Balmori Software Newsletter

Still unsure whether to use an off-the-shelf package or to commission a tailor-made application for your business? The choice actually becomes more difficult when money is no object. Here's a listing of the pros and cons of both options, gleaned from our nearly three decades in systems development.

TABLE A. PACKAGED (I.E., OFF-THE-SHELF) SOFTWARE
	Advantages of packaged software	Disadvantages of packaged software
1) Development time	Zero development time (by definition, because package already exists); no waiting; can be installed immediately	Though ready to install and use, some may need further tailoring to user's exact specs. Solution: see if vendor has local market presence to support the product.
2) Debugging time	Typically zero debugging time needed; all important debugging has been done before product is released. Any bugs that escape the QA process are corrected via a software upgrade as soon as discovered.
3) Completeness of solution	Usually incorporates all basic accounting requirements, all classical accounting reports. Nonstandard user requirements usually stem from MIS reporting desires peculiar to a customer.	If a foreign vendor has no local market presence, offering the possibility of customization support, the application package may not readily yield the special MIS reports the user wants.
4) Cost	Relatively low cost to acquire because development cost is spread out among numerous customers. Cost overruns are not an issue.
5) User pool	Because an off-the-shelf package is meant to be widely distributed, there is usually a sizeable population of skilled users. A source of informal technical support. E.g., the case with Excel, Word.
Click here to see seven more criteria...	...and their pros...	...and cons.

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TABLE B. CUSTOMIZED (I.E., MADE-TO-ORDER) SOFTWARE.
	Advantages of customized software	Disadvantages of customized software
1) Development time	The substantial waiting time inherent in customized software development projects gives the customer ample time to prepare his systems, procedures, organization for the coming computerization. In theory.	Made-to-order software requires significant development time and cost in the quest to tailor the application to the customer. Distinct possibility of missed delivery deadlines.
2) Debugging time		May require extensive debugging period, especially in the unique-to-the-customer aspects.
3) Completeness of solution	Because the user-customer determines the software specifications, the customized software solution can be as complete as the vision of the customer organization writing the specifications.	Requires that the developer be expert in both accounting and in software programming. Customers should beware lest they find themselves in the position of having to teach accounting to the programmer(s).
4) Cost	Cost of made-to-order software is usually high, but customer-users usually already know this going in.	(a) Cost is usually significantly higher than that of comparable off-the-shelf packages. Distinct possibility of cost overruns. (b) If cost is low, customer is probably dealing with a freelancer; reliability and technical support may then be questionable.
5) User pool	Since a customized application is by definition unique, only your employees will be familiar with the software. User-customers may deem this an advantage.	When hands-on users resign, training replacements can be time-consuming and expensive.
Click here to see seven more criteria...	...and their pros...	...and cons.