Business Landscape in the 21st century is getting digital and customers are turning toward the internet for every solution. Whether learning a new thing, connecting to the world, or opting for a product or service, the online landscape has become the go-to place for a million customers. The evolution has made online presence a must-have thing for millions of businesses worldwide. With an online store, website, or application, businesses are open to a broad consumer base that knows no geographical boundaries. 

Like any other investment, securing an online platform has also become a kind of investment for businesses. But, how much does a business owner has to invest in order to leverage the benefits of this trend? This question has been the foremost concern of the stakeholders. Today in this blog, we will answer the question in detail and try to understand the concept easily. 

Factors Affecting Software Development Cost 

Factors Affecting Software Development Cost 

First of all, while talking about the cost of software development cost, you must remember that it is not going to be constant without having finalized certain factors. The cost of software development cost depends largely on some factors. Below are the majority of those factors- 

1. Type of Software 

Type of software is the foremost determinant of the cost. There are different software that helps businesses to achieve competitive advantages by entertaining a large audience base. One can develop websites, mobile applications, hybrid solutions, cloud services, CRM, ERP, E-commerce stores, and much more to give an online touch to their operations. The cost of developing these solutions differs from one another. 

2. Complexity of the Software

Moving further, the complexity of the software solution is a big factor that hinders the cost of development. If any website or application is meant to have a basic feature to fulfill the fundamental needs and deliver the necessary information to the target audience, it can be developed at a fraction of the cost. On the other hand, if anyone is eager to develop a digital product with exceptional capabilities and technology, the cost of its development will spike simultaneously. 

4. Size of Development Team 

Size of your software development team determines the cost as well as the timeframe of the project. If more people are working on a project, the time required to complete the project will reduce. However, hiring multiple members in the team for software development increases the cost to a significant extent. 

4. Timeframe for development 

A particular engagement model enables the payment according to the hours it will require a developer to complete the project. The number of hours dedicated by the development team is directly proportional to the cost of developing the solution. 

5. Experience Level and Expertise of Development Team 

Highly experienced team of development experts will charge a high price for the app development. Similarly, a team with less experience will take the project in hand for a fraction of the cost. However, it is never a good idea to compromise the experience of the team to save a few dollars. Less expertise might cost a lot more than those few dollars in terms of performance and quality of the outcome. 

 6. Geographic location of the Development team 

Different markets have different price slots for the development team, and the difference between these slots is significant. Hiring a software development team from countries like the USA, the UK, Western Europe, Australia, etc. might cost you more than twice than hiring a team from Asian countries like India or Easter Europe. At the same time, one does not have to compromise in skills or expertise while saving costs by choosing the right location. 

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7. Tools and Technologies Used in Development 

One can add or reduce the potential of your digital solution by choosing to instill some tools and technology in development. Integrating the third-party APIs, developing cross-platform applications, and using the IoT, Blockchain or Metaverse technology are some of the factors that will add dollars to the project. Similarly, using the fundamental coding capabilities to develop a basic solution can save you the cost. 

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Breakdown of Total Software Development Cost 

While searching for the cost of software development over the internet, one might find random figures. These figures might or might not be true based on the consideration of the publisher. However, it is also important to understand what these numerals consist of themselves. When a software development company gives a certain budget, they include numerous practices and factors which add up to that number. A software development cost generally consists of- 

Personal costsA major portion of total development costs is occupied by the human resources needed for the project. It includes the salary of IT professionals working on the project. 
Infrastructure costs Developing software solutions require a huge infrastructure consisting of the devices and digital support of computers, network connectivity, cloud services, integrations, and much more. So, this factor is also a significant shareholder in the cost of software development. 
Tools and Technology costs A digital solution requires particular licensing and subscriptions to instill the capabilities. Most software development companies add this to the total cost. 
Communication and Collaboration Costs A software development project requires meetings, documentation, and many formalities occasionally. The development partners have to bear the cost, which they often add to the project’s cost. 
Overhead costsNot a constant, but a common cost is overhead costs. If anyone hires a remote developers having no physical infrastructure, they often add the cost of rent, utilities, and insurance to the project cost. 

How to Manage Costs During Software Development?

One should not compromise with the skills and number of features to save cost, but still, some tactics can be utilized to keep the cost. Implementing specific tactics can bring a significant difference in your cost of app development. Let’s know about these practices-

1. Agile Development Methodology 

Project management methodology plays a significant role in determining the cost of software development. Using agile project management methodology helps ensure that every phase of the project is being carried out with complete perfection. It reduces the chances of correction at a later stage so that the project doesn’t cross the timeline and budget. 

