Industry

When In-House Apps Reach Their Limits: Why Custom Software Development Becomes Essential

August 28, 2025
Blog Posts
When In-House Apps Reach Their Limits: Why Custom Software Development Becomes Essential

The Rise (and Limits) of Internal Tools

Across industries—especially in high-risk, heavily regulated environments like energy, refining, and industrial services—the need for reliable, secure, and purpose-built applications continues to grow.

Many of these internal software solutions don’t begin as enterprise platforms. Instead, they’re often built by subject matter experts (SMEs) who understand a business challenge deeply and take initiative to solve it—digitizing paper processes, replacing spreadsheets, or streamlining a workflow through low-code platforms like PowerApps or other app builders.

And it works—at least at first. These in-house or low-code apps prove the concept, gain traction, and are genuinely useful. But over time, the original SME becomes the de facto product owner, developer, support desk, and roadmap planner—all while juggling their full-time responsibilities. What began as an innovation starts to create operational drag.

Infographic

Why Internal Tools Struggle to Scale

This dynamic is common. Gartner projects that by 2027, 75% of employees will be building or buying technology outside of IT’s oversight. While these internal tools often deliver quick wins, they also create fragile, unsupported systems once they become business-critical.

Meanwhile, IT teams may lack the capacity or context to step in. Competing priorities, communication gaps, and limited exposure to day-to-day field realities make it hard to transition ownership or expand functionality effectively.

Over time, homegrown tools often reach a point where they need more structure, support, and scalability than an individual SME—or even an internal team—can provide.

McKinsey found that over 30% of internal applications are abandoned within 2 years, usually because the SME who built it can no longer shoulder the support burden. What starts as innovation often ends as shelfware. Without a clear owner or product roadmap, the tool becomes fragile: updates slow down, bugs accumulate, and the risk of operational disruption increases.

The Limits of Low-Code

It’s also worth noting that while low-code tools offer speed and flexibility, they don’t always meet the full range of requirements needed for a high-functioning operation.

They can:

  • Introduce cybersecurity risks
  • Lack integrations with critical systems
  • Struggle with performance at scale

This is especially true in industrial service environments where uptime and compliance are critical.

The numbers tell the story: half of internally built projects run over budget or miss expectations, and many collapse under the weight of scaling. This is where re-platforming changes the trajectory.

Real-World Examples of Re-Platforming

Field Service Scheduling
One client needed a better way to manage field service scheduling and labor utilization. Through a focused discovery process, we uncovered opportunities to reduce revenue leakage and improve contract compliance by unifying systems. By starting with just two modules—field ticketing and scheduling—we helped them realize immediate ROI while laying the foundation for future scale.

Fleet Management

Another client was juggling inspections, DOT compliance, and fleet maintenance across multiple facilities—using spreadsheets, emails, and disconnected tools. We helped re-platform their internal prototype into FleetApp, a custom fleet management system that delivered automation, visibility, and a central source of truth—aligned with how their team actually works.

These aren’t one-offs. This is what happens when innovation meets operational constraint. It’s not about failure—it’s about recognizing when an internal tool has served its purpose and now needs to evolve.

When Innovation Becomes Infrastructure

At a certain point, it becomes clear that the tool is no longer just a side project—it’s core infrastructure. That’s often the signal to re-platform.

Not because the original app failed, but because it succeeded. It proved the need, validated the workflow, and gained adoption. But now it needs to scale.

Re-platforming an in-house app with custom software development allows teams to preserve what works while addressing limitations such as:

  • Performance bottlenecks
  • Security gaps
  • Integration limitations
  • Lack of documentation

It also frees the SME to return to their intended role, without carrying the weight of ongoing user support and maintenance.

How Do You Know It’s Time to Enlist Help?

Ask yourself:

  • Has the SME who built the tool become the go-to for support, feature requests, or bug fixes?
  • Are users asking for features that the current platform can’t support (e.g., mobile access, system integrations, advanced reporting)?
  • Are you using multiple disconnected tools or systems that require manual work to sync—or don’t sync at all?
  • Is performance lagging—or are people experiencing slowdowns, crashes, or data issues?
  • Do security, compliance, or IT teams have concerns about how or where the system is hosted?
  • Are you still managing critical processes through spreadsheets, email, or shared drives?
  • Has your internal tool become essential to operations, but still lacks documentation, backups, or version control?
  • Does your team rely on a low-code app that has outgrown its original use case?
  • Are IT resources stretched too thin to take on support or scaling of the tool?
  • Has your business evolved—but your systems haven’t kept up?

If you answer yes to any of these, your internal tool may be ready for re-platforming—or at least a conversation about next steps in modernizing legacy systems.

Closing Thought

Internal development isn’t a failure—it’s the first chapter. But without structure, 65%+ of these projects never reach their intended impact.

Custom software development isn’t about reinventing the wheel—it’s about taking what’s working and making it sustainable, secure, and scalable.

Especially for industrial service providers, energy companies, or any organization where operations can’t afford downtime, re-platforming internal tools is how fragile prototypes become resilient systems—unlocking efficiency, compliance, and peace of mind.

About the author

Let’s turn insight into action

If something you read resonates with the challenges you’re facing, and you're ready to take the next step, we're here to help.

Let’s talk about what’s next.

A short conversation can uncover risks, hidden costs, and opportunities to scale—so your internal innovation becomes resilient infrastructure