Categories: Business

Advantages and Disadvantages of Off-the-Shelf Software

An average business uses a wide variety of programs to maintain successful operations. For smaller companies, the majority of this software comes from the shelf.

Off-the-shelf software is a ready-to-use program that you can purchase from a developer. It can have a number of useful features for your company’s needs.

However, unlike custom software, these applications may not fit your business requirements perfectly. They can have a high learning curve and a big number of options you may never need.

Let’s take a closer look at the pros and cons of off-the-shelf software.

Advantages of Off-the-Shelf Software

Off-the-shelf software is readily available for purchase. Once you decide that you need an app with certain functionality, you can buy it within minutes. Other benefits of using this type of software for your business needs include:

Low Costs

If you compare off-the-shelf software to custom-made software, the difference in price can be dramatic. Since the developers design one program for many companies instead of an app that focuses on unique needs, they charge a lower price.

Due to its reasonable costs, off-the-shelf software becomes the software of choice for startups and small businesses with limited budgets.

However, it’s worth noting that the ROI of off-the-shelf software is often lower than the ROI of custom programs. Even if you consider in-house vs. outsourcing software development, the benefits of custom software compensate for the costs. 

Eventually, your team may spend more money and effort trying to get the most out of the off-the-shelf software. Most likely, you would need to buy several apps to achieve the same goal one custom app would.

Variety

When it comes to off-the-shelf software, it’s easy to find a wide variety of options. From content management systems to payroll processing software, you can find apps from different manufacturers.

Depending on the other programs you use and the number of features you need, you can choose a suitable program. The downside of this variety is that the choice is often hard to make. You may need to do extensive research to find a program that delivers the highest ROI for your business.

Multifaceted Support

Since off-the-shelf software has many users, you don’t just get an impressive amount of documentation. You gain access to forums and get an opportunity to ask questions in real-time. While such support isn’t professional, the sheer number of users who are available to answer your questions can make it worthwhile.

In some cases, off-the-shelf programs come with a support feature. You may be able to take advantage of professional support for free or get personalized support by paying extra. For a fee, some developers may be willing to answer your questions directly.

Numerous Features

Since off-the-shelf software is designed for a large number of users, it can have a wide variety of features. This can be both an advantage and a disadvantage. As your company grows and scales, you could find that you can use the extra features that the software comes with.

Meanwhile, ignoring or turning off features you don’t need can be problematic and increase the learning curve. In fact, 45% of software features are never used and carry no value.

Disadvantages of Off-the-Shelf Software

While off-the-shelf software can be an excellent solution for startups, many companies eventually choose custom software. Here are a few reasons why off-the-shelf software may not be the right choice for your business.

Lack of Flexibility

Off-the-shelf software isn’t flexible. It’s designed to perform a pre-set number of functions. While it may have a wide variety of features, they may not be applicable if your company starts growing.

In most cases, as soon as the company begins to grow or some of its needs change, it has to invest in new off-the-shelf software.

In the long run, such a lack of flexibility translates into higher costs. What may have been an advantage in the beginning, could turn into a significant disadvantage.

Integration

When you buy a new program, you need to make sure it integrates with the rest of your solutions. This isn’t always easy to achieve. The integration issue narrows the choice of off-the-shelf programs you can buy and extends the search process.

If the software doesn’t integrate smoothly, you could end up adding more manual tasks to your employees’ responsibilities. Meanwhile, not all operating systems and devices may support the software you choose. This leads to errors and additional expenses.

Poor Support

While some off-the-shelf programs come with technical support options, in most cases, this support is extremely generic. It may take hours or even days to get personalized attention from the developer. This could cause significant downtime.

To receive top-notch support, you would likely need to pay extra. Since a company has hundreds of apps, paying to support each one of them can be taxing.

In addition, you never know when the developer decides to stop supporting the program you use. Once the upgrades stop, you lose the opportunity to use the program and have to invest in a new app.

Learning Curve

Not all off-the-shelf programs have a low learning curve. Each time you buy new software, you need to spend time teaching your staff how to use it. This could result in errors and downtime.

Is Off-the-Shelf Software Right for My Business?

Off-the-shelf software can be a useful option for companies with low IT budgets. This is usually true for startups. However, as the business begins to grow, off-the-shelf programs can turn into a problem that wastes time and money.

Businesses that need flexibility, excellent support, and growth potential can benefit from exploring custom software development options. 

Ethan

Ethan is the founder, owner, and CEO of EntrepreneursBreak, a leading online resource for entrepreneurs and small business owners. With over a decade of experience in business and entrepreneurship, Ethan is passionate about helping others achieve their goals and reach their full potential.

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