Budgeting for Success: Strategies for Managing Software Development Costs in 2024

Dhaval Gajjar

These days, custom software development has become more popular than ready-to-use software. Custom-made software is flexible, scalable, and provides a more personalized experience. They streamline operations, leading to improved consumer experience that usually off-the-shelf software solutions cannot. However, software development cost is always a concern when companies/organizations decide to go for custom software development.

As per the studies, the software development market is expected to reach $1039 million by 2027 and the global population of software developers is expected to reach 28.7 million by the end of 2024. It shows how each industry is leveraging software development.

In this blog, we will discuss the essential factors in deciding the cost of software development, a step-by-step procedure to determine custom software development pricing, the average custom software development cost, and much more.

So, keep reading.

Before we dive deep into software development costs, let us first understand what custom software is.

What is custom software?

Custom software is a unique product that is different from ready-to-use software, such as Microsoft Office, that caters to all user bases. Custom software comes with unique features that cater to your business requirements. For example, a customized banking desktop application or CRM is custom software.

Here are the steps that a custom software development process includes.

  • Requirement analysis
  • Coding
  • Testing
  • Deployment

Custom software development provides a personalized experience for users by reducing development costs and increasing ROI. The best thing about custom software development is it offers better scalability than ready-to-use software.

Now that you know what custom software is, let’s move to the next section, which highlights the advantages of properly planning a software development budget.

Average Custom Software Development Cost

Nowadays, mobile and web apps are the highly demanded types of software. To get a rough idea of custom software development costs, let’s concentrate on these kinds of software.

First, we will concentrate on the complexity factor and based on it here are the approximate software development costs.

Simple application$40,000 to $120,000
Medium Complexity application$120,000 to $200,000
Highly Complex application$200,000 to $30,000+

Average Custom Software Development Cost By Type

Let’s take a brief overview of custom software development (approx) cost by type. Here we will consider CMS, CRM, eCommerce solutions, SaaS products, ERP systems, and supply chain management solutions.

Customer Management System (CMS)$20,000 to $50,000
Customer Relationship Management (CRM)$100,000 to $600,000+
eCommerce Solutions$20,000 to $70,000
SasS Products$25,000 to $100,000
ERP Systems$150,000 to $500,000
Supply Chain Management Solutions$100,000 to $300,000+

Average Custom Software Development Cost By Size

Custom software development costs are different for each size of business. Here we will consider the approximate cost of custom software development for startups, small to medium enterprises, and large enterprises.

Startups$30,000 to $450,000
SMEs$70,000 to $100,000
Large Enterprises$100,000 to $500,000+

What are the advantages of effective software development budgeting?

Accurate software development budgeting plays a vital role in software development project success. By proper planning and strategic resource allocation, budgeting offers financial stability and improves overall project efficiency.

Let’s check out a few benefits of software budgeting.

  1. Proper Resource Allocation
    You must do a proper project requirement analysis to decide on a software development budget so you can allocate resources optimally. Thorough analysis can prevent overspending, control wastage, and ensure that resources are allocated when they are needed most.
  2. On-Time Project Completion
    As you have defined clear financial guidelines, there are low chances of unexpected resource shortages or expenses. So you/your team can complete your project on time if you are not ahead of the schedule.
  3. Risk Mitigation
    Proper budgeting lets you handle unexpected events without taking any risk for the project’s financial stability.
  4. Clear Stakeholder Communication
    As you have set clear budget guidelines, it will help in practical discussion regarding project priorities, goals, trade-offs, etc.
  5. Financial Transparency
    While deciding on a budget, you should note down all expenses. So, you and your team can track progress against the budget and identify the risk patterns, inefficiencies, and areas where you can make improvements.

Now that you know the benefits of budgeting, let’s check out a few key factors that can affect the cost of custom software development.

What are the key factors that affect custom software development costs?

To get a clear picture of software development costs, you must know the factors that impact costs. Here we have listed these factors in a tabular form.

Platform & Technology StackThe platform choice, such as Android, iOS, etc., significantly impacts the development cost of the software. For custom software development, different technologies have different levels of complexity, licensing costs, and scalability. If you go for open-source technology, the licensing cost will be lower. However, proprietary software can cost you a lot.
Project Scope & ComplexityThe software project scope includes features, requirements, and functionalities. If the project scope is extensive and complex, it can lead to higher costs. For example, building a simple mobile app will cost less than developing a complex, customized enterprise-level solution with various integrated modules.
Development ApproachYour development approach greatly affects the software development costs. You should go for the development approach that is reliable, fast and has fewer errors. For example, Agile development is such an approach that almost 95% of organizations use due to its iterative process nature. So you can get feedback at each stage. This approach offers a cost-effective development lifecycle.
Team SizeAnother factor that affects the development cost is team size. Costs will be high if you go for a larger team with diverse skill sets and experience. In custom software development, other than developers, you should consider the cost of specialists who do UI/UX designing, project management, QA testing, DevOps specialists, etc.
TimeframeThis is the crucial factor that directly affects your budget. If the project development timeframe is longer, it will require more resources and increase operational costs. Extra resources are needed if tighter deadlines lead to higher expenses.
In-house development & outsourcingIn-house development or outsourcing can also impact your software development cost. If you go for in-house development, it can cost you high infrastructure and personnel costs. Conversely, outsourcing your requirements can save you costs as you will use external resources and expertise.
Rules & ComplianceIt has strict regulatory and compliance standards if you want to develop software for industries like healthcare, finance, and government. So, it will increase the development cost because you will need additional security measures, documentation, and development to meet these standards.
Support & MaintainaceGenerally, post-development support and maintenance are often ignored when planning the budget. However, it is a vital factor. Regular support and maintenance involve regular updates, bug fixes, and user support. All these need ongoing resources and investment.
Development Team’s LocationYour development team’s geographic location can highly influence the custom software development pricing. If your development teams live in regions where the cost of living is high, they would demand high salaries. So, it will impact the budget allocation.

