How much does it cost to outsource software development? This is a critical question for thriving businesses in many industries.
When planning to develop custom software for your brand, one of your biggest concerns is the cost to fulfill your objectives. You can reduce costs significantly by outsourcing your software development to external experts.
When you outsource your software development to proficient experts, your actual custom software development cost will depend on your specifications.
Having an idea of your overall budget range before you request proposals from developers can go a long way toward optimal project planning.
If you’re wondering, how much does it cost to outsource software development, then you’re interested in expanding your operations and having optimal project outcomes. Here is what you need to know to understand the cost of hiring third-party experts for your applications.
Why Outsource Your Software Development in the First Place?
Before we review the costs of outsourcing software development, it’s a good idea to step back and confirm your overall goals.
A few questions you might ask before you ask how much does it cost to outsource software development are presented below.
- Is this project going to increase efficiencies internally or increase revenues externally?
- How can we meet our company objectives with an outsourced development team?
- Are we relying on staff augmentation to meet consistent demand or for special projects?
If you decide to complete your software development project in-house, you’ll have your work cut out for you. Remember that internal custom software development cost aspects may be more comprehensive. From finding the right talent to retaining a strong team, you have to take care of various activities and their associated expenses to create your required applications.
When you outsource, on the other hand, you can eliminate many of these requirements and their attached costs. This approach to addressing your custom software development cost matters can also increase efficiency, productivity, and the overall results of your project. Instead, you can benefit from the established workflows, proven experience, and specialized expertise of the vendors you hire.
Which Factors Influence Your Custom Software Development Costs?
Custom software is created according to your needs, so there is no set price. To learn how much it will cost to develop mission-critical software, review your specific requirements with qualified vendors.
Looking at cost factors will help you set a budget. This ensures you have your financing in place before you start your software development activities and reduce the likelihood of running out of money before you complete your software application.
When seeking to address custom software development cost matters, remember to account for these aspects:
What type of application do you want to develop? This is a critical question that helps you to understand the purpose of the project.
Asking the right questions will allow you to identify must-have features for your app, so you can source experts who are capable of handling your software development needs.
For instance, if you are developing an app that requires accepting payments from users, you can hire experts who have recent experience developing this feature.
It is quite critical to have clarity in the specifics to address the question of how much does it cost to outsource software development.
This is one of the most crucial aspects of determining your custom software development cost. This refers to the amount of time required to develop your application, complete with all specified design elements and technical functionalities.
Simple applications or those that have a smaller project scope can typically be ready for deployment within a six-month timeframe. However, some software can take at least 12 months. A 12- to-18-month timeline is typical for applications with more advanced functionalities.
The more functionalities, the more time needed. The more time needed, the higher the cost. For instance, adding push notifications can contribute to around 25-35 hours of expense to your software development costs, while payment functionalities can add up to an additional 75 hours’ worth of work. This can add to your overall project cost.
With that being said, these figures are still a reference point. The only way to learn the cost of outsourcing software development for your application is by reaching out to vendors for a personalized quote.
When deducing the cost of your custom software development, you need to consider the design requirements of the application. Simpler design elements and screens reduce your overall development spend. While more complex design elements increase your costs.
Discuss your specific requirements with your chosen vendor to fully understand your cost. Typically, a consultation with the software design team allows you to make an informed decision about the design elements you’ll include. This not only leads to clearer cost estimates but also guides you toward a smoother development process.
The number of software engineers, design experts, and other specialists needed for your project also impact your costs. Your costs remain minimal for basic applications where you only have two to three developers working for you. But more advanced applications requiring all hands on deck will add cost.
The size of your application is based on the number of screens included, e.g., an application that includes a process flow for a shopping cart will likely need additional design and development for the checkout page and the payment processing page. Quantifying the number of technical requirements can help software engineers and design teams provide you with a more accurate cost estimate.
A small application with around with lower technical requirements can cost $75,000 or more. Larger applications often have a more comprehensive customer application journey and may go well over $250,000.
Remember that team location is another determinant of the budget. It is because if you outsource to an onshore team, you typically need to pay higher prices for your project. In essence, working with nearshore experts can reduce costs.
Keeping this in mind, make it a point to find nearshore or offshore development teams that hold the required skill, qualifications, and experience to turn your vision into a working application. Compare quotes from various onshore, nearshore, and offshore vendors to choose the best combination of affordability, reliability, and expertise.
These are key aspects to consider when pondering the question, how much does it cost to outsource software development?
Contact Distillery For Your Personalized Software Development Quote Today
When it comes to how much it costs to outsource software development, it’s essential to understand the myriad factors that impact cost.
At Distillery, we understand how daunting it can be to get estimates for your custom software development project. To ensure your process is smooth, our highly qualified experts offer a detailed consultation to understand your needs and create an accurate quote. This ensures that you’re confident every step of the way.
To get a detailed quote for your custom software development, contact us today.