The short answer
Ready-made software, also called off-the-shelf or SaaS, is one product sold to many businesses. Custom software is built for one organization, around how it works, and that organization owns it. Neither is better in general. The right choice depends on how well an existing app fits your work, and on what it will cost you over a few years, not just this month.
Custom software vs ready-made apps, side by side
| Ready-made app | Custom software | |
|---|---|---|
| Start-up cost | Ready-made app: Low: a monthly or yearly subscription | Custom software: Higher: you pay to build the first version |
| Time to start | Ready-made app: Days | Custom software: Weeks to a few months |
| Fit to your process | Ready-made app: You adapt to how the app works | Custom software: It is built around how you already work |
| Cost as you grow | Ready-made app: Usually rises with users, branches or features | Custom software: Mostly hosting and care; no per-user fees |
| Who owns it | Ready-made app: The vendor; you rent access | Custom software: You, including the code and the data |
| Changes | Ready-made app: Only what the vendor offers | Custom software: Whatever you need, when you need it |
| Local fit | Ready-made app: Depends on the app: GCash, BIR forms, Filipino workflows | Custom software: Built in from the start |
When a ready-made app is the right choice
- The job is common and done the same way everywhere: email, accounting, payroll basics, chat, simple bookkeeping.
- A well-known app already does what you need, at a price that still makes sense as you grow.
- You need it running this week, and a few compromises are fine.
- You don't have, or don't want, anyone to look after a system.
If that describes you, choose the app, set it up properly, and spend the money you saved on running the business.
When custom software pays off
- Your process doesn't fit the app. Your team keeps spreadsheets, paper or chat groups on the side to cover what the app can't do.
- Fees grow faster than you do. You pay per user, per branch or per feature, and the bill keeps climbing.
- You need to own it. Your records, your customer data and your system shouldn't depend on a vendor's pricing or survival.
- Several tools need to work as one. Bookings, payments, stock and reports live in different apps that don't talk to each other.
- It's how you compete. The way you serve customers is what sets you apart, so a generic app would make you work like everyone else.
- You serve the public or the government. Barangays and agencies often need their own rules, records and disclosures, which general apps don't cover.
What each costs
A ready-made app costs a subscription, usually per user or per month, for as long as you use it. A custom system costs more up front: a first version typically runs ₱150,000 to ₱800,000 in the Philippines, depending on how many workflows, user roles and integrations it needs. After that you pay for hosting and care, but no per-user fees.
To compare fairly, add up three years of the app's fees for the number of users you'll have, plus the time your team spends on workarounds, and set that against building and running a custom system for the same three years. Our cost guide lists typical ranges for each kind of system.
The middle path: keep the apps, build the gap
It is rarely all or nothing. A common setup keeps ready-made apps for email and accounting, and builds a small custom system for the part no app does well, connected to the apps you already use. Building in phases helps too: start with the most painful workflow, use it, then add the next.
How to decide
Answer these before you buy or build anything:
- Write down the three jobs the software must do. Does an existing app do all three without workarounds?
- How many users will you have in a year, and what will the app cost at that size?
- What do you lose if the app changes its price or features, or shuts down?
- Who owns the data, and can you export all of it?
- If you build, will the code, domain and hosting be in your name?
Not sure? Ask for a fixed-scope proposal for the custom option and compare it with the app's three-year cost. Sometimes the honest answer is to use the app.
Frequently asked questions
What is the difference between custom software and off-the-shelf software?
Off-the-shelf, or ready-made, software is one product sold to many businesses, usually by subscription. Custom software is built for one organization around how it works, and that organization owns it.
Is custom software worth it for a small business?
Only when a ready-made app keeps getting in the way: your process doesn't fit it, you pay for many users or workarounds, or you need something no app offers. If an affordable app already does the job, use it.
How much does custom software cost in the Philippines?
A first version of a custom system typically costs ₱150,000 to ₱800,000, depending on how many workflows, user roles and integrations it needs. Enterprise systems from large agencies cost more.
Can custom software work with the apps we already use?
Yes. A custom system can connect to accounting, payment, messaging and spreadsheet tools through their APIs, so you only build the part no app does well.
What happens if the developer stops supporting it?
If the code, the domain and the hosting accounts are in your name, any developer can pick it up. Make that a condition of any custom software contract.