Custom vs. purchased software

Custom development or purchase? What are the benefits? What are the risks?

Why is it worth choosing a ready-made product instead of developing your own custom software?

Let's take a closer look at the pitfalls of developing your own software and why it's a better option for companies to buy a ready-made solution.


For small and medium-sized businesses, the choice between off-the-shelf software and custom development is often a question that has a fundamental impact on their business. At first glance, developing your own software may sound tempting. After all, who wouldn’t want a system exactly the way they want it? However, this process brings many challenges and costs that often outweigh the benefits. For most businesses, choosing a ready-made solution is not only more efficient, but also more economically advantageous. Let’s look at the reasons why this is so.


1. Development costs

Custom software development is a financially demanding process. Companies that decide to go this route must be prepared to invest significant funds in the entire development process - from analysis and design, through development, testing and implementation. For smaller companies, all these costs are often too high, which is why purchasing a ready-made solution, such as our CRM Mango, is the only and clear choice. Mango comes with clearly defined pricing plans, so nothing surprises you. You can choose the solution that best suits your needs and budget.


2. Time commitment and communication

The process of developing custom software requires a lot of time and collaboration. Companies must receive a clear assignment, constantly communicate with developers, and regularly test the results to ensure that the final output is as expected. It often happens that this communication process is very time-consuming and lengthy, especially for companies that do not have in-house IT experts. With a ready-made solution, this time requirement is minimized - you just need to focus on the implementation and use of the system.


3. Constant updates and maintenance

Software development does not end with its first deployment. The system needs regular care in the form of updates. This ensures its security and stability. At the same time, it must be dynamic enough to respond to new market needs. This block of work also includes server control, monitoring of security threats and data backup. These tasks are not only financially demanding but also in terms of human resources. You simply need to ensure who will do all these tasks. However, a ready-made solution provides all these tasks for you - updates, monitoring and backup are part of the service.


4. Knowledge and professional skills

Developing your own software requires that the company has internal or external professional capacities that can not only develop the software, but also ensure its long-term functioning. In addition, the entire development team must have sufficient experience and skills to solve problems that may arise after the system is deployed. With a ready-made solution, you can be sure that the system is being taken care of by experts who will ensure its reliable operation.


5. Proven solution

The finished software is often used by thousands of users around the world. This means that it is regularly tested, improved and supported by an experienced team of developers. The risk that the software will not work as expected is therefore minimal.


References


6. Scalability

Many off-the-shelf software packages allow you to easily expand functionality or increase capacity as your business needs grow. For example, if you're moving from a small team to a large company, most solutions offer packages that allow for a smooth and seamless transition.


7. Risk of failure

If your own software does not meet expectations, your company may face significant losses, not only in terms of money but also in terms of time. If you buy a ready-made and proven solution, you will avoid these risks.


8. Integration with other tools

Off-the-shelf software often comes ready to integrate with other popular tools, such as accounting software, time and attendance systems, or email services. This feature allows you to quickly and efficiently integrate new software into existing processes.


Connected products - services.



When is it worth investing in your own software?

Developing your own solution can be justified especially for large companies that have specific requirements that ready-made products cannot cover. Such companies often have their own IT departments and enough resources to afford long-term development and maintenance. It is a strategic decision that requires a thorough analysis of needs, costs and available resources. For other companies, however, it is more sensible to choose a ready-made solution that will bring them immediate value and allow them to focus on growing their business.


Investing in a ready-made CRM system like Mango is a much more cost-effective solution for most small and medium-sized businesses. It offers a ready-to-use solution, has a team of experts behind it who take care of its maintenance and security, and minimizes the time and costs associated with its implementation. So, unless you are looking for an extremely specific solution that you cannot find on the market, then a ready-made product is the right way to save money, time, and energy.


Summary

Let's look at the comparison of buying a ready-made system versus developing your own for 20 active users applications :


Custom software development
Using Mango CRM
Hard work & performance
Need for an internal project manager 
Yes
No
Deployment to full working capacity
1 - 2 years
1 week
The risk that the supplier will no longer be interested in modifying the created system after some time  
Yes
No
Development of custom functions     
Yes
Yes, for a fee
Security level      
Nlow
High
Risk of software rejection by employees, thus loss of investment in development
Yes
No
Full control over development and direction 
Yes
No
Costs
One-time software development costs - programmers' prices
50,000 Euros
0 Euros
Monthly administration and licensing costs (server, licenses, backup, data storage)
150 Euros
300 Euros
Monthly costs for updates and further development - programmers' price
500 Euro
0 Euros
Aliquot monthly costs for an internal employee managing the development and support of the system (we calculate 20% of working time)
500 Euros
0 Euros
Annual costs for penetration testing and other security measures
5000 Euros
0 Euros
Total investment in 5 years
144,000 Euros
18,000 Euros

* The comparison above is an example, not a dogma. You should always consider the individual parameters of the company.

If we used the above comparison and recalculated the investment in our own system, for example for 5 years, then according to the example above, we would pay an estimated for the system.144,000 Euros.

In contrast, you would only pay for using our Mango18,000 Euros, which is neither 13% of the amount of custom software.

Of course, such a comparison will always be different for each company, because each company is different in both size and needs, but in general, custom software development is intended primarily for large and wealthy companies.

If you are still hesitating whether to choose a ready-made solution or custom development, contact us - we will be happy to advise you and help you choose the best option for your company.


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