White Label Software Development Pros, Cons and Proper Strategy Implementation

White Label Software Development Services: Pros, Cons & Proper Strategy

Traditional software development is costly and time-consuming with many pitfalls along the way. White label software is a game-changer that allows businesses to increase their offerings and stay competitive in their market without needing a massive budget or an in-house development team. Instead of painstakingly developing projects from scratch, a white label solution has already been developed at a basic level and gets customized and branded to each business’ specifications.

Many businesses have amazing ideas for software solutions, but don’t have the budget to develop them. The white label software development makes the process more affordable and still leaves room to scale when desired.

Because of the custom branding, the end user doesn’t know a different company developed the product and that can help to elevate a business’ reputation for being a leader in their industry. However, there are pros and cons to using white label software development services along with a proper way to implement this service should you choose to use it.

9 Pros of using white label software development

white label software


Pro #1: It’s scalable

Each time you embark on the task of creating a new software application, you have to think about potential future needs so you don’t end up being unable to scale. With white label software development, your projects will be designed to be scalable from the start. This means you can start the project with basic elements and features and then expand on it as your needs grow or as your budget allows.

Having a scalable base makes it easy to launch new and innovative applications gradually. Over time, your needs may grow and with a scalable application, you won’t be limited in terms of what you can add and change.

Another element that makes white label development scalable is the use of low-code and no-code platforms. This makes it easy to create highly customized applications and make changes easily when needed.

Pro #2: You’ll ship faster

Being able to ship fast is a huge plus, and that’s why companies choose white label software development. You need to ship fast and often, and when you hire a white label development company, they’ll bypass the typical long and complicated development process that would otherwise exist in an in-house environment.

A white label software development company will have a dedicated team working on your project without any distractions or other responsibilities. If someone working on your project quits or they need to call in another expert, they’ll fill the role much faster than it would take for you to replace an in-house developer.

Pro #3: There’s less risk

Developing custom software applications in-house always comes with the risk of going over budget, getting stuck because of technical difficulties, having to redo portions of the work, and missing the target deadline. There’s also a chance the entire project might fail.

Working with a white label software development company will mitigate many of the risks that normally exist with in-house development. For example, they might have an existing software solution that has already been rigorously tested in your market and proven to be successful.

Pro #4: It’s cost-effective

When you need to develop a software solution from scratch, it’s going to take significant resources, like time and money. If you’re like most companies, you don’t have a full-time in-house dedicated software development team for the task. That’s where white label services come in handy.

White label software development tends to be significantly cheaper than paying an in-house team and that’s ideal for companies on a tight budget. It means you can get state-of-the-art software developed for your clients at a fraction of what it would cost to hire your own team.

Pro #5: Access to experts

Access to expert software developers is one of the best benefits of using white label development services. If you were to hire an in-house team, not only would you have to pay more for their salaries, but you’d probably have a hard time getting top-level expertise you want without paying a much higher salary. Furthermore, each project might require different expertise, and if all you have is the same team, you’ll need to hire an outside expert at what will likely be high consulting rates.

White label development companies have access to a wide range of talent and can put all the right people with the right skills on your project without any extra cost to you. When you pay for a project, you don’t have to pay extra for top-notch talent; you get it by default.

Pro #6: It will help you stay competitive

If staying competitive in your industry is crucial, then white label software development will help. Since it’s scalable and cost-effective, you can stay competitive by meeting or exceeding the services offered by your competitors without going over your budget. This is especially helpful when you’re running a small business that can’t compete otherwise with large corporations that have million-dollar tech budgets.

Pro #7: You won’t have to manage a development project

Let’s face it, when you own a company, you don’t necessarily understand every department or role you hire. If you aren’t a software developer, it’s difficult to manage a team of in-house developers who are working on a project you also don’t understand. You have to rely on them to set their own KPIs, benchmarks, and goals. You can hire a project manager, but unless they’re a developer, they’ll be in the same boat.

When you outsource your software development needs to a white label development company, your team will be managed for you, allowing you to focus more on your primary business operations. This will keep your time and energy invested in tasks and projects that increase sales and support business growth.

