The software development services revenue is expected to touch $578,020 million by the end of 2021. As digital transformation becomes a necessity for companies, custom enterprise software to solutions are a priority for companies worldwide. From utilizing an application to manage their fleet of vehicles to streamlining finances – companies are using custom software to fulfill a wide variety of their digital needs.

Custom software development includes not only enterprise solutions but also mobile applications, desktop apps, GUI software, and more. There are over 20 different types of software development projects that companies are executing to achieve efficiencies and fulfill a range of operations.

What is the Cost of Custom Software Development in the US?

While enterprises in all industries understand the importance of custom application development solutions, they are still hesitant to get the software. There are several reasons for this, including time, resources, feasibility, among others. Cost is one of the biggest factors that determine whether the company should get custom software or not.

This article will highlight the primary idea of determining the cost of custom software development. It will address the factors that help determine the cost of custom software and then the average cost of developing such software. While the average cost is just a range, it would give an idea about how much companies would have to spend to get a fully functional software.

Checkout Customized Software: What is it, Types, and Examples

Factors that Determine the Cost of Custom Software Development 

There’s no company that can tell you the exact price of building a software. Even the best custom software companies in the world can’t determine the cost of any digital product without taking into consideration the project’s entire horizon. 

Understanding the factors that determine the price of building a digital product will enable enterprises to make better decisions. It will also provide them with the knowledge of how any custom software development company would calculate the price so that the enterprise can modify their requirements and get the best possible estimate.

Here are the factors that assist companies to determine the average cost of software development services:

  1. Project Complexity
    • One of the primary factors in custom software development cost estimation is project complexity. If the software requires a lot of number crunching, statistical analysis, and complex features, then the cost will increase as the time and effort taken to build such a software would be higher.
    • The more features that enterprises need in their custom software, the higher the cost will be. This is because every feature takes time to implement, which means additional resources take space for every feature.
    • Modern features like face recognition, integrations, and more require extra time to develop the software, leading to increasing the cost of the product.
  2. Software Size
    • This is based on whether the company wants the software for B2B uses or B2C uses. For B2B, the enterprise software would not be a big software as it requires limited screens and doesn’t demand heavy traffic needs.
    • On the other hand, B2C custom software has the potential to be useful to hundreds and thousands of people at once. It would require more screens as the user experience would have to be top-notch. Also, it would require heavy utilization of servers and space to handle such traffic.
    • More screens would mean that more coding has to be in the application, which will eventually lead to a higher price for full-cycle custom software development services.
  3. Product Design
    • One of the biggest chunks of money in hiring a full-service software development company of engineers is spent on designing the software application. Many companies choose to hire experienced designers who can create a layout that delivers the best user experience.
    • The purpose is to achieve a great looking software solution while providing the best navigation to its users. When it comes to B2C custom software products, the designing costs tend to increase because the appeal & design are the first & foremost things that users would like or dislike.
    • The more ideas enterprises need to incorporate in the design, the higher the cost will be.
  4. Platforms & Integrations
    • These are two things that will separately impact the cost of a custom software development project. First of all, determining the platform is one of the most important aspects of the software. Is there a requirement for a mobile application, and on what platform – iOS or Android?
    • Secondly, integrations form a major part of any software project cost. The more integrations there are, the higher the cost will be. Third-party integrations are important because they provide a seamless interconnection between apps that leads to higher productivity.
    • Integrations are not expensive, but they surely contribute to the cost of software development services.
  5. Migration & Modifications
    • Another major thing that determines the cost of custom enterprise software to solutions is app migration and modifications. If there is an existing application that requires migrating from an older system to a new one, it will definitely add to the cost of outsourcing software development services to a custom solutions provider.
    • Then, if there are a lot of modifications and version upgrades in the software, it would require additional resources even after the completion of the project. This means that the company would need to spend extra money on keeping the application updated and relevant.
    • However, a software development team doesn’t charge a lot of money for upgrades and version releases. 

Read more: Top 15 Software Development Tools Enterprises Should Use

The Average Cost of Custom Software Development 

Now that we have understood the factors that determine the cost of custom software development services, we can make an informed decision when hiring a custom software development company.

The cost of custom software development services ranges from $25,000 – $200,000, depending on the project. However, it also accounts for how long it will take to complete a project and how many resources does the company need to deploy.

Generally speaking, there are three different types of pricing models – fixed pricing, hourly rates, and dedicated software team pricing. Companies can opt for the option that suits their needs in a given amount of time.

Understanding the different factors will enable enterprises to identify where they need to spend and where they can save. It will help them save a lot of money on custom software development for their business. 

Get quick custom software solutions from BoTree Technologies, a leading custom enterprise software development company. 

Contact us today for a FREE CONSULTATION.

software development statistics infographic