Industry

Custom apps vs off-the-shelf apps: Which is better?

Oct 15, 2024

2024 is here and as we move into 2025 many businesses face critical decisions when choosing software solutions that can enhance their operations, streamline processes, and support growth. One such choice is between custom-built apps and off-the-shelf apps. Choosing a App development partner or hiring software developer and going solo is a difficult decision. The right decision can have a profound impact on efficiency, customer engagement, and long-term success.

This article delves into the key differences between bespoke mobile apps and off-the-shelf apps, offering insights into which option is better suited for various business needs. To add depth, real-world examples and practical considerations are integrated throughout the discussion.

What are custom apps?

Custom mobile app development, often utilising frameworks like React Native, is the process of creating software specifically designed to meet the unique requirements of a business. Custom apps are tailored to align with particular business objectives, workflows, and challenges, offering a highly personalised approach to app development. React Native, a popular open-source framework developed by Facebook, enables businesses to develop high-performance apps that work across multiple platforms—iOS and Android—using a single codebase. This significantly reduces development time and costs while maintaining the bespoke nature of custom software.

React Native is particularly valuable in custom software development because it allows developers to build mobile apps that offer a seamless user experience, similar to native apps, without needing to write separate code for different operating systems. By working closely with a mobile app development company or a dedicated development team, businesses can ensure that the product is tailored to their exact specifications, delivering a custom app that not only meets their specific needs but also benefits from the efficiency and flexibility of cross-platform development.

For instance, consider a global retail company like Walmart, which requires a custom-built mobile app to manage its vast inventory systems, track customer preferences, and optimise supply chain logistics. By leveraging React Native for its mobile app development, Walmart could create a powerful, scalable app that works across different platforms, ensuring uniform functionality for both iOS and Android users. React Native’s ability to integrate with existing internal systems and third-party APIs ensures that the app fits perfectly into Walmart’s complex operational infrastructure, offering real-time updates, tracking, and system-wide efficiencies. This approach provides all the advantages of custom software, while also optimising the development process, reducing time to market, and enabling the flexibility to scale or modify the app as the company’s needs evolve.

What are off-the-shelf apps?

On the other hand, off-the-shelf apps, also known as off-the-shelf software or off-the-shelf solutions, are pre-built software applications designed for a broad range of users. These commercial software solutions come with a standard set of features and are readily available for deployment without requiring significant customisation. Examples of popular off-the-shelf applications include Microsoft Office, Salesforce, and QuickBooks.

These applications are widely used because they are cost-effective, can be quickly implemented, and offer scalability for businesses that do not need highly specialised features. For example, a small e-commerce company looking to manage its accounting processes might opt for QuickBooks, a robust off-the-shelf solution that caters to most of their needs, rather than investing in a custom-built app with bespoke accounting features.

Key differences between custom and off-the-shelf apps

1. Customisation

Customization is perhaps the most significant difference between custom apps and off-the-shelf apps. Custom apps are designed specifically for the unique business challenges of a company. Every feature is tailored to meet specific business processes and requirements, offering a high degree of personalisation. For instance, a custom mobile app developed for a logistics company can include specialised features such as real-time GPS tracking, automated invoicing, and route optimisation to streamline its delivery services.

In contrast, off-the-shelf software provides a generic solution with limited customisation options. While these apps are functional for general use cases, they may not address niche requirements. As a result, businesses may have to adapt their processes to fit the app’s features rather than having an app that adapts to their processes.

2. Cost

Custom apps generally come with a larger initial investment compared to off-the-shelf apps. Developing bespoke software requires extensive collaboration with a mobile app development company, coding from scratch, quality assurance testing, and ongoing maintenance. While the upfront costs are higher, businesses have complete ownership of the source code and can modify the app as needed over time.

Off-the-shelf solutions, by contrast, are more affordable upfront. Since these apps are built for mass-market use, app development costs are spread across many users. Businesses pay for licenses or subscription fees and can start using the software immediately. However, the cost of ongoing customization or scaling the solution to meet growing business needs can sometimes outweigh the initial savings.

For instance, a startup might begin using Salesforce—a widely used off-the-shelf customer relationship management (CRM) system—because it offers a cost-effective and quick-to-deploy solution. However, as the business grows, they might face additional costs for premium features, customisation, or scaling the solution to handle increased volumes of data and customer interactions.

3. Deployment time

Deployment time is another crucial factor to consider. Off-the-shelf apps provide an instant solution for businesses that need to get up and running quickly. Since these apps are pre-built, they require minimal setup and can be implemented within days or weeks, depending on the complexity of the system.

Custom apps, on the other hand, require a longer development process. Depending on the app’s complexity, the design, development, testing, and deployment phases can take several months. However, the end result is a fully customised app designed specifically for the company’s needs.

An example of this is Uber. When the company first launched, it needed a custom mobile app to handle ride bookings, driver management, and payment processing. Building such an app required a significant investment of time, but it was essential for providing the unique features and real-time functionality that Uber required to differentiate itself from competitors.

4. Ownership and control

When businesses opt for a custom app, they have complete ownership of the software. This means they have full control over the app’s features, updates, and source code. They can modify the app as needed to adapt to new business needs or technological advancements.

In contrast, with off-the-shelf apps, businesses are dependent on the vendor for updates and feature enhancements. They do not own the source code and must adhere to the vendor’s product roadmap. This can be limiting for businesses that need to innovate or adjust quickly to market changes.

For example, a company using Shopify, an off-the-shelf e-commerce platform, must wait for Shopify’s updates and new features. If the platform doesn’t provide a needed functionality, the business may have to either build a custom solution or find third-party plugins to fill the gap.

