To The Point

Custom software development changing traditional IT procurement

Aug 03 2016

Creating a custom software system is adding a new challenge for businesses.
Creating a custom software system is adding a new challenge for businesses.
Anyone who has been following the technology landscape is aware that it has evolved dramatically over the last decade. While innovative new hardware systems may have received more attention, software systems have also experienced big changes that are affecting the way organizations procure their IT solutions.

A recent article from Information Week by Josh Oakhurst examined this issue more closely, specifically looking at mistakes companies make when buying custom software. Because organizations are creating more business specific hardware systems, the software systems need to mirror that. This is why more organizations have opted for a solution that includes custom software. The problem for businesses is that this kind of approach is the opposite of how IT decision-makers traditionally handle technology procurement.

"Custom software development is not something you should purchase like paper clips. Procurement departments are wired to haggle over incremental per-piece pricing, volume numbers and delivery dates," Oakhurst said.

He also said that the need for companies to rethink procurement for custom applications stems from the concept of supply and demand that previously dominated many software vendors' business models, which were based on pre-packaged technology that would be "on the shelf," waiting to be purchased.

Today, more companies are becoming interested in developing a custom solution that is built to address their specific business needs. Interested in taking your company's systems to the next level? Contact a custom software developer today.