Guide to Software Development Costs

How much does it cost to develop custom software?

A question that we are asked quite frequently. And it’s a tough one, even for someone who has been developing software for over 15 years. Well, here’s our three-word answer: “It really depends!”

The cost of developing software depends on the requirements and various other software cost factors, and no two software projects are the same. In fact, ‘software’ is itself such a broad term that we cannot know the development cost for sure until we know what your exact software requirements are.

We wish that it was simpler to give an instant cost estimate and a time-frame, but without understanding the requirements and factors that determine software development pricing, it is almost impossible to say.

Let’s proceed with our discussion and find out what this really means for you.

What Kind Of Software Do You Want To Develop?

In today’s tech-savvy world, the term ‘software’ can mean anything, from the weather application on your phone to a comprehensive enterprise software used by millions of clients.

Even ‘enterprise software’ is not specific enough. Businesses use a plethora of different software that enables them to operate efficiently, allowing them to perform and manage specific functions. Think about software for every single process, from vendor management, production, inventory, clients, and projects, to managing employees. All kinds of business software, from project management tools to ERP systems, are examples of the integration of business processes and software.

Business owners who want to equip their business with cutting-edge custom software, or entrepreneurs that want to launch software that will be “the next big thing” in the market, often reach out to us with their ideas. But giving precise cost estimates based on vague ideas is virtually impossible. Here’s an analogy that explains it better.

Average Cost Of Software Development And How It Is Estimated

As discussed before, there is no fixed answer to the “How much does it cost to develop custom software?” question. A software project can cost anywhere between £10,000 and £1,000,000, sometimes even more, and it all depends on the requirements of the project.

If you have a project in mind and you want to find out the average cost of software development for it, you need to get in touch with a software development company – an experienced software team that can provide realistic estimates for your project. These estimations of software development cost are always expressed in terms of cost, time, and effort:

• Cost (measured in £)
  
• Duration (measured in calendar time)
  
• Efforts and Experience (measured in person-months)
  

Time and efforts are closely related to the overall cost of the software project, just like the duration and the number of required construction workers and professionals required to build your house would determine the total construction cost.

Some software development companies estimate the cost in terms of the duration of the software project. An example of software development cost estimation are projects that are spread over an extended development period. While calculating software development costs for such projects, some companies phase out the development process by splitting it into smaller parts and charging a fixed cost for every phase.

Here's a complete guide to software development cost that you can follow for precise estimates for your projects.