Companies in all industries are increasingly turning to software development services to deliver robust digital solutions to a range of business processes and goals.
One of the most common approaches to achieving these objectives is custom software development, which delivers complex and robust, tailored solutions for various processes.
This custom software development guide covers everything you need to know, from the process and benefits to how to choose a custom software developer that fits your business goals.
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Key Takeaways
Before we begin our in-depth guide to software development, here are some key takeaways summarizing what it is and how it can help streamline business processes.
- Custom software development allows businesses to create fully customized applications with a degree of flexibility and scalability that off-the-shelf software alternatives can’t match.
- Multiple types of custom software can be developed individually or in combination, allowing businesses to create bespoke software that conforms to industry standards and protocols.
- Custom software development teams draw on an international talent pool of professional designers, programmers, and project managers to deliver the highest possible standard of service.
- Partnering with a custom software development company provides access to specialist tools and a team equipped to manage security and privacy concerns for clients and end users.
- Compared to in-house software development and off-the-shelf solutions, custom software development offers greater value for money and a more focused budget.
Now, let’s explore the basic definition, core processes, significant benefits, and potential costs associated with custom software development in more detail.
What Is Custom Software Development?
Custom software development is the process whereby businesses outsource software creation to meet specific goals, such as streamlining processes or managing sales and customer support.
Custom software development teams work closely with clients to identify the software’s core functionality and design the user interface and core architecture needed for optimal performance.
This approach allows businesses to focus their budgets on creating bespoke custom software adept at achieving vital business processes.
It also ensures that the software or application is future-proofed and scalable, and integrates new features as and when they are required.
Discover MyDevTeam’s software development services.
Software Development Service Comparison
When choosing to develop software for a business, various approaches are available, including custom software development, each with various advantages and disadvantages.
Let’s examine some of the alternative software development services and how they compare to custom software solutions.
Off-The-Shelf Software
Commercial software is available to handle many different processes and is designed to be easy to install and use with low upfront costs to businesses.
Offering a one-size-fits-all approach, commercial off-the-shelf software is pre-bundled with a selection of generic features for managing daily operations on a limited budget.
While such software is affordable, it cannot be modified with new features outside of upgrades provided by the developer, limiting its potential for long-term applications.
While small businesses with limited budgets can get value from off-the-shelf software, companies requiring a broader scope typically opt for custom software development.
In-House Software Development
Another common approach to software development is designing and building software using an in-house team of coders, graphic designers, and project managers.
There are several core differences between in-house and outsourced software development, with the former offering more control but requiring more time and money.
Recruitment, onboarding, and training of key development team members are needed, with a limited talent pool to draw from in the company’s local area.
Partnering with a custom software development company avoids the high budget and necessary resources associated with in-house development without compromising quality.
Outsourcing SaaS Development
Software as a Service (SaaS) is an approach to developing software and applications that can be accessed over the Internet rather than installed directly on computers and other devices.
These are typically subscription-based services that help streamline business processes, from accounts and human resources to performance management and other priorities.
Many custom software development companies offer SaaS development services, which provide the same standard of customization, flexibility, and scalability found in other application types.
It’s a growth sector that draws in over 80% of businesses, with the average number of SaaS-based apps used by companies continuing to rise year on year.
Recommended: Explore our complete guide to outsourcing SaaS development.
Offshore Custom Software Development
Offshore custom software development is when companies use developers based outside of their home country to access a broader talent pool and potentially reduce costs.
Hourly and project-based rates for developing custom software vary from region to region, and affordable alternatives are available in countries outside the United States.
While this can save money, offshore software development services are known to deliver inconsistent results with more limited control over the project.
Time zone and language barrier differences can also impact the performance of teams partnering with offshore software services throughout the development process.
Read more about offshore software development.
Types Of Custom Software Solutions
Several different types of custom software solutions are available, each of which can affect the app’s development cost and time to market.
The most commonly used types of custom software include:
1. Business Processes And Automation
Custom software is frequently designed with business process automation in mind, automating repetitive tasks necessary for the smooth running of daily operations.
