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 look together at what pitfalls the development of your own software can be and why it is a better way for companies to buy a ready-made solution. 


For small and medium-sized companies, the choice between off-the-shelf software and custom development is often a question that has a major impact on their business. At first glance, developing your own software may sound tempting. After all, who wouldn't want a system exactly according to their wishes? However, this process comes with many challenges and costs that often outweigh the benefits. For most companies, 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 very demanding process. Companies that decide to go this route must be prepared to invest significant financial resources in the entire development process - from analysis and design, through development, testing to implementation. For smaller companies, all these costs are often times too high, and that is why buying 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 consumption and communication.

The process of custom software development requires a lot of time and cooperation. Businesses must be given a clear brief, constantly communicate with developers and regularly test the results to ensure that the final output is as expected. It often happens that this process of communication is very time-consuming and lengthy, especially for companies that do not have internal IT experts. With the finished 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 maintenance in the form of updates. This ensures its safety and stability. At the same time, it must be dynamic enough to respond to new market needs. This block of work also includes checking servers, monitoring security threats and backing up data. These tasks are not only financially demanding but also from the point of view of human resources. It is simply necessary to ensure who will do all these actions. However, the finished solution provides all these tasks for you - updates, monitoring and backup are part of the service. 


4. Knowledge and professional skills.

The development of 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 finished solution, you can be sure that the system is being looked after 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.


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6. Scalability.

Many ready-made software allow easy expansion of functionalities or increase of capacity according to the growing needs of your company. 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 its own software does not meet expectations, the company can face significant losses, both financial and time. If you buy a ready-made solution, a verified solution, you will avoid these risks. 


8. Integration with other tools.

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


Linked products - services.



When is it worth investing in your own software?

The development of your own solution can be justified especially for large companies that have specific requirements that the finished 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.  However, for other companies, it makes more sense 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, such as Mango, is a much more advantageous solution for most small and medium-sized companies. It offers a solution that is ready to use, has a team of experts behind it that takes care of its maintenance and security, and minimizes the time and costs associated with its implementation. So if you are not looking for an extremely specific solution that you cannot find on the market, then the finished 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:


Development of own software
Using Mango CRM
Work & performance
 The need for an internal project manager 
Yes
 No
  Deployment to full work performance
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      
 Nizka
High
 Risk of rejection of the software by employees and thus loss of investment in development
Yes
Nope
 Full control over development and direction 
 Yes
Nope
Costs
  One-time costs for software development - the price of programmers
50,000 euros
0 EUR
Monthly management and license costs (server, licenses, backup, data storage)
150 euros
300 euros
 Monthly costs of updates and further development - the price of programmers
 500 Eur
0 EUR
 Aliquoted monthly costs for an internal employee managing the development and support of the system (we count 20% of working time)
500 euros
0 EUR
 Annual costs for penetration tests and other security measures
  5000 Eur
0 EUR
Total investment for 5 years
144,000 EUR
18,000 euros

* The comparison above serves as an example, not a dogma. You should always think about the individual parameters of the company.

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

Unlike using our Manga, you would only pay 18,000 euros, which is neither 13% of the amount of own software.

Of course, such a comparison will always be different for each company, because each company is different in size and needs, but in general it is true that the development of own software is intended primarily for large and rich 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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