Off the shelf software

• It can be free (open source) or cheap (it can also be expensive!)
• It can be cost-effective
• It could meet most of your needs out of the box
• Contains many features
• It’s fast to get up and running
• Support is often included in cost, or it can be added with a maintenance contract
• Upgrades may be provided free, or at a reduced cost
• If it’s software-as-a-service (SaaS)1there is no hardware or software to install
• Works well if there are lots of organisations using the same system (eg popular accounting packages)
• Industry software development standards are typically used
• Many offer flexible software licensing models
• Training courses are more readily available

• They will have ongoing costs (fees, licence costs and possibly upgrade costs)
• Slow to adapt to change
• Changes or enhancements will be made to the software to meet the developer’s timetable, not yours and not all changes will be relevant to your organisation’s needs
• Your request for changes might be ignored if it doesn’t benefit a large customer base
• If it’s a niche or boutique product (ie, there aren’t many organisations using it) it can be very risky.2
• You might get tied into a system that is hard to customise, and hard to change from
• The software can become obsolete
• You might have to change your work processes to fit the software
• You might have to pay high fees to get it customised
• The software licensing may not offer the model you want

Customised software

• You can start with the minimum necessary requirements and add on later
• It can be tailored to your needs and processes
• Changes can be made at the start
• If developers are local you have local support
• You can get changes or enhancements done quickly
• It won’t become obsolete (as long as you maintain it)
• You control your investment in updates and enhancements
• A solution to your unique service needs can be a business advantage
• Can be designed to work with your old systems

• Very high set up cost
• You will have to pay for all changes and features – generally that is costly
• Training is expensive
• If you have employed a local IT consultant there is the risk of losing the developer and all their knowledge base
• Availability of the developer’s support may be limited, or seasonal
• There are no economies of scale
• The budget for software development and ongoing support will always compete with other organisational priorities
• It may not be a long-term solution; the software may have difficulty working with future, as yet unknown, technology platforms.