Definition

"An application program or collection of programs developed to meet the needs of a variety of users, rather than custom designed for a specific user or company. Packaged software is sold to the general public." (Computer Users High-tech Dictionary, 2000)

Advantages

• Low cost
• Fast implementation
• Better documentation
• Better system
• Pre-tested
• Can see function in advance
• Frees internal IS resources for higher priority projects

Disadvantages

• Does not meet all needs
• Company must change to fit the system
• Does not integrate with other systems; can create duplicate work
• Dependence on vendor
• Risky or impossible to modify
• File dependence makes switching vendors very costly