Important Factors That Influence the Cost of Software Development

Important Factors That Influence the Cost of Software Development

An issue of price is often an ‘ouch point’ in software development. You have also probably noticed a cost range for custom software development is extremely wide. What is the trick, and also what to expect for your project?

According to many years of experience in Custom Software Development in IndiaEternal Soft Solutions describes what factors increase development costs and the way that outsourcing helps optimize the expenses.

Factors that Influence program development costs:

  • Project complexity
  • Functionality
  • UI/UX design complexity
  • Software integrations
  • Data migration

Project complexity

Project complexity refers to the general environment in that your software is developed. Thus, what defines your project as complicated and, hence, more expensive?

  • Uncertainty: that possibility of many software changes agreed upon as a part of Agile development (changes could be driven by accumulated user feedback, activities of competitors, client’s budget or plan alterations, etc.). By way of example, External Soft Solutions developed a mobile app for a global leader in image processing whilst adapting to regular changes in business needs.
  • Novelty: Implementation of cutting-edge technologies (AI, blockchain, AR/VR), as in our project on the development of the AI-powered application for brain tumor localization.
  • Security matters: applications, where safety is critical demand more development efforts and exclusive structures for the development procedure, as in the evolution of an extremely protected Android program for private text conversations.


Functionality, characterized by the number and the complexity of features to implement, is one of the greatest software price drivers. Besides directly affecting costs (more features, higher costs), enormous functionality often entails the requirement for complicated software architecture design, which comes at a price.

UI/UX design complexity

UI/UX design pricing is different based on the amount of functionality to depict and the intricacy of it (by way of instance, custom illustrations to get welcome screens and cartoons for screen transitions and buttons). Another cost factor is the involvement of complex technology (3D modeling, motion design, as in the growth of 3D models for AR-based interior design software).

Software integrations

Common examples of integrations are:

  • Integration with third-party services, by way of example, for payment or file sharing.
  • Integration of two or more business applications, such as ERP, CRM, supply chain management, business intelligence, and HR.
  • Integration with AI, AR/VR, blockchain, IoT.

Some integrations are simple (for example, with popular third-party services such as PayPal) others can be challenging (integration with legacy systems) and demand more efforts for analysis, planning, and confirmation of results. To find out what a complex integration looks like, read a case study on incorporating real-time data on the distribution chain to get an e-collaboration platform.

Data migration

Data migration requires a tailored strategy to go without Issues as two methods store data differently, and you need to reshape information from one system to fit it in another. This process involves figuring out translation principles, preparing custom scripts, performing testing, and making adjustments if necessary, which also adds to the price. Take a look at this process in the case of e-commerce ecosystem migration into Amazon Cloud.

Human resources involved

Considering all the above factors, each software development project will require a different set of skills to complete, from the roles needed (BAs, PMs, architects, developers, testers, designers, etc.) for their experience level (junior, middle or senior) — hourly prices directly depend on these variables.

Estimate your Development costs (and find out how to lower them)

The simplest method to estimate software development costs is Time x Hourly Rate.

Let us begin with time estimation. Thinking about the factors from rate sections, we divided software for development by its sophistication and provided demanding timelines.

For cost estimation, you need to multiply the development time by an hourly rate of roles involved in the project. This is where outsourcing services step in as a means to lower costs. Here’s where outsourcing services step in as a way to lower costs.

  • Moreover, outsourcing eliminates other costs inherent to in-house software development:
  • No recruiting and other HR costs.
  • No fringe benefits and payroll tax costs.
  • No workplace and equipment costs.
  • No training costs.

Notice: Although outsourcing helps cut down software prices, you ought to know about inefficient outsourcing engagements which may bring hidden expenses and make your job’s price creep up.

Eternal Soft Solutions’ methods to decrease development costs

  • Conducting a comprehensive company analysis to get the complete project requirements. Therefore, you don’t invest in excess software parts or goal platforms — just what answers your needs 100%.
  • Building MVPto saves 10-30% of development costs while maintaining the high quality of software. As development costs majorly depend on the number of characteristics, we prioritize which features to develop first to create an early product that could already start bringing one ROI, while we gradually enhance it.
  • Using ready-made components and services were important, both open-minded and industrial, to cater to tight budgets (and timelines).
  • Employing architectures that support simple application evolution, e.g., microservices, which saves a whole lot of development time (and prices) in outlook.
  • We also remove hidden costs of outsourcing using mature project management, experience in a variety of domains, and also the execution of agile methodologies.

It’s time for fair-priced software development outsourcing

External Soft Solutions develops alternatives of different complexity cost-effectively and without compromising quality.

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