In-house bespoke software sounds reasonable, and multi-customer SaaS sounds reasonable, but outsourced bespoke software sounds like a complete dumpster fire:
End users who report problems:
* are ok with IT level 1 telling them IT level 3 is working on it with velocity appropriate to keep their jobs,
* are ok with IT level 1 telling them ${vendor_of_well-known_solution} is working on it with velocity appropriate for many customers, but
* are not ok with IT level 1 telling them ${vendor_of_bespoke_solutions} is working on it with velocity appropriate for one customer (if they even still exist).
End users who report problems:
* are ok with IT level 1 telling them IT level 3 is working on it with velocity appropriate to keep their jobs,
* are ok with IT level 1 telling them ${vendor_of_well-known_solution} is working on it with velocity appropriate for many customers, but
* are not ok with IT level 1 telling them ${vendor_of_bespoke_solutions} is working on it with velocity appropriate for one customer (if they even still exist).