So, carefully analyze and address all these factors. It will help you develop custom software that perfectly aligns with your project’s scope, goals, and requirements. However, keep in mind that each custom project is unique. So, you must decide on the budget that fits your business requirements.

Now that you know which factors affect the software development cost, let us discuss some strategies to determine and minimize the software development cost.

Which Strategies Can Help Determine & Minimize Software Development Cost?

Here are a few tips and tricks that you need to follow.

  • You should partner with an end-to-end offshore software development company like Pranshtech Solutions, which has a skilled and seasoned development team. We build custom software at affordable rates. We even offer for free 30-minute consultation call so contact us to schedule it.
  • Prioritize the requirement gathering and analysis phase. It will help you decide on the software development cost and understand the requirements well. So, the time-to-market and costs will be decreased.
  • Ensure the software developer company you are hiring follows the MVP approach to build your software. This approach helps understand user behavior and identify bugs, and it has more chances of the idea being accepted in the market. Besides, you will get user feedback so you can easily modify functionalities and deliver solutions based on it.
  • You can hire dedicated developers from Prashtech Solutions if you plan to go for the in-house development option. We have an experienced software development team that can develop your software on time and within budget. To get a quote, connect with us today.

Hopefully, you now understand how to determine and estimate software development costs.

Concluding Remarks

Determining custom software development costs requires careful consideration of various factors, from the complexity of the project to ongoing maintenance. Therefore, you need to define clear objectives, summarize technical requirements, and understand the project’s scope. It will help you to determine an accurate cost estimate. An accurate cost estimate can lead to a smoother development process and provide you with custom software that perfectly aligns with your business goals.

So, if you want an overall cost estimation for your custom software project, connect with us today. We offer affordable custom software solutions without compromising on quality. To learn more about our services, contact us today.

Frequently Asked Questions

If you choose to outsource your custom software development, it will cost you based on your chosen outsourcing model. Instead, hiring a dedicated software developer will cost you based on the developer's experience and skill set.

Custom software is developed to meet your unique business needs, which is why it is more expensive. On the other hand, ready-made solutions are affordable, but they might not fit your requirements. Which one is better highly depends on your requirements.

Ready to build your custom application solution?

Send us your requirements on info@pranshtech.com or call +91 98988 31190

Mobile App Development Process: A Comprehensive Guide

Vishal Tanna

Today, smartphones have become a significant part of every business, household, and individual, regardless of business type and geography. That’s why even traditional brands have accepted that engaging with their existing customers and target audiences on their smartphones or tablets is quite an effective way. It lets them attract consumers, build the brand image, and encourage them to purchase. However, each company needs to implement an efficient mobile app development process for it.

Now, you must be wondering why.

It is because Successful mobile app development = increased ROI

For example, top mobile apps like Instagram, Facebook, Twitter, WhatsApp, etc., are the result of the implementation of the proper mobile app development process steps.

If you are still confused about whether you should opt for mobile app development, check these facts.

As per the study, by the end of 2026, mobile apps are expected to generate $233 billion in revenue. Study shows by 2027, customers are projected to spend approximately $125 billion on buying mobile apps from the app stores.

(Image Source: Statista.com)

Still not convinced?

Picture this: Imagine your business as a shop. People can walk into your shop and buy products. However, what if they have to travel a long way to visit your shop? Do you think you will be able to generate good revenue? Of course not!

Now, if you have a mobile app, your store will be open 24*7. People can explore and buy products anytime, anywhere. It’s like you have a tiny shop in everyone’s pocket.

So, if you want to enjoy increased ROI, reach a wider audience, and build brand loyalty, follow these steps to build an app.

Steps To Create An App

Here is the step-by-step process to build an app.

Step 1: Idea & Planning

First, you need to come up with the idea. Think about why you want to develop an app. Is it worth spending time, money, and effort on mobile app development? Here are a few things you need to remember during the iOS or Android app development process.

  • Think About the App’s Objective: Ask yourself these questions. Why do you want to create an app? Does your idea resonate with your prospects/ target audiences’ needs?
  • Your Target Audience: Understand who your target audience is.
  • What is the USP of an app?: You must have a clear idea of the unique features of your app. Have a clear idea of which feature makes your app special? What will help you stand out from the crowd in the market?
  • Do Competitor Analysis: Do in-depth competitor analysis. Who are your competitors? Do they have the same app? Will your app resolve the issues customers face? Will your app
  • Mobile App Investment & Promotion: Remember you need to invest significant time, money, and effort in the mobile app development process. Are you ready for it? Do you have a tight budget? Which promotional strategies will you implement to attract new clients? Once you have answers to these questions, move on to the second step.

