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 specially developed for a client or customer 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 by a software developer specifically for the customer’s needs. This type of program typically requires more customization and setup than packaged software, as it needs to be tailored to the user’s specific needs. Customized software may also require additional fees or payments 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 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. It is commonly used for business software, word processing, graphics software, and computer games.

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 includes MS Word, MS Excel, MS PowerPoint, Games software, etc.
Custom software is not commercially available, it is exclusive to third parties.	Custom software is not commercially available; it is exclusive to third parties.
An example of custom software is, JPMorgan developing a program for the management department.	An example of custom software is JPMorgan, which is developing a program for the management department.

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