Taking Cost Factor into Account for Custom Software Development

July 8, 2021


In this day n age with the advancement in the tech sector, you would be losing a tremendous amount of visibility in the event. That you are careless about your structure and reactions in regards to the digitization of your business. It is very simple to do a simple website design with very few layouts and structures today. However, it’s hard to consistently maintain and to make it responsive also. Website promotion of a business is a basic part of this day and age probably.

In any project, the major factor in determining the value perceived is the price. When most businesses start to think of investing in custom software development, the talk revolves around calculating the costs of custom software development services. The costs are seldom predictable, and pricing could greatly vary, depending on the timeline needed to develop, test, and release the product, and on its specific features.

Factors affecting the cost of custom software development

No two projects are ever the same and a lot of different variables come into play when specifics of custom software are discussed. Some of these factors include:

  • Functionalities and scope of work

The more features and functionalities you want to implement in your software product, the more developer time and other resources the development process will take. Thus, impacting the project costs & its complexity too.

  • Human resources and technology needed

Functionality can be one of the biggest software development cost drivers. The more commands the custom program needs to have, the higher the price will be. The logic behind this is simple – more people will need to work on a specific project and invest more hours into its development. Depending on customer needs and project technical requirements, developers utilize different programming languages ​​and technologies for custom software development. The hourly rate for a software developer also differs depending on how long the programming language and technology exist, what they are usable for, and how difficult they are to learn.

  • Complexities of the custom software being developed

The complexity of your custom software could play a big role in the final estimate. Complexity refers to the purpose and additional requirements overall that you have for your development team. The more complex it gets, the more cost you as a business have to incur. Product integration with third-party services, API, license requirements, and other similar features will also increase resource costs.

Risks Involved when outsourcing your custom software development

Unfortunately, there are several risks involved with outsourcing and off-shoring custom software development too. However, being aware of the risks can help in eliminating them.

  • Fear of idea duplication

This is one of the worst things that can happen to a business, the offshore partner stealing the idea. It is important to avoid such a situation and one should always use the NDA (Non-Disclosure Agreement) to avoid such situations.

This is also something that can happen sometimes. It is better to do a small project or a pilot project together initially to understand the competency of the firm.

  • Culture differences

Different work ethics or culture when off-shoring software development may surprise many. Misunderstanding, irritations, and anger might arise from such scenarios. However, being patient and learning a little bit about the people and country where they can outsource the project too will help in the long term.

The average cost of custom software development

It’s almost impossible to tell the exact cost of custom software development without discussing the project requirements, however, various factors may have a rough assessment of the software development. Below are some factors that we need to consider to have a rough idea about the cost of custom software development:

  • Small projects. Software solving one problem and requiring little development time belongs in this category. 5 to 15 screens.

Cost: $3,000 – $10,000.

  • Mid-level projects. Such apps have several important functions and no more than 15 screens.

Cost: $15,000 – $ 50,000

  • Large projects. Predominately, that is enterprise-grade software with multiple features, third-party integrations, data migration features, dozens of screens, etc.

Cost: from $50,000 and more.

When it comes to mid-level and large projects, it would be better to start with an MVP to reduce custom software development costs. A good team also plays an important role because experienced developers can advise you on the optimal solution and ways of optimizing your budget without damage to quality.


Drawing the line, understanding that custom software development cost estimation is much more complex than it seems is important. There is a lot of tech and non-tech factors you should take into account beforehand.

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