The right mix of standard and custom software
When modernizing IT applications, many companies face the crucial question of which mix of standard and custom software is best suited for their entire organization or specific departments. Not only employees, but also external consultants play a decisive role in this process. In this article, we will examine this topic in more detail and show how companies can find the right mix of standard and custom software.
How companies decide on the right software mix today
A recent study revealed that 38 percent of companies are seriously considering the optimal mix of standard and custom software for their needs. Interestingly, there are no significant differences based on company size. A full 54 percent of companies are at least partially addressing this question, while only three percent aren't considering it at all. However, it's interesting to see how differently this is perceived at various hierarchical levels. While 51 percent of C-level executives report that their company is intensively engaged with this issue, only about one in four department heads confirms this for their company. Nevertheless, six out of ten department heads indicate that the right mix of standard and custom software is at least being considered to some extent (compared to 43 percent of C-level executives).
Employees and external consultants as decision-making factors
To determine which software they want to develop internally and which they prefer to procure as standard software (on-premises or as a service), companies primarily rely on their employees or external consultants. Key tools in this process include employee surveys and regular meetings with the relevant personnel. Some companies take a pragmatic approach, stating, "If we need something that isn't available on the market, we'll develop it internally." Another option is to seek advice from external IT service providers. One response, for example, is: "It depends on the strengths, weaknesses, and expertise of our employees." There are also companies that decide individually whether to develop their own software or procure standard software (on-premises or as a service). An IT department comment illustrates this: "Unfortunately, this is decided individually by each department, but we try to establish a consistent approach."
Why a balanced software mix is crucial
The right mix of standard and custom software is crucial for successful software modernization. By involving their employees, consulting external advisors, and developing clear strategies, companies can optimally leverage the advantages of both approaches. A balanced mix enables companies to meet individual requirements while simultaneously benefiting from standardized solutions such as cost savings, scalability, and rapid implementation.
And finally ...
Deciding on the right mix of standard and custom software is a crucial step in software modernization. Companies should involve their employees, consult external advisors, and develop clear strategies to achieve the best possible results. By considering individual requirements while leveraging the advantages of standardized solutions, companies can effectively modernize their software landscape and prepare it for the future.
