(Last Updated On: January 5, 2024)

There are several different ways in which you can build and use a software application, two of the most common being open-source software and custom software. Depending on your business needs and objectives, it is important to pick the right software to streamline your processes. 

So, which of the two alternatives is better for your organization?

Let’s start the open-source software vs custom software discussion by defining the two types and approaches.

What Is Open-source Software?

Open-source software is a type of software application that is openly available to the public. An open-source software’s copyright holder (the key developer) holds a license to grant multiple users the right to use the platform and configure it to some extent.

Open-source software is not designed according to your business. It is built with a generic approach, keeping the broad needs of users in mind. A lot of open-source software solutions are designed for different professionals, making their tasks more manageable. 

Here are some of the most common examples of open-source software:

  • Email marketing software
  • Task management software
  • Social media management/scheduling software
  • Project management software
  • Online messaging software
  • Search engine optimization tools
  • Accounting software
  • E-signature software
  • Document management software

What Is Custom Software?

As opposed to open-source software, custom software is a software solution designed specifically for an organization. Custom software development services involve designing, developing, deploying, and maintaining a software solution built just for your business.

Custom software developers build tools that add features that are unique for their clients. They have more freedom to modify the code during and after the software is developed based on your specific business needs. A custom software application represents your brand and helps the end users associate the app with your services. 

What Are The Benefits Of Open-source Software?

Let us now have a look at some major benefits of open-source software:

It Is Free

Arguably the biggest reason why open-source software applications are preferred by SMEs is that it is free of cost. If you are starting out and want to handle simple business processes, you can rely on an open-source software solution to prevent spending a fortune on software development.

However, an open-source software application may require you to spend money on advanced tools, features, and add-ons once you start using the solution. 

Tried And Tested

Another major benefit of an open-source software solution is that it is already tried and tested multiple times. Here, the applications’ functionalities remain more or less the same. As the end users are already aware of the software’s quality, there is a sense of assurance while implementing the solution. 

Scope For Improvement

Open-source software applications are constantly improving and evolving due to public access to their source codes. Software developers around the world can add to the existing codes to improve the software’s functionality according to their specific business needs. 

No Need To Worry About Technical Issues

When you implement an open-source software application, your role is only that of a user. As you are not responsible for developing the software application, you do not need to worry about technical issues, bug fixes, and troubleshooting problems arising from the application. 

Moreover, several skilled service providers offer round-the-clock support and maintenance services for open-source applications. Whenever you encounter an issue, you can get it remediated by contacting the support teams immediately.

Now, what is the main advantage of custom software?

What Are The Benefits Of Custom Software?

There are several benefits of building a custom software application, some of which are as follows:

High Flexibility

The biggest benefit of custom software development is that it provides you with unmatched flexibility. As you play the role of a developer and a user, you have greater control over your application. Depending on your business needs, you can alter the software’s functionality anytime. This helps you tackle challenges and overcome hurdles throughout the development project hassle-free.  The best EHS software solutions are usually those that allow for customization. As your business grows, the software can be easily modified and updated to cater to your changing needs.

Building A Unique Brand Identity

A custom software application is unique to your business and represents your brand in the market. It helps you build your unique brand identity in the market and stand out from the clutter. When your brand is easily identifiable by your customers, it leads to more conversions and traction. 

Healthy Customer Relations

Custom software development company helps you design and develop applications precisely according to your customers’ needs and preferences. It lets you add tools that are best suited for your customers and eliminate anything that is not important to them. This helps you build strong customer relations and create a base of loyal clients who trust your business over your competitors.

High Scalability

As you have complete control over the code and software development, custom software solutions are more scalable. They let you scale your application up to accommodate more traffic and handle more data. On the other hand, you can scale your application down to limit its operations. This adds to the flexible nature of your software application.

Improved ROI

One of the biggest criticisms of custom software is that it is expensive. While it does cost more than implementing an open-source solution, it is important to understand that it also increases your ROI. Custom software development allows you to hand-pick the best features and tools for your application. It helps you stay in sync with the ongoing tech trends and mold your software solution accordingly. 

This improves the traction you receive and the revenue you earn, thereby improving your ROI. While spending a little more on building a custom software solution, you can compensate for these costs by earning more revenue. 

Open-source Software Vs Custom Software: Which Is Better?

Whether you choose open-source software or custom software depends on the objectives you want to achieve, the budget you want to allocate, the project you want to work on, the customers you want to cater to, and much more. If you are capable of spending a little more money to have complete control over software development, go for a custom software application. On the other hand, if you want to play safe without customizing your software solution, you can get an open-source application for your business.