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Custom-Off-The-Shelf (COTS)
Custom-Off-The-Shelf (COTS) is a business model for software development delivery. In this model the customer makes a request for an application and delivers complete design documents to a COTS provider for development. The COTS provider develops the application, (an SaaS, a compiled executable, or a set of web pages, stored procedures and data tables) delivers it to the customer and then charges a usage fee. The COTS firm funds the entire development and retains the rights to the application. The customer only delivers the design and pays a usage fee.

This model is often used when the customer can't find an acceptable application already on the market, a new application needs to be developed, and the customer's own in-house IT group opposes using an outside development firm. But the internal IT group cannot prevent the customer from using "Off-The-Shelf" products. Using this model the customer can specify a custom application, transfer the development risk and cost to the COTS firm, and leverage the financial and cash flow advantages of leased services rather than capitalize the development costs of the application.

Key to this model are detailed design documents and clear adoption criteria so that there is no dispute as to what is to be delivered to trigger adoption and start the usage fees.