Such processes can help to improve accuracy and reporting, freeing up valuable time for employees to focus on more business-critical objectives and tasks.
Custom software can include business process automation tools that cover everything from invoicing and sales orders to data entry, payroll processing, and employee onboarding.
2. Enterprise Resource Planning
Enterprise resource planning relates to the automation processes that custom software provides for businesses, enhancing data collection and management.
By coordinating the flow of data between various business processes, enterprise resource planning can be achieved with a higher degree of certainty to meet long-term goals.
Such systems are designed to deliver seamless reporting throughout these processes, from supply chains and inventory management to finances and risk management.
3. Content Management Systems
Companies frequently use content management systems to manage and optimize large websites that incorporate extensive databases and assets.
This software allows businesses to manage and modify website content without the need for any technical expertise, with easy-to-user interfaces that assist with performing updates.
Content management systems are robust and versatile platforms for website creation, covering blogs, e-commerce stores, and other features vital for engaging with an audience.
4. Supply Chain Management
Since custom software allows businesses to expand operations and manage complex systems, it is commonly used for various supply chain management functions.
Custom software can assist with inventory optimization across the end-to-end supply chain while bolstering collaboration between the relevant parties.
By incorporating advanced analytics tools into supply chain custom software, it can be used to assess historical data, market trends, and other factors that can improve forecasting accuracy.
5. E-Commerce
The rise of online shopping has seen a proliferation of custom software solutions designed for e-commerce and the ability to reach consumers worldwide.
Custom e-commerce software offers a level of scalability and security that ensures consistent performance as website traffic and sales expand over time.
It also incorporates the necessary search engine optimization and core marketing tools to facilitate this growth and reach potential customers looking for specific products.
Depending on the general scope and required functionality and integration through future iterations, one or more of these systems may be included in a custom software project.
Learn more: Find out what custom software development is and who it’s for.
Benefits Of Custom Software Development
The availability of multiple interconnected solutions for various tasks opens up many benefits of custom software development for all business types.
Here are some of the key benefits that attract companies to partnering with a custom software developer for their internal or customer-facing applications:
1. Software Development Cost Savings
Cost efficiency is one of the driving forces behind choosing to work with a custom software development partner that has the existing systems needed for these projects in place.
Custom software development mitigates a range of upfront costs and additional expenses for team salaries, management overheads, IT maintenance, and other factors.
This gives businesses a clear view of their custom software development project’s budget and how the investment will pay off over time.
2. Access To Specialist Skills
Custom software development uses dedicated teams of professionals with the necessary technical expertise to deliver highly customized software that off-the-shelf solutions can’t match.
This in-house talent pool allows custom software development companies to create tailored solutions across many industries incorporating cutting-edge technologies.
Experienced coders can build highly stable applications with a solid architectural foundation, and talented graphic designers deliver attractive user interfaces.
3. Enhanced Security & Compliance
Depending on the industry custom software is intended for, various obstacles, such as federal compliance and security protocols, must be included in the final product.
Working with an established custom software development company provides instant access to a team with the know-how to navigate complex and ever-changing rules and expectations.
This includes managing data security and adhering to government regulations while retaining the software’s rights and ownership.
4. Optimized Project Turnaround
Another core advantage of custom software development services is the ability to design and build applications with maximum efficiency, allowing for quick project turnarounds.
Custom software application development teams have time-saving digital tools to streamline processes and project management throughout the software development life cycle.
This allows clients to take a back seat to the development process, focusing their time and energy on their core goals, such as business growth and customer relations.
5. Improved Quality Of The Final Product
The net effect of these and other benefits is a higher chance of success when creating custom software that meets the demands of business operations and gives a competitive advantage.
Custom software meets the highest possible quality standards by rigorously adhering to professional guidance and testing during and after the development phase.
Likewise, regarding flexibility and scalability, custom software can undergo post-launch iterations to meet future demands and the changing market landscape head-on.
Top 10 Industries That Benefit From Custom Software Development
With its impressive ability to deliver robust solutions and process optimization, custom solutions are available to all major industries looking for bespoke applications.
