One day, the spreadsheet is no longer enough: too many rows, too many versions, too much retyping. At that point, there are two paths. The first: subscribe to existing software, built by a vendor for thousands of businesses. The second: have a tool developed around the way you work.
Neither option is better in absolute terms. Here are the seven criteria we review before recommending one or the other, and how to combine them.
The two options in brief
Off-the-shelf software (often online, known as “SaaS”) is developed and updated by a vendor. You pay a subscription, usually per user per month, or buy a licence. You get started quickly, but you are the one who adapts to the tool.
Custom software is designed around your processes. You pay for it to be designed and built, then, if needed, for its hosting and maintenance. It does what you need, no more, no less, and you can become its owner.
Criterion 1: is the way you work standard?
If your process looks like that of most businesses in your sector (invoicing, accounting, standard appointment booking), off-the-shelf software often covers the essentials. Vendors have already dealt with cases like yours.
There is one sure sign: if your teams keep a spreadsheet alongside the software, enter the same information in two places or work around the tool to get their job done, the standard product does not fit the way you really work.
Criterion 2: the cost over several years, not the first month
Compare the two options over three to five years:
- Off-the-shelf software: subscription price × number of users × number of months, plus paid add-ons, connectors and configuration time.
- Custom software: the cost of designing and building it, plus hosting and, if you choose it, maintenance.
The calculation often favours a subscription for a small team with a common need, and custom software when the number of users grows or the need is specific. Do the sums with your own figures. For reference, at Ibsia a first custom business tool starts at €2,490 excl. VAT and a custom CRM at €3,900 excl. VAT.
Criterion 3: time to get up and running
Off-the-shelf software can be up and running in a few days: creating accounts, configuration, importing data. Custom software needs a design, development and testing phase; how long it takes depends on the scope and is stated in the quote.
If you need a solution next week, the choice is easy. If you are building a tool for the years ahead, a few weeks of design work are rarely the real problem.
Criterion 4: connections with your other tools
Your tools need to exchange data: website, email, accounting, CRM, ERP. Off-the-shelf software offers ready-made connections to the most widely used tools; check that the ones you need really exist, and what they cost.
A custom tool can connect to your existing software as long as it offers an API (an entry point for automated data exchange). This is often what tips the balance when you use many tools, or unusual ones.
Criterion 5: ownership and dependence
With a subscription, you are renting access: your data sits with the vendor, and the service stops if you stop paying. Before signing, check how you can get your data back (export, API) and what the contract says if you leave.
With custom software, the code can belong to you. At Ibsia, the code and content created for you belong to you once paid in full. The trade-off: you need someone who can maintain it, so ask for documentation and access to the code.
Criterion 6: how it changes over time
Off-the-shelf software follows the vendor’s roadmap: new features arrive for everyone, others change or disappear, and prices may be revised. A custom tool changes when you decide, with each change quoted separately.
Criterion 7: security and data
Ask three questions, whichever option you choose:
- Where is the data hosted? For personal data, hosting in the European Union makes it simpler to comply with the GDPR.
- Who has access to it? Individual accounts, role-based permissions, a history of actions.
- Who applies the security updates? The vendor, for off-the-shelf software; your provider, as part of maintenance, for a custom tool.
In both cases, if the provider processes personal data on your behalf, the GDPR requires a contract that governs this processing (Article 28).
Custom vs off-the-shelf software: comparison table
| Criterion | Off-the-shelf software | Custom software |
|---|---|---|
| Fit with your processes | You adapt to the tool | The tool adapts to you |
| Cost | Recurring subscription, often per user | Design and build paid once, then hosting and optional maintenance |
| Getting started | Quick | The time it takes to design and develop |
| Connections with your tools | The ones the vendor provides | The ones you need, via API |
| Ownership | You rent access | The code can belong to you |
| Changes over time | Following the vendor’s roadmap | When you decide |
The third way: combining both
It does not have to be all or nothing. Many businesses keep off-the-shelf software for what is standard (accounting, email) and add custom software where they do things differently: a dashboard that brings together figures from several tools, a customer portal, a ticketing tool built around their after-sales service, or task automation that moves data between applications.
How to decide, in practice
- List your processes and note, for each one, whether it is common in your sector or specific to your business.
- Count your users today and in three years’ time.
- Work out the cost of each option over three to five years.
- List the tools the solution will need to exchange data with.
- Check how you would get your data back if you change your mind.
- Ask for a detailed quote for the custom option, so you can compare on real figures.
Still unsure? Tell us what you need: we will help you see whether off-the-shelf software is enough, or whether custom business software makes sense.