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Ali is an IT leader and strategist with 25+ years of experience at IBM, Verizon, Thomson Reuters, and Cognizant. He has led global teams, building and scaling multibillion-dollar annual growth. As a turnaround and strategic growth expert, he has jump-started innovation, grown revenue, and improved productivity. He has worked across verticals and across a wide range of technologies including AI/ML, cloud, ERP, CRM, ITSM, cybersecurity, and others.Ali is an IT leader and strategist with 25+ years of experience at IBM, Verizon, Thomson Reuters, and Cognizant. He has led global teams, building and scaling multibillion-dollar annual growth. As a turnaround and strategic growth expert, he has jump-started innovation, grown revenue, and improved productivity.
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Ali is an IT leader and strategist with 25+ years of experience at IBM, Verizon, Thomson Reuters, and Cognizant. He has led global teams, building and scaling multibillion-dollar annual growth. As a turnaround and strategic growth expert, he has jump-started innovation, grown revenue, and improved productivity. He has worked across verticals and across a wide range of technologies including AI/ML, cloud, ERP, CRM, ITSM, cybersecurity, and others.
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Gianluca is a highly versatile front-end and full-stack software engineer. He has helped many companies take an idea and turn it into a product that serves thousands to millions of users. Gianluca built the software that powers Tesla’s scheduling service centers from scratch, and has worked at Big Tech companies, such as Adobe, Starbucks, Snapchat, and T-Mobile. Known for building exceptionally fast and well, he can work on either end of the stack, integrate CI/CD, perform end-to-end testing, and more.
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A seasoned front-end engineer, Sergei Garcia boasts more than a decade of impact. Notably, he orchestrated a dynamic overhaul at Typing.com through a 2.5-year front-end refactoring to React, revolutionizing UX for its 35+ million users. He is celebrated for creating high-performance applications with exemplary UX, and his empathetic leadership and zest for continual growth establish him as more than a tech maestro. He’s also an exceptional mentor who elevates every team he joins to new heights.
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With more than 22 years of experience, Jongwook develops simple and robust software that delivers value to customers. Jongwook believes that showing the client working software first and evolving the product together is important to the development process, so he welcomes changing requirements. Jongwook enjoys problem-solving and communicating with motivated individuals.
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Dolly is a QA engineer with more than 11 years of experience in a range of industries, including real estate, travel, finance, and aviation. She has created multiple testing frameworks from the ground up using Selenium, TestNG, Cucumber, and Cypress, and has automated QA processes. Dolly manages test execution not only from the technical point of view but also from the customer’s, as she believes product usability is as vital as functionality.
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Get a Free Consultation NowKevin specializes in PostgreSQL, JavaScript/TypeScript, Node.js, Perl, and Haxe, among many other programming technologies he's explored and used professionally since grade school. Primarily a lead desktop and full-stack developer, he enjoys project management, back-end technologies, and game development. With more than 20 years of remote work experience, Kevin excels both independently and as part of a team. Notably, he is a Pluralsight author and ranks in the top 2% on Stack Overflow.
Industry giants like McDonald’s, Unilever, and Netflix leverage custom software to increase profits and streamline workflows. The global market for custom software development is nearly $45 billion and is expected to top $105 billion by 2028. However, commercial off-the-shelf (COTS) software is still the default solution for many businesses due to its predictable costs and often straightforward implementation. That said, as a company grows, ready-made software requires increasingly complicated workarounds and customizations, which can push the total cost and effort higher. So, while creating a custom software solution may seem daunting, the business advantages can make it well worth the investment for many organizations.
This guide lays out the business applications and pros and cons of custom software, as well as an overview of the custom software development process that includes best practices, common technology stacks, and the roles that make up a typical development team.
The following topics will be covered:
Custom software application development involves hiring software developers to create a software product tailored to your business and responsive to its needs, as opposed to purchasing or licensing a commercial application that’s also available to your competitors. During the planning stages of your project, it pays to be familiar with the development team structure, to understand the criteria for selecting a development partner, and to perform a final cost-benefit analysis.
