Standard vs. Custom Development

At the beginning of any software project, project managers inevitably ask themselves a fundamental question:

“Should we go with standard software or develop a custom solution?”

As is often the case in business, the answer is: “It depends.”

This article explores what exactly it depends on—and how to determine the best approach for your company.

Choosing between standard software and a custom-built solution is a strategic decision. It has far-reaching implications for acquisition, usage, and long-term maintenance. The key aspects to consider include:

• Cost

• Time investment

• Functionality

• Quality

• Customization and support

• Long-term viability

 

Cost

Custom development can be very expensive—especially toward the end of the project, when unexpected hurdles may arise due to initial planning oversights. These hidden traps are a common cause of budget overruns.

In contrast, standard solutions may require a significant initial investment, but thanks to structured pricing models and proven implementation methods, unexpected costs are relatively rare.

 

Time Investment

With in-house development, a lack of experience often leads to extended project timelines. A ready-made solution doesn’t need to reinvent the wheel. You benefit from the experience of the software vendor or implementation partner, saving considerable time in most cases.

 

Functionality

This is where custom development shines: it’s tailored 100% to your needs and processes. You get exactly the functionality you require—nothing more, nothing less.

Standard software, on the other hand, offers pre-configured processes that can usually be adapted to some extent. But that comes with a major advantage: these processes have already been tested and proven in other projects, often within your industry. In fact, it may even be beneficial to move away from overly complex internal processes and adopt a best-practice industry standard.

 

Quality

The real quality of a custom-developed system often only becomes apparent once it’s in operation. If adjustments or fixes are needed post-launch, this can tie up valuable internal resources.

With an established software solution, you can rely on your vendor. Certifications and experience from numerous projects provide a significant quality advantage. While complex business software will never be 100% bug-free, a large user base helps to continually identify and eliminate issues over time.

 

Customization and Support

As mentioned earlier, custom solutions can be tailored to an extremely high degree. And if the development team is in-house, communication tends to be faster and more direct.

With a third-party software vendor, updates and changes are delivered continuously—but may follow fixed intervals (e.g., through sprint planning, release cycles, or scheduled meetings). That said, these updates are often more stable, better documented, and benefit from user feedback across a broad customer base.

 

Long-Term Viability

Ongoing maintenance and development of a custom solution often depends on just a handful of people. If documentation is incomplete, this creates a risk of dependency. It’s not uncommon for critical knowledge to reside with only one or two individuals—meaning if they leave the company, the system becomes nearly unsupportable.

Vendors are typically reluctant to take over unfamiliar legacy systems.

By contrast, a standard solution is continuously maintained, updated, and aligned with modern technological developments. You also benefit from the feedback and innovation of other users within the vendor’s customer ecosystem.

 

So—What Should You Do?

Now that we’ve explored both sides, it’s time to make a decision. These guiding questions will help:

• How much time and budget are you willing to invest in the project?

• Do you have the necessary internal resources (developers, project managers, IT infrastructure, support, etc.)—or would you need to hire them?

• How unique are your business model and internal processes? Are you offering a niche product? And are you open to replacing legacy workflows with standardized processes?

Once you’ve answered these questions honestly and in detail, you’ll be in a strong position to make an informed decision.

That said, a general rule of thumb is: custom development is only worth it if you see clear advantages across multiple decision criteria—such as unique business requirements or existing access to strong internal development resources.

 

Want to Learn More?

You’ll find an in-depth article on this topic at IT-Zoom, where TOPIX board member Peter Prohaska also shares his perspective.

Read the article