TMCnet Feature
November 27, 2019

How to do it - Software Cost Estimation

Things have changed a lot over the past years and the concept of running a business with the traditional approach is no longer efficient. Entrepreneurs and established businessmen prefer to automate a certain portion of their business which eventually saves a ton of paperwork. Most importantly it ensures efficiency in the business. So, how do they do so? The answer lies within the development of the software. With the help of a simple employee or accounting software, the human resource depart man can easily process large data of their employees without having any issues. But such software doesn’t come free. You have to pay a decent amount of money to increase the efficiency of your business.

When it comes to software development, the associated cost is a very vital issue. With an organized approach and proper planning, it is possible to cut down the software development cost to a great extent. But due to the lack of knowledge, small to large business owners often end up paying twice the amount for their desired software. In this article, we will highlight some of the key issues which can help you to estimate the cost of the software.

Know your project scope

Before you start developing software, you need to know the project scope. Due to the diverse nature of the business, readymade software tends to slow down the operation process of the business. But with in-depth knowledge of the project scope, you can get a clear idea regarding the modules which you must-have in the software. Once you have a structured plan, the developers can charge you based on the modules or for the full project. But if the payment is made for the full project, make sure you discuss the future scope for the development of the same software. At times static designs result in catastrophic failure since adding new modules becomes a very expensive process.

Development time

The development time plays a vital role in the pricing of software. Usually, the readymade software is cheap compared to custom-tailored software since the developers have already done the hard work and selling the same product with unique serial keys to different clients. But such software might not serve your purpose. So, for the custom made software, the developers will give you time estimation to complete the software development process.

Usually, pricing is higher when you request express delivery and the margin for correction during the mock-up phase is nominal. To solve these issues, many companies prefer software development outsourcing solutions as it gives them the ultimate freedom to create perfect software from the prototype. Most importantly, the cost is really low when you outsource the project from renowned developers.

Request for a price offer

It is always better to request for a price offer from the software development company before you disclose your budget. Let them know your key requirements and they will give you a detailed pricing and timeline requirement to complete the assigned task. This allows you to eliminate the unnecessary modules or features you are going to add to the software. You can also ask for a draft plan from the developers stating your key requirements and they might give you more optimized solutions.

Cost, time and effort

Once you have the initial costing for the development of the software, you have considered three important issues i.e. cost, time and effort. Are you getting the desired product within your timeline for a certain amount of money? Is it worth to give the effort to ensure long term efficiency for your business? If the answer is YES, probably you need to go for software development to ensure your business growth. If you are not sure, probably you are not getting the right product for your bucks. So, analyze the price offer and your project scope and bring the necessary change.

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