Regardless of team size, there are numerous roles and responsibilities to cover. With a few rare exceptions (namely, not needing database administration for apps with no centralized data storage, and not needing UI/UX design for pure automation apps that users never interact with directly), the following are generally required for any software project:
Some roles on a development team require a less technical background:
An SMB may risk the “bus factor” and hire a single person to cover all of these roles, but enterprise software development teams often have multiple professionals (or entire subteams) in each role, depending on the project.
With so many facets to manage, factors to consider, and tech choices to make when building software from the ground up, it’s crucial to partner with a reliable custom software company. To do that, you’ll need to define a budget and map out your business goals and project priorities. You’ll then need to inventory any preexisting resources, specific technical needs, and team dynamics that may impact hiring. Given the scope of your project, which responsibilities require dedicated talent, and which would be better covered by a hybrid role?
Once you have a clear idea of what an appropriate software development team will look like for your project, it’s time to evaluate potential development partners within your network. Clear communication and a proven, lengthy track record are the top priorities. Check for client testimonials, project approaches, and industry experience that align with your business needs. Verify their technical expertise in established and emerging technologies relevant to your project so you can be confident in the competitive edge they’ll help you achieve.
Suppose your company lacks familiarity or confidence in carrying out any of the above steps. In such a case, the next step is to find a trustworthy software development consultant—the closer to your industry, the better—to help you navigate the market in greater depth. Their knowledge of typical project roles and dynamics can help you plan who to hire from the outset and which roles are best deferred to hourly specialists.
Established wisdom says to lean toward custom software design when your business starts to encounter inefficient processes or suboptimal performance resulting from the limitations of COTS or FOSS solutions. These could be in the form of manual processes that take significant resources to accomplish, data silos that are a burden to decision-makers, or sluggish software that’s operating beyond its architectural limits.
If your business has distinctive needs that off-the-shelf software doesn’t fulfill particularly well, it’s time to seriously consider custom software product development. A custom software project often carries up-front costs beyond development itself, including on-premises hardware or cloud usage fees, software component and platform licenses, training costs, and potential downtime during the initial rollout. However, these initial investments in innovative solutions can bring a wide range of long-term financial benefits, both cumulative and noncumulative, by increasing the efficiency of business processes, creating unique competitive advantages, and leaving your business more agile.
Custom software applications have long helped businesses reach their full potential. But in today’s economy, custom software is increasingly important for companies looking to create and maintain a competitive edge.
Programming languages, libraries, frameworks, databases, operating systems, servers, APIs, cloud services, etc.—with dozens of relevant technologies in each category and endless ways of combining them for a given project, how do companies make sensible tech stack choices for their custom software projects?
For starters, companies don’t always make what are sensible decisions in hindsight, and not for lack of effort or due diligence. It’s hard to predict the evolution of advanced technology and whether it will align well with the goals of a given project—not to mention the evolution of the project itself. And, of course, because it’s custom software, no two projects will be exactly alike.
The good news is that many popular technologies are quite general purpose and can be made to scale for most projects in most industries. Though trends toward a particular programming language (or other tech stack choice) may exist in a given industry, it’s usually circumstantial. The context of the project and the essence of its goals are usually much more relevant in determining its tech stack than the industry a company is part of. Some of the relevant programming languages, frameworks, and technologies include:
For many other technological decisions beyond which programming language to use, it is still the case that an individual project and its goals are more relevant than the industry to which it belongs. Perhaps equally important is that a tech stack’s proponent can stand behind it throughout project development. Nevertheless, there are paradigm shifts in software development which, if embraced in a given project, can completely change its direction and relevant tech stack options:
When creating tailored solutions for companies of any size, relying on a broad spectrum of technologies is fundamental to success. For example, a regional chain of yoga studios’ custom software might feature a booking and scheduling system that uses Angular and the Google Calendar API and/or an attendance tracking system built on MySQL. Walmart uses a range of programming languages, including JavaScript, Clojure, and Java, to build its applications, in addition to various types of software development tools like Node.js, React.js, and the React Native framework for custom mobile app development.
