Custom Software Development Costs

What are Custom Software Development Costs for Digital Transformation

Custom software offers a personalized experience, enhances capacities, and ensures smooth functioning. In this article, we will discuss the important factors that impact the development cost of custom software.

How to estimate development costs for your projects?

Today, it is quite not possible to have a software solution that meets all your needs. Custom software development facilitates you with all your specific needs; it allows you to have such a specific application that covers everything you want, offering you a smoother experience.  

A powerful software solution is a mix of almost all the latest technologies including IoT, AR, machine learning, and more. However, every custom software project is not the same, and their smooth and effective functioning is equally important. There are some essential factors that should be taken care of before getting started with the development.

Each factor is important and if we talk about the cost of a solution, we can say it is a major factor. Since each business has its budget, so requirement needs to fulfill as per the budget only. So when you are creating custom software, assessing the cost becomes important, however estimating the cost of development is a big thing.

Let’s imagine that you create a list of your needs and then figure it out it may cost you high, now what? How you can get a customized solution if it is not in your budget? And without a solution how you are going to run your startup? Well, this is where you need experts to provide a pocket-friendly tailor-made software solution to serve all your needs. In this article, we will discuss thoroughly a variety of factors that can impact the cost of custom software development.

Before we get started, let’s understand first what is custom software?

Custom Software

Custom software is precisely designed as per your needs; it is not a general product. It will include all the features that your business needs. The steps of custom solution development include figure out and list down the requirement, writing the code, product testing, and executing it. It minimizes the building cost as there are no extra features and provides a great experience. Now, let’s understand the factors that are important when assessing the cost of the custom software.

Important factors that help assess the development cost of custom software solution

The below-listed points you need to consider to get the estimate of custom software for your organization.

1. Type of Platforms

There are a variety of popular platforms available in the market to choose from including Windows, Mac, Linux, Android, Unix, iOS. The cost and features of each platform differ from one another. For instance, Android is widely used in today’s market, but it needs a powerful software structure and great development efforts to ensure smooth performance. Meaning, if any business wants to run their Android-based solution on iOS or Windows, a separate development team will be needed. And if you hire multiple development teams, it will cost you high. To overcome this issue, you can go for a cross-platform development solution that allows reusing the code in various native environments. Therefore, multiple development teams are not needed, and it will save the extra charges as well.

2. Development Approach

The next step is to choose the development approach wisely. It is always good for a stable, fast, and flawless one for better results. As per the survey, Agile development is a rich-featured, cost-effective solution, 95% of companies said that they use it.

With agile development approach, you can build clear guidelines to perform and allocate task, its iteration metrics helps minimize the team efforts. Prototyping allows modification before the product is out in the market. Iterative sprints make certain that each version gets user feedback to reduce time and issues. The Agile methodologies that are in trend in the market are Scrum and Kanban.

3. MVP requirements

You have got a great idea and you are pretty excited to turn your idea into reality, but if you want to check the reactions of your users, MVP is a perfect way to get feedback and know the demand of your product before it hit the market.

Lets’ understand it with an example, if you are going to create a music streaming app which plays numbers at a specific time and wants to know the feedback from your audiences, you simply can create a beta version and release it. It just takes twenty to forty percent of the total cost to develop.  It will provide a better understanding of your product and at the same time, you get more time to create it. And working as per the user feedback ensures the success of the product as well.

4. Complexity of Software

Software that needs heavy computation and processing power and a wide variety of features are complex in nature. Such apps may cost you high. Building custom software with great tools and features and a simple architecture minimizes the cost. The important point you can take care of is the functional value instead of focusing on aesthetics. It helps to reduce cost and put effort into integrating essential features. A simple user interface requires less coding effort and low maintenance cost.

5. Design requirements

It is always great to go for a creative and interesting user interface to make your app a hit one. If your app is creative and simple at the same time, users tend to stay for a long time. Design is an important factor when you want to engage the users. Therefore, it is essential to focus on look enhancement, build a product that has appealing visuals and includes clear and simple instruction.

6. Integrations of extra features

To add extra features and functionality, you need to use third-party APIs. APIs refer to Application Programming Interfaces which are basically a set of programs designed to interact with different systems. However, you may face some issues when planning to integrate APIs such as compatibility issues and an increased cost of integration issues.

