Much of the discussion on this thread has been, quite sensibly, about security issues; however, the initial question was far more fundamental - can the commercial available offering do the job that the current system does?
The simplest answere I'd give is to ask the people who use the current system what they are willing to do without? I virtually guarantee it will be nothing! And is it the user's or the managers driving the change? If it is the latter ask them how much they are willing to pay (in perpetuity) to have the commercial system customised?
My (bitter) experience is that it will at least treble the up-front cost!
I've told a part of this story before, but it becomes relevant again relating to the fundamental question, as DickyP reminded us. The question is "roll your own" vs. "over-the-counter."
The USA uniformed military services in 2009 wrote a specification for a new personnel management system that was supposed to unify all of the military services, because at the time, each service had its own separate personnel system - and most of them had a separate system for active military vs. reserve military. That meant that EACH SERVICE had to build transactions for the "purple" services (i.e. all services combined, or "joint services") could talk to the civilian side of military management - like Defense Financial Accounting Systems (DFAS) and other agencies that had to serve ALL of those services. My Navy Reserve personnel management machine (which would have been replaced... except read the next paragraph) talked to 18 different agencies that were civilian and cross-service in scope.
The intent was to buy OTC and then get the vendor to do any required customization. That requirement WAS in the spec. What happened was, first they had to quell the not-so-quiet rebellion. Army and Air Force were almost the same in personnel rules and they were ready to go along with the idea as long as THEY didn't have to adapt to too many changes. (Change what WE were doing? No, let the other guys adapt to us.)
Navy, Marine Corps, and Coast Guard? You would think someone had kidnapped their youngest children into overseas slavery. After several presentations, PeopleSoft won the contract, beating out ORACLE by about 1%. (The delicious irony is that before the project was over, ORACLE blithely BOUGHT PeopleSoft.) PeopleSoft had these "personnel support" modules that if you had specific types of employees, it was like a library of handling code. Analogous but not identical to having specific data types and individual rules to handle each type - except a LOT more complex.
As each service dug in their heels over specific features, it got crazier. For instance, of all of the services, the U.S. Navy Reserve was unique because Navy Reservists have contracts that, if breached, would release the reservist of his/her military obligations. That's right - Navy Reservists are technically NOT enlisted personnel. Any other service would discharge a reservist with a gripe - probably with a less-than-honorable separation. But not for the Navy Reserve. Anyway, after seven years and 10 billion US dollars, it got shut down due to cost overrun after cost overrun because none of the services was willing to budge on most of their core requirements.
In detail, what happened is that "over-the-counter" morphed into "roll-your-own" because the OTC software was estimated at only 12% compliant with the actual requirements and NONE of the services would adapt. So ... core software change orders for the non-compliant 88% abounded. BUT it was done with contractors doing the retrofits, upgrades, remodeling, and customization. And these change orders were full-traffic time-and-materials costs, no discounts. The best they could do before the plug was pulled was that a personnel cycle that was supposed to occur every 24 hours took a couple or three days per cycle using the fastest multi-threaded CPUs available on the market. (Ironically, that was when ORACLE also made processors.) If there was a leading, bleeding edge CPU available at the time, they tried it.
Thus, when Congress wanted to upgrade personnel management in a standardized way, the intended users of the proposed system were opposed. And as a result, we STILL have almost the same exact system that was used before the DIMHRS project was started. "Almost" - because since DIMHRS started and subsequently tanked, the U.S. Space Force came into existence - another uniformed regular service and reserve units - 12 groups instead of 10.
The moral of the story? Change orders are like vampires. They suck your company's blood until it is dry. And buying OTC almost invariably leads to change orders. If your company has the ability to "roll its own" it might end up cheaper in the long run.