Results from a 2020 survey by Twilio show that businesses have started to put more money into digital transformation initiatives. 79% of respondents have increased their budgets for new digital strategies in response to COVID-19. This surge in demand for technology will continue at least through 2023 according to a report by the IDC.
Global research firm Gartner also predicts IT spending will increase 8.4% to $4.1 trillion this year as more companies across industries move their operations online.
Today, we’re seeing technology being adopted to create new business models. Retail brands are building their presence in eCommerce platforms and shifting sales online. Automation is enabling companies that have had to reduce their workforce due to the pandemic by increasing productivity despite having fewer employees.
Digital transformation means closing the gaps left by mandated lockdowns and other restrictions that have used technology to limit the way people work. At first glance, the criteria for doing this are simple: business owners and CEOs consider what's on the market, what it can do to increase productivity, and how it meets their needs.
But often, generic, off-the-shelf software doesn't meet the companies’ specific needs. This is the reason why businesses look for custom solutions.
Custom software is a solution that is created, deployed, and maintained for a specific business. It is developed to solve a company's specific problems with the features it needs to be more effective.
If you're wondering if developing a custom software is the right route to take for your company, let's take a look at some of its advantages and disadvantages.
Advantages of Custom Software
1. It's a personalised solution for all your needs
Developing a custom software solution ensures that it's tailored to suit your needs. You can be particular about how it should be built and how it should support your business needs. The problem with ready-made products in the market is that there's no assurance that they will all fit seamlessly into your operations.
Custom software can be personalised the way you like and need it to be. When you have a solution designed to do exactly what you want it to do, it optimises processes and increases productivity. One example of custom software is automated invoicing, which allows businesses to pay, get paid, process payments, and get real-time notifications. This kind of cloud-based solution is effective for small to mid-sized online businesses who need an efficient means of distributing invoices between suppliers and buyers in a safe and fully integrated digital format.
2. It’s a smart long-term investment
Some businesses are hesitant to invest in custom software development due to cost. And while the up-front costs are usually higher, it saves businesses money long-term. There is no need to buy extra hardware, acquire annual licenses, or pay for features that your team is likely never going to use. All these recurring costs will cumulatively be more expensive if you incur them yearly.
3. It allows seamless integration
Customising software allows easier integration with your existing applications. Businesses can avoid having to maintain several programs, reducing stress, and accomplishing more.
Disadvantages of Custom Software
1. It requires a higher technical proficiency
If you choose to develop custom software, an extra level of technical understanding is required. Implementing custom software requires you to invest in training your people as well. If your employees lack the skill set necessary to configure it and maximise its functions, going for an off-shelf program would be better.
2. It needs more time to develop and deploy
The designing, implementation, and set up stages of custom software will take time that some businesses can't afford to lose. During development, you may also face various complications that may delay the delivery of the product. If you need a fast solution so as not to disrupt your workflow, a custom software might not be worth the risk.
Why Choose Custom Software Development
Although the initial cost of this project can be high, especially for SMEs, it has the potential to be more cost effective in the long run.
The ROI of custom software is not as simple as investing a certain amount and receiving another amount as profit, but once implemented, take a look at how it benefits the overall internal productivity of the business and establish the right metrics for growth to evaluate its effectiveness.
Companies can cut down their expenses by up to 50-60% when they outsource a developer to help them build their custom software. This is due to the reduced cost of onboarding, salaries, and other employee benefits. Apart from these savings, they are able to avail the services of specialized professionals who are able to speed up development for the company.
Let us know how we can help your business today.