Difference between Custom Software and Packaged Software

The primary difference between custom software and packaged software is, that custom software is a type of software that is specially developed for a client or customer in order to achieve unique requirements.

On the other hand, packaged software is a commercial program available to the public at a set cost. It is developed by computer technicians and can be bought by anyone.

In this article, we’ll explore the key similarities and differences between the two main types of software (packaged and custom software), which will be very helpful for you.

Custom Software

Custom software is created specifically for a specific purpose for the customer by a software developer. This type of program typically requires more customization and setup than packaged software, as it needs to be tailored to the specific needs of the user. Customized software may also require additional fees or payments in order to receive added features or functionality.

For example: If someone wants to use software for his organization, shop, school, etc. A custom software will be developed for this purpose.

Packaged Software

Packaged software refers to programs that are installed on computers. This means they were designed to be user-friendly, and that they don’t require any custom installation or setup.

Packaged software needs to be installed and is either pre-packaged for the task or designed for users to install on their own. Packaged software is commonly used for business software, word processing, graphics software, and games for computers.

Custom software vs Packaged software

The main differences between custom software and packaged software are given below:

Custom software	Packaged software
Custom software is used for a specific customer for a goal in a department, shop,, company, etc.	Packaged software is present in the market for everybody to buy and use.
The cost of custom software is high as compared to packaged software.	The cost of packaged software is low as compared to custom software.
It is generally installed by an in-house team.	It is generally installed by third-party consultants.
Custom software is difficult to use because these software are custom-built or customized.	Packaged software is easy or simple to use because Its interface is very easy.
Custom software is not commercially available, it is exclusive to third parties.	Examples of packaged software are MS Word, MS Excel, MS PowerPoint, Games software, etc.
An example of custom software is, JPMorgan developing a program for the management department.	Examples of packaged software are MS Word, MS Excel, MS PowerPoint, Games software, etc.