Introduction to Custom Software Development


Think back to some twenty years ago, the software development market back then had a completely different scenario compared to what it is now. The major difference that companies find now is the liberty to develop any type of application which in the IT industry is termed as developing custom software applications based on the desired technology stack, required skill-sets, expertise, and development methodologies. To stay relevant, businesses nowadays are readily accepting changing trends of the digital market and software development companies are aid to it. A custom software development company can help businesses to exploit the maximum potential of custom software at their fingertips. For businesses looking for custom software development, this blog is a comprehensive guide to know the nitty-gritty of custom software development and will help you understand different phases of software development like requirements gathering, actual development, deployment and maintenance. In addition, this blog will also provide information on how to identify the right custom company, how to communicate with the development team, what aspects are to be taken care of while understanding the software development process. Also, we will take you through an insightful understanding of how vital NDA is, its needs and a comprehensive take on how to safeguard your IP rights, why project agreements are important and similar other information.
For businesses, might have a different outlook towards developing a custom software application or would rather prefer to buy off-the-shelf applications for their day to day business processes. But if you are looking for a custom application for your business, this blog will enlighten your thoughts on custom software development services by showing some valid points of custom software development and a completely different perspective. Not all businesses find custom software development suitable for their processes and scenarios against ready-made products. So this comprehensive guide will help you to choose the best tailor-fit company for your software applications and the deciding factors on whether you should go for it or not. Let’s start with the basics.

Custom Software Development: Benefits

Higher efficiency

Customized software apps are specifically designed to meet business needs that can smoothen the haywire business process. Since the applications are already programmed the way business functions, they know their jobs and hence the businesses can achieve better productivity, efficiency and a competitive edge against their peers.

Faster Adoption

The developed custom application has tailored business solutions and features and so organization-wide adoption is faster and training time and cost is comparatively less. The organization implementing the custom-developed software solution doesn’t need to change the way of working according to the software but the software solution is developed according to the way they work.

Unlimited Customization

Businesses are free to develop whatever they want using the potency of custom software development. Custom apps provide unlimited customization facilities and various other benefits against limited customization options when compared to off-the-shelf products.

Better Integration

Application up-gradation or modernization with the development of custom apps strongly binds the existing IT infrastructure and integrates seamlessly with other applications and programs with minimal cost and time investments.

Data Access

Access to data through the developed application is complex, especially when the application is ready-made and doesn’t allow customization. While on the other hand, if we use custom applications, access rights can be easily managed from scratch at granular levels.


Customized applications are considered the most stable and flexible applications. With the growth of the organization, custom apps grow equally by incorporating the latest features and enhancing the processes. In turn, if customized applications are developed suitably gives longer life and offers software scalability.


It’s possible for businesses to earn from custom app development. Depending on the terms and conditions of the customized project, businesses can license or sell their customized apps to other organizations and get large margins of profit based on how demanding their application demand is and how much the market needs.


Custom apps have certain intellectual rights that need to be adhered to by businesses before the development process is initiated. An organization that pays to custom software development firms for creating applications has full rights on IP, source code, patents, copyrights or trademarks. So, if they wish to resale the application for profit or business demands they can.

Vendor Independence

An organization that pays for custom app development owns all the rights and at any time they can shift their development from one custom software development agency to another. So they are not locked to a particular vendor. Vendors can never take advantage of software development platforms that organizations pay hefty costs.

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Why to Outsource Software Development Project?

Your business goals are set free to achieve multiple success stones as they could. To accomplish those objectives, businesses follow a growth path and achieve these goals by developing apps to streamline their processes.

Access to the latest technology

Expert software outsourcing companies are continuously striving with challenging projects by offering advanced technology solutions to their clients of all sizes and domains. Business no longer has to invest hefty infrastructural costs or pay for training and hiring new employees on the latest technology. Custom software development companies provide an exclusive set of resources with a knack for technology expertise to develop software that functions seamlessly.

Talent Management

Once the business has outsourced its project to a software development company, they have access to special talents who are proficient and experienced in enterprise application development. This reduces the cost of recruitment and knowledge management of an enterprise. Enterprise can focus more on core business and leaves their digital transformation journey into expert hands.

Domain Expertise

Software development companies work with a multitude of customers across various industry vertices like healthcare, education, financial & banking, etc. Hence these skilled custom software developers have exposure to a myriad of technology stack and processes to help them follow industry best practices for any technical work they do. If you are looking for mobile app development, user experience skills become critical. Because customer buying behavior is heavily dependent on product experience.

Core Business Competencies

Developing a custom software application with great user experience is definitely the need of the hour but not all businesses are able to reap benefits from it. Instead, businesses face a massive loss while experimenting with the technology. So custom software development outsourcing can help businesses focus on core competencies without facing loss.

Lower cost

Custom software development companies offer a flexible team of resources that can be increased or decreased as per the requirements in the projects. The payment to the dedicated development team can be offered based on the specified number of developers engaged during the payment period.

Expert’s Perspective

The holistic experience of catering to different industries, domains, regions and technology has made them specialized in customized software development services bringing global experience and standards in their footsteps.

How to Choose Right Vendor for Custom Software Services?


The location of the custom software development service company is an essential factor for businesses to choose a provider.

Freelancers vs software development companies

A price difference is an essential factor that brings businesses to a freelancer rather than specialized software developers from renowned development companies.

Size of the company

Most of the giants in the technology industry deal with large size companies doing multi-million dollar projects.

Performance history of the company

Three questions are mandatory to ask while you decide to outsource your software development project. Does the custom software development company have experience in executing projects of your size?

Domain Expertise

Looking at the holistic experience of business and the domains they serve justifies the complexity of projects they have developed in the past and their specific knowledge.

Technical Expertise

The level of proficiency should be validated based on the technical knowledge and skills of the bespoke software development company.

Development Process

Every custom software development company doesn’t operate similarly as each one has a unique business process.


Decisions can be taken based on references- either from past experience of some known company or through references of other businesses

Security and IP policies

Data breach, security, or IP issues are some of the common issues of why businesses are reluctant to outsource software development.

Recruitment Policies

The next important factor is to consider the recruitment policies of custom software development companies.

Support and Maintenance

To keep the application up and running, it is essential for the business to avail of support and maintenance services from outsourcing companies.

Vendor finance Records

While considering hiring custom software development services, keep the finance aspect extremely clear.


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Provisions that can be included in your
Project Agreements as a precautionary move

Scope of the project

In general, the scope of work includes everything from technical system designs, development tools, methodology, or the systems required to complete the project.

Payment Terms

Depending on the scope of the project and the payment feasibility of the client the terms and conditions are decided.

Intellectual property rights

Intellectual property rights of projects include the right to a patent, trade-marks, copyrights, topography rights, data extraction from database rights.

Penalty terms

For any case wherein the performance of the application is not met or there is a data breach occurrence, businesses must be prepared with a penalty payable amount for this damage.


Many times customers have to disclose business secrets to the custom software development company while providing business requirements.

Data Protection

A business may have collected lots of data over time which may include personal information also like name, address, email ID, phone number, etc.

Law and Arbitration

Customers have started including a clause of arbitration in every software development contract created nowadays.

Limitation of liability

This clause is a provision in an SLA (service level agreement) that indicates the amount and type of damage that each party will be obliged to other businesses in different circumstances.

Employee Solicitation

If the recipient has significant access to the developers of your company and you may want to include a clause regarding the same.

Authority in case of disputes

In case of any conflict between the parties then businesses should be aware of the fact that the case will be operated in the judiciary.


You can protect the business from breaching the agreement by adding a clause that gives you the right to injunctive relief.


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