Six tips to reduce custom software development costs

According to Statista, global IT spending on enterprise software is expected to amount to around $755bn in 2023. More and more companies are looking for effective ways to optimize software development costs and get profitable results.

Pricing depends on many factors, such as solution complexity, design, development time, or creating a mobile app. Therefore, it might be challenging to meet a predetermined budget. However, building an effective development process can help reduce costs.

In this article, Itransition experts share tips for reducing the cost of custom software development. Let's take a look at the following best practices.

Tip 1: Outsource software

Outsourcing is an actionable and prevalent step to reduce custom software development costs. It opens a wide range of benefits, including:

- global industry knowledge and innovation

- workflow flexibility, regardless of the outsourcing team location

- access to a large pool of qualified professionals - no need to hire and maintain an in-house development team Outsourcing allows you to delegate the responsibility for development and partner with teams that have established workflows, so it will take them a short time to adapt to your project environment.

By outsourcing your project development, you avoid the costs of hiring in-house specialists, training staff, purchasing new equipment, and organizing additional workplaces.

To find a well-suited custom software development partner, you can:

- review the company's range of services

- evaluate whether the future partner has a proven track record in developing similar projects in your field

- find out about the availability of suitable resources and their scalability

- research the leaders in the development market, compare their services, and review testimonials

- shortlist candidates and decide according to your needs and requirements

Tip 2: Properly document project vision and objectives

A vision and scope document defines a company's business goals and outlines the scope and workflow required to achieve those goals. Project managers use vision and scope documents to establish the expected project outcome and set forth the methods and actions needed to achieve that outcome.

Clear vision and scope representation can help software developers establish effective workflows and build the exact product/service the customer was aiming for. The document should describe the following:

- product concept

- project scope

- functional requirements

- preferences

- product users

- problems a product solves

A clear problem statement and identification of the main features necessary for effective product/service operation can cut costs for developing optional, unnecessary functions. Consider filling it out with as much detail as possible to avoid misunderstandings which can lead to incorrect functionality and increased development costs.

Tip 3: Consult the experts about the technology stack

The technologies used to create software also significantly impact development costs. Choosing the right technology stack can:

- ensure the product's security and reliability

- help your business save time and cut costs

- ensure stable performance and reduce the time to market

- affect the product's scalability

Companies try to create future-proof software that will be productive and relevant for many years and can be integrated with other solutions if necessary. Therefore, it is better to entrust the selection to IT experts – the software partner you hire to develop your product/service – because they have solid expertise to help you choose the right tech stack.

Tip 4: Prioritize critical software features

Think about essential features your software should have, and forget the rest. Concentrating on the main features will significantly reduce your custom software development costs. Divide functions into categories:

- Relevance. Analyze how each feature fits into your overall business strategy and goals.

- Feasibility. Consult with technical experts and evaluate each feature in terms of the feasibility of creating it with the resources available.

- Necessity. Consult with the marketing team about how necessary each feature is to your product's target audience.

Run the MVP with the core features first. Then, collect and incorporate feedback from your target audience. This method saves time when vetting an idea, reduces development costs, and helps you do market research to predict how your customers will perceive the product.

Also, this method will allow software developers to make changes to the software early on, preventing lengthy and costly software modifications later.

Tip 5: Use the Agile approach

There are numerous software development lifecycle approaches that could lead to software building for secure, and superior-quality results. One of which is the Agile approach. The main difference between traditional and Agile approaches is the sequence of project phases - requirements gathering, planning, design, development, testing, and release. In traditional development methodologies, the sequence of phases is linear, while Agile is iterative.

Agile breaks a project into several sprints to build quickly and continually revise the project. At the end of each sprint, developers show you the product and improve it based on comments and feedback.

- Agile helps you develop main features and make changes throughout the process, which minimizes the risk of rework.

- In Agile, the customer is always involved in the decision-making process and communicates with the team, which ensures product compliance.

- Agile improves decision latency, allowing developers to respond faster to project changes.

- Agile allows managers to control the project better due to feedback and quality control features.

As a result, constant communication with the team, early testing, iterations, and quick changes help you save money.

Tip 6: Start testing in the early stages of development

Any bug can cause significant future performance problems. In addition, late-discovered errors in software could require significant redesign and rework, which will lead to additional costs.

Involving quality assurance (QA) specialists in the development process can significantly reduce custom software costs. They can:

- help with product development from the first stage

- ensure product quality and competitiveness in the marketplace

- timely detect vulnerabilities and improve software security

- guarantee the best user experience

- save time and money for future bug fixes

For example, QA experts can identify incorrect or inconsistent requirements or features when creating product specifications and prevent numerous bugs in the later release stages.

The bottom line

Outsourcing to professional developers, thorough documentation, the right technology stack, prioritizing main features, and early testing can help significantly reduce the cost of custom software development and timely release of the solution to the market.

In addition to providing high-quality software solutions, the development company will support you with software maintenance and technical updates, saving you time and money for hiring additional employees.