Modern IT industry trends closely follow various quality parameters, including compliance improvements and security measures.
As a result, companies feel compelled to adopt the latest software tools to build futuristic products to market and stay competitive in their respective niche. It’s like acclimatizing to the changing and challenging market scenarios, a practice dedicated to gaining a competitive edge in the market.
Unfortunately, increasing custom software development costs is one of the critical areas of concern for companies. Therefore, it is very important for them to seek some alternate ways to rule out the possibility of expensive software development processes without compromising the quality and the profit projections for the future of their business.
Gartner, Inc. has forecasted that IT spending from around the world is projected to reach a total of $4.5 trillion in 2022, an upswing of 5.1% from 2021. Statista also reports a similar cost projection regarding IT spending on enterprise software, saying it has gone up to 675 billion U.S. dollars globally in 2022, an increase of 11% from 2021.
For companies to handle costly custom software development solutions, one of the best ways is to interact regularly with the software development team and have the right budget prediction. As a result, it will finally lay the groundwork for extra overheads anticipated to be met in software development.
List of Key Factors that Influence the Costs of Software Development Processes
Estimated costs of software development processes to rely on certain parameters or some specific features included in your software, such as dimensional features, deadline of delivery, and others.
Scope and Complexity of the Project – The scope and how complex the development process is are two of the most crucial factors determining the result of how the cost of software development will pan out.
Complexity is defined by the combination of factors, such as –
- In-process challenges
- Effort inputs
- Security measures
- Consideration of some unexpected events
Remember that deploying modern technologies will also quantify the development costs, given the process may warrant higher investments.
The Way Software Functions – If you want your software packed with futuristic solutions, more time and effort will be incorporated into the process of its development. Moreover, it will also involve complex processes, meticulous testing, modern approaches, and the leverage of cutting-edge technologies to finally build a product featuring quality and performance excellence.
Quality of UI/UX Design Applied – An application without engaging design, clear navigation, and intuitive interface are considered a dud product driving no engagements. Obviously, you may require implementing in your application the tailored design than standard templates to make it look more inviting to users. Unique UI/UX design also boosts the usability factor of the app.
Integrating New Technologies to the Software – Software equipped with features like agility, and compatibility with other popular and modern apps and technologies can be benchmarked on higher grade, together with accentuating its effectiveness in the market. However, software integration with the latest technologies like IoT, blockchain, CRM, and supply chain management will understandably qualify the costs of software development.
Workforce Involved – The number of programmers, designers, QA specialists, testers, project managers, and other workforces required to build a software product drive corresponding effects on the software development costs. Besides, the experience and expertise of these workforces will also quantify the cost of software development.
Understanding the factors that influence the overall software development costs is one of the useful ways you can adopt to understand the costly software development processes.
Here are some proven ways to guide you about how to diminish the cost of the same without bottoming out the quality.
Five Ways to Reduce Software Development Costs
1. Partner with a Reputed Software Development Company (Outsourcing)
Outsourcing is believed to be one of the best strategies a company can follow to reduce software development costs. The good news is that there is no dearth of well-reputed and exceptional development partners. You will also experience the freedom of choosing a service provider in software development, irrespective of country or religion.
Say, for example, outsourcing software development services to Binmile can help you relieve yourself from geographical limitations.
Your software development partner helps you maximize its large pool of resources so that you can end up saving yourself from incurring workforce costs, such as –
- Paid vacations
- Sick leaves
- Hiring costs
- Costs regarding onboarding and training, etc.
How to Choose a Right Software Development Partner
I) Evaluate Your Project
Evaluate your project by breaking down its goals and quantifying specific benchmarks to be fulfilled. To be included in your consideration also involves budgets for hiring the right talent and communicating skills best suited to your purpose.
II) Map out Detailed Project Scope
Map out clearly the scope and goals of your existing project and the anticipated functional requirements related to it. The value of this recommendation is that, for example, a project in the process of the final phase of development seldom requires connecting all the dots regarding how each task needs to be done.
As a result, it will also help you rule out any possibility of extending back and forth over the requirements, especially if you have already thought about them. Therefore, you don’t have to spend time and money on the same task.
If the functional requirements regarding the cost of the software development are not well-defined in the first place, chances are that you may end up suffering costly resource expenditures, concerning missed deadlines and additional working hours.