Step 2: Market Research & Planning

Researching and planning are important steps to turn your idea into a live app. It will help you understand the real need for your product. Here is how you can do it.

  • First, Understand Your Consumers & Set Goals: You need to find out your expectations and goals and what your customers want. Identify and set your goals accordingly.
  • Ask Questions To People: Keep a list of questions ready and ask the people who are using your app. Take their feedback and keep an eye on what your competitors are doing.
  • Keep Your Survey Informative: Include all required information in your survey.

In-depth market research will help you understand your ideal customers and their needs, identify business chances and your competitors’ actions, and check the product before the final release.

Once the plan is ready, you can select the app name, domain, type of app you want to build, etc. Now that you have these answers divide the work into smaller parts.

Step 3: UI/UX Design

Do you know the important factors that decide the success of your mobile app? It is how much people love your app and which features they mostly use. The main objective of UI UX design is to build a user-friendly and highly interactive mobile app. Here are the things that you need to consider during this phase.

  • Wireframes: It is a blueprint of your app that shows how your app will work and what are quick and pocket-friendly ways to plan how your mobile app will look.
  • Style Guides: In this, you need to include information like how your app will look, such as the colour, images, fonts, your firm’s branding rules, etc. This style guide helps ensure the mobile app has a similar look and feel everywhere.
  • Mockups: Creating mockups will help your design and engineering teams seamlessly work together. You can use tools like Adobe XD, Invision, and Figma for that.
  • Prototype: Don’t underestimate it. It will help you understand how your app will work once it is finished. Of course, prototype development is a lengthy process, but it will help test your app’s functionalities and design.

Step 4: Application Development

It is an important stage in the application development process. During this phase, you need to decide which frontend and backend technology to use, how your app will work, etc. The following three stages play a crucial role in this mobile app development.

  • Frontend Development: It is the part of the application that is being used by the user. This stage decides the app’s look and feel. The user will use the app, and whether it will work properly depends on the technologies used in the app development. Ensure to use the technology that makes the user experience and communication smooth.
  • Backend Development: This part of the app will work behind the scenes, and it is vital. It ensures that everything works properly and your app responds to the actions perfectly.
  • API Integration & Database Management: It will decide how fast your app will work. Choose the API integration properly so data movement from the front end to the back end works properly.

Step 5: QA Testing

QA Testing is one of the crucial parts of the mobile app development process. During this phase, you must cautiously check the app to identify any big problems. This is the last phase in which you can find and fix any mistakes. So, before the app’s final release, the app must go through the following stages of testing.

  • Documentation testing
  • Functional testing
  • Usability testing
  • UI testing
  • Compatibility testing
  • Security testing
  • Certification testing
  • Performance testing

Various tools, such as Appium Kobiton, Play Console, Test IO, etc., are used for mobile app testing.

Step 6: It’s Time To Deploy

First, release the beta version of the app. It will make your app popular. Users will use it and give you feedback. Based on the feedback, you can improve the app. Then, again, please test it and release the final version in the Google Play Store or App Store.

Don’t forget to optimize the app based on the specific app store’s guidelines before it goes live. Here are the things you need to check before releasing the app’s final version.

  • Category of the app
  • Name and description of the mobile app
  • Features with proper explanation
  • Screenshots of the app
  • Icon
  • SEO-friendly keywords & phrases

Step 7: Continuous Feedback, Support, & Maintenance

It is the last step of the application development process. In this step, users provide continuous feedback. Based on it, you can make improvements. You must provide support and listen to your users’ feedback during this time. It will help you to make your app more successful.

Let’s Begin Your Mobile App Development Process

Hopefully, by reading this blog, you have understood the complete mobile application development process. Remember, the success of your mobile application highly depends on how effectively you have applied steps to create an app.

Mobile app development might seem like a lengthy process. However, employing the right mobile app development trends and tools can make the process easier for you.

If you are wondering how Pranshtech can transform your app ideas into functional reality, we are just one call away. We are a trusted mobile app development company that will help your business thrive digitally.

We are armed with skilled and seasoned app developers who understand the importance of thoroughly following the mobile app development process. Our team has in-depth knowledge of developing an interactive and user-friendly app that can boost your business ROI. So, whether you want to build an Android or iOS app, feel free to contact us today.

Frequently Asked Questions

Well, not really! It depends on the concept of the app and its complexity. You need to keep the end product in mind. Consult an experienced app development company like Pranshtech Solutions, which will properly define the app design and development goals.

Generally, the app development cost depends on the complexity, timeline, and location. You can use this formula to know the development cost – Total app development cost = time * cost per hour.

The first step in mobile app development is the idea that helps solve real-time problems. 

Ready to build your custom application solution?

Send us your requirements on info@pranshtech.com or call +91 98988 31190