Let’s examine some of the leading industries that have frequently turned to developing custom software to deliver a streamlined approach to business operations:
10. Transportation & Logistics
Freight transportation represents a significant chunk of the United States economy, with trucking alone contributing over $500 billion to the nation’s GDP.
Custom software development projects in this market have been set up to help with processes, including route planning, fleet management, telematics, and shipment planning.
9. Real Estate
Commercial and consumer real estate management is another example of how custom software development facilitates complex processes involving millions of users.
General property management, archiving and updating real estate listings, and tracking legal documentation relating to sales are all aspects of the industry custom software enhances.
8. Hospitality & Travel
The hospitality sector is another growth industry that has turned to custom software development services to streamline operations for employees and customers.
On the consumer end, booking forms and other automated systems remove friction points, while agencies can integrate customer relationship management tools to enhance support.
7. Banking & Finance
The rigorous data protection required by banking and other financial applications is another reason why many businesses in this sector opt for custom-developed software.
Understanding the latest security measures and digital trends has allowed custom software development to play a significant role in the future of finance.
6. Retail & E-Commerce
Custom business software development in retail incorporates a nexus of priorities for businesses, from managing extensive inventories and tracking orders to automating customer services.
Custom software in the retail sector also delivers robust and secure e-commerce platforms that allow businesses to maximize revenue through online selling.
5. Education
Educational institutions use various types of custom software, including online assessment tools, student information systems, and learning management systems.
These applications improve communication between teachers and students, delivering enhanced learning while streamlining a range of administrative tasks.
4. Construction
As with the transportation and logistics industries, the construction industry requires constant monitoring to maintain optimal efficiency.
The rapid growth of the US construction custom software market is a testament to how the industry has embraced this approach to application development to meet these demands.
3. Music Technology
While vinyl records are enjoying a steady growth in sales, most music fans almost exclusively use digital music technology for their daily listening habits.
Custom software’s ability to manage and scale large user and content databases has made it an integral part of music technology applications.
2. Healthcare
Healthcare is another all-encompassing industry that employs millions in the United States while serving many health and wellness concerns.
Custom software has been designed to cater to everything from appointment scheduling and prescriptions to pharmaceutical inventory management and complex diagnosis.
1. Entertainment & Media
Like music software and applications, general entertainment and media resources are increasingly dominating the digital ecosystem and daily life.
Dedicated custom software development services frequently design and develop streaming services for movies, television shows, and dedicated news applications.
Find out more about the industries MyDevTeam works with.
Custom Software Development Process
The custom software development process offers companies a highly flexible approach to delivering software and applications that meet their specific demands and business goals.
It covers a variety of key stages that help ensure the project is focused on delivering the best experience for the end user while focusing time and energy where most needed.
Let’s break down the custom software development process step-by-step and explain how it delivers highly customized results across various applications.
Step 1: Understanding Business Requirements
Before developers can start working on custom software, they engage in a comprehensive planning stage designed to clarify business requirements and create a model of the end user.
The development team works closely with clients to determine the software’s goals and the functionality, user interface, and other necessary features.
Once this research and consultation have been completed, detailed documentation outlines the project’s production pipeline and budget.
Step 2: Designing the User Interface & Experience
The next stage in the custom software development process focuses on the software’s design, refining the user interface’s functionality and accessibility to deliver a smooth user experience.
Custom software developers draw on their professional expertise and knowledge of UI and UX design trends to ensure the application interface is intuitively crafted for the end user.
With additional design around the software’s backend and core architecture also covered, this stage also conceptualizes the application in prototypes for clients to review.
Step 3: Developing The Software
When the client is happy with the initial designs and concepts for the software and its intended use, the coding stage of the development cycle can begin.
Custom software developers will leverage their preferred technology stack and other tools, adhering to industry best practices and security protocols.
Throughout the process, the software will be tested and refined to improve the user experience, with regular progress meetings to keep the client in the loop.
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Step 4: Testing & Quality Assurance
All software and applications require rigorous testing and quality assurance to ensure they are bug-free and fully meet the client’s performance expectations.
Custom software development includes testing in its processes during the coding stage and before the application’s final launch to the end user.
