The Trap of Custom Software Development
The Trap of Custom Software Development – When It Costs Half Your Company or Half Your Life, Even in the Age of Artificial Intelligence (AI)
In the world of IT development, many companies face the dilemma of whether to embark on custom software development. They evaluate so-called “off-the-shelf” software solutions (pre-built systems with limited customization), find them insufficient, and therefore choose to develop custom software instead.
“Our company is unique – so let’s build our own software!”
With the rise of AI, more and more businesses believe: the playing field is ours now, we can quickly and cheaply develop our own custom solution. At first, the idea sounds appealing—it promises a solution tailored to every need. But the reality? It can cost half your company, half your life—or both.
The reality shows that most of these projects suffer from major delays, often fail to achieve the desired functionality, and costs skyrocket. We often hear statements like:
- “Only custom software works for us.”
- “We operate differently, they’ll build it for us from scratch.”
- “It’s almost done, just needs a little help.”
The outcome? Multi-year development projects that end in frustration and failure.
The Challenges of Custom Development
Building a complex enterprise management system can take years—whether developed in-house or bought as a “custom build.”
The scope and complexity of functions are often invisible at the start—even for experts. Costs can quickly reach hundreds of millions or even billions of forints—independent of company size—making it nearly impossible for smaller businesses to sustain.
Let’s pause for two key illusions:
– The “build from scratch” illusion: Developing everything from the ground up is extremely expensive! Think about it: car manufacturers don’t produce every component themselves, nor do construction firms. They rely on ready-made components. In software, this is even more critical: a good platform already covers 80–90% of your needs—you only need to customize the difference.
– The “company size” illusion: Small companies often assume they require smaller, simpler systems. In reality, unlike building a smaller house, software needs for SMEs are not proportionally smaller—many requirements remain just as complex.
Case Study: The IT Project That Started at Tens of Millions but Ended at Hundreds of Millions
We frequently encounter such cases. A Hungarian company with around HUF 3 billion in annual revenue launched an IT development project two years ago. Initially, they expected rapid, efficient progress and believed they were in the final stages. The sobering reality: while they appear to be 80% complete “on paper,” in truth, the project is only 50–60% ready.
Three developers have been working full-time on the project for months, while the CEO and COO dedicate 3–8 hours a week managing the team. Costs continue to climb—anyone familiar with developer salaries (HUF 1.5–2 million/month each) knows what this means—yet a fully functional system is still unavailable.
As a result, the company is forced to rely on temporary fixes and additional tools just to keep operations running. A quick calculation: labor costs alone are approaching HUF 100 million, with no clear ROI even years down the line.
And this isn’t an isolated incident. Many similar cases exist, where custom projects drag on for years, costs spiral out of control, and companies are left without a usable solution.
Our Idea: Customizable, Modern, but Not “Custom-Built” Solutions
There are platforms (such as 10xONE) that bridge the gap between rigid off-the-shelf software and costly fully custom builds. By leveraging the latest technologies and methodologies, these systems are highly customizable—but not developed entirely from scratch. They are built from proven, pre-configured components.
Such a system can be tailored to your company’s processes while allowing phased implementation. The cost of implementation is typically only one-third to one-quarter of a full custom project. Development becomes more economical, and rollouts are aligned with current business needs.
Note on new feature development: Developing entirely new features naturally takes time. Even though we are on average 20% faster than the industry standard, large-scale new requirements may still take one to two years. In other words—there are no miracles. But even here, costs remain lower: any new feature we develop is leveraged across multiple clients, reducing your share of the burden.
What About Competitive Advantage?
Some worry that if multiple companies use the same platform, their know-how may be exposed. Partially true—but certain parts can be contractually guaranteed as exclusive to you for a defined period. More importantly, the competitive edge lies not in the software itself but in the configuration—the “how.”
For example: invoicing is possible in every system. The real advantage lies in how your company organizes and executes processes. That unique know-how remains yours alone—and software implementation does not transfer that to others.
And what about operations?
The dilemma is not only about custom vs. configurable software, but also whether to maintain systems in-house or host them in the cloud. This decision heavily impacts costs, maintenance, and security.
In-house hosting often adds another 50% to the total cost of ownership of a custom-built system. By contrast, cloud hosting ensures lower costs and professional management. Our team of experts guarantees uptime, security, and weekly updates. Issues are resolved immediately, ensuring your system remains reliable and always up to date.
