The risks of custom software development, and how to avoid them

Custom software development can be one of the best investments a business ever makes: you get a system tailored exactly to your processes that saves time, money and frustration. At the same time, it can be one of the riskiest if it gets off to a bad start. Missed deadlines, spiralling costs, a half-finished system, or a developer who suddenly becomes unreachable. In this article we have collected the most common risks of custom software development, how you can prevent them, and how we work at APPON to make sure they do not happen.

The 10 most common risks of custom software development

1. Vague requirements and an ever-growing scope

Most delays and cost overruns are not caused by the programming, but by the fact that at the start of the project nobody wrote down exactly what the system has to do. New requirements keep appearing along the way, and the project is never finished. Prevention: a detailed requirements analysis and a written specification before the quote.

2. A quote that is too low and gets more expensive later

A strikingly cheap quote often means that the developer did not understand the task, or will bill the missing parts later as extra work. Prevention: an itemised quote that shows which features are included in the price.

3. A first version that is too big

If every idea goes into the first version at once, development takes months before anyone can start using it. Prevention: a smaller first version (MVP) that already solves the most important problem, followed by gradual extension based on real feedback.

4. Dependence on a single developer

If only one freelancer knows the system, their illness, overload or relocation can paralyse your company. Prevention: choose a partner where a team works on the project and the knowledge is not in one person's head.

5. Who will own the system?

A common surprise is that the contract does not settle who holds the source code, the documentation and the hosting access, or what happens if the two parties go their separate ways. Prevention: clarify this with the developer in writing before development starts.

6. Missing testing

The bugs of untested software come to light in production, in front of your users. Prevention: delivery in stages, a test environment, and acceptance testing before go-live.

7. Security and data protection gaps

A business system handles customer data, invoices and internal information. Inadequate permission management, missed updates or a lack of logging are serious risks, and legal ones too under the GDPR. Prevention: permission management, logging, regular backups and security updates from the ground up.

8. Underestimated integrations

Connecting the invoicing system, the webshop, card payments or a legacy system is often more work than the interface itself. Prevention: a developer who has already built these integrations and can assess the real workload.

9. A system left on its own after handover

Software is never completely finished: laws, browsers, external systems and your company's needs all change. If no one maintains the system after handover, it becomes outdated within a few years. Prevention: agree in advance on operation, bug fixing and further development.

10. Your colleagues do not use it

Even the best software is a failure if your staff go back to their familiar spreadsheets. Prevention: involve the users in the design, provide training and roll it out gradually.

A real example: when a development project stalls

Our adult education partner, the owner of the I-Land online skills development platform, approached us because they had made no progress with their previous developers for months. After a quick consultation we drew up a tight development plan, started work in the summer of 2021, handed the system over for testing in mid-September, and in October the first projects were already running on it live. The difference was not programming skill, but a clear plan, delivery in stages and existing, proven foundations.

Why APPON is a good choice for custom software development

• We have been developing business systems since 2011: our team members have worked on more than 200 websites as well as numerous web portals, ERP and customer management systems, from private healthcare (Healzz2) to service companies.
• We do not start from scratch: we build on our own content management system (APPON CMS), ERP modules and two in-house CRM foundations (Operity, aaCRM), so the core features already work and are tested. Development can focus on your specific needs, which means shorter deadlines and lower risk.
• A transparent process: requirements analysis, written specification, itemised quote, screen designs, and development in stages with regular demos.
• A team, not one person: several developers work on each project, so the knowledge is not tied to a single person.
• Proven integrations: invoicing systems (Billingo, Számlázz.hu, Billzone), card payments (OTP, SimplePay, K&H, CIB), healthcare systems (EESZT) and our own services (SimpleSMS, Knowlio, Hostguard).
• Security by default: permission management, logging, regular backups and automatic security updates on the systems we operate.
• One partner after handover too: hosting, operation, bug fixing and further development from the same team.
• With grant funding too: we help you make use of SME digitalisation programmes and prepare the quote required for the grant application.

Checklist: how to choose a software development company

Before you sign, ask any developer these questions:

1. Have you built a similar system before? Can you show me a reference?
2. Do you give an itemised quote based on a written specification?
3. What goes into the first version, and what is left for later extensions?
4. How many people work on the project, and who is the contact person?
5. How often will I see the finished parts?
6. How and where do we test before go-live?
7. Who will hold the source code, the documentation and the access credentials?
8. How do you handle permissions, backups and security updates?
9. What do we do if we find a bug after handover?
10. How do operation and further development work?

Frequently asked questions

How much does custom software cost?

The price depends on the number of features, the integrations and the complexity of the user interfaces. After the requirements analysis we give an itemised quote, and it is often worth starting with a smaller first version.

How can you prevent development from dragging on?

With a written specification, a smaller first version and delivery in stages. If you see the finished part at the end of every stage, any delay becomes visible in time, and you do not get a surprise at the end of the project.

What if our current developer has got stuck?

In that case we first assess the existing system and its documentation, then make a recommendation: further development, a partial rewrite, or a move to a proven foundation. In the I-Land project, that is exactly how we brought a stalled development to success.

Custom software or an off-the-shelf product?

If an off-the-shelf product covers your processes well, it is usually faster and cheaper. Custom development pays off if the way you work differs from the usual, or if several systems need to be connected. During the requirements analysis we will tell you honestly which is the better choice.