In addition to addressing technical issues, the testing and quality assurance stage refines the UI and improves the software’s ability to engage and retain users.
Step 5: Launching & Maintaining The Software
Once the software has been thoroughly tested, the custom software development team begins launching it to the intended user and monitoring its deployment for issues.
If new bugs arise, these are immediately resolved, and ongoing support and maintenance are also initiated to ensure the software remains free from issues.
This stage also includes additional software maintenance related to adopting new security measures and adhering to industry compliance requirements.
Step 6: Adding New Features & Improvements
Most software and applications receive ongoing support from custom development teams, which allows them to evolve and improve in response to feedback and new requirements.
When viable and cost-effective, suggested improvements are added to the software based on user feedback or directly from clients.
Thanks to the unique adaptability and flexibility that custom software development allows, these new features can be incorporated quickly and efficiently.
Software Development Lifecycle Models
Managing the software development lifecycle can be accomplished through various models that guide production and ensure projects stay on track.
Here are some of the principal software development lifecycle models used to ensure project success:
- Agile Model: The agile model is based on incremental and iterative development with consistent collaboration between cross-functional teams to ensure alignment. Many developers have embraced agile due to its ability to facilitate client communication and input to guarantee high-quality software.
- Waterfall Model: The waterfall model emphasizes linear sequential flow and the ability to monitor progress. It breaks down development into key phases that need to be completed in sequence. This approach best serves projects that have a clear structure from the outset and specific deliverables to meet.
- Spiral Model: Larger projects requiring development in smaller segments apply the spiral lifecycle model to manage risks and effectively build prototypes and other simulations. It combines elements of top-down and bottom-up concepts with frequent evaluations to verify benchmarks have been met.
- Iterative and incremental Model: This model begins with planning and works through development in incremental stages. It is designed to produce value early in the development process and capitalize on scarce resources. Processes are extensively documented and end users are also heavily involved in each stage.
- V-Model: The V-model is a variation of the waterfall model, blending design, architecture, and planning with ongoing testing, integration, and maintenance. It’s easy to use and has clear deliverables throughout each phase, allowing for ongoing verification of the software from the early stages.
Custom software companies typically adopt a flexible approach that incorporates the optimal lifecycle model that meets the demands of a particular project.
Most Popular Technologies & Frameworks
Custom software design marshals the latest and emerging technologies and frameworks that drive development by using the best application programming interfaces available.
Some of the core technologies that outsourcing custom software development covers include:
- Strategic open source development: Custom software development frequently leverages a range of open source frameworks that can streamline development without excessive costs. Such frameworks are highly customizable and allow the development team to adapt them to a project’s specific requirements.
- Scalable e-commerce technologies: A broad range of e-commerce technologies can be integrated into custom software, allowing highly scalable platforms for managing sales and streamlining customer relations. Salesforce, Shopify, and WooCommerce are examples of e-commerce frameworks used in custom software to deliver accessible and reliable online selling.
- Comprehensive frontend development frameworks: Resources such as React JS and Angular help develop custom software frontend performance, allowing for the creation of dynamic applications that enhance the end-user experience.
- Artificial intelligence technologies: With artificial intelligence increasingly impacting software development, many custom solutions are created by leveraging ChatGPT and other AI-based tools that can improve the user’s level of interaction with the application.
A custom software development company ensures its processes remain entirely up to date, staying abreast of the future of software engineering trends and new methods.
Learn more about MyDevTeams tecnologies.
Common Challenges & Solutions
Developing custom software presents a series of challenges to meeting the project’s goals, but a range of solutions is available to mitigate these potential obstacles.
Here are some of the common challenges for custom software development and how they can be addressed and overcome:
- Unclear and changing software requirements: Gathering and organizing all of a project’s requirements is vital to success, and if these factors are ambiguous, the custom software can fail to deliver the intended results. This can be overcome through rigorous planning and market research in the early phases, with constant iterations and consultation throughout the development process.
- Hidden costs: Additional costs and other undisclosed expenses can deter businesses from working with custom software developers, particularly as new features are added throughout the development lifecycle. An accurate budget can be established from the outset by seeking clarity on current and potential future costs.
