Software development prices: what can influence the cost?

How much does software development cost, and how can cost estimation errors be avoided? Most companies would like to receive a precise answer to this question, but even with over a decade and a half of experience, we still start by saying, "It depends." The reason is simple: it is inherently difficult to determine software development prices accurately without a detailed understanding of the unique software development requirements of the project. Many factors influence software development costs—ranging from the complexity of the project and the technology stack used to the necessary integrations—so it is worth going through the main points.

Software complexity and purpose can vary widely, whether it's web software development, creating an online shop, launching a mobile app, developing an application, app development software, API development, or UX design. No two projects are the same, and even seemingly similar projects can show significant differences.

Although custom software development expenses can amount to a considerable sum, there are cases when a company cannot avoid this cost. This is the ideal choice when a company is built on a unique business model and standard software does not provide sufficient flexibility and customization. If the company's processes are complex and require unique solutions, custom software development services allow these processes to be supported accurately and efficiently.

It is hardly surprising that software development costs directly relate to the project's complexity. The more complex the application, and the more unique features that need to be implemented, the higher the costs will be. Startups have different needs compared to a company considering e-commerce software development, and an enterprise company also requires different functions to realize complex integration ideas.

The cost of software development also depends on which platform it will be implemented on. For mobile apps, there is the option of developing a native application, which means development exclusively for one platform, either Android or iOS or cross-platform development, where the application is implemented on both platforms. In the case of web applications, platform choice is less significant since most web development languages, such as JavaScript or Python, are platform-independent.

While it may initially seem that UI/UX design costs are not significant, practice does not confirm this. However, the costs invested in this area can pay off well if a thoughtful design, perhaps subjected to user testing, is created. If it turns out after the development is completed that modifications are needed to achieve the appropriate user experience, it would be much more expensive for the client.

Moreover, UX design will play an important role in aligning with the European accessibility directive.

It may be necessary to integrate the software with other business systems (e.g., CRM, ERP, payment solutions, etc.). Integrations often deeply affect the software, making them a complex task, so well-planned and well-designed integrations typically come with higher costs. Some software development projects also require the migration of existing data. Migration can be just as burdensome if a large amount of data needs to be incorporated into the new system.

The technologies and tools used also influence the costs. Third-party services, such as cloud storage, database services, and APIs, can increase direct costs. Hardware costs, though generally lower, should not be overlooked, especially for projects requiring specialized equipment.

Different software development methodologies (Agile methodology, traditional Waterfall methodology) also impact costs and project duration. Integrating DevOps and CI/CD methodologies can further enhance the efficiency of the software development process, enabling continuous integration and delivery, reducing errors, and increasing scalability.

During these processes, MVP (Minimum Viable Product) development often comes into play, especially within the framework of agile software development. The agile software development methodology allows companies to develop their product gradually, and iteratively, minimizing risks, and quickly responding to changing market needs.

The application of artificial intelligence in software development opens new possibilities. AI-driven solutions can increase the efficiency and accuracy of development, resulting in long-term cost savings. This approach allows developers to automate and optimize various development steps, including code generation, testing, bug fixing, and project management, with the help of AI algorithms. Software development companies that adopt AI-driven software development not only speed up the software development process but also enable their clients to be more competitive by providing innovative and scalable solutions.

The costs of security requirements and compliance are also significant factors. During the software development process, security considerations are of paramount importance, as software vulnerabilities can lead to severe data loss, financial losses, and loss of trust.

This typically also means compliance with audits, where the audit requirements must be interpreted and implemented, and the costs of the audit itself must also be accounted for.

Another aspect that can affect software development prices is the project's scalability and the need for future developments. To ensure the software can flexibly adapt to changing business needs, it is necessary to consider the possibilities of long-term maintenance and expansion during the initial planning and development phases.

Thus, it is important not to forget the period following the completion of the project. Software is never truly finished. To remain competitive, it is always necessary to add new features, improve performance, and fix bugs. Post-launch support and maintenance are crucial to ensure the software continues to operate smoothly in the future.