Difference between Packaged Software and Custom Software
Last Updated :
12 Jul, 2025
There are two terms packaged software and custom software which are very similar to each other but in reality both are different. Packaged software refers to commercially available programs like Microsoft Office, offering standardized tools for general use with easy interfaces, but cannot be modified. Custom software, on the other hand, is tailored for specific business needs, allowing modifications and providing specialized functionalities that packaged software may not offer, albeit at a higher cost.
What is Packaged Software?
Packaged software that is often called software package is a commercial program that's obtainable to the general public and sold to them at explicit costs. Package software is developed by computer technicians. it is the compilation of programs which are grouped together in order to provide publicly with different tools in the same group. It can’t be modified or altered even if there is need. The essential definition says that, once several software package are grouped during a bundle and supply solutions to people, then it gets the specified name.
The best example of package software is Microsoft Office, that has many tools grouped together for example Office, Access, Excel, Note and Power Point.
What is Custom Software?
Custom software is a specific program that are advanced for a goal in a department or in a company. It’s cost is higher than package software because custom software are made for a specific purpose. Unlike package software, custom software can be modified or changed if there is need because these software are custom-built.
The best example of custom software is that a company that wishes to own a management system for their employees and keeping track of their working hours. whenever one task is performed during a specific condition, as an example, folks obtaining the task of planning a calculator through C++ language, then it'll become a custom product.
Difference between Packaged Software and Custom Software
| Aspect | Packaged Software | Custom Software |
|---|
| Definition | Packaged software is a compilation of programs which are grouped together in order to provide publicly with different tools in the same group. | Custom software is a specific program that are advanced for a goal in a department or in a company. |
| Cost | Cost of Packaged software is low. | While custom software's cost is higher than packaged software since custom software are made for a specific purpose. |
| User-Friendly Interface | Packaged software are easy or simple to use because these software have an easy interface. | Whereas custom software is hard to use because these software are custom-built or customized. |
| Measures of Success | It's measures of success is market sharing and profitability. | Whereas it's measures of success is to provide satisfaction and acceptance to user. |
| Bench-Marking | It's bench-marking is poor due to it's size ability. | While it's bench-marking is good due to it's benchmark data available. |
| Availability | It is present in the market to everybody for buying and using. | While it is not commercially available, it is exclusive to third parties. |
| Modification | Packaged software can't be modified. | But custom software can be modified or changed if there is need. |
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