Factors affecting the Cost of Software Development Project!

Factors affecting the Cost of Software Development Project!


Software development is a must for organizations and businesses in all industry verticals these days. For brands, choosing the right software development services company requires doing thorough research. Furthermore, another important thing to take into account is the cost of custom software development since having a tailored solution is the best choice for businesses of all shapes and sizes.

Now when you are planning to conduct a software development project, what is the most important aspect to take into account? Simple, it’s the overall cost of the development project. However, there is no cookie-cutter way of predicting the exact cost of a software development project. 

Since every business is different, its needs and requirements are also different. So software websites and applications created won’t be the same. Everything right from technical requirements to regulatory concerns, plays an important role in regard to the cost of a software development project.   

What Influences the Cost of Custom Software Development? 

1. Complexity of the Project

The first understanding should be how complex the project may be. For software application development services, it’s important to get to the root of the project first and discuss the kind of software to be developed. For clients looking for something that’s still ‘shapeless’ with so many uncertainties and unknowns, they should keep in mind that this could influence the cost of the project.

If the software development services company, for instance, needs to build a working prototype that would be altered later in accordance with the feedback of users, this could be costly. Every additional hour someone spends working on the solution and rewriting code lines would be considered extra work. The best thing to do is to really invest an effort to figure out what you need most before entering the development phase.

2. Integrations

Integrators are factors that influence the software development cost as well. If a client wants a solution to be integrated with more than two third-party business applications, such as customer relationship management, HR, and BI tools, this naturally requires more hours and, thus, could be more costly.

There are some integrations that are easy to set up, such as PayPal. However, others tend to be more challenging. In this case, the business software development team would have to invest a lot of energy and time into planning, analyzing, and verifying results, which inevitably would cost more.

3. Human Resources and Functionality

One of the biggest drivers of the cost of custom software development is functionality. The more the expenses with more commands. The logic is pretty simple—more people need to work on a particular project and invest more hours into it.

Every function should be completed by the developer. Otherwise, it will not work. This means that each element, and everything you want the software to do based on every command, should be in place to make it work properly. Keep in mind that every engineer level has a different pay bracket, and they’re paid based on their knowledge and experience about how the software will be developed.

Simpler tasks will be done by less qualified developers, while complicated features will be handled by experienced developers. The more complex a project becomes, the more skilled software developers are needed, which greatly influences the cost of development.

4. Extra Costs

In software development company services, while a client is paying to have software built, the service usually has additional costs that are not related directly to the hourly rates and expertise of the developers. There are extra costs that could pile up dollars on the bill that should be known ahead of time to avoid unpleasant surprises later on.

For example, some organizations would have to pay for software licenses that developers need to complete the project. Others should also take into account the infrastructure expenses that are associated mostly with purchasing or renting software in which the work would be done and tested properly.

5. The Size of the software

Another significant aspect to take into account is the size of the software. Whether you are developing a website or an application, the size of the project really matters. In fact, a large-sized project is supposed to be more complicated and, thus, can cost way too high in comparison to small-sized or, should I say, less complicated projects. 

You see, a large-size project comprises approx 40 to 50 or even more unique-looking pages or screens, whereas a medium-sized one comprises 25-40. The smaller ones might have 25 or even fewer. So more time and money are consumed when you try conducting large-sized projects, whereas, for small and medium ones, the situation turns out to be quite favorable. 

6. Development Team

Other than the overall size of the project, the size of your chosen development team is equally important. Fortunately, nowadays, you may come across a wide range of companies, especially software development companies within your country and overseas, for conducting a successful development project. You see, here, the size and location of the development team also play a significant role. Let’s say you are willing to hire developers from offshore service providers because the nearshore or the onshore ones turn out to be extremely costly. 

Now when you hire offshore developers, what happens is they tend to work in different time zones. Of course, due to taxation differences, the overall cost of development severely changes. 

7. Support and Maintenance

Do you really think that app development is limited simply till the time the application is launched? Of course not! Software development is a continuous procedure that keeps on going, first the planning, design and development, testing, deployment, and support and maintenance. Maintenance is extremely crucial for any software development project, whether it is small or large. 

Here the software application is adjusted to contemporary market demands, looks out for some common faults and errors, and makes necessary upgrades; all these aspects are taken care of in the support and maintenance. Does the system require further modifications, or is it good to go? All these aspects definitely result in an increase or decrease in the overall cost of any and every development project. 

Further below, I would like to shed some light on certain things to keep in mind, especially when you are willing to conduct a successful development project. 

Tips and Tricks to take into account When Conducting a Software Development Project

Now developing software can be pretty insane and tricky; no two ways about it! Whenever you are planning to conduct such a project, there are a plethora of things to keep in mind. 

#1 Define your Requirements

One of the best ways to get started with any software development project is by defining your needs and requirements in prior. If you don’t do that, how will you reach your destination without knowing where to go and how to go? So the tip might seem obvious, but it is very important. Of course, your awesome idea can result in an awesome creation of the project, but here’s a thing, planning and plotting is equally important. So make sure that your needs and goals are clear and that you know exactly where things will head. 

  • Create a plan with clear intentions
  • Which framework to consider
  • Code reviews
  • Automated testing
  • Bug and task tracking

#2 Consider all the project restraints

The next crucial aspect to take into consideration is keeping all the project restraints into account. Some of the best examples here are the timing, project deadline, technologies used, and of course, which software development company you are hiring. You need to ensure that there are fewer constraints here. By doing so, you can have more flexibility and scalability. As a result, your software development project is easy to get started with. Also, be aware of infamous timelines; it’s a big No-No in today’s real world. So another important tip to consider is to take care of all the necessary project restraints. 

#3 Communication is the key! 

Last but certainly not the least aspect to take into account is effective communication. It doesn’t matter whether you have chosen an onshore or nearshore, or offshore software development company to accomplish your project. Still, it is very important to establish strong and effective communication. Right from sharing your product requirements to your vision or business objective, every small detail is necessary here. You see, when you tend to establish clear communication, the chances of success automatically increase. Also, try establishing dedicated communication channels such as Skype, Slack, emails, and a lot more. 


Understanding where the costs are coming from makes a big difference in choosing software application development services. Furthermore, it’s important to choose a software development services company that’s very transparent in doing business to make the most value of the software development investment.