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Difference Between Generic Software Development and Custom Software Development

The software development process evolves continuously at a drastic rate to ensure that the requirements of the customer and developer are met. There is a frequent change in the demand of the market. There is an increase in generic and custom software in the market.

Software developing companies offer a wide range of services to their clients. The client can choose the service based on their needs and functions to be performed by the software. It depends on the client's requirement, which determines the type of software that the client should purchase. Some organizations may require custom application development, while others can work with generic software. They may require both types of software to perform different organizational functions.

In this tutorial, we will discuss the differences between both generic and custom software development. In order to develop a better understanding of both development processes, we will also discuss the pros and cons of both these development methods.

What is software?

The software can be defined as a set of programs and procedures that instruct the system about what functions are to be performed by it. The primary function of most software is to take input form the user and convert those input into output by performing computations on input values. The software is a set of instructions arranged sequentially, ensuring that a certain output from the system can be achieved in the simplest form.

A simple example of software is the calculator in your device, which is used frequently by most users. This software allows the users to perform mathematical computations on the device. There are several other software such as google chrome, whatsapp, Instagram, youtube, etc. This tutorial will focus on the types of software and not on building the software. There are two types of software used in today's world. These types are as follows:

  • Generic Software Development
  • Custom Software Development

What is Generic Software?

Generic software is developed to be used for performing general functions. This software is developed for the masses. This software does not perform a particular function or is not intended to use by a single entity. This software is also regarded as content-free software. Every person using an electronic device must have used generic software in their schools, colleges, or work.

Some of this software includes Google Chrome, MS Office Suite, Outlook, etc. Generic software is not restricted to performing a particular task. They are designed such that they can perform several different tasks. An example of generic software is a spreadsheet application. It can be used to store data and perform operations on the data, such as sorting, filtering, and performing mathematical computations. It performs different operations without needing any change in the code of the software. Engineers use spreadsheets to perform computations, while accountants use this software as a financial tool. It is also used to keep records.

Some generic software features are functionality, reliability, efficiency, and portability. All generic software must possess the above characteristics. When a company develops generic software, there is no prior client; this means that software companies do not need to perform requirement analysis. The company designs software that is demanded in the market. The software should meet the needs of numerous businesses for a long period. The software is developed by the company itself and the cost and expense of the company only. Once the product is developed, it can be sold to other clients.

What is Custom Software?

Custom software is specialized software developed for use by a particular organization or client. It is designed to perform a specific task. An organization or a single client may hire a company to develop software that can perform the functions required by the user, like custom android applications. This software is not used for general use and only fulfills the organization's requirements. Every decision during software development, which includes the list of requirements, functionality, and expense to develop the software, is covered by the organization or the client that intends to use the application. Usually, the development process to build custom software is more complex and requires a lot more time and effort, while it is simpler to develop generic software. It does not require much time to develop the application. It is comparatively more expensive to develop custom applications than generic software.

Some examples of custom software organizations use are automatic invoicing, bug-tracking applications, and software for managing customers. Every organization has different requirements while creating the invoice or finding bugs.

In order to choose between custom software or generic software development, the client should have the complete deciding data. The client should also know the advantages and disadvantages of both types of software. They should consider all these factors before determining the type of software to be developed.

Custom Software Development v/s Generic Software Development

Difference Between Generic Software Development and Custom Software Development

Custom software offers custom functionalities that ensure that all client business requirements are met. They are more useful than generic software as they can be developed as per the client's requirements to cover more use cases of the business.

Let us discuss the features and characteristics of custom and generic software.

  • Exclusiveness

Custom applications are developed at the request of the client. They are exclusively designed to meet the requirements of a particular client, whereas generic software that is developed can address the requirements of the masses. They are produced for the open market. They are not exclusively developed, and the functionality provided in the generic software is for general use.

  • Requirements and Updates

The market's needs determine the updates performed on the generic software. When developing generic software, the developer needs to ensure the requirements of the general mass are met. They are responsible for keeping records of the updates that will be performed to the software and performing development accordingly.

In the case of custom software, the modifications are performed when the client requires them. Suppose a client wants to add some additional functionality to their software. The client can also request certain modifications to the software's existing functionality and its working. There is no general user, meaning the client determines everything associated with this software. The client decides when and what modification will be performed on the software. The client pays the software developer for software development and modification.

  • Control

The primary difference between custom software and generic software is the control over the development process of the software.