Best practices for custom software development apply as soon as the requirements gathering phase begins. Clear, robust, and accessible documentation of goals, responsibilities, and processes is essential. As a foundational source of truth, such documentation plays a significant role in preventing fruitless design and scope creep (of both product features and individual contributors’ responsibilities). The latter can be an especially tricky pitfall for organizations new to custom software development because the difference between major and minor changes to documentation can be far from obvious.
Since a project’s documentation will be referenced continually by all relevant stakeholders, including developers, it’s advisable to agree from the outset that any change to the documentation will trigger a corresponding review of the project’s roadmap to see what adjustments need to be made to its timeline or budget. Another best practice is to provide transparency at the project management level by allowing full stakeholder visibility through tools like Jira or Trello.
Before crafting the software’s architecture, consideration must be given to the current size of its target audience and how many users the software may eventually have. While it’s important to keep scalability in mind, take care not to swing too far to the opposite extreme and overengineer in an attempt to account for every possible future use of an app. It’s best to have an expert regularly review the application’s design to verify that it follows best practices for adaptability, such as loose coupling, which promotes code modularity and flexibility.
Be sure to pay attention to user-centeredness during design, as well. Having a user experience design expert weigh in on project plans will keep them grounded in what’s necessary, desirable, and feasible. Consulting an accessibility specialist is vital to ensuring that your digital product accommodates all users, including those who use assistive technology like screen readers and alternative input devices. Depending on the project context, conforming to inclusivity recommendations like the W3C Standards and Web Content Accessibility Guidelines (WCAG) may even be a requirement.
One of the most advantageous best practices when developing custom software is adopting an Agile project management methodology (with or without Scrum or Kanban) instead of a traditional Waterfall methodology. The shorter cycles of Agile software development (called iterations or sprints) usually last between one and four weeks, which allows feedback to be delivered rapidly and taken into account continuously as development progresses. The end of each iteration also offers a natural opportunity for general code reviews and mentorship sessions between senior and junior developers.
Moreover, the end of an iteration provides an efficient window for seeking any necessary guidance from specialists. For example, at this point in development, a team may call on a cybersecurity expert for assistance strategizing the implementation of sensitive features in an upcoming iteration, after which it may consult the expert again to verify that it has complied with best practices during implementation. In another case, a development team might recruit a privacy compliance specialist to ensure its software development process adheres to relevant privacy laws and regulations like the Health Insurance Portability and Accountability Act (HIPAA) and the EU’s GDPR.
Agile software development methodologies and CI/CD pipelines can, and often should, be used in conjunction. In the same spirit as Agile software development, CI/CD pipelines promote iterative development, continuous feedback, and structured collaboration. More specifically, they are a method of automating the testing, integration, and delivery of changes made to a codebase. Adding new code to a repository triggers automated building, unit testing, and deployment to a staging environment for further manual testing—or an automatic rollback of changes if any of these steps should fail. By working in this way, developers on large-scale projects stay privy to each other’s changes, and QA specialists can always test the most up-to-date code, increasing the relevance of their efforts. A key advantage of CI/CD pipelines is that they reduce the risk of major issues going unnoticed by means of frequent releases and continuous testing, all while keeping the software in a deployable state. Because they complement each other so well, a best practice is to integrate both Agile methodologies and CI/CD pipelines in a team’s approach to providing custom software application development services. By doing so, teams can maximize the efficiency, quality, and adaptability of their processes.
There are numerous types of manual and automated testing, each of which yields different benefits for a custom software engineering project. Some of the most effective and broadly applicable types are as follows:
Because custom software testing is so crucial to success, another best practice in this area is to always write tests before writing any code for the software itself. As previously mentioned, three popular ways of doing so—test-driven, behavior-driven, and acceptance test-driven development—ensure that the desired result is determined up front to keep technical efforts focused on achieving it.
Beyond the basics of effective project management, there’s a significant amount of domain-specific knowledge that is imperative for success. It’s not only about what’s possible and practical to develop, but also about how best to develop it.
Because off-the-shelf software is built around many companies’ previous, current, and predicted needs, its design can easily translate into a bloated end product. Custom software engineering, on the other hand, crucially begins with focusing only on what’s best for your business.
