Following the COVID-19 pandemic, the global software development industry has seen a strong upward trend. Many entrepreneurs are also entering the market with new, innovative software products.
Research shows that demand for custom application development is at an all-time high in 2021 as more and more people rely on software solutions in their personal and professional spheres of life.
Developing custom software is very different from buying and using off-the-shelf software. Therefore, the first and most frequently asked question about custom development services is about cost.
Everyone is curious about how much it costs to develop a custom software application, but the truth is, there is no exact answer to this question. The cost of custom development depends on a number of factors, the most important of which are the requirements of the custom software you want to develop. Read on to find out the main factors that impact the cost of custom development.
Factors determining the cost of custom software development services
Here is a list of six important facts that determine the cost of developing custom software applications.
1. Type of service
There is a wide range of software development services offered by companies. These include the custom development of mobile apps, web apps, desktop apps, web portals, SaaS products, white label software, minimum viable products (MVPs), and commercial applications.
Each type of custom development service is different in nature and therefore offered at a different price. For example, the cost of developing a custom mobile app is much higher than the cost of building a small-scale website. Likewise, MVP development services also cost less than the cost of developing a custom SaaS platform. Therefore, the cost of custom software application development services varies depending on the type of service.
2. Deployment platform
The choice of deployment platform is very important when it comes to the cost of custom development. Since each platform has its own set of specifications and its own number of devices, cost development may vary for different platforms. For example, mobile app development services for Android, iOS, and Blackberry operating systems cost differently.
Android is the largest platform and there is a wide range of mobile devices that run the Android operating system. On the other hand, iOS works on a significantly smaller number of devices. In terms of development, this means that developing a custom app for Android is more expensive than iOS because the app has to be developed and tested for a large number of devices.
3. Software size
It is difficult to have a precise definition of what constitutes a small, medium or large software application. Software size refers to the scope of the software project, or in other words, the scale of the software system itself. Depending on the number of features and functionality of the application, the number of modules or screens, and the size of the user base of the software, the cost of development can vary widely.
The processes of developing, testing, and optimizing software applications with extensive functionality and a large user base are lengthy and costly.
4. Software complexity
Software complexity refers to the complexity of the logic behind software applications. Some applications are simple and do not rely on technologically complex algorithms, while others require a complex feature set and must be conditioned by complicated business rules.
For example, a stopwatch application is an example of a simple software application, while a real-time financial trading application is an example of a complex software application.
5. UI / UX design
Another factor that affects the cost of custom software application development services is the complexity of the design. UI / UX design is an important part of the software development process.
While the custom software requires various design customizations such as micro-animations, aesthetic interfaces, and custom artwork, the design process can be lengthy and costly as it requires more design effort.
Your location and the location of your service providers are also important factors that impact the cost of development. Custom development services are expensive in some parts of the world, especially the US and UK. While software companies located in Europe or Asia offer similar services at a lower price.
If you are looking for offshore software development services from companies located in Asia, the cost of custom development would be a fraction of the cost you would have to incur if you hired an onshore software development company.
Average cost of custom software application development services
A simple Google search will tell you that there are hundreds of thousands of companies that offer custom software application development services in different industries. Each software development service company has a different pricing policy from others, and it is almost impossible to have a simple answer to the question of costs for custom software development services.
As noted in the previous section, there are many factors that affect the cost of development, such as size, complexity, design, location, and choice of platform. Since every custom development project is unique in terms of requirements, there is no unique cost estimate that can apply to every project. However, after closely studying the prices of major software companies, we were able to come up with realistic estimates of average costs in the industry for projects of different scales.
- Low Range ($ 10,000 – $ 25,000): A low-end custom development project consists of the bare minimum in terms of functionality and software functionality.
- Medium range ($ 25,000 – $ 75,000): In this lineup, you can expect services that cover small-scale application development with a few main features and functionality. For example, developing an MVP typically falls within this range because it only focuses on core functionality.
- Medium range ($ 75,000 – $ 150,000): In reality, there is a good chance that your project falls within this range. A mid-scope project might involve building a full-fledged web application with sophisticated functionality or a mobile application for more than one platform.
- High-end ($ 150,000 +): Premium software development services cover the custom development of large-scale enterprise software applications or a feature-rich SaaS platform. Large-scale business applications with multiple components such as web portals and mobile applications can also fall into this category.
By the editor.