In this article, we’re going to talk about a specific type of business: custom software development companies. And while the term “custom” implies that these businesses create only bespoke products, they’re closer to general contractors who work on almost any type of software.
What is a custom software development company?
A custom software development company is differentiated from traditional programming companies in two key ways. First, the business does not own any intellectual property (IP). This means that the company is not actually the creator of the software which it creates. Second, a custom software development company does not generally have a large in-house IT staff. Often, this means that companies must outsource all of their IT operations, including servers and management software.
Custom software development companies are often referred to as “customization specialists” or “application developers.” The business’s employees often specialize in programming languages and tools for building business applications.
When a business hires a custom software development company to create their software, the company is looking for expertise in a specific type of technology. While the business’s needs are closely aligned with their own knowledge base, sometimes there are obstacles which prevent them from creating the software that they need. For instance, while the business may be experts in how to build a retail application using Microsoft .NET Framework and C#, they may lack the bandwidth to create an iOS application.
In this case, a custom software development company can hire an experienced iOS developer to build the application for them. This allows the business to focus on their core competencies while providing them with a complete end-to-end solution.
Although software development companies also create applications for other platforms, such as Android and Windows Phone, they specialize in web apps which integrate to back-end systems.
Custom Software Development vs Established Software Companies
Companies that create custom software differ from established computer programming shops. Custom software has several advantages over traditional commercial software.
For one, custom software development companies are often small businesses which don’t have large IT staffs. As such, the price of a custom application is often lower than larger names in the industry. For instance, a company with five employees may pay around $100,000 for a custom application while one with thousands of employees may have to pay upwards of $5 million or more.
At the same time, a business that already has an existing application may consider switching over to a custom software development company. This is because using custom software can save money in the long run. For instance, if a business has used Oracle Financials for years, it can be costly to switch over to another system. However, with custom software development, the company can create an application which integrates with Oracle Financials.
Whether a business creates bespoke applications or turns to an established software company instead depends on their needs. However, custom software development companies may be a good fit if a business is looking to cut costs or update their brand. In either case, businesses should keep in mind that custom software is not going to save them money.
Custom software development companies are often more expensive than other options because they do not have a large in-house staff. This can lead developers to produce complete solutions instead of building one part of a system or another. The resulting product is often more robust and reliable than similar products which were created by smaller teams.
On the other hand, custom software development companies only built parts of complex systems. In these cases, the business may have to put together their own team of experts. While this can be expensive, it also gives businesses more control over their IT infrastructure. At the same time, businesses should keep in mind that custom software is not going to save them money.
The Benefits Of Custom Software Development Companies
Custom software is not necessarily better than existing commercial software. Many businesses either create bespoke applications or turn to established software companies. However, custom software development companies have several advantages over both of these options.
For one, a custom software development company is more responsive to business needs than a larger corporation. Not only are the employees of a small business more attentive to their clients, they also have an intimate knowledge of the products they create. In this way, custom developers can work closely with their customers from the beginning to end of a project and even make changes that the customer requests along the way.
At the same time, custom software development companies have a lower cost of entry than larger software companies. This means that it’s easier for a business to become established. Because many businesses don’t have all of the money in the world, having an inexpensive product allows for more competition on both local and global markets.
With all of that said, custom software is not going to solve all of a business’s problems. For one thing, it may lack the polish which is present in many established commercial products.