- Retaining confidentiality: Confidential employee and customer data require robust security measures to prevent theft, and business leaders require certainty that they can trust the developers. Signing a non-disclosure agreement ensures that this data and other information is fully protected from these threats.
- Maintaining communication and optimal project management: With custom software teams working independently from their clients, communication channels can sometimes lead to suboptimal project management. Creating regularly scheduled meetings and using remote communication tools for face-to-face conversations online can help mitigate these challenges.
Additional challenges, such as using artificial intelligence for coding and technology stack issues, can also be overcome through rigorous planning and due diligence.
Custom Software Development Best Practices
Partnering with a custom software development company allows businesses to develop applications knowing that industry best practices are being adhered to.
Some of the best practices applied to the development process include:
- Up-to-date API integration: Custom software typically uses an application programming interface (API) to accelerate data integration, functionality, and the performance of core features. Some custom software services use artificial intelligence to optimize their API-based agents and further enhance the application’s overall performance.
- User-centered design: Extensive research in the early stages of custom software development helps developers focus on delivering an application that provides the best possible user experience. By working closely with the end users and stakeholders to fully understand their needs and perspectives, software is created that reflects their experiences and requirements.
- Unified DevOps development: Optimal software development is built around a unified approach to development that aligns with the DevOps methodology to speed up and improve the life cycle. This approach also improves collaboration between programmers, security experts, and other departments by breaking down potential communication barriers.
- Robust prototyping: Throughout the development process, software developers produce many prototypes that seek to demonstrate the application’s viability and whether or not it achieves its goals. These prototypes can be used in consultation with the client to refine the development and ensure the software meets their approval.
These and other critical best practices are used to ensure the highest possible quality of the final software for clients based on dynamic development and rigorous testing.
How Much Custom Software Development Costs (General Guide)
With its large scope of applications for businesses of all sizes and industries, custom software development costs can vary wildly from one project to the next.
Here are the average prices for small, medium, and enterprise-level software, followed by a closer look at the main variables impacting the budget range.
1. Small Software Applications
Average price range: $10,000 – $30,000
Software that doesn’t require complex features and extensive data management, catering to smaller organizations, can be developed on a modest budget, with a development time between three and six months.
Such software applications will include a limited user interface and are ideal for smaller businesses that require tools for managing daily operations and customers.
2. Medium Software Applications
Average price range: $30,000 – $100,000
Software that requires a higher degree of complexity, an extensive user base, and advanced user interface customization has a wide range of potential development budgets.
Additional development team members may be required, and projects will take longer to design, develop, test, and launch to the intended users.
3. Enterprise Software Application
Average price range: $100,000 – $500,000+
Large-scale organizations requiring robust and scalable custom software, with extended support and maintenance post-launch, can expect to pay upwards of $100,000 for a project.
At this level, all custom software development services are incorporated into the project to ensure complete optimization, compliance, and user-friendliness.
While these ranges offer a rough insight into the expected costs of a particular application, other factors that can influence the total budget should also be considered.
Let’s examine some of the factors that can affect the cost of custom software development to help you assess its viability for your project:
- Client requirements and project complexity: The more features an application requires, the greater its complexity, which impacts the time and money needed to complete the project.
- The size of the development team: As the software becomes more complex, the size of the development team also expands, requiring additional expertise for coding, designing, and testing it before launch.
- The development methodology and technology stack: Depending on the tools required to facilitate the smooth running of the custom software development project, these can add to the operational expenses and final budget.
- Ongoing support and maintenance: If the software or application requires ongoing support and maintenance, expanded server space, or other backend requirements, the budget will rise accordingly.
Different pricing models are available for various software development services, which will provide a consultation and estimate based on your requirements if requested.
How To Choose The Best Custom Software Development Company
Whether you’re a small local business or a larger enterprise, choosing to outsource software development requires careful consideration of various factors.
By researching the following aspects of custom software development, you can effectively assess its viability for your project:
1. Services Offered
Different custom software development companies offer various services for their clients, from basic web and mobile app development to full-scale software for large-scale operations.
