Calculating the cost of software development is critical before you begin. After all, businesses exist to generate revenue, and the cost of developing a piece of software or an application must be reasonable.
Cost of Software Development on an Average
When you ask IT firms how much software development costs, you frequently receive the standard response of 'it depends.' A vague response is inconvenient for startup owners when budgeting, but it is not difficult to come up with a solid figure without detailed discussions.
Numerous factors contribute to the cost of developing a piece of software. Before providing a cost estimate, a development agency would need to go over the project requirements with the client.
Obviously, a simple app with minimal user interaction and backend processing will be less expensive to develop. Meanwhile, developing a complex application that includes financial transactions, extensive interaction, and integration with external systems will be significantly more expensive.
The cost of software development is not determined solely by the size or complexity of the application. If you're developing a simple app with dozens of screens, the cost may be comparable to that of more complicated apps.
At the end of the day, it comes down to the number of people-hours and the technology stack used to build the software. According to our experience, software development costs typically range between $50,000 and $250,000. The lower price tag is appropriate for a straightforward application that takes less than 700 hours to develop. If you're developing a cross-platform application with a server-side application, the fee will almost certainly be in the six figures.
For instance, a straightforward social media application for a single platform may cost $50,000. Developing the same app for web, Android, and iOS, on the other hand, will cost approximately $137,000 and require 2,750 hours of development. If you're developing apps similar to UberEats, you should budget around $150,000 for 3,000 hours of work.
It all comes down to the number of people hours and the technology stack used to develop the software. According to our experience, software development costs typically range between $50,000 and $250,000.
Cost Factors in Software
As it turns out, the typical cost of software development varies considerably. The technical specifications and nature of the application influence the development cost. Other non-technical factors, on the other hand, may have an effect on your budget.
The complete checklist is available below.
Type Of Application And Its Complexity
Are you attempting to create an Uber-like application? Or a straightforward application that does not require backend processing? Your selection has a significant impact on the cost of the entire development process. Creating a simple app is a relatively simple process that requires little effort. Meanwhile, an Uber-like application requires sophisticated algorithms, a sophisticated technology stack, and intensive backend processing.
Naturally, developing an Uber-style app will be more expensive than developing a simple app that simply displays your business's latest catalog. The general rule is that the more user interaction required, the larger the app should be. An Uber-like app allows for multiple user categories, each with its own set of profile editing permissions.
A complex system also requires more customization. Customization is a time-consuming process in which developers create new code to implement the app's functionality. Additionally, it requires rigorous testing of the customized modules, which results in an increased cost.
Platforms
Your target audiences are likely to be spread across multiple platforms, necessitating the development of separate versions of the app for web, Android, and iOS. Developing an application for multiple platforms entails a higher development fee. You'll need to hire separate development teams to work on the various versions of the app.
There are instances when developing a cross-platform application can save you money on development costs. A cross-platform application is one that can be deployed on iOS and Android using the same codebase. However, cross-platform apps save time when a skilled team is involved and may not save time for certain types of products, such as fintech with graphs and dashboards, streaming, and so on.
This leaves you with the option of developing native applications for each platform, which is more expensive. A native iOS application cannot be ported to Android, and vice versa. Certain startups initially focus on a single platform and then expand to others once they have achieved some level of success. Clubhouse is an excellent example of this, as it began as an Apple-exclusive application.
Complexity of User Experience/User Interface Design
It is common for users to abandon an app after a brief period of use. Frequently, the cause is poor user interface or navigation. The user experience is critical to achieving high levels of user satisfaction and retention after the app is launched. As a result, it's unsurprising that startups prioritize custom UX/UI design for their apps.
Each interface contains graphic elements such as buttons, fonts, icons, and colors. It's also about the ease with which users can complete specific tasks within the app. It takes considerable effort on the part of the developers to ensure that the app is visually appealing and provides an enjoyable user experience.
These efforts result in costs for entrepreneurs. You'll be responsible for all custom artworks, animations, testing, and redesign to ensure the app has the best user experience possible.
Infrastructure in the Back End and Connected APIs
Any app that provides significant value to its users rarely operates in isolation. These applications are frequently integrated with external systems and require extensive backend processing. Uber is an example of a company that conceals complex background processes behind a simple-to-use client interface.
Users are drawn to the ride-hailing platform by features such as geolocation, mapping, and a variety of payment options. Additionally, developers take great care to safeguard user data on the backend. These features require additional time or money to implement, which adds to the development cost.
If the application requires extensive data processing on the server side, developing the corresponding modules will be more expensive. Additionally, the server-side application may require communication with external systems. While utilizing off-the-shelf APIs can help reduce development costs, if a custom data-exchange API is required, there is no way around paying for it.
Geographical Area
Hiring software developers can be costly, depending on your location. This is especially true if you live in the United States or Western Europe, where developers earn an average of around $100 per hour. Due to the high hourly rate, you will incur a higher software cost.
There are, however, some regions where you can obtain software development at a significantly lower cost without sacrificing quality. Eastern Europe is a popular IT outsourcing region, with a large number of seasoned developers. Ukraine, in particular, offers a competitive hourly rate of $45 per hour.
You can obtain a lower rate in countries such as China and India, but you must be aware of cultural differences and time zones. It's easier to collaborate with developers who speak the same language, and having a real-time conversation isn't difficult.
Making the right choice during the app development process can save you a significant amount of money.
Model for Hiring
Did you know that selecting the appropriate collaboration model has an effect on development costs as well? When hiring a developer, you are frequently presented with three distinct hiring options: fixed-rate, hourly rate, or dedicated team.
Fixed-rate financing means that you will pay a predetermined amount for clearly defined requirements. While you know exactly how much you will pay the developers, there is little room for adjustment during the development process.
Meanwhile, the hourly-rate model allows for greater adaptability to changing requirements. You are charged for the man-hours and resources expended on development. The total cost, on the other hand, is ambiguous, and you do not have complete control over the development team. This model is ideal for fledgling businesses.
Established startups have discovered that the third option, the dedicated team, is an appealing mode of collaboration. The IT agency will assign developers to the startup, which will cover the developer's salary during their time on the job. You obtain exclusivity from the developers, which may result in a reduction in development time.
Relia Software's Cost Estimation
We understand that no two businesses are alike, and thus each app is unique. However, startups and business owners need to know how much it costs to develop budget planning software.
At Relia Software, we follow a systematic process for estimating costs for our clients. After you've expressed interest in our company, a member of our team will contact you to discuss your concept in greater detail. We'll ask you specific questions about your app concept.
Additionally, we'll consider your business's requirements, objectives, and size. The data is then used to determine the resources that are required. Then, within 5-7 days, we'll provide you with an estimate and an architecture diagram.
Once you've agreed to the price, we'll proceed and present you with several options for building the app the best way possible.
Summary
Accurately estimating the cost of software development requires considerable deliberation between the developer and the client. Apart from that, non-technical factors can affect the cost of developing an app or software. What's critical is to have a clear vision for the app and to contact the appropriate developer.
Our team is prepared to investigate your app concept and provide you with a competitive quote. Contact us immediately.
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