We here at The Code Works love custom software as much as we love commercial packages. We see the strengths and weaknesses on both sides in the buy versus build discussion. Really, we do. But because of the high cost and risk associated with custom application development and the availability of good commercial packages for staffing firms, It is our view that there must be a compelling reason for a staffing firm to decide to build rather than buy.
At the end of the day our clients tell us that they are in the staffing, not software, business. Many, many staffing firms have learned this lesson the hard way. Nearly every large public staffing firm has an embarrassing annual report or two outlining massive write-offs related to a failed software development or major customization project. Many staffing firms have learned the hard way that they do not have the software product development discipline nor the software development capability to successfully complete and manage custom dev projects.
While our off-the-shelf staffing software options may not be perfect, they have improved over the last several years. Software vendors are releasing new functionality routinely. While custom systems can be extended to include new functionality too, we see that commercial packages are integrating with more and more technology-enabled services (e.g. background checking, payroll service providers, VMS integration, social and professional networks). We believe that it will be harder and harder for custom staffing systems to keep up with the partnerships and integrations that off-the-shelf vendors offer.
There is clearly a trend for staffing firms to buy rather than build software. Manpower selected Bond Adapt for all staffing segments across all branches worldwide. Kelly Services selected Bullhorn for their professional and technical staffing segments in the US. When large and complex organizations (who would've been best positioned to benefit from the economies of scale of a custom system move away from their own custom apps toward off-the-shelf solutions, it becomes even more evident that off-the-shelf staffing solutions must be seriously considered - if they can do it - you probably can too.
Custom systems can be tightly tied to business process and this can be appealing. Technology can be a key enabler of a staffing firm's differentiators. Sometimes, the differentiator can be configured or customized into the off-the-shelf system. Sometimes, not. It is our recommendation that staffing firms be very clear about the importance and necessity of the functionality that drives the decision to build rather than buy staffing software. Be sure it's differentiating - be sure off-the-shelf systems can't handle it - be sure you can't risk leaking the intellectual property with the outside world.
Do everything you can to talk yourself out of building that custom application before you make the leap because once you commit to building it you are definitely a pig not a chicken, and it is going to be incredibly difficult for you and your organization to make the move to an off-the-shelf application down the road.
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