You need custom software for your business. It’s definitely a good investment, as every business, whether a start-up venture or an established large enterprise requires it to achieve quick progress in a digitally-driven, ever-changing world.
So, the next question arises in your mind, just like any other business owner looking to develop software for their business: How much does it cost to develop software?
This question is not new to us as a software development company because, whenever a client reaches out to us with a request to develop a software solution for their business, the first question they ask is: “How much do I need to pay for my software development project?
And every time, we give them the same two-word answer: IT DEPENDS.
This is because no two software solutions are the same. Therefore, the cost varies from project to project.
But still, if someone insists that we provide an estimated idea for the cost of software development, we tell them it starts at $10,000 and can go up to $150,000—or sometimes even more.
Yeah, we know what you’re thinking at this moment: such a wide range!
This is because some software solutions are relatively easy to build, especially those designed for small businesses. On the other hand, software developed for large businesses is often more complex, which makes the cost of building such software significantly higher.
By now, you must have understood the main point of this blog: to provide readers or clients who want to develop software for their business with a clear idea of the costs involved before they work with any software development company, ensuring they don’t get overcharged.
If the information in this blog is still unclear to you, feel free to connect with us, and we’ll help you calculate the cost of software development.
What Are Software Development Costs?
In simple terms, the money you pay to a software development company covers their efforts and the resources used in building custom software.
When a software development agency creates software, it involves several factors, such as the time spent, resources used (like tools and technologies), and efforts like coding and designing user interfaces. The client pays for all these aspects to ensure their project is successfully completed.
Why It’s Important To Know Software Development Costs Before Starting A Project?
When development costs are forecasted in advance, you can save yourself from being overcharged by the company you’re working with.
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Avoid Unexpected Expenses
For instance, if you start a software development project by hiring an agency without knowing the cost, the agency you work with may charge you more for features that could have been less expensive if you had known the cost beforehand.
When you know the cost before the company starts working, you’ll have an idea of how much you need to allocate from the company budget and how much you should invest in other crucial aspects of the business.
This is important because if you develop software without knowing the cost and the software development company asks for more money, you may end up taking funds from the budget allocated for other business aspects, which could cause issues and disrupt other areas of your business.
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Establishing achievable goals
There is always a difference in the quality and features of software developed with a budget of $20,000 compared to $30,000. Software created with a higher budget typically includes advanced features and functionality compared to software developed with a lower budget.
So, when you have an upfront understanding of development costs, you will have a clear idea of how your software will look, what features it will have, and what you can realistically achieve with it.
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Project Feasibility Analysis
So, when you know how much investment software will require to develop, you can determine whether it’s worth investing in or not. Sometimes, especially for small businesses, software may not be absolutely necessary. While it can help make processes faster, it might not be essential. If you know the cost and it fits within your budget, you can then decide whether to proceed with development or not.
How Much Do Companies Typically Spend on Software Development?
How much a company spends can depend on the size of the company, the budget they have, and the type of software they need. Small businesses and start-up ventures typically have smaller budgets compared to large enterprises.
The software solutions needed by small businesses are often less complex and challenging to build, which is why they spend less compared to large companies that have large amounts of data to store and are looking to automate multiple internal operations. The cost of software developed for large companies is higher due to the challenges involved and the overall size of the software.
If you’re a startup venture or a small business and wondering how much custom software development costs, as a rule of thumb, keeping limited investment capital in mind, we would recommend you invest at least $15,000 to $30,000 on software. This is typically the amount a small business invests in developing software.
On the other hand, if you’re the owner of a large enterprise and budget is not a problem, you should consider spending $50,000 to $150,000 or even more. Since most of the investment is not a big issue, your focus should be on getting software that can handle the operations you need it to perform and address the pain points of your business, helping you outperform competitors.
How much is the cost of software development in Eleventh Tech?
Eleventh Tech helps both early-stage companies and large-scale organizations develop bespoke software solutions. Business owners or individuals who want to find out the exact cost of their software development project can calculate it with the help of our expert software developers. You can follow this process to reach out to us and get the cost calculated for your project.
Stage #1: Connect with us
First, you need to reach out to us either by filling out the form on our website or by sending us an email at contact@eleventhtech.co.uk. Make sure to write “Calculate Software Development Cost” in the subject line so we can immediately understand the purpose of your email or form submission.
Stage #2: Set up a meeting
After we receive the form, we will set up a meeting with you. During the meeting, you can share your complete project details, and we will also ask you questions to gather all the necessary information about the software you need to build.
Stage #3: Quote you a price
After our initial meeting, we will conduct some research and calculate the price of the software.
In the third stage, you will know the cost of your software. After that, if you decide to work with us, we will begin the development process immediately.
5 Ways You Can Reduce Software Development Cost
Yes, software is expensive to build, especially for new entrepreneurial ventures with a limited budget for their overall business operations. Investing in software, which is often a vital part of success in today’s digital environment, can sometimes seem unaffordable.
Here are five hacks for lowering the cost of your software development project.
