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Solace Infotech Pvt. Ltd.
Solace Infotech Pvt. Ltd.

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How To Estimate The Cost Of Custom Software Development?

The term “Software” is not specific and has a wide range of applications. Custom software has gained more attention in the past few years because of the scalability, flexibility and personalized experience they offer. But there is a confusion among CTOs and CEOs about the cost of custom software development. Although all custom software projects are different, execution remains the main concern for many businesses. Technologies like Artificial intelligence, Internet of things, AR/VR, and machine learning have become common as integrations. Such innovative integrations need robust execution of software development projects.

Accurate cost estimation is a key to successful software development project. It may sound different, but this is a truth as it includes money and software. Here we will discuss some of the approaches that eases the software cost estimation process for the businesses and how to estimate the custom software development cost for project. But before proceeding to it, let us see what is custom software.

What Is Custom Software?

Custom software is a user-specific software that caters to a generalized user base. It has features that are in line with your business requirements. For example, a tailor-made banking desktop application or ERP software comes under custom software. A custom software development process includes requirement analysis, coding testing and deployment. It offers a personalized experience for users, lowers the development cost and increases ROI. Also, scalability in custom software is better than other softwares. Let’s get on the factors that affect custom software development costs.

Factors Affecting The Cost Of Custom Software Development-

1. Size Of The Software-
One of the most important factor that determines almost half of the development cost is the size of your custom software. For instance, a simple mobile application or online store that offers products will be less costlier than a multitasking ERP solution used by banks or hospitals. Also, CRM solutions, warehouse management and security apps are premium software that is expensive and time consuming to build before the final product is released. Ensure that you know the exact features that a software should have when you explain it to team.

2. Complexity-
Complexity of a software plays a vital role in final development estimate. It refers to the overall purpose and additional requirements you have for your software development team. As the complexity increases, cost also increases. Design, features, user interface and technological requirements are the main factors that make the software simple or complicated. You can develop a simple software or application with traditional platforms and technologies in just a few weeks. The degree of complexity can increase development time and tools required to add highly responsive functionality.

3. MVP Requirements-
We all know the importance of MVP. It test your product before they launch in the market. MVP is a great way to receive valuable feedback. For instance, you want to build a music streaming app that plays music. Though this seems like a fantastic thought, you may still need to find out how users react to this addition. Hence, you can create a beta version and release it. MVP may take up to 20-40% of total development cost, but it is worth the investment because user reviews can give you a complete understanding of product’s usability. Also, it gives some extra time to work on complex features of the application. Inshort, MVP of software not just improves the time-to-market but offers valuable feedback on its functionality.

4. Design Requirements-
Providing creative designs and animations to your software is always a better idea as it keeps users engaged. Because the design has the potential to scale up your development efforts, that may increase the cost of custom software development. It will be better to choose an elegant and simple design.

5. Development Approach-
Know more at- [https://solaceinfotech.com/blog/how-to-estimate-the-cost-of-custom-software-development/]

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