Table of Content

  • How much does Software Development Cost?
  • Why is Custom Software development so expensive?
  • Top 5 Ways to Reduce Software development Costs
  • Conclusion

Nowadays, every business owner wants to have customized software for his organization but the only thing that stops him is the cost of custom software development. But there are different ways that can help in reducing the cost of the software. Here in this blog, we are going to discuss the different ways that can be applied in order to cut off software development costs.

How much does Software Development Cost?

The cost of the custom software development depends on various aspects like project requirement, features required in the project, size and complexity of the project, time limitation, and more. Besides this, it also depends on the custom software development company you hire according to Vishal Shah from

For instance, if the company is experienced then it will cost more for its expertise, unlike a startup. We will discuss all these and also have a look at the estimated software development cost.

Let us have a look at software development budget estimation as per the complexity of the project.

  • Basic Software

The basic custom software offers simple functionalities and can be developed quickly. This type of custom software takes approximately 500-700 hours to get developed and the cost can be from $20,000 to $80,000.

  • Medium Complexity Applications 

The software that has some level of complexity can take around 700-1200 hours to get developed and the cost of its development can be around $80,000 to $1,50,000.

  • Complex Software 

The software that is complex and has multiple advanced features can take more than 1200 hours to get developed and the price of the software can be decided according to the architecture of the system and its features.

Why is Custom Software development so Expensive?

The cost of custom software development doesn’t only include the amount of creating customized software that is unique and innovative but also the charges of hiring a custom software development team that has professionals like developers, UI/UX designers, QA analysts, Data analysts, and many others. Besides, custom software provides a competitive advantage over other businesses from the same niche and the competitors will have no idea about the weaknesses and strengths of your software. To provide all these features and advantages, custom software has to be uniquely developed which costs higher than any other universal software.

Top 5 Ways to Reduce Software development Costs

Here are some of the useful options that can help businesses reduce software development costs –

1) Outsource your Customize Software to Reduce the Cost 

Outsourcing the custom software development from countries like Mexico, India, and China is almost 40% less costly as the initial costs like in-house series, benefits, perks, and more are cut off. It also cuts off the physical capital investment. Outsourcing custom software development companies from these countries is beneficial as they have a very large pool of talent that has expertise in both old and new technologies. Besides, the difference in wages between these countries and the US is huge. Therefore outsourcing can be the best option for reducing the cost of the development process.

2) Research and Document your Requirements 

To reduce the time and cost of the development process, one of the best things to do is research your software requirements and document them before starting up with the development phase. Jotting the requirements can help you avoid uncertainty and when you hire the software development company they can take a brief idea about the project from this record. But if the requirements are misinterpreted, it can result in haphazard software design which will eventually cost a lot of money. Therefore, documenting the project needs and analyzing them in the right way is very important.

3) Make use of the Agile Software Development Approach 

Another way to reduce software development costs is to use Agile methodology. Agile is a tech that focuses on producing a working product instead of just creating the documentation that might never be translated into a real system. Agile technology is a collaborative and iterative style of software development. Therefore, the software developed using this method can be reviewed after the iterative cycle is completed and in this way, Agile helps in saving a lot of money that can go behind developing customized software. Besides, the stakeholders can evaluate the software at regular intervals and make sure that the features of the software build as per the requirements. So, we can definitely say that the Agile software development method is cost-effective.

4) Ensure Continuous Communication

When you are planning to reduce the cost of the software development process, communication can be an essential key. It ensures the success of the project. Therefore, it is essential to use communication and collaboration tools to keep track of the tasks the custom software development company does. This will let the development team know that you are keeping an eye on them which will increase productivity and also allow the team to know what each team member is working on. Besides this, daily meetings that involve both parties can also be beneficial. In this way, there are fewer chances of anything going wrong or not according to the requirements and this can clearly save a lot of time and money.

5) Make the QA team a Part of the Process from the Start 

The last and the most important point in this list is to involve the testing team at every step of the development process. Being the owner of the organization, you should ask the hired web development company to start the testing process from the very beginning. The sooner they find the mistake and solve it the easier and cheaper it becomes to fix them. Besides, if the development team leaves the mistakes unfixed then it might become excessively expensive to fix them after the completion of the project. So, make sure to start the testing process from the very beginning to cut off the cost.


To sum it up, whenever you are hiring a custom software development company, try to remember the above-listed points and notify them about it to avoid a huge bill. And if you are a custom software developer who is going to work for a client who wants the software solution to be ready in a specific amount, remember these points as it can help your client to have affordable custom software.  


Sumit is a Tech and Gadget freak and loves writing about Android and iOS, his favourite past time is playing video games.

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