Which Factors to Consider for Estimating Custom Software Development Cost
Custom software development has gained ground quickly in the corporate sector. Though entrepreneurs want to leverage the benefits of emerging technologies like AI and AR through feature-rich applications, the variation in the cost range can hold them back. Many contributing factors need to be considered for estimating the cost of custom application development, and here we are going to discuss all the major factors.
Here we dig deep into cost-determining factors for custom software development. It will help you figure out the aspects that can increase the app development cost and find out how offshore software development can save your money. Let’s start from scratch and see the reasons why most software development estimates go wrong.
Why Software Project Estimates Go Wrong
Based on our vast experience as a reputed software development outsourcing partner, we can mention that in 9 out of 10 situations, the inability to determine the end goals or business objectives behind the software development is the major cause of development cost-related issues. With this, it is fair to say that no two projects are the same and right there. Multiple variables come into play when the custom application development process starts.
What’s more, even the slightest miscommunication can cause you extra development cost for modifying the software. This is fairly cumbersome for clients who have budgetary constraints and strict deadlines for the project completion.
After looking at the hindrances of a custom application development project, let’s go through the list of cost-determining factors for your enterprise software development.
Top Factors that Influence Custom Software Development Costs
Usually, software development outsourcing takes an agile way of developing software. It is necessary to include the business needs, competitors’ actions, and the client’s budgetary limitations. Though the agile approach is highly useful, it brings uncertainty in the completion time. Also, many clients want to integrate advancements of emerging technologies like AI and AR in their customized software, which contributes to the complexity and increases the cost of the project.
When it comes to the functionality of the software, we consider the number and complexity of features to be implemented. Functionality is one of the biggest cost-determining factors for the software development project. If you want to increase features, the development cost will increase.
Every software and mobile application can have different UI/UX designs based on its objectives and functionality. Another design factor is the inclusion of complex technologies in robust enterprise-level apps. 3D modeling, motion design, and other AR or VR-based design integrations can increase the development cost significantly.
Integrations also play a vital role in influencing the cost of custom software development. If you want to come up with the customized software with desired features and functionality, then third-party app integrations are necessary. For example, CRM, ERP, and other business intelligence tools are necessary to integrate for simplifying various business processes. However, integration of these third-party apps needs additional hours, and therefore, the cost of software is increased.
What’s more, some integrations are challenging and require more effort with the utmost care. These integrations take more time of developers and cause a significant rise in the cost of software development.
- Data Requirements
Some projects need data migration. If you want to come up with a cloud-based enterprise app then data migration is essential. It needs a customized approach because apps and servers store data differently. Also, the storage capacity of two servers can be different, and therefore, a reputed IT outsourcing company takes extra care in reshaping the data from one system to another. The data migration process includes various steps including identifying translation rules, performing testing, and preparing tailored scripts. If you want to launch an eCommerce app or a B2C and B2B app, then data requirements should be fulfilled. It also adds to the software development cost.
- Hourly Rate
The simplest formula to estimate the cost of an offshore software development project is- Hourly Rate X Project Time= Project Cost. When you hire dedicated developers, you need to consider the hourly rate of developers because there is a lot of variation in rates across the world.
Apart from the software development cost, your project may require additional costs including legal costs, licensing fees, and infrastructure costs for hosting servers, and the like. What’s more, once your app is ready, you need to keep some amount aside for its regular maintenance and update. Most custom software development companies do not include maintenance fees in the app development cost. It is better to consider this cost for keeping your app up-to-date.
In a nutshell, your app development project requires an investment of time and money. You can save bucks by opting for software development outsourcing. It facilitates you to hire app developers in a cost-effective and most suitable way according to project requirements. You can choose from Time and Materials, Fixed Price or any other suitable hiring model of a reputed IT outsourcing company.
Semaphore is a renowned offshore software development company. We are committed to developing high-end app solutions by integrating technological advancements for our corporate clients. While keeping the cost factor and budgetary limitations in mind, we offer flexible engagement models if you want to hire dedicated developers for your software project. Do you want to know more about our services? Simply send us an email at email@example.com and we will contact you soon.