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Are You Losing Millions to Software You Don’t Even Own? Here’s What to Do Instead

March 20, 2025

For many large enterprises, off-the-shelf software seems like the most convenient choice—fast to deploy, pre-packaged features, and a vendor taking care of updates.

But here’s the reality: you’re paying a premium for something you don’t own.

Every year, businesses spend millions on recurring licensing fees, mandatory upgrades, and hidden costs associated with software that wasn’t designed for them. Even worse, your business-critical operations are dependent on third-party platforms—which can change policies, raise prices, or even shut down, leaving you stranded.

So the real question is: how much is your software really costing you? And more importantly, what can you do about it?

The Hidden Cost of Off-the-Shelf Software

You’re Paying for Features You Don’t Need

Most enterprise software solutions bundle features into expensive plans—forcing you to pay for tools that your business may never use.

  • Need custom reporting? That’s an extra fee.
  • Need specific compliance settings? Upgrade to a premium plan.
  • Need more user licenses? Your costs just doubled.

Over time, these unnecessary expenses drain your budget without adding real value to your business.

Example: Schneider Electric consolidated multiple third-party software tools into a custom-built platform, saving millions in unnecessary licensing fees.

You’re Locked into Expensive Subscription Fees Forever

At first, subscription software seems affordable—until you realize you’re renting a tool you’ll never own.

With each passing year, the cost keeps rising, and since the software isn’t yours, you have no control over pricing, policy changes, or service shutdowns.

Example: HSBC, operating across multiple continents, built its own custom risk management platform instead of relying on third-party software—cutting millions in recurring subscription costs.

💡 What’s the alternative? A custom software solution means you invest once, own the platform outright, and eliminate unpredictable annual fees.

You Have No Control Over Compliance & Security Risks

For multinational enterprises, compliance is non-negotiable. Payroll regulations, data protection laws, and industry compliance constantly evolve, but third-party software providers are slow to adapt.

  • Data stored externally means you’re at the mercy of their security standards.
  • Regulatory non-compliance can lead to penalties if the software doesn’t meet local laws.
  • Vendor lock-in prevents flexibility if you need to adjust your software to new legal requirements.

Example: Maersk, the world’s largest shipping company, suffered a massive cyberattack that crippled its supply chain. The lesson? Enterprises with full control over their systems recover faster and protect their data more effectively.

💡 What’s the alternative? Custom software ensures full compliance, enhanced security, and total data ownership.

You’re Stuck with Software That Won’t Scale With You

As enterprises grow, so do their operational complexities. But off-the-shelf software isn’t designed for long-term scalability.

  • Want to expand functionality? You’ll need third-party add-ons.
  • Need custom integrations? Good luck making them work seamlessly.
  • Trying to adjust workflows? You’ll have to work around software limitations.

Example: Airbus, a global aerospace leader, abandoned generic ERP solutions in favor of a custom-built enterprise system that scaled seamlessly across its manufacturing and supply chain operations.

💡 What’s the alternative? Custom software is built to grow with your business, not against it.

Case Study: How a Multinational Saved Millions with Custom Payroll Software

A leading manufacturing multinational in Nigeria was spending millions annually on third-party payroll software, facing:

  • High licensing fees
  • Security risks from external data storage
  • Compliance gaps with evolving Nigerian tax laws
  • Inflexible payroll structures

By switching to a custom-built payroll solution, they eliminated recurring costs, enhanced security, ensured full compliance, and optimized efficiency.

The result? Millions saved annually and a payroll system built for their needs.

🔗 See the full transformation— CLICK HERE

What Should Enterprises Do Instead? Take Back Control.

The real cost of software isn’t just in the licensing fees—it’s in the lack of control, security, and scalability.

Here’s what enterprises should consider:

Audit your current software costs—Are you paying for features you don’t need?
Assess compliance risks—Are you meeting local and global regulations?
Evaluate long-term scalability—Will your current software grow with your business?
Compare costs—Are your subscription fees higher than the cost of owning a custom solution?

Many global enterprises have already made the shift. The question is: will you?

Custom Software is an Investment, Not an Expense

For enterprises handling large-scale operations, payroll, finance, supply chain management, and compliance-heavy processes, off-the-shelf software will never be enough.

With Stransact’s technology services, you get:
🔹 Tailored software built for your business needs
🔹 Cost-effective alternatives to overpriced third-party tools
🔹 Full compliance with industry and regional regulations
🔹 Long-term savings by eliminating unnecessary subscriptions

Are you ready to stop losing millions on software you don’t own? Let’s discuss how a custom solution can cut costs, improve compliance, and give you total control.

 

Get in touch

image of Eben Joels, principal partner in stransact, wearing a bright colored shirt and tie.

Eben Joels

Partner | Stransact

[email protected] +1 (978) 501-7900

Victor Athe wearing a suit with his two hands supporting his chin.

Victor Athe

Partner | Stransact

[email protected] +234 803 598 0250

image of Matthew Johnson, a partner in stransact

Matthew Johnson

Partner | Consulting Services

[email protected] +234 903 197 6170