For most companies, packaged or off-the-shelf software does the job. Maybe it doesn’t cover everything needed, or it needs extra customizing, but it’s usually good enough, stable, and relatively accessible.

On the other hand, there are cases where your software requirements are so specific and unique that custom software is either the only solution or the most efficient one. Instead of using 60% of a packaged software’s capabilities (with the rest of 40% just bloating and slowing down the system), you focus the effort and resources on getting direct value.

Direct value also comes from increased flexibility and integration. Custom software is 100% in your control to build and adapt. Plus, it is easy to integrate with both legacy systems and off-the-shelf software.

However, to build custom software, you need to understand what you need and what you can commit to. For example, packaged software might be a better solution in the long term because of its automated, hassle-free upgrading – as opposed to the continuous hands-on involvement with custom software.

Before investing in a custom software development project, you will want to look into all the details, such as:

• What is the scope? Should it be done only through custom software, or can you find off-the-shelf software covering 75% of your requests?
• Do you have solid proof of concept? Did you test its business viability?
• Does the project have internal buy-in? Do you have executive champions or sponsors to support it? Is there an appropriate budget?
• Is our team empowered to work on a custom software development project? (e.g., Do they have the appropriate knowledge, skills, and authority?)
• Are there processes in place to facilitate working with an external software development company?
• What are your metrics for successful custom software?

Since the primary purpose of software outsourcing is to get the job done, the selection process is usually focused on expertise:

• What is the software development company’s technology stack?
• How is the tech expertise spread across their personnel?
• How stable is the team?
• What are their working methodologies?
• Do they offer complementary services such as software design or architecture, QA, UI-UX, documentation, support, and maintenance?
• What are their references and credentials?

On longer-term projects, you also might want to look at geographical and cultural proximity topics, such as:

• Is the software outsourcing company an EU member?
• Do they have any previous experience working with clients in your country?
• Are they easily reachable (e.g., direct flight, short driving distance, and others)?
• Can you visit in person before deciding?

For further details, check out our article: Where and how to: Find your software outsourcing company.

In a custom software development project, there are two main cost drivers:

Software development costs:

• The most significant cost element is brainpower. Your primary benchmark will be [cost per person-hour], meaning that costs are correlated with expertise and seniority levels. The project’s total price will be strongly influenced by the development effort and time to build it.
• At Berg Software, we work with agile cost estimates. Starting from an initial assessment, we can either (A) size and adjust the functionalities to fit the cost cap; or (B) forecast costs based on your needs. Either way, All estimates are 100% objective and transparent.

Infrastructure costs: can include licenses, hosting fees, third-party tools, libraries, and more.

At Berg Software, we follow the strictest security & non-disclosure standards.

Any software delivered by us is 100% free of 3rd party code that can result in intellectual property liabilities.

The intellectual property is 100% client property.

A general agreement or contract will be the starting point. All individual projects are documented in distinct orders, followed by statements of work. We advise that separate orders have a relatively brief timeframe (from three to six months) to keep it agile.

It is critical for your project’s success to be intentional about how you work with the custom software partner. Defining the specifics of your work mode helps avoid any future misunderstandings. Some of the most important topics to be discussed/agreed upon at the very beginning are:

• Roles and responsibilities within the partnership: yes, the custom software company should deliver, but they will need significant input from you (at least at the beginning) to make sure they got the scope and the details right.
• Expect a ramp-up period for the development team to understand the project. The development partner’s experience makes the whole difference.
• Decision making: you are in complete control, but decisions will be made regularly and must be supported and documented. Clarifying the decision-making process is another big step toward a successful project.
• Milestones and metrics: having a clear vision of the project is as important as clarifying how to get there.
• Communications: determine who, when, and how frequently specific tools/platforms are used.
• Prototyping: an affordable but practical way to get a quick, early understanding of proposed functionalities.
• Definition of done: make sure to clarify what/when is considered to be done from the very beginning.

Once the project starts, you want to make sure that we will deliver the project as intended:

• On the client-side, personnel and processes should be in place to manage the working relationship with the software outsourcing partner.
• Opt for shorter delivery cycles (1-3 weeks) that keep things fluid and manageable.
• Expect/demand full transparency about work in progress.
• Adopt an agile approach with frequent iterations: plan – design – develop – test – deploy – review.
• Keep an eye on the budget and current spending. Get regular budget assessments and forecasts.

For further details, check out our article: Agile stakeholder engagement.

Since you selected an experienced custom software development company, quality should be the focus, from processes to the outcome. To be in complete control, you will need comprehensive testing to be done frequently and early in each phase:

• Automated, high test coverage to discover any risks (unit testing, integration testing, regression testing).
• Test as you go, not only before deploying.
• At the end of each sprint, everything should be functional.

At Berg Software, we work with short delivery cycles (of 1-3 weeks) via sprints. We adapt to your needs and infrastructure and deploy the standard Continuous Delivery, Continuous Integration, and DevOps methods.

To ensure your team is up to speed, we provide first-use assistance and further user training.

Your custom software product will evolve with users’ needs, which requires a long-term commitment. That’s why Berg Software can keep supporting with:

• Regular maintenance of your custom software.
• Further upgrading and development.
• Usage assistance.

Should you have any specific software-related requests, we will be happy to support you.

The cost estimations are provided per hour in team extension setups, where the software outsourcing team is embedded into the client’s project and company. Increased efficiency usually results from pay-as-you-go scenarios with no fixed headcount costs for the client.

We work with price estimations based on the application’s scope for A-to-Z software outsourcing projects. If you have strict budget ceilings, you can work with a total cost target (adjust software features to budget). All estimates and projections are 100% transparent and agile.

A general agreement or frame contract delivers the foundation. All the individual assignments are confirmed in separate orders, followed by statements of work. We suggest that respective orders have a relatively brief timeframe (from three to six months) to keep it flexible.