hence the name, waterfall), the Waterfall model gives a defined structure to the process of developing a customized software. This approach is suitable for projects where the requirements are stable and understandable from the start.

    The structure is characterized by a sequence of fixed phases:

    1. Requirements analysis: all system requirements are identified.

    2. Design: the requirements are translated into project specifications and the system architecture is built.

    3. Implementation: in this phase the source code is written and the system is developed based on the design.

    4. Testing: the system is tested to verify that it meets the requirements.

    5. Maintenance: after the software is released, the changes and problems encountered during use are managed.

    For example, organizations that operate in regulated areas, such as healthcare and finance, use the Waterfall model purely for its ability to document and comply with regulatory requirements. A flaw in this approach lies in its rigid nature and not very adaptable to changes. A project may have to evolve over time, and making changes with the Waterfall model can require a lot of effort.
  • Agile approach: as a consequence of the limitations of Waterfall, the Agile approach was born. The need to manage complex and constantly evolving projects in a flexible way has made this new method take hold. Based on individual interaction, response to change and continuous delivery of working software, Agile promotes iterative and increased development cycles.

    More specifically:

    1. Iterative development: Agile divides the project into short iterations called 'sprints', in which increases in functionality are developed and delivered.

    2. Customer Engagement: project stakeholders are actively involved in the development cycle, providing immediate feedback.

    3. Adaptability to changes: Agile is designed to manage changes in requirements in a timely manner, allowing an immediate response to new user or market needs.

    4. Collaboration: Agile is based on communication and collaboration between team members and stakeholders, working together to achieve objectives.

Conclusions

Requesting software development from an external company can be a complex process and not without risks. Therefore, both the choice of the supplier and the real involvement of the customer throughout the development cycle become decisive factors for the success of the project.

FAQ on custom software development

What is custom software development?

Custom software development involves designing, creating, and maintaining software tailored to meet a company's specific needs, often optimizing business operations and providing a better user experience.

How does custom software differ from standard software?

Custom software is built specifically for one company, offering unique features, better integration, enhanced security, and scalability, unlike standard software, which is generic and less adaptable.

When should a company consider custom software development?

Consider custom software when standard solutions are ineffective, require workarounds, or cannot accommodate your company’s unique processes or growth.

What are the advantages of custom software?

Advantages include tailored features, exclusive use, enhanced security, and flexibility to scale with business growth.

What factors influence the timeline for developing custom software?

Development time varies based on project complexity, team size, budget, and the clarity of requirements.

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Modern Apps

The Modern Apps team specializes in development and integration across the entire Microsoft 365 ecosystem. We design native applications for Microsoft and Azure platforms, and implement business processes that integrate with and maximize the investment in Microsoft 365.