custom software development cost

How Much Does Custom Software Development Cost

Software solutions in the modern day are not “one-size-fits-all” items. Even the term ‘software’ is imprecise and encompasses a wide range of applications. The custom software market is booming as businesses seek to improve the user experience.

AI, the IoT, AR, VR, and ML are all integrated. However, such innovative linkages need sound software development efforts to be implemented. While each bespoke software project is unique, execution remains a top priority for many companies.

How is Custom Software-Defined?

Custom software is distinct from off-the-shelf software such as Microsoft Office, which caters to a broad customer base. It has features that are tailored to your business’s needs. Custom software includes, but is not limited to, tailor-made banking desktop applications and enterprise resource planning (ERP) software.

Developing bespoke software includes gathering requirements, writing code, testing the program, and deploying it. Custom software provides a more customized experience for users, reduces development costs, and improves return on investment. Additionally, the scalability of bespoke software is superior to that of widely available software.

Did you know? By 2028, the global software market size is anticipated to reach a value of USD 872.72 bn.

Factors Affecting Cost of Custom Software Development

To get insight into the spending, it is necessary to understand the variables that affect the development cost. For instance, a realtor determines the cost of a building based on design requirements, raw materials, labor, paperwork, validation, and finishing work.

Likewise, developing bespoke software for your business is similar. This section will outline the key factors that influence your investment and their effect on the lifetime of your project.

Factors Affecting Cost of Custom Software Development

  • Platform Types

The cost of bespoke software development varies according to the platform used. Android, for instance, is one of the most popular platforms in the present market, having dominated other device categories such as laptops, streaming tools, wearables, and even smart appliances.

However, when a large platform like Android is used, the scalability increases significantly. To get efficient performance, you need a robust software structure, which requires more development work.

Separate development teams will be required for software distribution in various native ecosystems. Multiple development teams will be more expensive than a dedicated team. Additionally, the technologies used to distribute software influence the cost.

  • Approach to Development

From the selection of the framework to the development process, your project plan includes components that help you portray the strategy and budget. After then, you will require a fast, reliable, and error-free development process. Agile development is one such iterative process-based method. Agile Development Methodology—costs associated with bespoke software development

Additionally, Agile development enables a cost-effective lifetime of development.

The first step enables you to develop a roadmap for job clarification, resource allocation, and iteration metrics, thus minimizing team effort and technical debt.

Prototyping offers stakeholders an inside investigation of the product, allowing for revisions before the product’s launch.

  • Timing of market entry

Time-to-market is a broad phrase, and it is affected by many aspects of the development process. Everything impacts the timeframe, from the size of the program to the functionality it contains. To simplify, we’ve found three situations that will significantly increase your time-to-market:

When there are an excessive number of characteristics, some of which may be complicated

When applications with fewer features need more time due to their complexity.

Each instance involves a lengthy time-to-market. It’s a significant issue for startups and established businesses since you never know when your great concept may become obsolete. As a result, getting to market quickly becomes a priority.

  • Minimum viable product

If you want to test your goods before launching, the Minimum Viable Product (MVP) is an excellent method to get meaningful feedback.

Assume you wish to create a music streaming application that plays music at a particular time. While this seems to be an excellent concept, you may want to ascertain how people respond to this addition. Thus, you build a beta version and distribute it. While an MVP may consume up to 20%-40% of your overall development budget, it is well worth the investment since user evaluations may provide you with a comprehensive knowledge of your product’s usability. Additionally, it provides you with additional time to concentrate on your application’s more challenging features.

  • Size of the company

Different companies attract different charges for custom software development. Ideally, we have enterprise, large, medium, and startup software development projects.

Enterprise Software Project- under such a project, the developer requires a basic framework. The core interests of an enterprise software project include data integrity, logging increase, error handling, and data security.

Here, the custom software development costs are quite higher. What’s more, such companies should take note to avoid the non-compliance type of fines. Ideally, the custom software development costs under enterprise projects can reach up to $200,000 or more for the whole project. The hourly charges range between $30 to $50.

Small and Medium Enterprises (SMEs) – These are projects that require a single source of data, such as a web interface or a small mobile app. The total custom software development costs under SMEs can be more than $100,000 with 2000 hours of delivery time.

Startup -These are projects that don’t need a huge budget. Besides, the products must be launched to the market in the shortest time possible for easy market penetration. Developers don’t use pricey products here, hence minimizing the total cost of custom software development.

  • UI/UX Design Complexity

As always, user experience is a core value in software development. Developers are now using advanced methods to attain an improved user experience, a move that will see the product penetrating the market with ease.

Since a sophisticated UI/UX design requires high technology and high resources, the final software development will definitely increase, as described in the table below:

Level of Complexity

Total Cost in $

Basic Project


Average Project


Complex Project


  • Type of the team

Depending on your budget and the requirements for your custom software development, you can hire different types of teams, and the prices vary depending on the team working on your custom software, as shown below:

Team-Type Development Costs


The Local Development Company, the USA


In-house team, the USA




Outsourced Agency, India


In-house teams entail developers within an organization, and these developers follow guidelines from the management to create solutions.

Local Development Company -This is a custom software development firm located in the same country as the business.

Freelancers – these are software developers who aren’t employees of any software development firm. They offer independent services at negotiated prices on a contractual basis.

Outsourced Agency – this is a team of software developers dedicated to offering software development solutions to another country.

  • Developer’s experience level

We have trainees, junior developers, middle developers, senior developers, and software architects. The higher the level of these developers, the more the charges of custom software development costs.

  • Location of the development team

The price of custom software development will vary based on the region of your team. Getting a custom software development team from the US is higher than getting a team from South Asian country like India, as simplified in the table below:


Approximate Custom Software Development Costs in $





The UK


Western Europe


Eastern Europe


South Asia


Custom Software development cost

The custom software development cost depends on several factors such as developers experience, use of technology in the project, complexity of the project as well as region of the developers team.

When it comes to custom software development cost at Aalpha information systems our charges ranges between $50,00010,0000.

For info please check our: pricing

Final Remarks

Calculating the custom software development costs is straightforward, provided the project is well-planned. If you submit a proposal with all the required information, the vendor’s answer will reflect the whole picture.

The function of developers is one factor that determines the price of bespoke software. Therefore, whether you employ offshore developers, in-house developers, or even a freelancer, their expertise may significantly affect the success of the project.

Any queries? feel free to contact us and get a free consultation from our professional experts.

Also check: offshore software development rates

Written by:

Muzammil K

Muzammil K is the Marketing Manager at Aalpha Information Systems, where he leads marketing efforts to drive business growth. With a passion for marketing strategy and a commitment to results, he's dedicated to helping the company succeed in the ever-changing digital landscape.

Muzammil K is the Marketing Manager at Aalpha Information Systems, where he leads marketing efforts to drive business growth. With a passion for marketing strategy and a commitment to results, he's dedicated to helping the company succeed in the ever-changing digital landscape.