The four most compelling advantages of using pre written application packages are:
(i) Rapid implementation: 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) Low risk: Since the application package is available in the finished form, the organization knows what it is going to get for the price it has paid. With in-house developed software, the long development time breeds uncertainty with regard to both the quality of the final product and its final cost.
(iii) Quality: The firms engaged in application package developments are typically specialists in their products’ niche area. Generally, they have a lot of experience in their specialized application field and hence can provide better software. In contrast, in-house programs often have to work over a wide range of application areas; they may not be possessing expertise for undertaking proposed software development.
(iv) Cost: Software cost can be leveraged as copies are generated and sold. Application packages, sometimes, turn out to be cheaper compared to in-house developed software.