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How Much Does It Cost to Hire a Development Team?

Posted by northstar investors on January 6, 2023

If you want to learn more about the advantages and disadvantages of outsourcing software development, check our Business section. In some cases, outstaffing can be more profitable than outsourcing. You pay only for the work of a specific specialist and not for the work on a project in which the contractor takes into account risks and lays down costs for management processes. In-house is performed internally by a company department that is hired and managed by the business owner. The company takes full responsibility for the management of full-time employees and their pay.

cost for software development

When you have a more or less accurate understanding of the time frame for your project, you can choose this method. All you have to do is to multiply the cost of resources spent on development by the time it takes to create it. The server and hosting part of the project can also greatly affect the budget. All cost determinations made hereunder shall be made in accordance with GAAP. The high level of development of the countries located here determines exorbitant hourly rates of specialists (around $100). That is why customers from these places typically hunt for outsourcers elsewhere.

Factors that Influence Software Development Costs

If you would like to also create a web application, the choice of platform is less important as most web development languages like JavaScript or Python are platform-independent. In other words, you can create a web app that will work no matter what the system is – Windows, Linux, or macOS. Supply chain management is a complex business process that involves many actors, such as suppliers, vendors, retailers, distributors, producers, and customers. The process starts with raw materials and follows them all the way until the end consumer purchases the final product.

cost for software development

Once the software is launched, it will require routine maintenance from either a dedicated support team or the original developers. Depending on your localities, hiring software developers can be expensive. This is particularly true if you’re based in the US or Western European countries, where the hourly-feel of developers average around $100 per hour. The expensive hourly-rate means you’ll need to bear a higher software cost. Software development cost isn’t merely about the scale or complexity of the app.

Software Quality

With the usage of additional plugins and libraries, your website can become a powerful way to promote your business. For example, with WordPress media folders, you can organize and manage files; Yoast SEO helps to optimize your website, etc. The growth of this indicator may depend on the number of projects left by the owner and other factors beyond the developer’s control. Prototyping this project can take from 40 to 50 hours, depending on how many elements, screens, and pages the software solution requires. The job of a professional designer is to develop a unique interface that includes simple interaction with users and optimization for the needs of the target audience. Here you will also face a dilemma whether to delegate the entire development mission to the outsourcer or hire only those IT specialists whom your in-house personnel lack.

  • However, building the same app for the web, Android and iOS, will cost approximately $137,000 with 2,750 hours of development.
  • The numbers a client gets in a detailed estimation shouldn’t change drastically .
  • Businesses use B2B solutions either as internal applications or as a way to communicate with partner organizations.
  • If it is a large project, the cost can be between $60,000 and $150,000.

If the client decides to move further and asks for a software development quotation, we plan another call, a videocall, and a meeting to gather more details. The catch is that native app development is more expensive, as you will have to write two codebases. However, native apps demonstrate higher speed, better performance, and excellent UX. Some companies choose to build a custom CMS to meet the specific needs of their users. CMS serves as a tool to create and update content, for example, blogs, press releases, and even videos.


The lower price tag fits a simple app that takes less than 700 hours to develop. If you’re building a multi-platform app with a server-side application, the fee is likely in 6 figures. If we apply the same average rates ($50 per hour) as in the example above, the average software development costs would be from $70,000 to $100,000. We’ve been outsourcing IT development for over nine years, serving clients ranging from startups to Fortune 500 companies. With our outsourcing software development services, you can quickly move outstanding programming products into the hands of your customers.

These are typically faster, more user-friendly, and more accessible than their cross-platform counterparts. However, development is more expensive and more time-consuming . Cross-platform apps are cheaper and faster to create, as a single codebase is deployed to multiple platforms. In 2023 business owners know that IT services are important and building a strong digital presence is vital. Yet, the matter of software development costs and overall budgeting still remains a stumbling rock for many.

How Software Development Costs Are Formed

At that spell, our business analyst discusses everything with a client, gathers all the requirements, and turns them into specifications or a project plan. This document will inform designers and developers on your project’s technical and non-technical aspects, be it mandatory fields needed to log in or formulas used to calculate salaries. From a budget perspective, the cheapest option is hiring a freelance developer. Hiring in-house developers involve additional costs like paid sick leaves, vacations, taxes, etc.

The development team size can directly impact the cost of software development. Typically, a development team needs at least three key roles – a developer, a project manager, and a QA tester – to perform various tasks. The hourly rate of the developers will also play a role in the overall cost for software development cost and can vary depending on their location. This stage defines the success or failure of the software product, since it directly conditions the end user’s satisfaction when using it. The level of customization determines a lot the cost of software development in this regard.

Hiring model

This comes in handy in the final estimation when you combine the type of your project with the size of the project development team. By keeping these hidden costs in mind, you can make a more accurate software development cost estimation and avoid surprises down the road. Estimates of software development costs range from $10,000 to $50,000 based on modifications. Estimating the cost of software development is difficult because there are so many variables.

cost for software development

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