Custom software development is a key factor that companies of all sizes incorporate into their business in countries like the UAE. As per the Statista report, the nation’s software development services market is expected to generate $2.02 billion in sales by 2025. The market is projected to reach 5.26% CAGR from 2025 to 2029, reaching a market volume of $2.48 billion in 2029. This massive growth shows that enterprises know the value of software.
However, they are confused or struggle to decide whether to buy or build the appropriate one. To make an accurate decision, they need to understand both custom software development and off-the-shelf software.
In this guide, you’ll gain an in-depth overview of custom software development and off-the-shelf software that will help you understand which is ideal for your business. Let’s dive in:
Statistics of Off-the-Shelf Software and Custom Software
Custom Software Market
- As per the Grand View Research survey, the global custom software development services market was estimated at $35.42 billion in 2023.
- The compound annual growth rate of the custom software market is 22.5% between 2025 and 2030.
- Globally, 83% of companies are using custom software to fulfill their unique business needs.
Off-the-Shelf Market Stats
- The global off-the-shelf software market was generated at $477 billion in 2023.
- It is requisite to grow with a CAGR of 22.4% between 2025 and 2030.
- Globally, 90% of companies use off-the-shelf software to provide products and services to their customers quickly.
What is Custom Software Development?
The software is built to serve the specific needs of an organization or person. For example, if you are the HR head who wants to introduce a payroll system in your business. As an experienced expert in the HR department, you know the system inside out. Therefore, you decided to choose the custom solutions that will fill with all the features that are expected for the payroll system of your company.
Pros of Custom Software
- Empower you to integrate apps as per your business requirements and add features as per your needs.
- Get lifetime support from the software development teams.
- Immerse modern functionalities as per needs and emerging trends.
- You have total managing control.
Cons of Custom Software
- It is costly compared to off-the-shelf software because it is built on specific requirements.
- It takes so much time for development, sometimes several months or a year, depending on your business requirements.
Cost To Develop Custom Software:
Custom software development costs entirely depend on multiple factors. It also depends on the type of custom software, like ERP software or CRM Software. Some factors are listed below:
- Project Complexity
- Design Complexity
- Technology Stack
- System Integration
- Maintenance
- Development Team Size
- Location
The basic cost to develop custom software is between $20,000 and $70,000. And the price will increase when you integrate advanced technologies like AI, ML, AR, VR, etc.
Is Custom Software Right for Your Business? Key Signs to Consider
Custom software development is ideal when readymade software pieces do not fulfill your customers’ expectations or your business goals. Here are a few typical frameworks wherein building custom software is an accurate choice:
- When Seamless Application Integration Is Crucial.
- When Full Ownership and Control Matter.
- When Future Scalability Is a Key Requirement.
- When You’re Aiming for a Competitive Edge.
- When High-Level Security Is Non-Negotiable.
What is Off-the-Shelf Software?
Off-the-shelf software is also known as white-label software. It is pre-built or readymade software that can be developed in a minimum amount of time. This software is ready to use; you can use it immediately without any customization. It is available in almost all types of apps like customer service, e-commerce, hospitality, on-demand delivery, and more.
Cost: The cost to develop Off-the-Shelf software depends on several variables such as subscription, plan, installation, configuration, license, and staff fees.
Pros of Off-the-Shelf Software
- Ready-to-use software. For using the software as per business suitable read reviews of others, and learn from their experiences about the product.
- Has a low cost compared to custom-made software.
- Pre-existing supports or solutions are available because people are already using them.
- With pre-developed software, you can always try it before buying. Because it offers a free trial or a freemium version.
Cons of Off-the-Shelf Software
- However, it’s comparatively cheaper than custom software, but maybe you need to pay more over time due to its licensing fees, cost of additional users, or hidden charges for other added features.
- It does not allow for customizations as per your business needs.
- Many times, you face compatibility issues.
When to Choose Off-the-Shelf Software?
Off-the-shelf software is a great option for businesses that want to implement solutions quickly without investing more time and money into developing software from scratch.
Choosing Off-the-Shelf software is not just one factor in development; there are a few more reasons:
1. When you have a tight budget and want to save big on costs.
2. When you are keen to take a benefit from an existing user base.
3. When you want an easy installation process.
Custom vs Off-the-Shelf Software: What’s Right for Your UAE Business?
Let’s understand this by analyzing the parameters of both to compare them and find digital solutions for UAE businesses.
Business Needs
=> Custom Software Development: Fully designed to the special needs and workflows of the enterprise. It is accurate for the operation.
=> Off-the-Shelf: It has limited flexibility that requires adapting business processes to fit the software’s features.
2. Costing
=> Custom Software Development: It requires higher initial investment costs for enterprise software development but no ongoing licensing fees. Cost-effective for those business who plan for long run businesses.
=> Off-the-Shelf: Lower initial cost, but many times comes with periodic subscription or licensing fees.
3. Scalability
=> Custom Software Development: Custom software is highly scalable and grows with the business growth. And it is easy to customize.
=> Off-the-Shelf: It has limited scalability; adding features or customization is unnerving.
4. Implementation Time
=> Custom Software Development: Taking so much development time. Sometimes, it can be long (3-6 months or even more), depending on the software complexity of the business needs.
=> Off-the-Shelf: It is quick to implement in numerous days or weeks.
5. Support & Maintenance
=> Custom Software Development: If you choose a software development company or hire developers, they will provide ongoing maintenance support. But after some months or period, the cost applies.
=> Off-the-Shelf: Software vendors provide support, but it can sometimes be less tailored as per your needs.
In the United Arab Emirates, for businesses or startups that don’t consider scalability and are looking for affordable solutions that fulfill their goals, off-the-shelf software solutions are accurate. Therefore, the nation’s entrepreneurs prioritize scalability, which affects their decision to use custom solutions.
Businesses can choose between custom and off-the-shelf software because it depends on its services, needs, goals, objectives, budget, market, user demand, and more. However, if businesses want to earn high revenue, then they need to go with custom software development services.
Wrapping Up
The custom software development is a cost-effective solution compared to the off-the-shelf solutions. Because the custom software allows enterprises to include only those features that they need for their business and have no limitation to purchase a full package or any type of subscription like off-the-shelf solutions. If you want to learn more about this subject,t then stay up to date with us.
