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What is Custom Software Development?

Custom Software Development

Developing software or an application that meets specific business requirements is necessary for survival in today’s competitive era. Custom Software Development is the process of conceptualizing, designing, building and deploying software for a specific individual or a group of individuals within an organization or as a third-party arrangement.

Custom software is built to address specific users’ needs and is considered more efficient than commercial off-the-shelf software (COTS). Since COTS targets a broader set of requirements, it is ideal for a wider audience. Off-the-shelf software is promoted and marketed so that different businesses can embed them in their day-to-day business applications. One of the best examples of Off-the-Shelf solutions is Microsoft Office, as it can meet a wider audience’s generalized needs at the global level.

But every business need cannot be generalized. Business processes and particular teams do have a specific set of needs that demand specialized solutions. This is where custom software development finds its application. For example, course-module portals for students or industry-specific e-commerce software for the streamlined shopping experience are custom software suites.

We shall discuss the following topics in the article:

What is the difference between Custom Software and Off The Shelf Software?

custom software vs off the shelf

The build versus buy question continues to affect enterprises looking for software solutions. Off-the-shelf software is ready-to-use as soon as it is installed on a device or computer. On the other hand, custom software is designed and developed to meet specific requirements.

Both of these technologies have a considerable gap in terms of functionalities, usability and performance. Each technology has its pros and cons and here is an outline of the same.

  • Implementation
    Coding is becoming easier with each passing day. Earlier, programmers used to spend weeks on running lines of codes. Nowadays, students get trained in coding at the high school level and an increasing number of open-source code snippets are readily available for any functionality. Intuitive drag and drop interfaces provided by IDEs make it possible to develop highly advanced applications without even writing the code. Basic knowledge of coding can suffice to allow the needed customizations quickly.

    But, the ease of coding does not mean that software development is a cakewalk. Coding is only one aspect of the entire software development process. Requirement gathering, UI/UX design, testing, and upgrades are other crucial stages of the development process that require experienced and skilled resources.Developing custom software might seem like a manageable proposition despite the high skills required. Developmental tasks can be a distraction for enterprises from their core focus. Internal IT resources can be already involved in daily maintenance activities and development tasks could affect their efficiency.

    With custom software, enterprises might have to bear drawbacks until the issues are solved and that’s how the software finally grows. Using off-the-shelf software, enterprises can learn from others’ mistakes.

    Besides, the core focus of off-the-shelf software developers is just the software and they implement agile and other best practices for the development of software. They also stay updated with emerging technologies to be on the competitive edge. Therefore, before an off-the-shelf software is developed, it is tested broadly to ensure that glitches are ironed out.

    But, buying off-the-shelf software is not as easy as purchasing mangoes off a supermarket. An enterprise still needs to perform the requirement gathering exercise for finding the right product. Even off-the-shelf software solutions also need to be assessed for UX design, required infrastructure, compatibility with different devices and ease-of-use. Moreover, off-the-shelf software cannot scale as your business scales since you don’t own it.

  • Integration
    In an era where data analytics is essential to stay on the competitive edge, organizations require seamless integration of the software with other enterprise-level systems. When it comes to integration possibilities, off-the-shelf software may not integrate seamlessly with other software systems.The extra investment and time in developing custom software can be worthwhile as it can be designed and developed to allow seamless integration. A software developer can consider the existing system when creating the blueprint for the software development project and ensure the new software works seamlessly within the current IT ecosystem.
  • Scalability
    Scalability is one of the crucial factors when considering technology for your business. The software you require for your business should be scalable enough to accommodate current and future requirements.As your business expands, you might have to add new features and functionalities. Therefore, it is better to get software development in a scalable way. Off-the-shelf software cannot provide this facility.
  • Upgrades
    There’s no doubt that off-the-shelf software provides you with flawless customer support. But sometimes, they do not get updated for a long time because you might have to work with an outdated product, leaving a negative impact on your business. Custom software allows you to make whatever changes you need and whenever you want. You are responsible for making decisions related to new upgrades and features when developing custom software. You don’t need to wait for new releases to add new functionalities to your software.

If you want a specialized software to meet your specific business requirements, then custom software development is be the ideal solution for you.

