Things the client should keep in mind when outsourcing development projects.

Custom development is the process of creating software tailored to a company’s specific needs. Unlike off-the-shelf solutions, it allows businesses to build systems that match their unique workflows, goals, and industry requirements—ensuring better performance and long-term efficiency.

What is Custom Development?

Custom software development is the process of designing, building, and implementing software that is tailor-made to meet the specific requirements and workflows of a business.

Unlike off-the-shelf software, custom solutions are developed exclusively to align with an organization’s goals, functions, and unique needs—helping to optimize operational efficiency, reduce costs, and create a competitive advantage.

Why is custom development necessary?

The primary reason is that ready-made solutions or off-the-shelf software often fail to meet the unique needs of each business. Companies may require features or functions that existing tools do not offer. In such cases, outsourcing to a company that specializes in custom software development becomes the ideal solution.

For example, imagine you are a small business that wants to manage employee leave, expenses, and attendance. While you could use existing SaaS tools, you might only need 30% of their features, while the other 70% are unnecessary or overly complex. In such situations, building a simple, customized internal system with just the features you need is more efficient and cost-effective.

How is custom development done?

If your company has an in-house engineering team, they may be able to develop the system themselves. However, building a system from scratch requires time, effort, and long-term maintenance. Therefore, many companies choose to outsource this process to an external development partner.

Outsourcing is especially common in small and medium-sized businesses that lack sufficient technical expertise. These companies often partner with vendors who specialize in offshore development.

Advantages of Custom Development

• Tailored solutions: Systems are built specifically to meet your business needs.

• Flexibility: Features and functions can be adjusted based on your priorities.

• Competitive advantage: You can build unique systems that differentiate your business.

Key Considerations When Choosing a Custom Development Company

Many IT vendors, especially in countries like Vietnam, offer high-quality, low-cost custom development services. These vendors typically have younger engineering teams and make use of modern communication tools like Slack and project management platforms like Backlog.

However, when outsourcing, it’s essential to define the development scope clearly. Otherwise, you may face issues such as:

• Misunderstandings about the product requirements

• Delays in development or delivery

• Additional costs for scope changes

To avoid these problems and ensure a smooth project, it’s important to understand the standard development workflow.

Basic Workflow of a Custom Development Project

Here is a general flow commonly followed in offshore or outsourced custom development:

1. Requirement Definition

   • Clarify what the system must achieve and what features are needed.

   • This stage should involve input from both technical and non-technical stakeholders.

2. Proposal & Estimate

   • The vendor provides a proposal, timeline, and cost estimate.

   • This may include documentation, wireframes, or mockups for reference.

3. Contract Signing

   • Finalize the contract based on the agreed scope, timeline, and costs.

   • This step should be handled with care and efficiency to avoid future disputes.

4. Development

   • The development team begins coding and building the system according to the requirements.

5. Testing

   • QA (Quality Assurance) engineers test the product to ensure functionality, usability, and security.

6. Delivery & Support

   • The final product is delivered.

   • Ongoing maintenance and updates are often provided as part of a support plan.

Choosing the Right Development Approach

Most custom development projects adopt the Waterfall model, where each step follows sequentially, especially when predefined requirements must be met. However, Agile approaches—which allow for iterative development and flexible response to changes—are increasingly used even in offshore projects, especially when working with experienced vendors.