While a ballpark figure for software development might range from $45,000 to $270,000, several key factors can influence the final cost. These include the complexity of the project, the platforms it needs to run on (web, mobile, etc.), the design, the underlying technologies used, and any external integrations. Additionally, the location and structure of the development team can also play a significant role in the overall budget.
In this article, I will explore the topic of software development costs. You’ll get to know:
- Valuable insights to help you understand how much you’ll need to invest in developing a custom app;
- Factors that contribute to software development costs;
- How to estimate the investment required for your custom app?
From launching a startup’s MVP to optimizing existing software for enterprises, grasping software development costs empowers informed decisions that maximize your return on investment (ROI).
4 Key Factors That Makeup Software Development Cost
Determining the cost of developing software for a specific project can be complex. Several elements influence software development pricing. Here are four major factors that contribute to the average cost of software development:
1. App type and complexity
The cost of software development is mainly influenced by the app’s type and complexity, which are established prior to starting the development process. Specifically, the type of app encompasses a few key aspects:
- The app’s specific type;
- The complexity of its features;
- The platform and integration needs.
2. The complexity of UI/UX design;
Another factor impacting software development costs is the complexity of the app’s UX/UI design.
UX/UI design encompasses graphical elements such as buttons, fonts, icons, and colors across all interfaces. It also involves how intuitive it is for users to accomplish tasks within the app. Developers must invest considerable effort to create an aesthetically appealing app that provides a satisfying user experience.
This effort contributes to software development costs for startup owners. You’ll be covering the expenses of custom artwork, animations, testing, and redesigning to ensure the app is built with optimal UX features. There are three key aspects of UX/UI design to consider:
- Depth and detail of user interface (UI) design.
- Complexity of the user experience (UX).
- Responsiveness and adaptability.
3. Team’s geolocation
The geographical location of your development team plays a significant role in determining software development costs. The cost varies depending on where your team is located, particularly if you’re based in the US or Western European countries, where developers typically charge around $100 per hour. This higher hourly rate leads to increased software development expenses.
While this may seem self-evident, let’s examine how these factors specifically impact the cost. Here are three aspects that contribute to the overall bill:
- Cost of living and wage disparities.
- Availability of talent and specialized skills.
- Challenges in communication and collaboration.
4. Cooperation model
The collaboration model you choose will impact the development cost. Once you select a developer, you typically have three different collaboration options:
- Fixed-rate model
- Hourly rate model
- Dedicated team model
4 Ways To Reduce Software Development Cost
Bigohtech is a software development company committed to creating impactful products while ensuring the process is clear and straightforward. Having completed over 150 projects, we have demonstrated that a well-organized approach to software development can be seamless and manageable.
1. Embrace Open-Source Software
Utilize open-source software components and libraries to lower software development costs. Open-source solutions typically offer strong functionality, security, and community support without licensing fees. Nonetheless, whenever we incorporate them, our team carefully considers licensing requirements and ensures adherence to any open-source licenses involved.
2. Minimize Third-Party Integrations
Agile project management methodologies, such as Scrum, are incredibly beneficial. They allow us to divide your project into manageable tasks known as sprints, enabling us to approach the project in smaller, more digestible portions.
At BigOhTech, the Agile approach is iterative, allowing for continuous feedback, adjustments, and reprioritization as necessary. By working in these short cycles, we reduce the likelihood of expensive rework and maintain a focus on delivering high-value features.
3. Implement Agile Project Management
Agile project management methods like Scrum are extremely useful. They allow us to divide your project into smaller tasks called sprints, making the project easier to manage.
At BigOhTech, we find the iterative approach advantageous because it provides regular feedback, enabling us to adjust and reprioritize as needed. By working in these short cycles, we reduce the risk of costly rework and keep the focus on delivering high-value features.
4. Simplify The Design
By maintaining a clean and straightforward design, you can significantly decrease development complexity and reduce software development costs. We’ve seen instances where simplifying the user interface and removing unneeded features or functionalities led to faster development times and cost savings.
You can streamline the design or app functionality at a particular development stage, launch more quickly, and then fine-tune the app afterward. This approach aligns with the principles of iterative development.
Summary
Getting a precise software development cost requires much deliberation between the developer and the client. Besides that, there are non-technical factors that could affect the cost of building an app or software. What’s important is to have a clear idea of the app in mind and reach out to the right developer.
