Some have said that the best way to reduce systems development costs is to use application software packages or fourth-generation tools.

Yes, the use of application software package is cheaper than in-house developed systems.

In recent times, many  application software packages/fourth generation tools are now obtainable for commercial use. Some organizations are using these new tools which automate portions of the application development process. While some are experimenting with and building their own internal bespoke systems. 

Advantages of purchased application software packages/fourth generations tools over internally developed systems:

* Cost- application software packages are cheaper to install, run and maintain. To create in-house is an expensive venture.* Tech- The manufacturers sell to many organizations, hence a lot goes into them for example different tools, variations of same tools, options for end-users. In the case of internally developed packages, the organization in question will have very few and/or simple options.

* R & D- Plenty research and development plus funding goes into its creation because manufacturers get to spread cost on the many customers/sales unlike and organization that develops its own tools has to bear all the R & D costs.

Complexity-  application software packages or fourth-generation tools are usually able to do tasks they are purchased for and more the present and the future, while the internally developed tools are very mono or dual functionality.

Disadvantages of purchased application software packages/fourth generations tools over internally developed systems:

* Generic solutions like purchased application software packages might not be able to provide adequate solution to the organization's needs

* Use might require consultation or expert or training for employees/end-users.

* These types of systems are not a replacement for conventional systems development techniques, especially so for chunky sized data and intricate systems requiring development.

* Space/Room might need to be set up for it (Chrisman, 1985)

Conclusively, each organization has its peculiarity, it is just a general consensus that  application software packages or fourth-generation tools are generally faster/easier to obtain and install. Though the bigger the organization, the higher the chances of them being able to create, sustains systems development costs.

Reference

Chrisman R. & Beccue B. (1985) The role of fourth generation tools in systems development Pp425

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