How to Calculate the Cost of Custom Development

What is custom development?

Develop custom software applications other than pre-existing software (COTS). It is the process of adapting existing software or creating new software according to the requirements of users or organizations. It can be developed by an in-house developer or sometimes it is necessary to hire an external developer at a higher cost.

How much does custom development cost?

A company’s custom development costs are costs incurred in developing, researching, and introducing a new custom software or application. Expenses include research and development of custom software including marketing analysis, customer surveys, and hiring of developers.

Why are custom development costs charged?

Software development is a very important stage for an organization. Likewise, customizing existing software or creating new custom software has proven to be more costly for organizations than they thought. If you choose a professional and reliable IT company for your project, they will suggest several options to optimize costs.

When a customer or organization wants to develop software, they first want to estimate the cost of the software. If the estimate is wrong, it will affect all processes and budgets. There are several factors that you should keep in mind while assessing the cost of custom development software.

Factors affecting the cost of custom development

Size of the project

To estimate the cost of custom-developed software, you should keep in mind the size of the project on which the software is developed. If the project is small and has fewer requirements, the software development budget will be low.

Integration between applications

If the client requires app integration between the website and mobile devices, this will also increase the budget.

Data migration

Developers hesitate to develop the kind of custom software that requires migration to another platform because it includes a long list of data migration scripts. It was a very long and difficult task.

Creative design

If the customer wants a more innovative application, the cost is likely to increase. Developers should create a unique design that includes font sizes, images, color shadows, including everything that distinguishes the app from others.

How are adjusted development costs calculated?

Total custom software development cost = front-end developer cost + back-end developer cost + QA cost + PM cost.

Custom development costs can be calculated in a variety of ways.

Fixed price

This form of custom development costs allows customers to jointly determine pricing with software developers. The client must discuss all of his requirements before starting work, because once the work has been completed it cannot be changed, otherwise the client must pay extra for additional work. fig.

Time and materials

This type of custom development cost method requires daily customer involvement. In other words, developers claim hourly or daily payments. During software development, the customer thinks he needs some change in the work that can be done at no extra cost.

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Source: newstars.edu.vn

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