By checking what services are offered and how they align with the software’s requirements, business leaders can find the best custom software development partner for their project.
2. Technical Expertise & Tools
Custom software development incorporates various tools and professional coders and designers with the necessary expertise to apply them to the project.
When researching custom software development teams, check out the company website to see what technical knowledge and systems they use when building applications.
3. Portfolio & Case Studies
The best custom software development companies have a proven track record of delivering software solutions that meet clients’ and end users’ expectations.
You can verify this social proof and reputation by reading successful case studies that outline previous projects and the processes used to manage and complete applications.
4. Specialist Industries
Many of the world’s leading companies outsource custom software development as a core element of their growth and performance optimization strategy.
If you’re a business leader in a specialist industry, verify the relevant experience that custom software development companies offer clients.
5. Client Testimonials
Client testimonials are another valuable resource that complements the portfolios and case studies outlining the track record of custom software development services.
These can be found on the websites of custom software development providers and third-party websites dedicated to gathering user feedback, such as TrustPilot.
Things To Think About
Other factors should also be assessed when deciding whether to use custom software development for your company’s requirements.
When planning a new custom software development project, consider the following:
- Aligning business key performance indicators with the application: Custom software optimization should be considered alongside the company’s core key performance indicators (KPIs). Growth targets and other core metrics should be integrated into the custom software and used for data analytics.
- Designing software that reflects the company’s culture: If you’re developing custom software for internal employee processes, designing the user interface and other elements should reflect the broader culture and work style.
- Focusing on consistent branding: Customer-facing software and applications provide an opportunity for reinforcing the company’s brand as a core element of the user experience. This can be reflected in UI design and through easy-to-use customer support integration.
- Developing software with long-term goals: Custom software development should be intrinsically linked to any long-term business goals to ensure that it can be scaled and improved over time to meet new challenges.
The more consideration given to future scenarios and how the software can facilitate growth, the easier it is to ensure the necessary features are in place to deliver these results.
Learn more about MyDevTeam’s software development portfolio.
Custom Software Development at MyDevTeam
The market size of custom software development services is on the rise, and MyDevTeam has remained at the forefront of the industry, delivering applications to various companies.
Serving multiple industries, including healthcare, construction, music technology, and education, they offer a full suite of custom software development services for all business requirements.
Some of the core services for developing custom software that MyDevTeam offers its clients include:
- Bespoke custom software development: MyDevTeam’s services cover the full range necessary for complete custom software development that delivers applications for various industries. Their in-house team of global talent draws on years of expertise when designing, coding, and optimizing software to streamline workflows and deliver innovation.
- Complete risk mitigation: With up-to-date knowledge of the latest security measures and access to the relevant tools to protect data, MyDevTeam’s software development pipeline is equipped to incorporate successful solutions to contemporary challenges.
- Access to a cutting-edge technology stack: Marshaling the latest technology stack and methodologies, MyDevTeam’s development processes ensure that projects are managed with innovative and solution-driven tools.
- Custom CRM solutions: Business leaders who require customer relationship management tools for their sales and marketing initiatives can use MyDevTeam’s custom CRM solutions to improve customer engagement and drive revenue growth.
- Software integration: If your company has existing systems or other third-party services in place, MyDevTeam’s experts can effortlessly integrate custom software into these systems without disrupting business operations.
- Professional UI/UX services: MyDevTeam’s custom software development services draw on experienced professional graphic designers to ensure visually striking and easy-to-use software and applications.
- Scalable e-commerce platforms: With many people predominantly shopping online, e-commerce platforms are vital for maximizing revenue streams for retailers and other industries. MyDevTeam’s services include developing robust e-commerce features for a user-friendly online shopping experience.
MyDevTeam’s services help companies break industry barriers and capitalize on modern digital transformation for sustainable business growth.
Summary
Custom software solutions are vital to running a successful business, improving employee performance, and driving consumer engagement and sales.
This guide to custom software development provides the foundations for conceptualizing, designing, and developing custom software that best suits your business goals.
By partnering with a trusted and proven custom software development company, business leaders can plan for long-term growth and ensure the application evolves with the business.
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