In the case of generic software, the entire control of the software development rests upon the developer. The software's end users have no control over its development. It is upto the designer to determine the requirements of the general masses. The development agency is the only other influence over the development of generic software. The user may need to purchase the license of the generic software before using the software. It completely depends on the developer or the agency to modify the application. The agency can also include additional functions that may seem useful to them.

The client or the customer has sole control over custom software development. The development process is determined by the client's requirements, how the client will implement the application, and for what purpose.

What functionality will be provided by the software?

When the software requires an update?

What new functionality will be added to the upgraded version of the software?

What features will be provided to the software?

  • Development cost

Generic software is comparatively way less expensive than custom software as the developing organization does not have to accommodate all the requirements of a particular client or customer. Generic software is developed so the masses can use it for various purposes. They have several use cases and can be used in different businesses.

The developing agency funds the whole development process for generic software. Therefore the cost of developing generic software is less than custom software. However, some additional expenses may occur after the development of the software. These expenses occur while setting up or implementing the software depending upon the system requirement.

Let us consider this analogy to understand the above concept better. When you purchase a ready-made suit from a store, it is less expensive than a tailored suit. Ever wonder why a tailored suit costs significantly more than a ready-made suit? The reason is simple, a tailored made suit is made according to your fit, style, and shape. The ready-made suit is similar to generic software designed to fulfill the needs of the masses, while a tailored suit is exclusively designed according to your preferences. Others cannot use it.

Custom software is much more expensive since the software is exclusive, and the client ends up with a unique application to meet all the client's requirements. But considering the advantages of using custom software, the high development cost is not a concern.

  • Features Provided by the Software

Generic software or off-shelf software is developed so that it can be used for different purposes. The versatility of the software is a key feature when developing generic software. Generic software has more use cases than custom software. Therefore, they require more functionality. Generic software constitutes several features in its simpler forms. It does not have specialized features. Moreover, most of the features provided by generic software are hardly used by most users.

Custom software only provides the features and functionality the client or customer requires. Thus, it is developed for a specific organization or people. It is relatively more complex than generic software. It is developed according to the requirement of a specific group of people that have complete knowledge of the application and can work efficiently with it. These people use most of the functionality provided in custom software.

  • The functionality of the software

Generic software is developed to solve certain problems faced by users in different businesses. An example of MS Excel is a spreadsheet program that people from different domains use. Some users may use MS Excel to keep data records, engineers use the spreadsheet program for computing data values, whereas accountants use spreadsheets for financial purposes. The use of the software varies with the user.

Custom software is the complete opposite of generic software. Custom software is developed to solve the problems faced by a particular client. They may resolve one or more problems that the client identifies.

  • Architecture

The primary feature of a generic application is that it should be easily scalable. This software is designed to use by the masses in various domains. Thus, they are designed to be upgraded per the mass requirement over time. Custom software is different from generic software; it does not focus on the scalability of the application. They are developed to fulfill the needs of the client. A detailed requirement analysis is performed to understand the need of the client. The analysis performed by the team determines the entire development. A proper balance is maintained between the scalability and the client's requirement. The developers ensure that all client needs are fulfilled while the software is flexible to accommodate future modifications.

  • Quality

When designing generic software, the developers are not concerned with the perfection of the application. Quality is not a major parameter during the development process. It is because the developing company funds the development process, and the primary focus is the release of the application. If there is a delay in the release of the application, then the developing agency may bear huge losses in the market.

Custom software is different from generic software. It is developed to ensure that all the requirements are met. The quality of the product is a major concern, as the solution provided to the client should be optimal. The quality of the application can have a huge impact on the service rendered by the application. It can create better revenue and impact the progress of the institution it is developed for. The software is developed according to the revenue generated by it. The dependency of the client is a factor that determines the quality of the application.

Thus, now you know the characteristics of generic software and custom software. It will make it easier to choose which type of software should be developed for what business. A better understanding of the pros and cons of generic and custom software is provided below:

Pros and Cons of Generic Software and Custom Software

Pros of Custom Software

  1. Custom software is unique because it is exclusively developed for the client. The software is developed to fulfill all the client's requirements, and the client determines the specifications of the software. It is mostly used for businesses requiring unique functionality and performing specific organizational functions.
  2. In custom software, the client has control over the development process of the software. The client determines the functioning of the application. It is upto the client to decide when the software should be updated and what new features should be introduced.
  3. If the clients what to change the existing functioning or add new functionality to the software, then the client can ask the developing company for an update. The software development company has no control over the changes to be performed on the application.