Customized software development agencies typically follow this standard process: requirements gathering, planning, design, development, testing, deployment, and maintenance.
Requirements gathering: Requirements gathering is the foremost preliminary step in the process of custom software design and development. At this stage, key stakeholders (e.g., business owners, product and project managers, IT staff, end users, and sometimes external partners) define the scope of the problem. They then provide as much detail as possible about current pain points, focusing solely on the issues, not on any proposed or supposed solutions. Such an approach—when undertaken with a software partner knowledgeable about custom development—ensures a clear understanding of the problem at hand, thereby allowing stakeholders to avoid expensive, ineffective, or inefficient fixes that will later require reworking.
Subsequent steps in the development process hinge directly on the efforts and expertise of software development professionals, who themselves collaborate with additional stakeholders, including design and quality assurance (QA) teams:
Planning: Creating a roadmap with a detailed timeline and budget can only be done realistically with the help of experienced software development product and project managers. Even then, success depends on the accuracy of the requirements list. If the problem scope or agreed-upon solutions shift during the project, the timeline and budget will need to be adjusted accordingly. At this stage, it’s also important to clarify who will own the intellectual property rights to the software.
Design: Specifications for the product’s design must be mapped out in further detail before implementation can begin. A software architect will devise scalable cloud-based or on-premises infrastructure, perhaps with the help of DevOps engineers and cybersecurity specialists. In addition, user interface (UI) designers and user experience (UX) experts will draw mock-ups for each required platform (mobile, web, and/or desktop).
Development: In this phase, custom software developers finally write code according to the design specifications. Software architects, DevOps engineers, cybersecurity specialists, UI designers, and UX experts involved in the previous stage may further collaborate with developers throughout the design’s implementation. Depending on project requirements, still others may be involved—for example, graphic artists to create image assets or technical writers to compile product documentation.
Testing: Manual testing can begin as soon as a testable feature or component has been developed. Strange as it may sound at first, automated testing can start even sooner, as in cases of test-driven development (TDD), behavior-driven development (BDD), and acceptance test-driven development (ATDD), among other approaches. When integrated into the development process, these forms of quality control facilitate the early detection and elimination of bugs. In doing so, they help ensure that software is free of defects before it’s pushed to a live production environment.
Deployment: At this point, the custom software has been thoroughly tested, critical bugs have been fixed, and the necessary support and documentation (including training materials or user guides) are available for end users. Some (or all) of the software is released for practical use in day-to-day operations, backed by a range of services to ensure smooth rollout and comprehensive support.
Maintenance: Even the most well-designed and bug-free software can inspire ideas for further improvement. However, barring any supplemental enhancements, software still needs periodic maintenance to stay compatible with the environment in which it runs. Thankfully, ongoing maintenance costs—especially when no feature additions or bug fixes are required—are typically far less than the initial investment. However, software updates may involve some specialized development, depending on the circumstances. For example, updates to a software’s back end may be more complicated than the initial deployment if there’s a need to make sure that downtime is within acceptable limits.
All custom development projects will follow the above steps in some form. But unless they follow established industry best practices along the way, there’s an increased risk that they’ll have a slower time to market and be more expensive to complete than predicted.
Eschewing an off-the-shelf solution in favor of custom software design can be a boon to business performance. Still, like any decision, it has its pros and cons. First, the benefits:
Despite its many advantages, custom software development may not be the best option for short-term projects where a simple off-the-shelf solution exists and satisfies business requirements.
An organization’s ability to maximize the benefits and moderate the challenges of custom development depends on which development partner it selects. A shoddy custom technology solution from an inexperienced team can easily cause more problems than it solves, both short term and long term, as a business continues to scale. Conversely, a dedicated team of experts will know how to deploy a successful and sustainable solution. They’ll be able to communicate effectively with key stakeholders to translate business objectives into design goals while keeping software development costs appropriately minimal. It’s key to choose a quality development partner with access to top engineering talent, a clear track record of positive client reviews, and adherence to best practices during development.