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Proper communication from the start
If you have a budget of $10,000 to spend on the software needs of your company and cannot exceed this allocated amount, it’s crucial to communicate this to the software development company at the start. Additionally, you need to clearly explain the type of software you need, its functionality, and ask if it can be developed within the specified budget. Establishing clear communication not only helps keep everything on track and transparent but also eliminates any confusion between both parties.
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Integrated Essential Features Only
Using only necessary features has not one but two benefits. First, it lowers the cost, and second, having fewer features makes the software faster and more efficient due to reduced load. So, when you’re working with an agency to build software, ask them to focus on integrating all the essential features first. If those features are sufficient for your business, you can stop the project at that point and ask them to move on to the next stage only if needed.
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Software development team location
Choosing a software development company from different parts of the world can significantly impact the cost of software development. For instance, working with a software development company from the US, UK, Canada, or Australia can be more expensive, especially if you have a limited budget. On the other hand, outsourcing your software project to companies in countries like India, Pakistan, Russia, or Nigeria can cost you much less. However, you need to keep in mind potential challenges such as time zone differences and language barriers. If you can address these issues, you can get a similar-quality software solution at much more affordable rates.
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Use the Right Tech Stack
When developing software, the choice of programming languages and frameworks plays a critical role in determining the project’s success. Opting for popular languages and frameworks ensures easier access to skilled developers and often results in better community support and resource availability.
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Simplify the design
The more straightforward and simpler the design is, the less challenging it will be and the less time it will take for the designers to create it. And don’t forget, the easier the design is, the less complicated it will be for the development team to code and develop. If you have a limited budget, consider designing a simple interface; it will cost less and help you save money.
Key Factors that Affect the Cost Of Software Development
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Software Size And User Base
The larger the size of the software or the wider its user base, the higher the software development cost will be. First, let’s discuss the software size and how it impacts the cost, and later, we will discuss the user base and its effect. The size of the software refers to the number of pages and screens it will have. For example, consider a mobile app, which is a type of software. If a mobile app has more screens, it will take more time and effort to develop. Therefore, the cost of the software increases.
The larger the user base, the more time it will take to scale the database to handle the data, requiring more time and effort. Therefore, the cost increases automatically. For example, if you develop a cross-platform mobile app for various operating systems, it will take more time to develop and test, which will also increase the cost.
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Complexity of design
The more visually appealing and attractive you want your application software to be, the more complex and complicated the design will become. And with complexity comes higher costs. Simpler designs are always developed at a lower cost, whereas complex ones that take more time are inevitably more expensive. If you want your software to stand out and outshine competitors in the market, you need to create a compelling design, which is a challenging task requiring significant input and hard work.
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Number and advancement of features
The more features a mobile app has, the better its quality tends to be. Features enhance the usability of a mobile app and provide an exceptional user experience. For instance, if one mobile app has three features while a competitor’s app in the same industry has five, the competitor’s app is more likely to attract users due to its additional functionality. Users prefer mobile apps with a greater number of features as they find them more engaging and useful.
However, it’s not just the number of features but also their level of advancement that impacts the overall cost. More advanced features require additional time and resources to integrate, which naturally increases the development cost.
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Developer experience
The more experienced a software developer you hire, the higher the cost will be to develop the software. While working with an experienced software developer has its own advantages, it also comes with increased expenses. However, if you believe the software is relatively simple and can be built by a less experienced developer, then hiring a highly experienced one may not be necessary.
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Geographical Location
Another factor that significantly impacts the cost of hiring a software developer is their location. Developers from first-world countries like the UK, Canada, and Australia tend to charge higher rates due to their expertise and local market conditions. However, clients with smaller budgets can consider hiring developers from countries like India, Pakistan, or the Philippines. While this option is more cost-effective, it may require addressing challenges such as language barriers and time zone differences.
How Much Does It Cost to Develop Software in the UK?
The cost of software development in the UK can range from as low as £10,000 to as high as £100,000. This wide price range is influenced by several factors that affect the final cost. For example, a small business requiring basic software can get it developed by a UK-based company for around £12,000. On the other hand, large enterprises may need to spend approximately £60,000 due to the higher complexity and resources required for their software.
From an economic perspective, the UK is a first-world country, which means developer salaries are significantly higher, contributing to the overall cost. Hiring a UK-based agency to develop software will generally cost much more than hiring a company from countries like India or Pakistan. However, if you reside in the UK, working with a local agency offers advantages such as seamless communication and easier collaboration for sharing ideas.
FAQs
How much does a software developer cost in the UK?
On average, a software developer in the UK earns £48,723 per year. Entry-level developers typically make around £40,000 annually, while experienced developers can earn £70,000 or more, depending on their expertise and the complexity of the projects they handle.
How much does software project development cost?
The cost to build software can start from £10,000 and can go as high as £100,000. The exact cost can only bee calculate by the agency that you will hire to work on your project after you share your requirments with them.
Is building software expensive in the UK?
Yes, building software in the UK is expensive due to the high rates for development. The average hourly salary of a software developer in the UK is approximately £24.99.
How much do companies pay for software in the UK?
Small companies and startup ventures typically pay between £10,000 and £25,000 for software development, depending on the complexity and size of the software. On the other hand, large companies often spend between £30,000 and £100,000 for custom software tailored to their business needs.