For example, if you want to include an instant messaging feature in your app, Whatsapp messenger integration in your app, you can follow two methods. The first one is to establish a docker container which needs extra development efforts and cost and the other one is to go for AWS(Amazon Web Services) solution.

7. Database Migrations

Database migration also increases the cost if not taken care of well. You can reduce the cost by making it certain that you do it systematically, takes backup of all your data first. You need to transfer your data between systems carefully.

Now when you have got to know the different aspects that impact development cost, let’s understand the other factors that are important to estimate the cost of custom software. Follow the below steps to decide the cost.

1. Selecting the right solution

You must study well that you should have a generalized app or custom software, which one will serve your purpose effectively and efficiently as there is a difference of cost, time, and efforts you put in. For instance, the Adobe PDF program includes a variety of functionality including editing, file conversion, and more but custom tools such as time logs, visual tracking, personalized logins, etc can help make things easier, and save time turning them into productive hours. Getting a product that meets specific needs is quite a task. But you must not forget that this specific functionality pays a lot and is very useful in the long run. You can find a solution close to your specific needs, but to boost the capacity of the solution it is always a wise decision to go for custom software

2. Hiring experts

You have two options to hire the talent- In-house developers or outsource it.

When you choose to get an in-house developer, you need to cover all the areas including their perks, insurance, and allowances. And also at some point, if you plan to migrate the platform, you need to get the team trained. When hiring a freelance developer, you do not need to spend on these areas.

3. Main Features for the MVP

You can include only the main features in your app’s beta version. This will save you time and cost as well. The purpose is also to serve that the app is ready in less time and the time you get the feedbacks you can include all that in your launch effectively.

4. Assessment of future risk

When it is about creating a large-scale product, you need to figure out the risks involved and get ready for it in advance so that you can cover it up speedily. Speed plays an important role to earn the trust of users.

5. Impact of the Funding Type

There are two types of software solutions, small-scale and enterprise-level large-scale software. In small-scale software, you do not find any problems in assessing the problem, but in enterprise-level software, it becomes somewhat typical. They are funded from various resources such as NGOs, government authorities, and more. There are many concerns and the features list is very long and organizations need to include first the features that get the fund, so a kind of uncertainty and urgency of work makes it a bit difficult to assess the cost.

What is the average development cost of custom software?

There are a variety of pricing models that help to estimate the average cost.

Software Type

The cost is based on the type of solution, which means you are creating a solution for a large-sized company, medium-sized or small scale. The cost of development varies depending on its scale.

Building custom software for enterprise-level requires high-performance developers and may cost you somewhere around $250,000 to $150,00,00,000 and for the medium-sized organization, you may need to spend around $55,000 to $ 70,00,000. The cost of small-scale applications can be $15,000 to$6, 50, 000.

Work Hours

If we talk about the cost as per work hours, it varies in different countries. So, the location and the length of your project together will help determine the cost. It is pretty apparent that large-scale solutions cost of development will be higher as they need more time and wide resources to build.

Team size

Your project size decides the size of a development team. The meaning is if your project is big you need to hire more people, therefore the cost will be added accordingly. A small-sized project can be developed with the help of a small team; consequently, the cost will be less.

Hiring Custom Software Development Services from outside is a wise decision. Outsourcing your work to freelancers can help you reduce the cost, as you can get experts at competitive prices.

Software Package

An agreement is made between the Custom Software Development Company and you to deliver the project on a certain package. It includes the cost of each aspect of development, a detailed plan of the project, and installments to pay. In most cases, the bill is paid installments. There must be transparency in the contract to estimate the correct cost of the software.

The proposal helps estimate the cost

A proposal is a good way to estimate the development cost of custom software. It includes all the needed functionality, features, and purpose of the solution. Then it is reviewed by vendors and helps you suggest the points you may have missed. It is a great way to assess the cost of custom software at a very early stage.


If you have planned your project well in advance, estimating the cost becomes pretty easy. Developer helps you tell you the price clearly. The experienced developer helps you provide the best solution as well as costs you high. On the basis of the above pointers, estimating the cost of Saas Software Development Services is pretty easy.

Custom Software Development Costs

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