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What are the pros and cons of Custom Software Development?

pros and cons of custom software development


  • Specific solutions to needs
    Since every business has some specific business operations, custom software is the best solution for their needs. It is designed to meet the particular requirements of individuals or groups of individuals. Also, it improves productivity since you get what you want, giving you a competitive advantage. 
  • Security
    Security is at the core of every software and business because nobody wants an app that can be easily compromised. Custom software can reduce security risks by allowing you to add as many security measures as you want. You don’t have to depend on the restricted security features of any off-the-shelf product.
  • Easy integration
    Custom Software is designed to allow easy integration with existing software and programs in your business. Software developers can help you design software for seamless integration, allowing easier adoption and improved business productivity. 
  • Freedom of use and control
    The custom software provides businesses with the freedom to update and use the application, allowing complete control over the software. You own the custom software and you have all the rights to update it or use it the way you want.


  • High Cost of Development
    The cost of developing custom software is relatively high for businesses, while market forces lower the cost of off-the-shelf software solutions. The cost of maintenance and support also adds up to the expenses of custom software. However, the cost of custom software development seems worth its functionality once it is implemented.
  • Requires a lot of time to build
    A full-fledged custom software application for business takes a lot of time in its development since business needs may not always seem clear as many would think. A lot of time is invested in research and analyzing to be clear on all requirements and figure out those that are not clear or direct.
  • Risk of working with the wrong developer
    The risk of working with the wrong person or company is a common issue for the majority of industries, not only for software development. Choosing the wrong vendor can waste your time and money. Since you would come across plenty of custom software development companies in the market, you might end up choosing those who provide low-quality or unprofessional software development services. Therefore, it is recommended not to rush when hiring a developer. Spend more time on research to protect yourself from losses later.

Before you embark on your custom software development journey, consider the above pros and cons to understand what your business requires.

LeewayHertz Custom Software Development

Drive transformation to your business ecosystem

What is the process for developing Software?

custom software development process

You can find various software development models, including the Spiral model, Waterfall model and Agile software model. Among all these models, the agile model is the most popular one. Each software development model has a specific approach to ensure the successful delivery of the product. The methods might differ; however, there are some stages that every model includes.

Here are some necessary steps that help software development companies achieve success:

1. Initial requirements gathering
It is the initial phase when you consult a software development company for your project. During the initial requirement gathering stage, a development company holds many meetings with the client to gather all project requirements.

It is a stage when designers and developers understand project specifications, goals to be achieved with the software, who the software users are, and how do clients want the product to work. Collecting all that information helps the software development company get a sense if you can be a good match for its project.

2. Requirements analysis and planning
After gathering the requirements, the development company starts analyzing them to develop a robust software application base. That is why requirement analysis and planning is the most crucial stage of the entire development process. It is essential to perform analysis carefully for the development company to meet all client needs. In this stage, client goals are converted into a plan so that two visions can meet.

Before moving to the next stage, the client demands need to be documented and verified by both sides. Clients’ requirements are recorded in a Software Requirement Specification (SRS) document based on which the product is designed and developed. Requirement planning also ensures that there will be no misunderstandings.

3. Visual and Technical design
Once the development company understands what they have to build, they need to identify how to do it. Each software solution requires a specific approach; therefore, designing a system architecture is crucial for each project. The internal design of all the modules of the software is mentioned in the SRS document. Parameters that are taken into consideration in this stage are design modularity and risk assessment.

The external design may also be created during this stage. This stage’s deliverables include wireframes, technical architecture, database design, high fidelity screens, marvel prototype, user stories and database schema.

4. Development & Implementation
This phase can be the longest one because the actual product is being developed. Developers start programming the software, following the Software Requirement Specification document and visual and technical design. If the stages before the development stage have been completed with close attention to detail, coding can be accomplished seamlessly.

Each development team performs the development activity from a different angle depending on the software development model type. Most of the companies nowadays implement the Agile methodology that includes iterative meetings called daily Scrum meetings, during which each team member reports progress and issues on their tasks.

5. Testing
Testing is usually done after the product is developed and ready to be released to find and fix defects and deficiencies. During testing, testers perform different types of non-functional and functional testing. In the testing stage, the tested critical features are:

  • Core application functions.
  • Installation on localized machines.
  • Compatibility on different devices.
  • Text input.

In case a bug is detected, it is fixed and tested again. The testing process is continued until the software meets quality requirements. The software needs to be tested by both the development team and the client’s team.

