What is custom software development?

July 9, 2025

In simple words, it is customised software developed for a particular use case or requirement. From start to end—from planning, designing, developing, testing, and launching the software’s UI, features, and functionalities—everything is tailored.

This is the opposite of ready-made or COTS (commercial off-the-shelf) software and software development, which include applications that are already built with some standard processes and features in place, cater to several use cases or requirements, and benefit multiple people.

Custom Software Development Process

Stage 1: Planning

In this first and foremost stage of building customised software, the unique requirements of the software seeker are noted down, decoded, and broken down into multiple goals.

Stage 2: Designing

In this stage, based on short-term and long-term goals, a team of adept software developers begins designing the software, its features, and its functionalities.

Stage 3: Building or creating

This is the actual custom software development stage wherein the tech experts and developers build the software as per the approved design.

Stage 4: Deploying and testing

After building the customised software, the team deploys and tests the software for various use cases of the business’s requirements. The bugs are resolved, if any.

Stage 5: Delivering and maintaining

Post successful testing, the software is delivered to the business, and the respective beneficiaries are trained for effective usage. Later, the software is maintained (cleaned and secured) daily until a further software update.

What are the major types of customised software?

Listed below are some of the major types of tailored software that a business may need.

  • CRM (Customer Relationship Management Software)
  • ERP (Enterprise Resource Planning System)
  • Sales and Marketing tools (Sales and Marketing Management Platform)
  • IPS (Inventory Planning Software)
  • CMS (Content Management System)
  • OMS (Operations Management System)
  • BPA (Business Process Automation Software)

Who builds the custom software?

A company’s, an organisation’s, or an entity’s specialised and unique software needs are identified, tapped, and addressed by a Custom software development company as the business lacks the software expertise and bandwidth to develop such a tailored software application.

These are third-party companies with a large team of software designers, developers, and testers who have the experience and expertise to build tailored software, applications, and systems as required by the business and business processes. Partnering with these companies can be an investment, but it is worth every penny as the business benefits a lot from this tailored software.

Frequently asked questions

  • What are examples of custom software?
    • Student management software for an educational institution (school, college, or university).
    • Material management system for a foundry business (raw material and finished goods).
    • Patient management system for a clinic or hospital offering a specialised or specific set of services.
    • Ticket booking system for a movie theatre.
    • Order management system for a hotel or food chain (including custom menus and involving the respective operations team).
  • Who needs custom software development?

Anyone can need custom software—be it a small business that wants to streamline the internal processes, an enterprise that needs to automate every process (procurement, operations, marketing, distribution, and sales), an institution that needs to effectively manage their students and parents, or a club that wants to build a database of its players. Thus, any business may require a customised application or software with tailored features, functionalities, and users.

  • What Types of Organisations Need Custom Software?

Certainly, there are restrictions or limits on who needs custom software. Any type of organisation, small or large, operating under any sector or industry, can have a custom application. However, lately, we can see businesses in education, e-commerce, retail, healthcare, and finance are found to rely on custom solutions.

  • What are the benefits of this custom-developed software?

Businesses can personalise the user experience, maximise productivity, automate internal processes, and increase revenue with the help of this software. Read more about the top seven benefits of Custom software development here!