Software

How to Reduce Custom Software Development Costs

Custom software development expenses seem higher compared to purchasing ready-to-use products. At the same time, the team can get the return of investment by saving costs on licensing, modifications, and integrations. Besides, custom software development focuses on project-specific needs and becomes cheaper for further support, maintenance, and customization.

Companies’ needs vary but implementing custom software provides one distinctive advantage. The team can constantly adapt the development process according to their requirements, therefore, alter the final software price.

Let’s consider a few of the main aspects that can help reduce the development costs of your future software.

Development cost depending on the request

Clear project scope definition allows the team not only to streamline the development process but also to use resources efficiently. It demands the full investigation of project details and future expectations. Leaving any of the software requirements moderately vague may lead to serious mistakes in making the project estimates. Transparent and consumable needs decrease the ground for misunderstanding and unplanned changes in the project delivery. Clear requirements get the proper vision of the project, eliminate unexpected expenses and help with making accurate estimates. It is worth spending time and focusing on cost-effective software development. Besides, it is important to assume the potential risks and how much it might cost for the project. Correct assumptions ensure the smooth completion of the project at reasonable costs.

Software development cost depending on the chosen tech stack

We shouldn’t forget that every project is completed by means of different technologies. Firstly, it depends on the type of the project. The software development cost for web application development services is different from the expenses of building a mobile app. Moreover, teams apply different approaches like native or hybrid ones for building mobile applications. Choosing cross-platform approaches like Flutter app development allows the team to reduce costs almost twice. There is no need to build two separate mobile apps for iOS and Android. Hybrid apps built with Flutter share about 80% of the code; thus, it considerably decreases the work scope for developers and shortens the timeline for its development. Along with making the project estimates, it is important to check the hourly rates of developers due to their technical expertise. If the technology is highly demanded on the market, the team needs to be ready to pay higher fees for the specialist proficient in it.

Spending cuts by feature prioritization

It is another advantage of custom software development, as the team has the ability to prioritize their needs. It is quite beneficial to accommodate needs with the available resources, especially when the resources are limited. Bespoke software allows teams to cover primary needs and keep within the budget. It is common practice to start with a small complexity and keep on advancing gradually. For instance, MVP development has become a great approach for the fast delivery and introduction of the product for its customers. User feedback can become quite useful for further prioritization on feature implementation. Step-by-step development allows businesses to deliver the greatest value for the resources spent.

Project costs depending on the team composition

The successful implementation of software also requires a skilled workforce. It is important to set the cross-functional team where each team member is responsible for their specific tasks and good at collaborating. Besides developers, the team consists of the project manager, business analysts, UI/UX designers, and QA specialists. Therefore, the project cost estimates should include the price for the work of each team member. Moreover, the developer rates will vary depending on the expertise and experience. The hourly rates of the senior specialists (5+ years of experience) are definitely higher than junior ones (1-3 years of experience). But it isn’t a good idea to hire only junior developers for cost cuts as there might be difficulties with handling complex tasks. It is better to use the mixed team composition where for example, the senior developer will be able to manage the work of junior engineers.

Development fees depending on the developers’ location

The next thing to mention is the location where the company looks for developers or other team members. It is a known fact that many developed countries have experienced a lack of a skilled workforce, especially in the IT sphere. Outsourcing software development to other service providers from other countries has become a common practice. It could be easier to find the required talent in such known outsourcing locations as Western Europe, Latin America, and Asia. Moreover, development fees in these locations are lower because of the local market rates, utility expenses, cost of living, etc.

Software development costs depending on the engagement models

Another option for reducing the development costs depends on the engagement model the company chooses. If they decide on full-time engagement, they need to be ready to cover expenses for the hiring process, onboarding, taxes, accommodation, salary costs, employee benefits, etc. Some teams engage freelancers where they need to cover only the hourly rates of the hired specialists. Whereas outsourcing models can vary by payment models, including fixed prices for the predefined work scope or fixed prices for hourly rates. The variety of engagement models allows businesses to choose the best suitable options and manage expenses efficiently.

After considering all of these aspects, we can make the conclusion that great planning and setting clear requirements can make the custom software development cost lower than you might expect. In addition, it enables setting the productive team for the successful delivery of your project.

A post by Kidal D. (5422 Posts)

Kidal D. is author at LeraBlog. The author's views are entirely their own and may not reflect the views and opinions of LeraBlog staff.

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