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Custom ERP vs. off-the-shelf software — which should you choose?
Every SME reaches the point where it needs a proper business management system. But which makes more sense: a packaged product or a custom-built solution?
What's at stake
Your ERP (enterprise resource planning / business management system) is what the company runs on day to day: orders, invoices, inventory, production, payroll. A bad choice means years of pain — and switching is also painful. A good choice makes the system invisible: it just does its job.
The key question: packaged software (SAP Business One, Microsoft Dynamics, Odoo, or local Hungarian solutions) or a custom-built business management system?
When does packaged software make sense?
A packaged solution is the right choice when:
- You run standard processes — invoicing, inventory, bookkeeping, HR — that don't deviate significantly from the industry norm.
- You need to go live quickly — packaged implementation is shorter (months vs. 6–18 months for custom).
- You have a small IT budget — packaged software is licence-based, no development team required.
- You need proven reliability — major software products have decades of track record and broad support networks.
When does a custom ERP make more sense?
Custom development is the better choice when:
1. Specialised processes
If your processes differ from the norm — unusual production structure, custom pricing logic, specific regulatory compliance requirements — a packaged system won't cover everything. The gaps get filled either with expensive customisation (which breaks upgradability) or with Excel.
2. Integration with existing systems
If you already have an ERP, a web shop, and an MES system that all need to talk to each other, custom development is more flexible — the integration is tailored, not limited to pre-built connectors.
3. Scalability and modularity
A custom system starts with exactly the modules you need and grows as the business grows — without having to buy per-module licences.
4. Lower total cost of ownership over time
Packaged software licence costs recur every year. A custom system has a fixed development fee, after which ongoing maintenance and development costs are much lower — especially at high user counts.
The hybrid approach
The best answer is often a hybrid: packaged accounting and payroll software (where legislation tracking is critical), plus a custom module for specialist business processes (e.g. production management, customer portal, custom calculator). Data synchronisation between the two is handled by a custom integration layer.
How to decide
A few helpful questions:
- Which processes are ones where your company is genuinely different from the market average?
- How many users will there be in 3 years, and how does the licence cost scale?
- Is there IT capacity (or a partner) to maintain a custom system?
- What is the acceptable go-live timeline?
If the answers point toward custom, get in touch — we'll assess your needs and provide a concrete proposal.
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