Choosing Between a Custom Software Application and a Third-Party Solution

Need to develop software for your business? It will be a great initiative, keeping in mind the current influence of Information Technology on businesses. However, an elaborated understanding of types of software development is required. A software program is a tool to enhance your business prospects and reach the maximum possible audience in the shortest time.  
It’s like a building to house your commercial outlet. Its size, infrastructure, and decor may generate more business potential but every business doesn’t need the same size or infrastructure. Developing a commercial software application depends on the size of a business, its plans of growth, its domain, and its financial constraints among others. It wouldn’t make sense to have an open spaced office for a State department or a cubicle for a fitness center, right?
Similarly, a business may have to choose between developing customized software application and purchasing a third-party software application.
Custom software solutions are specially developed for a user or organization with themes, functions, and capabilities customized to suit that organization’s unique requirements.
A third-party software program is created by a vendor company that is different than the manufacturer of the device and/or its operating system.
Each has its pros and cons that depend on the requirements of a commercial venture. Below, a proper illustration is provided about each side of the coin and how each program can impact an enterprise.




  • Scalability: Customized software applications are best for businesses with concrete plans of expansion and long-term goals. Such software can be modified and updated whenever required to suit the ever-changing business needs and strategies. Shifting to more advanced software will be unnecessary as periodic updates can be made to a legacy application.


  • Cost: The upfront cost to develop a customized application may be much more than a small expense. It would need to be treated as a long-term investment with potentially no positive results generated instantly. Much needs to be considered, including if the cost of a software application covers its development and maintenance, as well as if it has promising chances of generating revenue in the long run.
  • Competitiveness: There are several companies in a particular area functioning in the same domain and offering the same services. Customers looking for unique solutions and a customized software application will have a competitive advantage.


  • Time: A software development process may be a long one and may take months to complete. There are several stages involved starting from the gathering of requirements to the final deployment and maintenance. It may not be suitable for urgent requirements.
  • Targeted Growth: A customized software application reaches out to a target audience specifying particular products, services, or concepts. The call-to-action stage is conducted right here. The activities of a customized software application will not be generic and can be utilized only for the business for which it was developed.


  • IT Support: A business may not have its own IT team to offer maintenance and support each time issues occur in a software application. The services of a software development company for IT support may require additional expenditure if such a clause isn’t mentioned in the original package. Customized software applications may not be suitable for businesses with extreme budget constraints.






  • Cost: The same third-party software may be used by hundreds of businesses, if not more. Therefore, it will cost much less compared to its customized counterpart and is best suited for businesses with eyes on short-term gains. The gains will still be minimal and is recommended only for urgent requirements in commerce.


  • Limited Functionality: There will be limited functionalities which may not suit all the requirements of a business. Moreover, updates and enhancements cannot be made as per requirements to a third-party application. This will limit the benefits that arise for a business that operates applications. The scope for company growth will also be very limited.
  • Faster Implementation: Third-party software applications do not need multiple stages of development. They are readily available and only need integration into the system of a business. Such applications have already been quality checked and tested in real-time scenarios. A third-party software maintenance company will do all that is needed for you.


  • Incompatibility: Third-party software or pre-built software may not be compatible with other programs, devices, or products that are used by a business. This could lead to an unprecedented loss of investment wherein a company’s entire business strategy needs to be reexamined. It may not be worth it to redefine all other processes for a single software application.



Want to know more?
Interested to know more about which type of software application would be more suitable for your specific requirements? SGS invites you to schedule a free consultation with one of our experts.