Pre-packaged/pre-written application software or package have become increasingly popular for many business functions, including accounting (payroll and personnel accounting) general ledger, manufacturing financial planning and numerous other applications. Many of these packages consist of several pograms and a complete set of documentations tools. Vendors providing these software packages even import training about how to use the software to its full potential.
The four important advantages of using pre-written application packages are:
i. Rapid implementation
ii. Low risk
Each of these is briefly discussed below:
i. Application packages are readily available to implement after they are purchased. In contrast- software developed in house may take months or even years until it is ready for implementation.
ii. Since the application package is available in the finalised from, the organisation knows what it is going to get for the price it has paid within house developed software, the long development time breeds uncertainty with regards to both the quality of the final product and its final cost.
iii. The firms engaged in application package developments are typically specialist in their products niche area. Generally they have a lot of experience in their specialised application field and hence can provide better software.
iv. Software vendors can leverage the cost of developing a product selling the product to several other firms, there realising a lower cost from each application user. Thus, an application package generally costs less than an in house developed package.