June 7, 2017

Browsing for the top software development company for your business may seem like an overwhelming job. Most SMBs don’t even know that there are organizations that offer development of the custom software that can be personalized, nor would they know where to find one. Even if they knew where to go, how does one determine what they should receive for their money, or what to pay to begin with?

There is an abundance of custom software development companies to choose from. By Googling “custom software development company”, you’ll see more than 5 million results, which is an impressive starting point. For recommendations, you can consult other companies or your city’s chamber of commerce. You can also visit a nearby tech meeting to scout for an individual who can take your project on.

Once you’ve narrowed down your options, you should ask the potential developers about other software projects they have finished. You should also obtain references from the organizations they’ve collaborated with in the past. When feasible, try out the software they’ve created. This might be a more troublesome step since custom software is usually exclusive to the company that paid for it.

 

Custom Software Development Company Expenses

EXPENSES

Сustom software development company’s rates can differ based on your requirements. For the most part, you might end up paying between $50 to $250 hourly based on who you work with, what their level of experience is, and the industry they serve. If your project is substantially large in scope, you should rely on several engineers. A project manager or designer might even be a part of your project.

Be mindful that custom software will be substantially costlier than the up-front expenses or subscription you normally pay for other programs. With commercial software, you can divide the costs among other users; whereas custom software warrants covering the whole bill. At the same time, when we are speaking about specialized subscription-based software for Oil & Gas Industry or Healthcare, development of the custom solution can be way cheaper that paying the subscription for hundreds of your workers. With that said, commercial software restricts you to the features chosen to offer you, as opposed to custom software, which gives you the adaptability to develop something exclusive to your company.

Even custom software will require maintenance after it has been built. There’s no such thing as error-free software, and the technology’s nature warrants software to be modified as the environment changes. These adjustments may include new security exploits or necessities, updates to operating systems, and support for new devices. The investment you make in custom software starts with your up-front development costs.

 

Custom Software Development Company Infrastructure

INFRASTRUCTURE

For most people, it’s usually hard to comprehend the expenses that come with software development since it’s not a physical product. The end-user or buyer seldom inspects things to see what was done by the custom software development company. At times, SMBs are surprised that the concept they had wasn’t within their budget. It’s vital that you understand what is required to create quality software.

Currently, the software engineer is one of the most in-demand careers in the whole world. The economics come down to demand and supply. Quality custom software development company charges a higher rate. Further, software creation can’t be rushed. It’s simple to put together software that does a specific job in an isolated atmosphere. However, creating networked applications that must be synchronized in real time across multiple users and devices while taking into account numerous conditions is time-consuming. It warrants a substantial amount of assessments to make sure the final product is worthwhile.

The environments software development company uses to create, install, and maintain software is expensive. Bandwidth is pricey, as is CPU time and electricity. The hardware and software used by such companies to create and assess software aren’t cheap. It is also time-consuming to create quality assessment environments, to keep the servers maintained, and to stay on schedule with their field adjustments daily. Each one of these expenses must be taken into consideration.

 

OUTSOURCING

This begs the question: is it worth outsourcing a custom software project overseas where such expenses are cheaper, or it more prudent to keep things local (or in the same country) with software development company you can meet in person when you have to? My advice is to let someone with technical experience handle the outsourcing tasks. These skilled individuals will know what to outsource and what to handle in-house.

Getting someone from another country to work on a project can be problematic. It shouldn’t be done by someone who can’t read and test coding. Differences in cultures are one thing, but time zones alone make the experience of working with someone internationally a hassle, particularly for an individual without any experience in software project management.


You must perceive customer software development services as an investment, just like you would for something tangible like new equipment. There are costs that come with these investments, though. They come with service and quality distinctions as per the vendor you selected, and they must provide an adequate ROI. Likewise, the more important the investment, the greater your margins must be for the risk to be justified.

In this article, we’ve covered only some of the things you have to be certain before starting your research of custom software development companies. You’re welcome to leave your thoughts in the comments section below. If you would like to get the professional and free consultation before starting to planning you custom software development project you may Contact Us. We’d love to hear from you!

Download “2017 Global Custom Software Development Rates” to get a comprehensive analysis of the pricing in three most popular onshore and offshore outsourcing locations. Hourly rates cards for these territories are included.