5. Scalability

Custom apps are highly scalable. Since they are built specifically for a business’s current and future needs, they can easily be adapted or expanded as the company grows. Businesses that anticipate rapid growth or expect their needs to evolve over time often prefer custom solutions because of this scalability.

Off-the-shelf apps may not offer the same level of flexibility. While many commercial software products provide scalable options, they may not be able to handle complex business objectives or unique business processes without requiring extensive customization or additional costs.

A notable example of scalability in custom apps is Amazon. The company’s custom-built logistics software and mobile apps enable it to scale operations globally, handling millions of transactions and deliveries daily. Off-the-shelf solutions would not have been able to manage the scale and complexity required for Amazon’s operations.

Advantages of custom apps

1. Competitive edge

Custom apps give businesses a competitive edge by addressing unique business needs and challenges. Because they are designed to meet specific business objectives, they can deliver more precise, efficient, and innovative solutions than off-the-shelf software. This can be a critical advantage in industries where differentiation is key.

2. Integration with existing systems

Custom apps can be seamlessly integrated with existing internal systems, enhancing departmental collaboration and improving overall efficiency. By creating a unified platform, businesses can streamline workflows, reduce redundancies, and ensure smooth data flow between various systems.

3. Data security

Custom-built apps offer greater control over data security. Businesses can implement robust security protocols tailored to their industry’s standards, ensuring that sensitive information is protected from potential breaches. In industries like healthcare or finance, where data security is paramount, custom solutions offer a level of protection that off-the-shelf products may not match.

4. Future flexibility

Custom apps can be designed with future business growth in mind. They provide the flexibility to scale, add new features, or adapt to changes in technology and market demands. As a result, businesses do not have to worry about outgrowing their software or facing limitations as their operations expand.

Benefits of off-the-shelf apps

1. Instant deployment

For businesses that need a quick solution, off-the-shelf apps are ideal. They are readily available and can be deployed with minimal setup time. This is especially useful for startups or small businesses that need to get operational quickly.

2. Cost-effective

Off-the-shelf apps are generally more affordable than custom solutions. Businesses can start using the software immediately without the need for a significant upfront investment. This makes them a practical choice for companies with limited budgets.

3. Proven reliability

Many off-the-shelf apps have been tested and proven across various industries. They come with a large user base and extensive documentation, making them reliable and well-supported. Companies can benefit from regular updates and community support, ensuring that the software remains up-to-date and functional.

4. Broad functionality

Off-the-shelf solutions often come with a wide range of standard features that can meet the needs of most businesses. These features are designed to cater to a broad audience, making the software versatile and capable of handling a variety of tasks.

Limitations of custom apps

1. High initial investment

The cost of custom development can be prohibitive for small businesses. Custom apps require significant time and resources to build, which may not be feasible for companies with limited budgets.

2. Longer development time

Custom apps take longer to develop compared to off-the-shelf solutions. Businesses must be prepared to invest time in the development process, from defining requirements to testing and deployment.

3. Ongoing maintenance

Once a custom app is built, it requires ongoing maintenance and updates to keep it functioning optimally. This adds to the overall cost of ownership, as businesses must allocate resources for long-term support and updates.

Limitations of off-the-shelf apps

1. Limited customisation

Off-the-shelf apps may not fully meet a business’s specific needs, especially if the company requires unique features or integrations. Businesses may have to compromise or find workarounds to fit their processes into the app’s limitations.

2. Vendor dependency

Businesses using off-the-shelf solutions are dependent on the vendor for updates and new features. This can be frustrating if the software does not evolve quickly enough to meet changing business needs.

3. Scalability concerns

While many off-the-shelf solutions offer scalability, they may not be able to accommodate rapid growth or complex business objectives. Businesses that outgrow their off-the-shelf app may need to transition to a custom solution, leading to additional costs and disruption.

Real-world case studies

Case study 1: Custom app for Starbucks

Starbucks is a global coffeehouse chain that needed a custom mobile app to streamline its ordering process, enhance customer loyalty, and drive engagement. The Starbucks mobile app allows customers to place orders, make payments, and collect rewards seamlessly. The app’s custom features, such as order customisation and location-based services, provide a personalized experience that off-the-shelf apps could not offer. This investment in a custom solution has contributed to Starbucks’ success in mobile ordering and customer retention.

Case study 2: Off-the-shelf app for small businesses

A small marketing agency might use Trello, an off-the-shelf project management app, to manage client tasks, timelines, and workflows. Trello’s ease of use, flexibility, and low cost make it a practical solution for businesses that need basic project management features. While the app may not have all the advanced functionality of a custom-built solution, it offers enough tools to help the agency manage its projects efficiently.

How to choose the right solution

When deciding between custom apps and off-the-shelf apps, businesses must consider several factors:

  • Business requirements: Does your business need a highly tailored solution, or can an off-the-shelf app meet your needs?
  • Budget: How much are you willing to invest upfront, and can you afford the ongoing costs of a custom solution?
  • Time constraints: Do you need an instant solution, or can you afford to wait for a custom app to be developed?
  • Long-term goals: Will the app need to scale and evolve with your business, or are you looking for a more short-term solution?

Consulting with a mobile app development company can help businesses assess their specific needs and determine whether a custom solution or off-the-shelf app is the better fit.

Conclusion

The choice between custom apps and off-the-shelf apps depends on a variety of factors, including business needs, budget, and long-term goals. Custom apps offer a tailored solution that can provide a competitive edge, especially for businesses with unique challenges or complex processes. Off-the-shelf apps, on the other hand, are cost-effective, easy to deploy, and sufficient for many standard business operations.