2. Prioritizing Features and Functionalities 

Number of features and functionalities is directly proportional to the cost of software development. To save costs without compromising the functionalities, prioritizing them is the most efficient method. You can prioritize the features and functionalities that cover the majority of the purpose for your software. Eliminating unnecessary features will save an enormous cost for you. 

3. Regular Communication and Collaboration 

Regular communication and collaboration will help remain updated about the project’s progress. It will help ensure that the development team is wasting time doing nothing. Having updates about milestones and deliverables will also give you chances to suggest corrections at the right time. So, it won’t cost you higher at the end of the project. 

4. Incorporating Feedback from Stakeholders 

Your development partner has completed a lot of similar projects in their professional journey. Collaborating with the stakeholders to seek knowledge about areas that can help save costs on projects is one of the best practices. There is no doubt in the statement that the knowledge and experience of your development partner can help cut a significant portion of development costs. 

5. Conducting Regular Cost Assessments 

Having complete control over the dollars being used for the different segments in the project will help ensure that money is not being wasted by the development partner. Keep an eye on the cost breakdown, initial blueprint, and difference between the proposed cost to that of the actual cost. Ask for the reason for the difference. 

Rough Estimation for Software Development Cost as Per Business Sizes 

Having a presence on the digital landscape has become necessary for businesses of all sizes. But at the same time, different sizes of businesses have different target audiences and reach. So, software solutions required to support the operations of these businesses also require different capabilities. A software solution developed for large businesses will need the capability to handle a heavy user base, which increases the development cost. Similarly, a small business needs only a platform where they can offer their services and connect to the target audience. So, it requires only a fraction of the cost. 

Below is a rough estimation cost for software development according to the different sizes of business (referenced to Emizentech)-

Software Development Cost EstimationSmallMediumLargeEnterprises
Web Development$5K-10K$10K-20K$20K-50KGet Enquiry Now
Hybrid App Development$15K-25K$25K-50K$50K-80KGet Enquiry Now
E-commerce Development$10K-20K$20K-40K$40K-70KGet Enquiry Now
App Development$20K-40K$40K-60K$60K-1000KGet Enquiry Now

Emizentech: Your trusted Software Development Partner 

As we interpreted earlier, your software development partner plays a significant role to determine the cost of your solution, Emizentech can be the best fit for your project. Carrying an experience of more than a decade, we have delivered projects for our clients of all sizes from different industrial backgrounds. The experience that our development team holds in the industry allows us to save costs by adapting different strategies and tactics. 

Moreover, we are also aware of the key areas of the project where cost can be saved without any impact on the performance, features, or functionalities of the software. We are trusted by hundreds of clients consisting of several big enterprises listed in Fortune 500 companies. So, if cost is your concern about the project, get a free consultation session from our project manager and discuss the idea freely.  


Cost of software development always remains the foremost concern for businesses or people planning to get their digital solutions. However, the cost can never be constant as it depends on various factors. Be it the geographical location of the developer or the complexities of the project, everything changes the dollar amount whenever anything changes. 

Implementing specific tactics and techniques can help you significantly to save the cost. The tactics include ensuring good collaboration, communication, efficient project management methodology, and more. Being a leading software development patner, Emizentech invites you to be part of technological evolution by developing your own cost-efficient software solution. 

Frequently Asked Questions (FAQs)

Q. What are some of the hidden costs in software development?

The cost of software development might hinder due to different factors such as:-  
1) Maintenance of staff 
2) Hosting expenses 
3) App maintenance 
4) Training 
5) Strategic costs 

Q. Should I outsource software development to reduce costs?

Outsourcing software development services to markets like India can help you tremendously to save costs.

Q. How important is budgeting for software development?

Budget is one of the measurements for the project’s success. If the project outcome is not satisfying the budget or financial resources it consumed, it can not be considered a successful project. 

Q. How long does it take to develop software?

The time totally depends on the type of software however, you can consider an average of 6-10 weeks for a basic software solution development. 

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With a decade of experience in eCommerce technologies and CRM solutions, Virendra has been assisting businesses across the globe to harness the capabilities of information technology by developing, maintaining, and improving clients’ IT infrastructure and applications. A leader in his own rights his teammates see him as an avid researcher and a tech evangelist. To know how the team Virendra can assist your business to adopt modern technologies to simplify business processes and enhance productivity. Let’s Talk.