Custom and Bespoke Software

When custom software makes sense, what it costs, how a project works – and when standard software is the better choice.

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Questions from first calls

Concise, dependable answers

01
Question

What is Custom Software?

Custom software is developed for a specific company and its processes, rather than being sold as a finished product to many. It reflects processes as they actually occur – the company is responsible for development, oper...

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02
Question

What Does Custom Software Cost?

The price is determined by effort multiplied by daily rate – not from a price list. Three factors are crucial for the effort: the number of different processes, the number of interfaces to other systems, and the requirem...

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03
Question

What is an MVP and why start with it?

An MVP (Minimum Viable Product) is the smallest version of software that provides real value in everyday use. It is not an unfinished product, but a complete small one. The purpose: to test assumptions against reality ea...

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05
Question

What is Vendor Lock-in and How to Avoid It?

Vendor lock-in means that switching providers becomes disproportionately expensive or practically impossible. In custom software, it rarely arises from the code itself, but from what is missing: no access to the reposito...

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07
Question

How long does a software project take?

It depends less on the technology and more on three other factors: how clear the requirements are, how quickly decisions are made, and how many external systems need to be integrated. A first usable version is usually ac...

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08
Question

What Causes Software Projects to Fail?

Rarely due to technology. The most common causes are: unclear goals, no one with decision-making authority, scope creep without an increasing budget, and users being consulted only at the end. All four are organizational...

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10
Question

How to Choose a Software Service Provider?

Not based on price and not on the technology list. Four things are significant: references you can speak to; an offer that also describes what is not included; transparency about operating costs after launch; and the wil...

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11
Question

What belongs in a customer portal?

At its core, three things: secure login, view your own process, and be able to initiate something. Everything else – files, notifications, reports, invoices – comes afterward. A portal rarely fails due to missing functio...

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12
Question

How does a requirements analysis proceed?

Typically in two to three meetings: observing how work is done today; jointly documenting the process; reviewing special cases. The result is a description from which a reliable effort can be derived. The value lies not...

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14
Question

How does software acceptance work?

Based on previously agreed criteria, not on feelings. A testing phase with real data and real users is common, along with a list of identified deviations classified by severity, and an acceptance that does not block mino...

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15
Question

How to Handle Change Requests in Projects

Do not decide individually, but collect. Each request goes on a visible list with estimated effort. Regularly – about every two weeks – prioritize: What gets added, what gets removed, what is on hold. This keeps the fram...

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16
Question

What makes a good handover?

Not just the source code. It includes: access to the repository, operational documentation, credentials in your possession, a description of the environment, and at least one training session for the future users. Withou...

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17
Question

What is a Database – Explained Simply?

A database stores data in a structured way and ensures that many people can work with it simultaneously without overwriting each other. This is the key difference from a file: An Excel spreadsheet can only be effectively...

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18
Question

Cloud or Own Server – What Suits Us?

For most companies, the cloud: ready to go in no time, no investment, built-in reliability. An own server is worthwhile if legal requirements demand it, there is very high and consistent load, or a data center already ex...

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19
Question

What Does 'Scalable' Mean in Software?

Scalable means: The system remains usable as the quantity grows – more users, more data, more processes. The important question is how much growth is realistic. Software built for one hundred users that is intended for o...

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20
Question

Why Does Software Need Automated Testing?

Because otherwise, every change is a risk. Automated tests check within minutes whether everything that worked before still functions after an adjustment. Without them, every further development becomes more expensive an...

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21
Question

What is Technical Debt?

Technical debt arises when a quick solution is chosen instead of a clean one. Like a loan, it incurs interest: every subsequent change takes a bit longer. This is not inherently wrong – one just needs to be aware that de...

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22
Question

Must Our Software Be Accessible?

Since June 28, 2025, the Accessibility Strengthening Act (BFSG) applies. This affects online shops, banking services, passenger transport, and e-books – each in business with consumers. Pure applications between companie...

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23
Question

How is custom software accounted for?

Externally commissioned software is an acquired intangible asset and is capitalized and amortized over its useful life. For self-created software, there is an option under commercial law, but a prohibition on capitalizat...

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25
Question

What Software Does Wholesale Need?

The core is inventory management: stocks, orders, suppliers, prices. Custom development becomes interesting where standard systems reach their limits – customer-specific price lists, tiered pricing, framework agreements,...

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27
Question

What Software Do Associations and Clubs Need?

Member management with fee collection is the core. This is complemented by communication, events, and often a member area. The unique aspect compared to companies: changing voluntary support – the software must be operab...

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29
Question

How is the warranty for software regulated?

In a contract for work, the limitation period for defect claims is generally two years from acceptance (§ 634a BGB). What constitutes a defect is crucial – this is why the agreed requirements are so important. Anything n...

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30
Question

When Do We Need a Data Processing Agreement?

Whenever a service provider processes personal data on your behalf – including hosting, software maintenance with access to live data, and support. The contract according to Art. 28 GDPR must be concluded before processi...

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31
Question

What to Consider with Open Source Licenses?

Almost every modern software uses open-source components. Most licenses – MIT, Apache, BSD – allow commercial use without conditions other than attribution. Caution is advised with so-called copyleft licenses like the GP...

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32
Question

What Happens If the Service Provider Fails?

It entirely depends on what you arranged beforehand. With repository access, your own credentials, and operational documentation, a transition is inconvenient but feasible. Without these three things, your system will be...

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33
Question

How secure is custom software?

Neither fundamentally more secure nor less secure than standard software – it depends on maintenance and care. Standard software is reviewed by many, but it is also a more lucrative target. Custom software is less in foc...

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35
Question

Hire Your Own Developer or Contract an Agency?

Comparing annual salary to daily rates can be misleading, as an employee is only productively available for about 200 out of 365 days, with additional costs for overhead, equipment, and training. An employee is worthwhil...

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36
Question

Are there penalties for delayed deadlines?

Only if they have been explicitly agreed upon – a penalty never arises from the law, but always from a penalty promise (§ 339 BGB). What arrangement Ouhud GmbH offers is available upon request. Without such an agreement,...

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