Help in Planning Budget for Your Application

Apr 11, 2019
Blog

The benefits that a custom application can bring to business have been discussed thousands of times, so we don’t need to repeat it here. What many people are concerned about in terms of outsourcing app development is cost, or, to be more precise, the assumed enormous amount of money needed for that. But this is not what should stop you: in reality, a custom application usually doesn’t cost an arm and a leg. To put your mind at ease and be able to plan your budget, it is recommended to be aware of software development prices and factors that affect them.

To begin with, have a look at very rough costs for projects of different levels of complexity. Very simple apps with a small number of functions and simple interface can cost from $10,000 to $15,000. If you need something more substantial such as a medium-sized solution, the indicative cost here – $40,000-45,000. The cost of complex systems that require multiple technologies and are supposed to perform complicated actions can start from $50,000, and the more complex system is planned, the more expensive it will be. As we already mentioned, these prices are rough and given here merely to help you get an insight into software development cost in general. Besides these figures, you need to take into account other several points.

Team

How do you see a dream team? How many developers the team should include? Do you think you need a Business Analyst? Are you going to hire UI/UX designers? Type of specialists and their number are key features that make the total price for the project. Besides, the qualification of your team members matter: the more years of experience and completed projects the specialist you chose can boast of, the more money you have to pay.

Time

A simple application can be built in 2 months, while a complex system takes around a year or more to develop. Need a software solution faster? Well, in this case, you have to pay more. Faster development requires more specialists and working hours, otherwise, the off-the-shelf product will disappoint you.

Number of features

This is quite obvious: the final cost depends on the number of features or pages you want your software to include. Hence to control the price you can make a list of all features needed and rank them in order of priority. In any case, your requirements for the product can change during the development process, so be ready for financial maneuvers.

Number of platforms

The cost of your application also depends on which platform it is supposed to work on. If you choose either Android or iOS, it will be obviously cheaper than if you bespeak two native applications for these platforms. Still, if you want your application to be enjoyed by both Android and iOS users, you can decide upon a cross-platform solution which is relatively cheaper.

Contract model

The most popular types of contract models are Fixed Price and Time & Material. Fixed Price model means that the budget for development is negotiated before the start and remains unchanged. As the cost of the project is known in advance, many customers prefer this model. However, bear in mind that the sum of the budget determined in accordance with Fixed Price contract model includes extra costs for unforeseen risks. Time & Material model caters for another approach: here you pay not for the result but for time, or person-hours, devoted to the project development. This model requires your active involvement while the total cost is not determined, but at the same time, it allows you to save up to 30% of the budget, as development stages are little and clear.

Additional payments

Before working on the application, you can bespeak MVP – minimum vital product. MVP, in essence, is the simplest version of the app you are going to build, which aims at receiving feedback from users to determine the ways of the product future development. Thus, the release of MVP version will help you save money on developing useless functions in future but will cost you 10-40% of the planned product price. Besides, plan some money for maintenance and future updates of the app.

The location of the vendor

The cost of software development varies from region to region, from country to country. The cheapest applications in the world are created in India, the most expensive ones – in the North America continent. Many people who have experience in outsourcing software development recommend paying attention to Eastern Europe. This region is known for qualitative software development at a reasonable price.

All aspects mentioned about will help you to figure out a more or less approximate price of custom software development and estimate the budget. To know the exact cost of your project, contact us.

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