Pro #8: Easy branding

If you need to seamlessly integrate new software into your existing offerings to your customers, white label software development is ideal. Your projects will be fully branded with your company’s logo, name, and colors inside the user interface. The user interface can be made to match your brand’s color scheme if that’s what you want, and the copy can be fully customized to use the verbiage your customers are used to seeing from your company.

Branding your software projects will help to create consistency among all of your offerings, which will play a positive role in creating satisfied customers.

Pro #9: Reliable updates

Since white label software is built once and then customized and distributed to many businesses, it’s not hard for the developers to maintain. This means you’ll get regular updates, including patches, which will keep your software secure.

4 Cons of using white label software development

Cons of White Label Software

Con #1: You’ll need to be great at marketing

Since white label software applications can be identical in some cases, you’ll need an excellent marketing plan to distinguish yourself in the market. Otherwise, when people are shopping around for a specific solution and find similar applications, they’re more likely to choose the cheapest option.

Con #2: Potential restrictions in the future

When your in-house team of software developers creates an application, you own it completely and have the right to change anything you want at any time. Some white label solutions will limit your ability to control development in the future. For instance, there might be some customizations that just won’t be possible.

Con #3: You’ll need to verify legal compliance

If the software solution you’re developing processes or stores any kind of sensitive data, which most do, you will need to comply with all applicable data privacy and protection laws. For instance, if you’re regulated by the GDPR, HIPAA, or the NY SHIELD Act, all the software you use to process data must be compliant.

Some white label companies will be on top of their game when it comes to cybersecurity and data privacy, but it’s not guaranteed. You’ll need to ask lots of questions to make sure your data will be properly protected before signing a contract. You’ll also need to run your own penetration tests to make sure the software is truly secure.

Con #4: Difficulty providing customer support

When you provide white label software to your customers, you’ll be fully responsible for managing customer support for an application you didn’t build. That can be a bit of an issue if you don’t completely understand how the software works and how to troubleshoot issues. For example, software customers will always throw you endless questions about small issues that can be resolved with basic technical knowledge. They’ll also have bigger issues on occasion, either from running into a bug or not knowing how to fully use the product.

You will need to have a customer support team that is well-acquainted with your application to provide good customer service. You can’t just outsource your customer support to anyone. You’ll need to train them on your software and make sure they’re good with helping people troubleshoot their issues all the way to resolution.

4 Tips for properly implementing white label software development

  1. Know what you will (and won’t) own

Going into a white label software project, make sure you know what you will and won’t own regarding the application. Find out if you can have other developers customize the application or if you’re always tied to the original company.

If you’re trying to launch a flagship application, you may want to consider waiting until you can develop it in-house to maintain total control and ownership over your code. However, if you don’t have any overly-specific needs, white label software is a good choice.

  1. Research your white label partner

Make sure the company you choose to work with has a positive track record working with past clients who are satisfied with their applications and support.

  1. Analyze the pricing structure

Most of the time, you get what you pay for and you don’t get what you don’t pay for. In other words, make sure the price is right for the services you’re being offered. It’s good to shop around, but don’t compromise quality to save a few bucks.

  1. Consider your target market

Do your customers expect constant innovation from you? Do they anticipate frequently updated and new features that increase the depth of your offerings? If so, make sure your white label developer can match the pace of your demands.

Take your time to make your decision

When you’re looking at white label software development, it’s crucial to consider all pros and cons before making your decision. If you have an in-house development team, but they don’t have the specific skills to develop a proprietary solution, then a white label provider can help.

If you have the budget to develop a software project from scratch, that might be your ideal option. However, if you’re working within a strict budget, white label development could be the best way to bring your project to life.

Need white label development? Contact us today!

Whether your end users are businesses, consumers, or both, our white label services at Dev.co can have your project up and running quickly and efficiently. Contact us now – we’d love to work with you!

Chief Revenue Officer at Software Development Company
Timothy Carter is the Chief Revenue Officer. Tim leads all revenue-generation activities for marketing and software development activities. He has helped to scale sales teams with the right mix of hustle and finesse. Based in Seattle, Washington, Tim enjoys spending time in Hawaii with family and playing disc golf.
Timothy Carter