In the quest for efficient and cost-effective software solutions, businesses often face a tough choice between off-the-shelf products and bespoke software. While off-the-shelf solutions may present lower initial costs, it's crucial to consider the long-term implications on scalability and adaptability.

A recent analysis by Essential Designs highlights that off-the-shelf software, despite its lower upfront investment, can incur ongoing expenses such as licensing fees, integration costs, and scalability limitations, potentially increasing total costs by up to 40% over time. In contrast, bespoke software, although requiring a higher initial outlay, is tailored to specific business needs, offering greater flexibility and potentially leading to a 15% boost in productivity, with a return on investment typically realised within two to three years.

To explore this further, we chatted with Propel Tech's Operations Director, Chris Kirkham, who also happens to be an expert in bespoke software development, to discuss the critical considerations businesses should weigh when deciding between adapting off-the-shelf software and creating bespoke solutions from scratch.

Q: What are the key factors businesses should consider when deciding between customising off-the-shelf software and investing in a bespoke solution?

A: The pace at which your industry evolves is crucial. An off-the-shelf software supplier may struggle to keep up with a fast-changing landscape. Additionally, consider how willing you are to modify your business processes to align with the software. Finding an off-the-shelf package that fits even 60% of your requirements would be quite an achievement.

Q: How do the long-term costs of modifying existing software compare to building a tailored solution from scratch?

A: Once the initial tailored system is built, you'll incur costs for employing your own staff or a consultancy to keep the modifications up to date, such as patches and security fixes. This expense is on top of your off-the-shelf costs and licence fees. It's important to note that while bespoke software development may require a larger upfront investment, it often proves more cost-effective in the long run. According to Computerisation Limited, small businesses typically spend between £15,000 and £100,000 on bespoke software, while large enterprises may invest £50,000 to over £500,000.

Q: What are the biggest technical and operational limitations businesses face when customising off-the-shelf platforms?

A: Most off-the-shelf systems are closed ecosystems; you cannot see the code, so you're essentially dealing with a black box. Updating the data directly in the application (e.g., straight into the database) may invalidate your warranty with the off-the-shelf provider, as you haven't gone through their validation programs. While most off-the-shelf systems have APIs to allow some access to external systems, these may not cover all your needs.

Q: How does a bespoke approach impact scalability, future-proofing, and the ability to integrate emerging technologies?

A: Bespoke software is built with scalability in mind, allowing it to grow seamlessly with your company. This flexibility is crucial for successful digital transformation and AI adoption, as it enables quick adaptation to new technologies and market demands.

Q: What common misconceptions do businesses have about the time and cost involved in developing bespoke software?

A: Businesses often overlook the costs associated with adjusting to a new system, including rethinking business processes, onboarding users, and training support staff. There's also resistance from users, especially those who are experts in the current system, as they may feel their value is diminished. A new system typically leads to a temporary reduction in efficiency as people get accustomed to it, which can be costly for the business. To address these challenges, it's crucial to involve front-line users in the development process. Managers may think they know how the system is used, but front-line users work with it daily and understand all the shortcuts and workarounds. 

I’d suggest conducting workshops with users to discuss the issues you're trying to solve with the new system, and asking what they like and don't like about the current system. Fully engage with them, provide regular feedback, and acknowledge their involvement. This approach leads to better buy-in, and teething problems, which will always happen, will be less of a concern as users know they've been involved.

Q: How can off-the-shelf software lead to inefficiencies or unexpected challenges?

A: Support from the software supplier can be limited. You might hear, "That's not how it should be used, so we can't support you fully," or "You built an add-on outside the system; not our problem." Moreover, adapting cannot always happen independently of the off-the-shelf system. If a requested update doesn't align with the supplier's vision or could disrupt other customers, the answer is likely to be "no." Additionally, support is required for both the off-the-shelf software and the bespoke parts, leading to additional costs and complexity. Off-the-shelf changes could also affect bespoke development. SaaS products can change at any time, and an update can suddenly stop all your bespoke integrations from working, creating high-priority issues that halt business operations.

Q: What are the pros and cons?

A: The decision between adapting off-the-shelf software and investing in a bespoke solution hinges on various factors, including industry dynamics, business processes, long-term costs, technical limitations, scalability, and user involvement. Off-the-shelf solutions can offer immediate benefits, while a bespoke approach can provide tailored functionality, scalability, and a competitive edge in the long run. 

Connect with Chris to share your insights and feedback on bespoke vs. off-the-shelf.