How is the cost of developing software calculated?

How is the cost of developing software calculated?

What is software development cost estimation?

We can define the software development costs estimation as the overall costs required for completing a project within the project management frames and the specified time frame. An inclusive software development cost would include overhead costs, labor costs, vendor fees, etc., and also both the direct and indirect costs involved to make the project to completion.

We can divide the software development project into 3 categories.

Compact Software: These would be the small size standalone software and developing such software will cost you around $5k - $10k.??

Moderate Software: These are medium-sized web software that has a few critical features, MVP, or software remodeling and it will cost around?$10k - $40K.

Extravagant software: These are the enterprise software that has complex functionalities and third-party integration and huge data migration and it will cost around $40K to $100K.?

Now let us look at how the cost of the software development process is calculated. Mostly the software development cost is based on the following 5 factors.

  1. Software Size

One of the major metrics for cost estimation is the estimated software size, which will influence the project end date. The software development cost is directly proportional to the size of the software and the user base of the software. The size of the software will be based on the number of screens and pages and the end-users it is planning to adopt. A small-sized app will range from 10 to 25 pages, medium from 25 to 40 pages, and the large software will have over 40 pages. Large software will require more testing and therefore higher costs.

  1. Complexity

The complexity of the software depends on the added features in the software, which builds up more challenges to develop, test and deploy the software.

Let's split this term into 3 categories:

?

  • feature set complexity means a level of the complicacy of features to be implemented according to advanced business logic.
  • Tech complexity refers to implementing advanced technologies when project requirements can't be met by traditional technologies.
  • design complexity is about customized and personalized design elements (we've highlighted this topic in a separate section, which is addressed below).

?

  1. UI/UX design

The professional work of the designer is the effective interface with the unique UI/UX solutions that simplify interaction and streamline the development of the product which is required to meet the needs of the audience. The cost of the UX designer is at the level of the customization of the app. The total project cost will depend on the highly customizable UI/UX design.

  1. Team

The team of software development includes five major specialists which are frontend developer, backend developer, project manager, business analyst, quality assurance, etc and the roles and merits of these specialists often go under-counted. The business analysts ensure better forecasts which eliminate future problems for both the companies and the customers. Business analyst solutions prevent and preempt these problems and block unproductive approaches. Project managers help in planning, defining, monitoring, and reporting progress and help with the cost and time frames. Finally, QA specialists help us throughout the development stages. They are the professionals who coordinate the testing and help with the product’s reliability. They create comprehensive test plans and test cases to identify software deficiencies before the product launch.

  1. Platform

The software development costs vary based on the deployment of the platform and its specifications. If you are going to create an Uber-like app or a Clubhouse-like application, develop it for all the key deployment platforms, like Android, iOS, or Windows. Most popular operating systems, databases, middleware, etc support multi-platform solutions making them more popular and expensive.?

Concluding thoughts

The cost of the software development process is based on sound planning, improved resource management, client relationship, and reputation. Before investing time and money in the software development process, we must make sure that the company understands the requirements of the project as the cost depends upon the project requirements. Some costs will appear over the life cycle of the project and precise estimation will help us in making a project a success or failure. Calculating the cost of developing software is the most crucial step for a project or software to succeed.

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