Anyone who needs a new system faces a classic choice: buy an existing software package or have software developed that fits exactly. Both options have pros and cons. These questions help you make a good choice.
Is your process standard or distinctive?
For processes that are the same in most organizations, such as accounting or email, off-the-shelf software is almost always the best choice. Custom software mainly makes sense for processes that make your organization unique.
How much do you need to customize?
If a package covers 80 percent of your needs without customization, that is often a good deal. If you need to modify the package extensively, updates and maintenance become difficult and costly.
What is the total cost over several years?
Don't just compare the purchase price. Include licenses, customization, maintenance, hosting, training and the cost of workarounds over a period of three to five years.
What about integrations?
Software rarely stands alone. Check whether a package has good integration options (APIs), or whether custom software connects more easily to your existing systems.
Who owns the solution?
With custom software it is important to agree up front on source code, documentation and transferability, so you never become dependent on a single supplier.
A combination often works best
In practice, the best solution is often hybrid: off-the-shelf software where possible, and custom software or integrations where the difference is made.