Packaged vs Bespoke Software: Dispelling the myths

March 2014

Software choice overload

Packaged software solutions are not new, but the emergence of cloud technology over the last few years has seen a rapid increase in the number of ready-made services available to buy. With growth only expected to increase, one of the major challenges facing IT leaders is when to buy off-the-shelf and when to build bespoke.This SlideShare will unravel the 10 myths commonly used by packaged software vendors.

1. It is low cost

Package Packaged software has a low initial purchase price or low monthly subscription because the cost of development is spread over the mass market.

HoweverPackaged software could incur license fees which will need renewing annually or as the number of users exceeds the agreed limit.

Bespoke Bespoke development does often require a significant upfront investment since you are paying for the skills, time and resources of experts.

HoweverThe end solution belongs to your organisation and will not be subject to ongoing licensing resulting in an overall lower Total Cost of Ownership (TCO).

2. It is quick to install

Package Packaged software can be installed relatively quickly as it’s designed to appeal to as wide an audience as possible.

HoweverPackaged software does often require APIs to pull information from other parts of the business which can add complexity and delay rollout.

Bespoke Bespoke software development does take time and resource upfront to accurately scope the project according to objectives.

HoweverThe detailed scoping of bespoke software means that it is built to meet long term strategic objectives and should need fewer changes going forward.

3. It is feature-rich

Package Vendors load packaged software with numerous features because they need it to be as attractive as possible to a wide audience.

HoweverYou could be paying for features your organisation doesn’t actually need and in some cases exposing your business to risk by having some unauthorised functionality open to users.

Bespoke A bespoke software project does require you to be fully aware of, and communicate accurately, ALL the functionality you need.

HoweverBespoke software is designed and implemented according to your exact organisational requirements with no wasted functionality and no possibility of users finding features they don’t need.

4. It is low risk

Package Packaged software is perceived as low risk because vendors are large companies and the system has been proven and tested by the mass market.

HoweverPackaged software won’t have been proven to work for your organisation and will still require a degree of testing especially if it needs to integrate with existing systems.

Bespoke Bespoke development is often perceived as high risk primarily due to the investment involved and concerns around the supplier selection process.

HoweverWith thorough scoping of the project by your chosen supplier, you’re guaranteed to get an end solution that meets your exact needs and considers every dependency.

5. It is easy to train

Package Packaged software vendors will often provide a vast amount of training material and programmes to ease the rollout of their systems.

HoweverTraining users on new systems can take up valuable time and resource and you may also be faced with some resistance to change.

Bespoke A bespoke development project will need to have a training element built into the initial objectives for a supplier to include in the overall cost.

HoweverAs bespoke software is often based on existing systems and processes, it can be quicker and easier to train users with less impact on productivity.

6. Support is available

Package Packaged software vendors will often promise varying levels of support in order to promote quick system set up and ease of use.

HoweverSupport materials could be pushed by the vendor at the expense of first line support and it’s worth checking if the level of support your business needs, actually comes at a cost.

Bespoke Your bespoke software developer will likely only include ongoing support and maintenance as an additional fee.

HoweverAs the system is bespoke to your organisation, the support can also be customised and since the developer will have written the code, they’ll be guaranteed to ensure it’s longevity.

7. It updates automatically

Package Any system updates and future changes will often be automatically taken care of by the vendor.

HoweverIf you’ve customised or integrated the system at all, you’ll need to check whether the changes will transfer into the new version and if they’re supported.

Bespoke Updates to bespoke software may require specialist skills depending on the programming language used.

HoweverBespoke software projects encourage long-term thinking and consider what the system needs will be in the future, eliminating the need for regular updates.

8. It meets expectations

Package Since it is a mass market product, the packaged software solution will typically always meet expectations.

HoweverAlthough there’s comfort in using industry standard software, everyone else will have access to the same service, offering little competitive differentiation.

Bespoke Gaining stakeholder buy-in and selling the benefits of a bespoke development project internally can be notoriously difficult.

HoweverBespoke software could be more cost effective in the long run as it’s uniqueness will allow your organisation to enhance competitive advantage.

9. Skills are readily available

Package Programming skills for packaged products should be readily available to help maintain the system.

HoweverA major headache for business leaders is finding the right skills to manage a packaged solution often due to vendors being unwilling to give up code.

Bespoke The fear of handing over your programming to an unknown third party can often prevent projects gaining approval.

HoweverYour bespoke development company will likely specialise in and retain, the coding skills required to maintain your system for the foreseeable future.

10. It has a low TCO

Package As the development cost is spread over the mass market and updates are automatic, packaged software is often cited as having a lower TCO.

HoweverIn large organisations, few packages can be implemented immediately from the wrapper and any APIs, testing, training and customisation will soon increase the TCO.

Bespoke Most of the cost of a bespoke software development is upfront so your organisation needs to have access to the funds and a long-term view.

HoweverThe TCO of bespoke software is more cost effective as there are no licence fees, penalties for scaling and maintenance is backed by the supplier.

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