If you are a company or an individual looking to outsource your software development, you may want to budget your project properly so that your software can produce value when it's put to use. But whenever you ask "how much does it cost" to software development firms, the answer is almost always: it depends. That is because the price is personalized to fit your project precisely, so a definitive answer does not exist. This article will break down the average cost of software development, which factors influence the cost, and which contract types are available for outsourcing your project.
Average cost of software development
There is also no one average cost, and it again depends on the type and size. What is it that you want to build? Is it a content management system (CMS), eCommerce, or something else? Let's look at the average prices used to create these platforms.
Content management system (CMS): Some companies build CMS to meet the specific needs of their users. This tool allows users to create and update content like blogs, videos, press releases, and so on. While many can use the popular available CMS like WordPress or Magento, having a custom one is much more expandable and profitable. The average cost to build CMS software is $20,000 to $50,000 for a basic platform.
Customer relationship management system (CRM): This platform is important for businesses to keep track of their existing customers, win over potential customers, and manage vendor and partner relationships. There are already many popular CRM platforms like Salesforce, Freshsales, etc. The average cost falls around $100,000 for a basic platform and can go up to $600,000+ if you're looking to build a large-scale one like Hubspot.
Enterprise resource planning system (ERP): The ERP system helps businesses manage their daily operations, such as accounting, supply chain tasks, project management, and more. This is a scalable solution tailored specifically for your business to handle all the in-betweens so that you can focus on the product itself. The average cost for this type of software is usually over $ 100,000 depending on the size of the company. A larger project will fall between $150,000 to $500,000+ if more advanced features are required.
Factors influencing the cost of software development
Now that you get a feel for the bigger picture let's break it down further and look at which factors influence the cost of software development.
If you're looking to build a cross-platform application that can run on different platforms using the same code base, the prices will go up accordingly. Native apps, on the other hand, can only run on one platform. Building a cross-platform application requires a more experienced team, thus, a higher cost.
Type of project
Software development is a broad term that covers every type of software project, so which one is your type? The most common outsourced project is website development, followed by software integration, modification, or custom brand-new software development. If you want to add a custom code that expands your software's existing capabilities, that is called software integration. If you need a large-scale enhancement to an existing software, you're looking for software modification. And building custom software from scratch, from applications to management systems, will definitely cost differently. The best way to figure out the exact price for your project is by contacting a trusty software development firm. Our expert consultants at Dirox are waiting for your call!
Size of project
The size of your project is classified into four categories: small, medium, large, and enterprise. Small software projects usually involve making changes or fixing bugs in software. Medium projects are often mobile applications, web interfaces, or anything that is built on a single source of data. These types of projects include changes and fixes, but also solutions and integration. Large software projects include almost everything: system integration, databases, security, logging features, and frameworks. They ease maintainability and scalability while creating multi-party applications across all platforms. Enterprise software projects are ten times large ones. The security, error handling, and logging are much stricter. A great example of this is the Uber mobile app.
Size of the development team
The more requirements you have, the bigger the team will be. Each developer will be in charge of a part of the project, and the project manager is there to oversee the progress and ensure your project gets done creatively and promptly. If you already have a team and want to add developers with specific skills, please contact Dirox to get a rate for developers proficient in the talent you need!
Because of the rise of technology, developing software can be done anywhere. Hiring software developers from America or Western Europe prove to be costly and may overwhelm your budget. Eastern Europeans can build software at a much lower rate without compromising the quality. If you're looking to outsource in Asia, you will benefit from an extremely low cost and excellent quality. However, the time zone, language barrier, and cultural differences may pose a problem. Dirox mixes Western values with the polished talents of Vietnamese developers who will deliver you the perfect project for your business. Contact us for a free expert consultation to learn more!
Finally, looking at what options you have will, again, determine how much your software project will cost. There are three ways to hire software developers: freelance, in-house, and outsourced. If you're reading this article, you might be highly considering outsourcing your project. Still, let's look through what other hiring options are available. Freelance developers can fill in the gap for your existing team. Dirox offers individual developers to coordinate with your team and add value to the development as well. In-house developers are your employees, but the downside is that it can turn costly and ineffective, especially if your project is a one-time thing.
So there you go! Hopefully, this article has given you a rough picture of how much software development outsourcing costs. If you're looking to outsource to an offshore firm in Vietnam to save costs, Dirox is the perfect partner to help make your dreams come true! Please don't hesitate to contact our expert consultants to get a quote for your project!
Started in 2003 in Ho Chi Minh City Vietnam, our Development Company now operates on a Global Scale in Asia, Europe, and America. Dirox’s team of technology consultants, business gurus, software & apps coders and design visionaries bring you innovative solutions on time, on budget, and on quality. We strive to bring you the best IT outsourcing & offshore services.
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