Following are the types of software testing techniques that you should implement to test the quality of your custom software:

  • Functional Testing
    Functional Testing is a type of testing that involves testing the functionalities of a software application. While executing functional tests, you need to test each and every functionality of the software. You have to see whether you are getting the required results or not. 

    Functional tests can be done both manually and with automation tools. Tools that can be used for functional testing are Selenium, soapUI, Watir and JUnit. 

     Different types of functional testing include:

    • Unit Testing
    • Smoke Testing
    • End-to-end Testing
    • Integration Testing
    • Acceptance Testing
    • Regression Testing
    • Whitebox Testing
    • Interface Testing
    • Black Box Testing
  • Non-functional testing
    Non-functional testing is the testing of non-functional aspects of an application, including reliability, usability, security and performance. They are performed after functional tests. 

    With non-functional testing, you can enhance the quality of your software to a great extent. Non-functional testing is about how well the software runs and many other components. 

    Types of Non-Functional Testing include:

    • Performance Testing
    • Load Testing
    • Failover Testing
    • Usability Testing
    • Efficiency Testing
    • Localization Testing
    • Security Testing
    • Reliability Testing
    • Endurance Testing

6. Deployment and Maintenance
A software application is released after it is tested thoroughly. But some people call the project “done” once it is released. When you start using the software, you might come up with some unexpected problems. Based on the priority of issues, they can be either fixed right away or improved later.

When it comes to the deployment of software, you need to decide whether you need cloud-based deployment or on-premise deployment. 

Deploying software on-premise means that the software is located on a company’s own servers and protected by the internal firewall. Earlier, it was the only way of integrating outside software or applications with the company’s codebase. It is beneficial if your organization requires complete control over integrations with external functionality. 

However, on the other side, deploying software on the cloud means building a virtual computing environment. Cloud-based deployment provides organizations with scalable and flexible virtual computing resources. Cloud platforms like AWS, Azure, Google Cloud and other platforms can be used for cloud-based software deployment. 

Maintenance is one of the advantages of custom software applications because a development company takes care of your project even after the release. As a part of the maintenance service, the software development company manages any upgrades and added functionality.

LeewayHertz Custom Software Development

Drive transformation to your business ecosystem

What are the qualities you should look into a Custom Software Development?

qualities of custom software development team

Developing a custom software application is not an easy task. Therefore, people look out for software development companies that can understand their requirements precisely and deliver robust and scalable software. But understanding criteria is not just enough. You need to look out for some characteristics and qualities that can help you find a reliable partner.

Here are some of the qualities you must look into a custom software development team:

  • Experience and tech skills
    A software development company can only be considered as the leading development company based on the applications they have been building and the success rate that businesses have attained. Software development companies with strong technical skills and leadership skills will have a good portfolio of projects. A company with an in-depth understanding of the latest technologies and experience working with startups and Fortune 500 companies can produce and deliver a scalable product.
  • Communication skills
    Strong communication skills are crucial to understanding the customer’s goals and requirements. With proper communication skills and knowledge about the project, a software development company can carefully design and develop software that can bring value to its business.  Communicating with clients from time to time is essential for a long-term relationship with clients. Software development company using enterprise-grade communication tools like Zoom, Skype for Business helps teams connect with clients efficiently.
  • Strong business skills
    Possessing technical and programming language is not enough. A software development company also needs to have strong business skills to uplift ideas and convert them into reality. Checking their background of past projects and references can provide you with a better idea about their experience in the custom software development field.
  • Pricing structure
    Before you sign a contract with any software development company, ensure that they provide you with a clear picture of the costs involved in all phases of the software development. It is better to avoid hiring a company that keeps the costs hidden.

What mistakes do you need to avoid when building a Custom Software?

Though custom software can reduce costs and improve productivity, it has some downsides too. Therefore, before you invest in custom software development, you should know about common pitfalls that need to be avoided.

