Cost is a crucial factor when planning software development, and Two key questions often arise: ”How Much Does It Cost to Develop Software in 2024?” and “How long will it take?”. At Taction Software, we understand that budget and feature requirements are usually top concerns. With over 12 years in the IT industry, we help clients gain clarity into the development process, ensuring transparent estimates and a trustworthy investment.
Overview of Software Development Costs
Determining the cost of software development depends heavily on understanding your unique requirements. Each project is different, with specific needs, goals, preferences, and budgetary restrictions. Below, we’ll explore the key factors affecting software development costs, drawing from real examples in our portfolio.
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Average Software Development Costs by Industry
Based on industry insights, here’s a general idea of software development costs by sector:
- Healthcare: $75,000 to $250,000+
- FinTech: $90,000 to $300,000+
For example, basic applications take between 500-700 hours to develop, while enterprise-grade applications may require 1,000+ hours due to high complexity. Here are cost examples based on application type and platform.
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Cost Examples by Application Type and Platform:
| Application Type | Platform | Approx Time (Hours) | Approx Cost (USD) |
| Basic Marketplace App | Web | 1168 | $52,560 |
| Basic eCommerce App | Web | 1200 | $54,000 |
| App like Spotify | Web | 968 | $43,560 |
| Booking App (Airbnb) | Web | 1350 | $60,750 |
Average Cost of Custom Software Development Services in 2024
Small Businesses & Startups: Custom software with basic functionality and features can cost between $20,000 and $65,000.
Medium-Sized Projects: Typically, these projects include more complex features, ranging from $60,000 to $140,000.
Enterprise Software: Large-scale projects requiring complex integrations, high security, and scalability generally range from $100,000 to $500,000.
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Software Development Cost Breakdown
Our experts cover key elements in the initial scoping session with clients, which guides accurate budget planning.
- Project Goals: Setting clear objectives from the outset is essential to create software that justifies the investment.
- Target Audience: Identifying who will use the software helps shape app development strategies. Market research, competitor analysis, and trend identification provide valuable insights and affect development costs.
- Software Type: The type of software significantly influences development time and costs, with complex, feature-rich apps requiring more resources than simpler versions.
- User Behavior: Visualizing user interactions helps create a clear roadmap, ensuring smooth user experiences while optimizing development costs.
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Software Project Estimation Defined by Team Type
The cost also depends on the type of development team involved. Here’s a comparison of four common team types:
| Team Type | Development Cost (USD) |
| Local Development Team (US) | $350,000 |
| In-House Team (US) | $250,000 |
| Offshore Development (India) | $100,000 |
Offshore Development with Taction Software
Working with Taction Software offers access to a skilled team and industry expertise, providing cost-effective solutions without the high overhead of local development.
Choosing the Right Software Development Pricing Model
Considering the different pricing models may lead to the realization that an offshore development company is ideal, especially for startups seeking affordability and flexibility. Here are some industry statistics to support this approach:
- 70% of organizations outsource app development to reduce costs.
- India offers an attractive solution with a large developer base and competitive pricing.
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Key Factors Affecting Software Pricing
1) Software Type
We categorize software types to better estimate cost and time requirements:
- New Software Development: Building software from scratch, customized to user needs.
- Software Modernization: Upgrading existing applications using modern tools.
- Software Integration: Adding pre-built modules to existing systems.
- Web Development: Creating custom websites or web applications.
2) Software Complexity
Software complexity impacts costs based on factors like the number of screens, customization level, and feature set. For example, an enterprise app with social media login requires additional development hours and raises costs due to added functionality.
3) Average Costs by Project Size
Project Size | Cost Range (USD) |
Small Projects | $10,000 – $60,000 |
Medium Projects | $30,000 – $100,000 |
Large Projects | $80,000 – $125,000 |
Enterprise | $100,000 – $200,000+ |
4) UI/UX Design
The time needed for user-friendly UI/UX design affects project costs, as it leaves a lasting impression on users. Complex projects with extensive UI/UX requirements tend to have higher budgets.
5) Development Team Size
The cost also depends on the team size. A minimum team typically includes developers, a project manager, and a QA tester, with additional roles as required by the project.
Role | Small | Medium | Large | Enterprise |
Project Manager | ✔ | ✔ | ✔ | ✔ |
Business Analyst | – | ✔ | ✔ | Multiple |
UI/UX Designer | – | ✔ | ✔ | ✔ |
Technical Architect | – | ✔ | ✔ | ✔ |
6) Platform
Platform choice (e.g., iOS, Android, Windows) affects cost estimation, as supporting multiple operating systems and integrating third-party tools adds complexity.
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Hidden Custom Software Development Costs
When planning software development, consider these hidden costs:
- Marketing Costs: Social media, PR, SEO, content, and email marketing.
- Maintenance and Support: Software upgrades, bug fixes, and security patches are essential for smooth operation.
Software Development Cost Estimation Process at Taction Software
Our four-step estimation process ensures transparency and accuracy:
- Free Consultation Call: We discuss your project basics and determine initial requirements.
- Project Analysis: We dig deeper to understand the app ideas, features, objectives, and timeline for a comprehensive cost estimate.
- Quote Preparation: Using the information provided, we finalize a detailed cost estimate for development.
- Deal Closing: With an understanding of the cost, you can select an engagement model aligned with your goals.
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Tips to Minimize Software Development Costs
- Partner with an Offshore Company: Access high-quality expertise at a lower cost.
- Prioritize the Discovery Phase: Clarifying features during this phase streamlines development.
- Build an MVP: Test market fit, refine features based on feedback, and reduce unnecessary costs.
- Hire Dedicated Developers: Offshore developers offer cost-effective and high-quality support.
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Calculating Software Development Costs at Taction Software
For a tailored quote, reach out to our sales team. With thousands of successful projects, we provide scalable, feature-rich solutions that align with your business goals. Ready to get started?
Note: The costs mentioned are industry estimates; reach out for a precise quote specific to your project.
