Breaking Down The Misconceptions About the Cost of Custom Software Development

When it comes to custom software development, there are a lot of misconceptions about the cost. Many people assume that custom software is more expensive than pre-packaged software products, but this may not be the case. In fact, custom software can actually save you money in the long run if you break down the costs associated with pre-packaged software applications. 

In this article, we'll break down these common misunderstandings about the cost of custom software development and how your business can benefit from it.

What is the Difference Between Custom Software Development And Pre-Packaged Software?

Pre-packaged software is a ready-made solution that you can buy off the shelf and is made to accommodate the needs of a wide range of businesses. While this may seem like a great idea at first because of the initial price, it's important to remember that it's not customized  to follow your specific business processes. That means you will need to adapt to the way the software is laid out for you and change your process to meet the application's. 

Custom software development on the other hand, is tailor-made to fit your business' specific needs. It's built to meet your business processes, help automate tasks, create efficiencies and can help make easy to use on the daily basis. Why? Because it's built and designed for your business. 

While custom software development may cost more upfront, it can help you save money in the long run if you are looking at it from a long term growth perspective. With custom software, it's meant to grow with your business. With pre-packaged software products, they are not usually as flexible as custom, which means they may not be able to keep up with your changing business needs. In addition, pre-packaged software products often come with a lot of hidden costs, such as license fees and maintenance costs which we'll cover later.

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What are the Benefits of Custom Software Development Compared to Pre-Packaged Software

If you're still trying to decide whether selecting an out-of-the-box solution is right for you vs. investing custom software development, consider the advantages having a software application built for your business: 

• Tailored to your specific business needs 

 More flexible and adaptable to change 

 Easy integrations 

 Long-term cost savings by having a product built for you around your business processes 

 Potentially lower total cost of ownership (no license fees) 

 Increased security and control 

Custom software development can provide your business with a number of advantages and benefits that are simply not possible with pre-packaged software. When you understand the true value of custom software development aside from just the cost, it's easy to see why it is often the best choice for businesses.

The Hidden Costs of Pre-Packaged Software Can Add Up Quickly

As we've mentioned before, custom software development costs may be higher up-front, but there are a number of hidden costs associated with pre-packaged software that can add up quickly. 

These hidden costs can include: 

• License fees for each user or workstation 

• Maintenance and support fees 

• Upgrade fees 

• Lack of ability to integrate with other systems 

All of these factors can quickly add up and make pre-packaged software more expensive than custom software development cost in the long run.

How to Accurately Calculate the Total Cost of Ownership for Custom Software

When calculating your custom software development costs, you need to consider the entire life-cycle of the project. This is important to understand because this is the foundation on how your software is built on and  how it will be supported in the future. 

The life-cycle of custom software development can be broken down into these key phases:

• Discovery and Vision: this is when your custom software development company will document your vision by interviewing your end users, going over the primary features and functions you want it to have, and concepts for how the users will interact with your system. 

 Development: During this cycle, once the minimum viable product has been defined, your custom software development consultants will create a roadmap and start the development process. This phase requires a significant amount of agile testing to make sure the final product meets expectations.

 Implementation: Your software company will then execute the product and ensure it meets all your needs. 

 Training: Your software company will then make sure you and your team members are trained and know how to successfully operate the application. Each stage of the custom software development process needs to be considered when calculating the total cost.

Each stage of the custom software development process needs to be considered when calculating the total cost. With custom software solutions, you are getting more than a product, you are receiving quality service as well. 

Importance of Considering All Factors When Making a Decision About Which Type of Software to Choose

As you can see, custom software development may cost more upfront, but the potential long term savings can outweigh the initial cost. It's important to consider all factors when making a decision about which type of software to choose and what works best for your business. 

Make sure to accurately calculate the cost of your custom software development project and compare it to the cost of pre-packaged software products (along with the licensee fees per user and more). This will help you make the best decision for your business.

Your Custom Software Development Costs Will Save You in the Long Run

If you're considering investing in custom software development, it's important to partner with a reputable and experienced custom software development company. At Velocity Works, we have years of experience developing custom software solutions for businesses of all sizes. 

Whether you are looking to build a mobile application, a web application, or both, our team at Velocity Works can help! We have a team of dedicated software engineers and developers located in both our US based team and offshore team in India. Together, our teams can work to build you a high performing software application to meet your needs fast and efficiently, while most importantly, delivering you a highly secure and quality product. 

We would be happy to discuss your specific needs and provide you with a free consultation about your project.  Contact us today to get started!