Why is Software Development Expensive?

Abhinav Girdhar
By Abhinav Girdhar | Last Updated on December 1st, 2020 9:08 am | 4-min read
Why is software development expensive - Appy Pie

Are you a start-up that needs to develop a software? If you don’t have an in-house team that can create the software or you simply don’t have the bandwidth, it is natural that you will reach out to a software development company. But be prepared for a shocker, the price they quote will be astronomical.
Why can Software Development be expensive - Appy Pie
But, why? What justifies the exorbitant cost? Is the software development company trying to fleece you?

No, software does not come cheap unless you decide to go for no-code solutions. We tend to underestimate the amount of work that goes into creating a piece of software because most of us aren’t familiar with the birthing process. Loads of resources, skilled work, dedication, and time need to be poured into the software to prevent future glitches or disruptions of any sort. Don’t let the cost overwhelm you. Software is an investment. A one-time expense that will help you reap rewards for years to come.

Software development process

The cost of software development varies for different types of software and the many components of the developmental process. Let us look at the stages of the process of software development-

  1. Analyzing your business
  2. You may have issued a set of guidelines on what you expect from the software, but the software development company needs a thorough understanding of the requirements and specifics of your business, e.g., the workflow, a number of employees, work hours, target clients or customers, to create a blueprint for the software. This involves travelling to your company as well as some extensive company research.

    The foundation phase cannot be rushed. So, the money that the developers spend on analyzing your business and market trends will go into your tab.

    However, if you were to create your own no code software, this phase of the process is completely eliminated, making it a cheaper choice.

  3. Managing data
  4. After business analysis, comes the management of the database. Your business database will have to be considered while developing the software. If you don’t have one, the software developer will have to create it and incorporate both internal and external data.

  5. Analysis of data
  6. Once the database is accessible, the software development company will have to make sure that data is flowing without interruption and can be utilized for results that are usable. This process is more complicated than it sounds as it involves complex mathematical calculations and scientific research.

  7. Industry research
  8. The software development company may need to conduct research into the industry you are a part of. Let’s say, you are in healthcare and the agency has never worked with the sector. In this case, they would need to familiarize themselves with the market trends, healthcare information, the technological advances that have been made in the arena, the standards, Government regulations and all the minute details to create software that is the best in the business.

  9. The UX and UI design
  10. Once all the research has been conducted and the wireframe of the software has been drawn up, the software developer will create user experience (UX) and user interface (UI) designs. This process has to be meticulous. The software has to appeal to your clients or users in a fiercely competitive market. If the software design is not appealing or easy to navigate, the users will not spare a second glance and your product will be gone. The aim is to provide an attractive, crisp and user-friendly system that will not require too much training or familiarity with technology for everyone to use.

    This is why the applications built on our no-code application development platform are successful. Not only are they easy to create but are intuitive and very easy to use!

  11. The actual development
  12. The groundwork is laid and now the software development process can commence. There are many ways software can be developed and no-code software development is one of the most practical options for startups and small businesses if speed and time to market are of concern. However, if you are planning to get into software development from scratch, the software developer team will decide which method will give you the product you need the fastest. The priority should, however, be on the elimination of errors. So, your software may need more time and research than you planned for.

  13. Quality testing
  14. No software can be handed over without undergoing a battery of Quality Assurance (QA) tests. The tests determine if everything is functioning as efficiently as clock-work. QA tests are included in the cost of software development.

  15. Deploying the software
  16. The developers need to run the software in a particular environment. Either your server can host it, or it will be hosted by your software developer teams’ server. The system will need to be optimized so that it is accessible and suitable to run the software. So, before the software is deployed, a number of tests will have to be conducted to make the environment compatible with the software. On our no-code development platform, all the solutions can be tested on device before going live.

  17. Training
  18. Now, we are inching towards the completion of the software development process. Before you can start using the new software, you will have to learn how it works. The development team will coach your employees on the various features of the software. This will translate to several hours of video conferencing or the members of the development team may visit your office for personally training the employees. These hours will also be billed.

  19. Services rendered post-implementation
  20. Even after your software is up and running, the duties of the software development company do not end there. What comes next, is customer support. Even after thorough training, your team might face difficulties in handling the software. Small issues may crop up, an employee may make an error, bugs may develop and many other such problems may emerge with time. Your software team will solve these issues for you on the phone. This is factored in when the software development company quotes the price for your product. Or post-implementation costs can also be considered a further investment in your software if the software team charges you for customer service as and when the need arises.

    This is where Appy Pie offers you an edge as the cost of round the clock support is built into the extremely affordable subscription plan you buy!

  21. Tweaks in the design
  22. Your software may need to be changed. Not because there is a serious glitch but maybe because your business needs might have changed. So, this will require a deviation from the original blueprint. The workflow in your company may have altered, your client base may have shifted slightly, new software features have been developed that you want to be incorporated in your product – there could be many reasons why you need to have your software modified.

    Yet another big point in favor of Appy Pie. You can make as many changes to your applications as you want, and the changes will be reflected in real time!

    Software developer teams know that business is like shifting sands and changes might have to be worked in. They make plans for it in advance. That is why they work into the software alternative routes or detours and multi-layered off-ramps so that the software will not have to be changed drastically (that process would be too expensive). So, this is another reason why software development is expensive.

So how do you determine if the cost of software development was justified?

Is your software giving you value for the money you spent in its development? Try to compare the cost against the staff time you are now able to save.

If the software was intended for use by customers, what does your new business analysis show? Increased customer retention, greater lead generation and enhanced revenues? Then, your software is a success!

Cost of software development will seem high, but this is a one-time investment with rich dividends. All companies worth their salt deploy software and for a reason.

If you are looking for an affordable, customizable, software solution like mobile applications, websites, chatbots, live chat, workflow automation, or design – Appy Pie is the perfect answer to all your worries!

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Abhinav Girdhar

Founder and CEO of Appy Pie

App Builder

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