Software Development Costing and Everything You Need to Know About the Expenses

Software Development Costing and Everything You Need to Know About the Expenses

Are you wondering what the actual software development costing is? Unfortunately, it’s pretty hard to estimate the final expenses before the project begins, although this determines the features implemented in the release version.

Software Development Costing and Everything You Need to Know About the Expenses

We shall explain the process of software cost estimation and explore several factors that influence the final price. Enjoy!

What does the average software development cost per hour?

The average software development costing ultimately depends on the region your hire developers from. Some examples are:

  • Eastern Europe – $25/hour for juniors and $50/hour for seniors;
  • USA – $25-35/hour for juniors and $50-100/hour for seniors;
  • Asia – $18/hour for juniors and $40/hour for seniors.

Logically, a junior developer will cost your business much less than a senior. However, remember that specialists with better skills charge higher rates. You have to pay for quality!

How long does it take to develop software?

As you might have guessed from the way we set the rates, software cost estimation is based on the amount of time it takes to create the final product. This means that the longer it takes for the app to be made, the more money you’ll have to spend.

The development time varies depending on the type of software, required features, and multiple other factors. For example, native apps take more effort than web software. Based on these details, we can state that:

  • 1-3 months for a simple project;
  • 6-9 months for an average app;
  • 1 year and more for the most demanding, complex applications.

Therefore, you have to understand that it’s a timely and costly process for even a simple job. The Global Cloud Team provides reasonable rates along with high-quality results, so contact our representative via the form on the website.

What type of software is simple, medium, and hard?

A bit earlier, we have mentioned the timeframes required for the development of projects of various complexity. However, general terms won’t describe what a simple or complex task means. Some specified examples will be provided below.

1. Simple projects

An easy application is any software that involves the most basic features. For example, such an app would usually imply:

  • A simple login;
  • An email subscription standard;
  • No integrations;
  • Easy design, often out-of-the-box.

Developers don’t have to work hard to complete such a task. Many of them have made dozens of similar programs in their past, so it’s like a routine assignment.

2. Medium projects

An average application requires additional efforts to be created. It usually involves several advanced features like:

  • Payment systems;
  • Messaging;
  • Analytics;
  • Better design and device adaptation.

Such programs are a bit harder to develop, although they are a normal practice for middle software developers. The Global Cloud Team has got several examples of these in its portfolio. Check them out!

3. Complex projects

A “heavy” application could involve developers of all levels to work together. Basically, it’s a solution that involves all existing features like:

  • Encryption;
  • Optimization;
  • Compatibility with various apps and devices;
  • Constant support, and more.

This is the most expensive type of software because it requires a lot of work to be done. The amount of features keeps the developers busy for quite a long while, meaning that the hourly pay rate stacks and forms the final price. However, this investment usually pays off after the solution is released.

What affects the software development price?

Development costs are quite variable, as you may have noticed. There are several features that significantly increase the pricing.

1. Size

The bigger the app, the more work should be done. Small software often covers up to 20 pages, while medium and huge solutions involve over 40 pages. That’s all additional work for the developer. Besides, you shouldn’t neglect optimization and testing. These two details also require extra time and money.

2. Platform

It is generally known that each platform requires a separate technology stack. The software development costing changes accordingly

. As an example, iOS apps are much more expensive than those created for Android. Desktop software would cost an even larger sum.

3. Features

“I want everything in my app!” – if that’s what you’re thinking about, then be ready to see a five or even 6-digit cheque for development. Remember that complex software requires a bigger investment in terms of time, money, and other resources. This involves features, technologies, and design.

4. Design

While you might think of design as something easy, in reality, it’s a challenging job. Top-level designers are successful only because of constant self-development, knowledge of trends and human behavior, and a ton of other factors. UI/UX design determines how easy to use your app is for users. If this element fails, even the most powerful features won’t help.

5. Team

Hiring one developer is good, but that’s not enough to complete a complex project. Companies usually hire full-stack specialists (sometimes front-end and back-end separately), project managers, business analysts, and quality assurance engineers. Each person is involved in the work process, so the more people are on board – the higher the rate.

Software Development Costing and Everything You Need to Know About the Expenses

Freelance, outsource, or in-house?

When hiring a development team for your project, you will usually get stuck on a crossroad suggesting different places to contact specialists. Each type of collaboration comes with several pros and cons, so you must be aware of them before working.

Freelancers usually provide the lowest rates. They can be found on websites like Upwork, which are pretty popular in the industry. However, due to the way you collaborate, there might be certain issues with communication. You’ll also have to double-check the reviews and portfolio to ensure you’re not being scammed.

Outsourcers are a bit more reliable than freelancers. You will usually find them via staffing agencies like the Global Cloud Team. The major advantage is that these companies already know who they work with, meaning you’ll get a qualified specialist with ease.

Finally, an in-house team is the most expensive choice. While it is great to have people working solely on your projects, this luxury is very demanding in terms of funds. You’ll face additional expenses for office rent, food, and multiple other factors.

The bottom line

Now that you know the average prices for software development, it is time to look for a company that could provide you a great solution at reasonable rates. That’s all about the Global Cloud Team. Contact our representative via the form on the website to find out how we can solve your task. Hurry, your competitors aren’t waiting!

Ivan Kolesnikov

About the author:

Ivan Kolesnikov

Experienced professional in programming.