Beyond weighing the benefits and challenges of custom software development, the choice ultimately depends on your business goals. Suppose your business needs a content management system (CMS) to publish information online. You could pay a software as a service (SaaS) provider to manage a solution, perhaps based on WordPress, a strategy your competitors can use to attain similar results. But if you want a highly specific, efficient, and scalable solution that only your business can benefit from, you could instead partner with expert developers to create your own WordPress-based system that extends the platform’s built-in features and functionality with custom plugins.
Whether your made-to-measure CMS software is ultimately WordPress-based or not, the pivotal fact is that it’s an advantage exclusive to your business.
COTS applications and free and open-source software (FOSS) are built to appeal to a broad range of organizations without concern for a particular company’s business goals or internal processes. Because of this, the capabilities of FOSS and COTS software are generally limited to what its developers believe the majority of customers need. The technical effort required for customization of these programs can be immense, and even then, some limitations may prevent all desired functionality from being implemented. When FOSS and COTS software can no longer be adapted to meet business needs, custom software product development is the only option.
Because ready-made software is often limited in how it can be modified, it can be a stumbling block to keeping up with external requirements such as regulatory compliance, industry standards, and hardware constraints. For example, COTS software not initially designed to handle the privacy requirements mandated by the General Data Protection Regulation (GDPR) may need extensive updates to incorporate features for data anonymization, user consent management, and data portability. Due to the broad functionality and diverse environments that commercial software must support, development time can be lengthy, and the results may not align with your business processes. Custom design and development, on the other hand, allow you to implement such features from the get-go and define precisely what you want your processes to look like. By leveraging these advantages, your organization can focus on business growth and maintain a competitive edge.
FOSS and COTS software certainly have their place, even among the largest enterprises. But the unique advantages of custom software help advance technology, drive digital transformation, and determine market leadership—whether your transformation process involves legacy software modernization, AI-powered app development, or cloud migration to a platform like AWS, Azure, or Google Cloud.
Leaders in a range of industries rely on custom solutions to drive growth and gain a competitive edge.
As several of these examples show, companies that opt for custom software design and development often spearhead innovation and end up reselling the software following its initial success. Other common use cases for tailor-made software include workflow optimization systems for operations management and customer portals, and order management systems for e-commerce stores.
Toptal’s custom software development services are distinguished by our access to a global network of top-tier developers with proven expertise. Unlike traditional software development companies, Toptal offers flexibility with tailored solutions and Agile methodologies that adapt to your needs. Our rigorous vetting process ensures that only the top 3% of developers are selected, providing high-quality talent. Toptal also emphasizes speed and efficiency with rapid project initiation and a client-centric approach, focusing on understanding and aligning with your business goals to provide solutions that fit perfectly.
Custom software development is suitable for your business when you have specific needs that off-the-shelf solutions cannot address adequately. If you require unique functionality, seamless integration with existing systems, or scalability that standard software cannot offer, custom software development provides a solution tailored precisely to your operational requirements.
Custom software offers a competitive edge by providing unique solutions that set your business apart, along with dedicated support and maintenance tailored to your software.
The SDLC is a structured approach to software development that encompasses several key phases. It begins with requirement analysis, where the needs and goals are documented. This is followed by design, where architectural and detailed plans are created. Next, development involves writing and implementing code, while testing ensures the software meets quality standards. And finally, deployment is the release of the software for use, and maintenance involves ongoing support and updates to address issues and enhance functionality.
The cost of custom software development varies depending on factors such as the project’s complexity, the technology stack, the expertise of the development team, and the timeline. Our custom software development services are flexible to your budget, and offer tailored solutions that can provide substantial long-term value and efficiency improvements for your business.
Custom software development companies manage security and quality through a variety of practices. They work with clients to implement security measures tailored to the clients’ risk tolerance and requirements such as encryption, secure coding techniques, and regular security audits. Quality assurance is achieved through rigorous testing phases, including unit tests, integration tests, and user acceptance tests. Additionally, they work with clients to manage clients’ compliance with industry standards and regulations, which can include continuous monitoring and working with clients to make sure that software is updated and patched to address vulnerabilities.
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