Other key considerations:
- Set clear goals and expectations to be met with the project
- Be clear on how you plan on using resources for the project development
- Visualize your project’s layouts
III) Set the Appropriate Timeframe for the Project
Setting a definite timeframe for your project will give you an idea of how to avoid overreaching your project’s objectives by adopting part-wise segmentation of the same. Thereafter, you can outline the time each part of your software project will take to complete. It may sound tricky to you if you don’t have software development experience. In that case, collaborate with your development partner.
IV) Identify Your Technical Stack
Make a list of programming languages and technologies to be used in the proposed project development. Study the list and figure out the extent of their usage in the project. Still, if it appears quite a conundrum to you, hire a software development partner.
V) Calculate Your Budget
Outline your budget and how much of it is to be allocated to your project. Again, if you find it a bit complicated, the right software development partner will help you to clear all your doubts.
2. Consider Minimum Viable Product
If you don’t want to experience issues and challenges during the launching phase of your new software, going for at least a minimum viable software product development is a recommendation.
Its benefits are –
- Early detection of bugs or challenges before launching the project so that you can avoid paying off hefty money on starting over everything from the scratch
- You can tweak changes or make some modifications to the project based on collected feedback from users before the final launch of the project
3. Go for Prebuilt Features, If Under Budgetary Constraints
For companies with limited budgetary capacity, an ideal way to reduce software development costs is to consider choosing some prebuilt features and templates. You don’t have to choose everything off the shelf, just consider this option for features and add-ons you can easily and seamlessly integrate into your project. That way, you will be able to save time, money, and unwanted pressure on your development team to write code from scratch.
However, we strongly recommend that you should consider hiring a reputed offshore software development company, given relying on prebuilt features would be counterproductive to your project’s future performance. For example, prebuilt add-ons and features may cause some technical glitches or abrupt fallibility in your project paralyzing its performance.
Hiring one of the best software outsourcing companies always pays off handsomely in ruling out expensive custom software development solutions.
4. Involve QA Specialist in the Development Process
Software development costs vary depending on different factors as discussed above.
To reduce the expensive outlay on your project development process, one of the useful ways is to ensure that it is carried out under the supervision of a skilled and competent Quality Assurance specialist.
Benefits? Well, for starters, the specialist will carry out an analysis of your software through varying development phases, ensuring early detection of glitches, bugs, or any performance issues (if any) in the project. By not involving a QA specialist, the likelihood of accumulating numerous bugs in your project is bound to happen, thereby requiring substantial time and resources to fix them.
5. Involve Automation
Automation will help your development team to focus on high-value tasks, including designing test cases for the project. It will also decrease downtime, allowing your team to test faster with more accuracy and at significantly lower software development costs. You may involve low-code and no-code tactics in project automation.
Even the testing side can be automated to rule out manual testing to detect bugs and errors in code. Automation can also perform usability, load, stress, functional, and regression testing.
Other Considerations to Reduce Software Development Costs
- Plan thoroughly. Budgeting is surely essential, but planning can help you how to set a budget for the software that’s right for you
- Create a solid SRS (Software Requirements Specification) to avoid any ambiguity or misrepresentation of your project requirements and goals
- Consult an expert to help you understand how to choose the right technology stack (front end or the back end) for your project
- Test every piece of code (even the trivial of the lot) in the early stages of development to avoid major bottlenecks in the future
- Understand your target market, and build solutions that deliver the best values to users
Deloitte has recently shown in its study that many industry players are prioritizing cost-reduction tactics, particularly in the aftermath of the pandemic-induced global recession. Moreover, with IT Industry becoming more competitive, companies feel compelled to stay competitive in their niche by adopting cutting-edge technologies. However, increasing software development costs is one of the main concerns these companies find difficult to deal with, prompting them to mull over other ways to expedite software development processes without cutting corners.
Deloitte’s study is also a reflection of the fact of how companies are seriously prioritizing cost reduction on software projects. In light of how expensive project development cost means negative projections to the budget and profit of your business, it’s high time you considered hiring a software development company, apart from taking some insights from the explanations above.
Here’s how Binmile can assist in reducing your software development costs
We will help you save bottom-line costs and increase profit for your business through dedicated software development services without cutting corners around the costs. This way, we will help you get a sense of certainty around your project’s excellence, performance, and functional requirements. Our resourceful software development experts will wrap up project development at exceptional quality, thereby justifying your every invested dime.