Businesses need to create novelty and uniqueness for their products/services. Therefore, they have looked to 3rd companies that provide custom software development services. This way, they can develop their application according to their needs, meeting their customer file. 

So, What is custom software development? What problems will you encounter when developing custom software? Please refer to the article below to understand more.

What is custom software development?

Custom software development is designing, developing, and manufacturing software application products for users. These products can meet the business’s specific requirements to create a unique and distinctive impression to customers about the products/services of the company.

Unlike pre-existing software, custom software development will aim to design for the individual who uses it. The software helps to solve real problems that businesses are facing with customers and answers the questions:

  • Who or what? – Is the user of this custom software a group of people or machines
  • When? – Frequency and duration of software used. It is only used at an appropriate time when they are relevant.
  • Where? – To refer to user settings. For example, a manufacturing facility uses software as an internal business machine or tool.

Custom software vs. built-in software

When it comes to the difference between custom software and built-in software, there are 4 characteristics that you can quickly notice in available software:

  • Ease of use: the Available applications will serve many different types of customers. Because it fills their basic needs; for example, Microsoft Word is a hugely popular typing application with usable features of all sizes and ranges.
  • Easy access to download or buy: You can buy them online or in-store with commercially available software. It can be downloaded from the manufacturer’s websites as a cloud subscription.
  • Availability: Available software will be compatible with any platform your business uses. It includes windows, MAC, Linux,…
  • Customizability: Popular commercial packages like Microsoft Office can be customized to make the software work better for any audience.

Custom software development includes the following two prominent features:

Unique adjustable functions: Custom development software will allow the business to work towards a specific, defined goal. Previously determined. These applications can be flexibly changed for the intended use of the operating organization.

Tailor-made solution for your business: Project developers design custom software to build on customer needs and workflow. With these applications, no organization will be able to access their application. It is personalized, catering to businesses and customers in their market.

Limitations of Custom Software Development

With all technology applications, such as custom software development, there are limitations to them. Specifically, this software application has 2 of the most significant limitations related to cost and risk. 


Custom software costs many times more if available software ranges from a few dollars to several thousand dollars. It requires businesses to have a relatively large capital. All pilot business activities need the enterprise to pay all costs related to the development process. As a result, some of today’s custom software development applications can hit 5 or more figures.


Risks in custom software development projects will vary. It depends on the size of the whole project. It is straightforward to lose sight of the end goal because of problems during development and inaccuracies in the early implementation.

Therefore, the most important thing is that you need to have a deep understanding of the needs of your business. After that, discuss carefully with the 3rd party service provider. Also, during development, the arising of extended features will be a case that you may encounter. 

The process of modification and expansion will mean an increase in investment costs and implementation time. Frequent changes can detract from the project’s scope, and at the end of the project, it will be difficult for the software to meet the needs of the business entirely.

Common Mistakes

Complex feature development and solutions 

When investing in developing custom software projects, everyone hopes that your product can meet customer needs, creating significant value for the business. However, they often rely on imagination and personal opinion to come up with features for the software. 

This has caused the company’s products to make mistakes related to user compatibility. So, testing custom software will help businesses understand their customers better and create features that satisfy the end user and customer.

Make decisions as soon as possible.

Decisions made early can be risky. It will have financial consequences and the brand value of the business. You don’t need to decide until you have gathered all the product requirements and goals.

Do not provide acceptance criteria for each.

It is understood that the predefined requirements will need to be fulfilled to mark a successful custom software development task. This process helps define workgroup function performance, outcomes, and testing criteria. 

The development criterion needs to be understood by the project developers because it will provide a concise and concise user perspective and needs.


Hopefully, this article will help you answer the question: “What is custom software development?”. Besides the benefits and business value that custom software development brings, there are some limitations that any investor should consider. 

In addition, there are three big mistakes from developers and businesses it will directly affect the results and efficiency of the company. So, as a user of custom software development services, you need to beware of all the risks you may face when implementing the project.