Cons of Custom Software

  1. Custom software development requires a lot of time and expertise. Since the client controls the whole development process, determining the client's needs requires a lot of time. The client has to wait until the software development is complete, which takes more time.
  2. Another disadvantage of custom software is the high cost of development. Most small and medium-sized businesses cannot afford custom software. Only some big companies can afford to develop a custom application; however, if the custom software is efficient, it may generate more revenue than the money spent on its development.
  3. Another issue with custom software is related to the development of the custom software. Additional efforts are required to manage the development process. Therefore, most organizations outsource the development of software.

Pros of generic software

  1. Generic software is much cheaper than custom software that performs almost the same function. Most new companies and several small and medium size organization that does not have adequate funds to develop custom software can use generic software instead. Since generic software can be used for various purposes and have a large user base, the cost of the application can be divided among the users. Therefore, reducing the burden of cost even further.
  2. Generic software is comparatively simpler and more user-friendly. The developing company also release manuals and documentary associated with the software. The user can refer to these documents to understand the functioning of the software. Various tutorials are available for the applications that show the functioning of the software.
  3. Another advantage of generic software is that it is already developed for immediate use by the user. In custom software, the user has to explain their needs to the developer and wait for the developer to deliver the software, which can take months, depending on the complexity of the application.
  4. The generic software is already available on the internet; the user can download the free trial versions to ensure that the software meets the user's requirements. Some functions might not be available in the trial version of the application. The user can upgrade by purchasing the application license and using all the software functions.
  5. The developing agency ensures that regular updates are performed on the application. The company ensures that the bugs are fixed and better software versions are introduced frequently. The software is modified, and new features are introduced in the software updates.

Cons of generic software

  1. There can be difficulty in integrating the application with the business. There can be instances when the system specification is incompatible with the generic software. The company may require to update its systems in such a scenario. This may cost both time and money for the organization.
  2. The primary reason an organization uses generic software is to save money. Initially, the expense occurs when using generic software is less than custom software. But as time passes, the generic software can become more expensive. The user may have to use several generic software to perform different functions. Moreover, the user will have to upgrade the application whenever the organization introduces new updates to install new features that the user may not require.
  3. It is up to the developing agency what features will be kept in the updated version. There is a possibility that the agency decides to remove or modify the features used by the user.
  4. Generic software is not flexible; that is, it cannot keep up with the growth of the organization. The organization will eventually have to switch to custom software.

Difference Between Generic Software Development and Custom Software Development

Some of the differences between generic and custom software development are as follows:

S.No Generic Software Development Custom Software Development
1 It is the development process of developing an application for general purposes. It is the development process to develop software to match the need of a particular client performing specific functions.
2. In this process, the developers have to determine the requirements of the end users. In this process, the client specifies the needs and requirements to the developer and developer develops the application accordingly.
3. The developing agency has to invest in the marketing of the software and design the software accordingly. Custom software does not require to invest in marketing. They are designed to meet the needs of the client and are exclusive to them.
4. Large number of people from different fields use this software for different purposes. The software is used by limited number of people that work for a particular organization.
5. Quality is not a major concern when developing generic software. Software quality is a major concern when developing custom software. Better quality is necessary for client satisfaction and improved business performance.
6. The development team is responsible for the entire development process. The team and the agency make the decision regarding the software. The client controls and instructs the development team about the decision regarding software development.
7.. Generally, generic software is cheaper than custom software. There might be additional costs that may occur during software installation or implementation. Custom software is more expensive than generic software, but they are built according to the specifications provided by the client.
8. Some examples of generic software are Microsoft Office Suite. Management systems are an example of custom software.

Deciding Between Generic or Custom Software Development

It is difficult to choose between generic and custom software development. Each method has its advantages and disadvantages. The user can implement a simple elimination process to choose between both methodologies. The first step in determining the type of software to be used is to perform a requirement analysis. The user needs to write all the requirements from the software.

If all the user's requirements can be met by using generic software, then the user should use generic software.

But if the user's requirements are unique and cannot be fulfilled by generic software, the company has the required funds and time to invest in custom software. Then custom software can be more beneficial and worth every penny spent.

Software is developing at a fast pace. Software requirements in businesses have significantly increased over the past few years. That's why the software has shown tremendous growth over the past few years. There are no longer conventional businesses; this means that standard software can no longer accommodate the needs of businesses. Therefore custom software has become a necessity.

Custom software resolves the specific issues faced by the client. They are developed in a manner that can benefit and support the growth of the organization. Suppose you believe that custom software can resolve your issues better and have the necessary funds and time to invest in custom software. Then you should go for it, as they are beneficial in the long run.


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