Software development cost is a determining factor for anyone who plans to build a digital product. The company’s annual budget must be planned and investment needs to be secured, and that’s why it’s crucial to get a well-defined price for value. Nevertheless, it’s not easy to estimate its cost and do it properly, especially when discussing complex systems. When outsourcing software development, you as a company need to know precisely the software type, desired platforms, and specified set of features.
At NIX, a leading outsourcing company for over 25 years, our mission is to create the best solution to meet the client’s budget. In this article, we will explain the key factors influencing the final outsourcing software development cost.
Many factors can affect the rate for outsourcing software development, mainly the location and seniority of the software engineers, technologies, the project’s duration and payment model. Let’s look at these factors in further detail.
The most expensive development services are in the US and Australia. However, Eastern Europe outsourcing companies provide near the same quality services for less. Here we can see outsourcing software development costs per hour from different regions based on PayScale’s research.
Developers are often divided into three categories by their knowledge, skillset, and experience. Understanding the developer seniority levels will help set more realistic expectations for a particular engineer.
The set of technologies you use for your project has an impact not only on scope, but also on rate. Whether you want to empower your web system or app with the help of cutting-edge technologies such as AI, Blockchain, AR, or VR, it will be more expensive than building a basic mobile app. Likewise, if you need an outdated technology that is no longer in wide use, it will be challenging and most likely pricey to find an engineer.
No less important is the scope of work and choosing what payment model is more suited for your needs:
Read more about our engagement and payment models.
Another essential component that influences the software development cost is project estimation. This consists of functional and non-functional requirements, software integrations, and supplementary services such as business analysis and custom design.
Extensive functionality often involves the need for complex software architecture design, which comes at a price. Functionality consists of components such as authorization level types, administrative functions, transaction improvements, and modifications that influence the rate.
Not all features have the same cost of implementation. Push notifications and video calls, for instance, are entirely different in terms of price because of the code complexity and time needed. Complex, real-time data analytics with multiple permission levels will need other resources than, for example, a fitness app with time-tracking.
These types of requirements include device types and operating systems, permissions, performance, and security requirements.
It’s essential to measure software reliability, for example, by counting the percentage of actions that are performed correctly or tracking the average time the system operates before failing. And it is no less critical to make sure that the system is scalable – how fast data is processed, and how many users can be supported simultaneously.
Security requirements guarantee that the software is protected from unauthorized access to the system and stored data. It implies different levels of authorization and authentication across different users’ roles.
Which devices, browsers, and OSes the website or application support is one more question since the final cost depends on it. For example, a cross-platform app is less expensive than the development of two native iOS and Android applications.
As for software accessibility, it’s essential to ensure that users can perceive all information with restricted or no hearing.
There are three most widespread types of software integrations:
While some integrations are simple to handle (for example, services like PayPal), others can be challenging when it comes to legacy systems and require more efforts for analysis, preparation, and verification of outcomes. You can check out one of our cases that shows a process of complex integration with Blockchain.
Business analysts provide in-depth research of the client’s specific business expectations to plan the work. A business analyst looks at the project’s scope, establishes the requirements and standards the project must meet, facilitates communication with the development team, and supports its implementation. This allows predicting the outcomes accurately and helps deliver software development on time.
UX is how the product feels, and UI is how the product is laid out – in combination, these two make the application user-friendly. Custom design makes your software stand out and enjoyable for users.
The design’s complexity affects the cost depending on the amount of functionality to depict and its complexity or complex technologies such as 3D modeling or motion design.
DevOps Engineers know how to maintain the IT infrastructure that supports software code and select a suitable deployment model and monitor performance after release.
It’s crucial to test every software component to prevent or solve any potential bugs – above all, this saves you money.
Testing ensures the quality of the final product and smooth market entry. The cost of testing in software development always depends on the complexity of your project.
It’s necessary to understand that custom software development cost estimation is much more complicated than it seems at first glance. There are many technical and non-technical factors that need to be considered beforehand.
It’s time for fair-priced software development outsourcing. NIX develops solutions of different complexities cost-effectively and without compromising quality. Reach out to us and receive an estimation for your future project.
Having more than 7 years experience in IT and Software Outsourcing as a business analyst, project manager and sales engineer, Anna helps businesses leverage digital transformation, achieve their ROI goals and speed up time to market by imposing optimal technical solutions and product roadmaps.
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