  • Developing wrong features and unwantedly complex solutions
    When investing in custom software, everyone has hopes for how it can add value to their business. When you think about building software based on your imagination, you might go off the track and waste a lot of money on the wrong functionalities. It is essential to enable the interaction between the product and end-users in the early development stages to avoid expensive mistakes. With a prototype, people get involved in all the stages of the development and it can help convey their vision. Developing a prototype before development can help visualize the actual product and answer questions about features or functionalities.
  • Making important decisions as soon as possible
    Decisions made early in a project can be risky. Early decisions can have unavoidable and crippling consequences during the lifetime of a project. But it does not mean that you don’t have to make decisions at all. Instead, you first need to collect your product’s requirements and decide what should be done to achieve the goal. For example, decisions about features and their development close together can ensure that the required features are delivered and leave less room for changes.
  • Not providing acceptance criteria for each feature
    Acceptance criteria are predefined requirements that must be fulfilled to mark a software development task as successful. It defines the scope, desired results and testing criteria for functionalities that the team works on. Defining all desired outcomes before the development begins helps promote shared understanding. Acceptance criteria should be understandable by developers. Acceptance criteria should provide a user perspective and it should be concise and clear.

We are designing, building and deploying enterprise-grade custom software programs for more than a decade. To deliver scalable and robust custom software development solutions to our clientele, we always stay updated with the latest technology trends, be it SaaS, IoT, AI, blockchain, cloud, mobile or web. Our development team characterizes all the key qualities – experience & tech skills, communication skills and strong business skills.  

Define goals and requirements

Once you have decided that you want to get a custom software application developed, our team would brainstorm and evaluate your business requirements and identify specific goals. The team will conduct thorough research on what’s best for your businesses and what your competitors are doing. Your needs and goals will be gathered in the Software Requirements Specifications (SRS) document.

Select a development methodology

Since software development projects are so complicated, it is essential to identify a specific software development methodology. Following the trend and technology-relevance, our software developers nowadays mostly use an agile development methodology to build and manage custom enterprise applications. The agile technology permits continuous improvements to the software in development.

Complete documentation

Documentation is crucial for all stages of implementation and development since it defines what you currently have and what you need. Documentation for software can be project plan, requirement specifications, Low-Level and High-Level Design, test reports, test plans, user documentation and status reports. All these documents help track a project’s status and maintain the understanding of the software. Documentation also serves as a reference to be used in the future in scenarios where the software needs to be upgraded, but the original development team is not available. Any new developer can refer to the documentation and would quickly grasp the anatomy of the software.

Code simplicity

Max Kanat-Alexander, a developer at Google and Community, Lead and Release Manager of the Bugzilla project, introduced code simplicity to eliminate unwanted complexity in software development. Using code simplicity along with other software development principles, we design and develop robust and quality software for our clients.

Continuous end-to-end testing

Our Test-Driven Development gives us more confidence in terms of code quality. Before implementing the new software across your entire business workflow, we make sure to test it carefully. We never deliver software, assuming that the software will not have any bugs after just one round of testing. We perform multi-layer testing across every step of the development and delivery process.

Code coherence

Working in a team requires having a consistent style for the codebase. We use the most upgraded and industry-acclaimed tools to enforce a consistent style within the codebase. For example, Editorconfig, JSCS and ESLint.

Time and budget estimation

We believe that Planning budget and timeline before the development phase are the best practices of building custom software successfully. A realistic budget can save your software project from facing extreme pressure. With agile methodology, the scope can expand quickly as the project progresses, but an estimate that is completely off the track can create problems in results and quality. We maintain complete transparency with clients in creating the budget estimates. We use smart and automated tools to draft the software development project estimates with the maximum possible accuracy.

Code reviews

Our team of quality test engineers reviews the codes thoroughly to ensure good code quality. Code reviews help reduce bugs in the software and, therefore, results in successful custom software.

With these practices, we always succeed in building a scalable and robust custom software application.



Custom Software Development has numerous benefits. With increasingly specialized companies and complicated internal systems, custom software has become a necessity for most businesses. Custom does not mean “expensive.” Leveraging the existing solution and customizing it with new features can help you gain multiple customization benefits without enormous cost.

If you are looking for a team of experts to develop custom software for your business, consult our custom software development experts who have the potential to build custom software using emerging technologies, including IoT, AI, Blockchain, Web and Mobile. 

Author’s Bio


Akash Takyar

Akash Takyar
CEO LeewayHertz
Akash Takyar is the founder and CEO at LeewayHertz. The experience of building over 100+ platforms for startups and enterprises allows Akash to rapidly architect and design solutions that are scalable and beautiful.
Akash's ability to build enterprise-grade technology solutions has attracted over 30 Fortune 500 companies, including Siemens, 3M, P&G and Hershey’s.
Akash is an early adopter of new technology, a passionate technology enthusiast, and an investor in AI and IoT startups.

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