Deciding between off-the-shelf software vs custom software isn’t always easy. Whether you’re buying an off the shelf solution or developing a bespoke one, each has advantages and disadvantages which could influence user experience, cost, adoption rates, etc.
That’s why we’re here to offer some context! In this blog, we’ll be covering the following topics:
- The meaning of off-the-shelf software, with examples
- Differences between custom software and commercial off-the-shelf software
- Advantages and disadvantages of off-the-shelf software and custom software
Keep scrolling to learn more, and choose an option that fits your user needs, business goals and budget (or at least get a few steps closer to choosing one).
What is off-the-shelf software?
Off-the-shelf software is software designed for people to use with minimal customization or no customization at all. It’s most often used to optimize business processes or transactions. The term comes from the concept of taking a literal item off of a shelf and using it right away!
What is the acronym for off-the-shelf software?
The acronym for off-the-shelf software is “COTS,” which actually stands for “commercial off-the-shelf solution.” That solution doesn’t necessarily have to be software to fall under this acronym — it could also be hardware-based. But when people use this term these days, they’re usually talking about off-the-shelf software.
What is the difference between proprietary software and off-the-shelf software?
Proprietary software is the property of a specific person or organization, so using it, modifying it or sharing it is restricted by property laws. Commercial off-the-shelf software is built to be used without heavy modifications, but it can either be proprietary or open-source.
What is the difference between custom and off-the-shelf software?
A custom software solution is a new product that’s designed and built from scratch to meet your specific needs. In essence, it’s the opposite of a ready-made, off-the-shelf software.
Generally speaking, takes longer to design and build a product from scratch than it takes to install a commercial off-the-shelf software. If you don’t have the required capabilities in-house, you’ll also be outsourcing to a vendor for help, which translates to a bigger upfront investment. A UX and development team can curate a specific solution that perfectly fits the needs of your business, especially if they’re well-versed in design to meet business goals.
(Side note: If you’re curious about UX outsourcing, we’re happy to chat.)
Off-the-Shelf App Examples
Here are some examples of popular applications or platforms offering solutions built for “off-the-shelf” use:
- Slack (messaging)
- Basecamp (project management)
- Wix (website building)
- Quickbooks (accounting)
- Shopify (e-commerce sales)
You’ve probably heard of most if not all of these apps before. Clearly, off-the-shelf options are popular for certain functions, and for good reason!
Custom App Example
By nature, custom apps are very specific to individual companies, so it’s difficult to give general examples. From the outside looking in, it’s hard to distinguish whether a product or service was built with off-the-shelf software or custom. For an exercise, though, imagine if one of the off-the-shelf apps listed above was modified to do the exact processes that you need for your business, without major redundancies or gaps.
In case it’s helpful: we share some details of a custom app that Outwitly worked on for a regional government department in this case study. (You’ll notice that we also include some details of how we used research to inform the customization — this is a best practice in custom app development.)
Advantages and Disadvantages of Off-the-Shelf Software
There are a number of pros and cons to choosing off-the-shelf software. We’ve broken them down for easy reference below!
Off-the-Shelf Advantages
Here are some key advantages of off-the-shelf software:
- Lower upfront investment
- Approachable for smaller businesses
- Faster to implement
- Practical for straightforward internal operations
The initial investment for off-the-shelf software is cheaper than bespoke software, and the implementation of an off-the-shelf solution is also quicker. It’s more approachable for companies with low user counts, low UX maturity and/or low team bandwidth for overseeing product development. Commercial off-the-shelf products are perfect for basic internal workflows or processes with lower stakes, where restricted modification is more acceptable.
Off-the-Shelf Disadvantages
There are also a number of disadvantages to off-the-shelf software:
- Not always scalable
- No control over updates/bugs/fixes
- Not ideal for main business processes
- Risk of higher long-term costs
As your business grows and your processes evolve, your ready-made solution might not be able to follow you, whether because of increased user count, updated workflow, new team needs, etc. You also won’t have control over updates, or whether your solution is keeping up with the latest UI/UX trends to help you stay competitive.
If and when bugs are discovered, you’ll have to rely on the software provider to prioritize your issues and help you to avoid losing efficiency, compromising customer experience and reducing revenue. Your organization’s urgent fix ticket could be swimming in a sea of thousands… not the best solution when you have an urgent problem.
If you use off-the-shelf software to solve challenges with your main business processes that are crucial to your profits, you’ll be risking long-term costs. After all, your boxed solution wasn’t built from research and testing with your specific users. It’ll also sting a little (or more than a little!)if you purchase an off-the-shelf solution only to realize it’s not working, switch gears last minute and end up paying for custom anyway.
When would an off-the-shelf solution be preferable?
An off-the-shelf solution might be preferable if:
- You’re trying to solve a simple workflow issue
- The related processes aren’t likely to change
- You don’t have access to a development team who can do updates
- You aren’t willing to invest in external development help on a more long-term basis
What are things to consider when choosing off-the-shelf software?
When you’re selecting off-the-shelf software vs. bespoke software, you want to consider the people who will use it the most. Initial and long-term costs are absolutely a big factor, but if you want to gain ROI on your investment, the value will come in how easily your team can adopt the software and how much efficiency it brings to your processes. For more on selecting and implementing successful commercial off-the-shelf solutions, see our post on COTS and COTS implementation.
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Advantages and Disadvantages of Custom Software
Custom software definitely comes with advantages and disadvantages. Let’s go through them below.
Bespoke Software Advantages
The main advantages of “bespoke” or custom software:
- Can be designed to scale with your business
- You have a direct impact on the product
- You can evolve your workflows
- Potentially higher long-term ROI
With bespoke software, you’ll have much more control over how that software functions (including its accessibility) and whether or not those functions change over time to fit changing needs. Plus, a solution that’s intuitive for your users and that’s truly customized will require minimal training, increase efficiency and help you manage higher volumes of business.
Imagine that you’re an insurance company, and managing insurance claims is a big part of your services. Say you implemented a custom software solution that allowed your team to do their jobs better and faster, and instead of processing 100 claims a day, you’re now able to process 130 claims a day. Over time, you would see a lot more money saved or generated because of your investment in a bespoke option.
Bespoke Software Disadvantages
Here are some custom software disadvantages that can crop up:
- Pricier initial investment
- Trickier for small businesses
- More time invested at the start
- Pressure to innovate
Custom software solutions do cost money. You’ll need to enlist the help of experts in design research, UI and UX design or service design and development to create your new product and ensure its success. Another issue can be time investment: a well-researched, problem-solving solution tailored to your specific needs can be designed and developed within 10 months. There can also be pressure from stakeholders to innovate, to justify this investment. (“Time is money.”)
Is a bespoke solution better than off-the-shelf?
Even though off-the-shelf solutions continue to be popular, we think every organization should consider using or transitioning to the custom route. If you’re planning to scale, the price of a custom tool can be pretty competitive, once you weigh all of the benefits. If you have a good team, your code will be clean, and you’ll have minimal bugs, so your costs should decline post-launch. Plus, good developers can teach you to troubleshoot certain issues on your own.
Yes, creating a custom software solution can take time. But, if you’ve got the right information and the right design practitioners and developers, the possibilities for your business are endless.
At Outwitly, our practitioners have done a lot of consultation with clients in their selection between these options. In many cases, we’ve found that the desire to go off-the-shelf results from decision-makers feeling rushed, not having support to de-risk product launches or not receiving enough information. We hope this post has given you some more context to help you make the best possible decision! Follow more tips from Outwitly by signing up for the Weekly Wit newsletter.
