Custom software development is the process of creating, deploying, and maintaining software that is tailored to the specific needs of a particular set of users, functions, or organizations. This type of development differs from commercial off-the-shelf software (COTS), which is designed to meet more generalized requirements and can be commercially marketed and distributed.
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Examples of COTS products and services include Microsoft Office, which meet the broad needs of office productivity and website creation. In contrast, bespoke software is created to satisfy a particular set of requirements, such as a field service equipment maintenance program for a manufacturer or an online banking application that caters to the specific needs of a bank and its customers.
Custom software development can be performed by an in-house team or outsourced to a third-party provider. The development process typically involves the same steps and methodologies as other types of software development, including requirements gathering, code construction, testing, and deployment. Popular methodologies for custom software development include Agile, DevOps, and Rapid Application Development.
Custom software development efforts can include application customization, modernization, and management. Application customization involves modifying existing COTS applications to meet individual requirements. Modernization is crucial to keep a business's custom software relevant to evolving user and market needs. Application management is also vital to ensure the effectiveness of the software, including tasks such as installation, updating, performance optimization, availability optimization, and service desk functions.