Facing budget issues in Software Development? Want to reduce the software development costs with losing it’s quality? You are on the right spot. Whether you are a well-established organization or a grouping startup, the present business world always keeps cost-effectiveness as one of the major priorities. This is a major rule and, more importantly, for your company if you are considering the development of an app for your business.

We all are aware of the fact that the competition along with technological advancements is increasing day by day in the IT sector. Therefore, companies today are looking for the lost cost ways of developing Minimum Viable Product (MVP) for their businesses. Yes, ways to reduce the software development cost is important as it enables the businesses to focus more on the resources as well as on the other aspects of app development without worrying about the costs.

Reduce cost

In this blog, we will give you more information about the factors that are responsible for the software development cost. And after that, we will go through the tried and approved ways to reduce the software development cost. Also, we can assure you that the quality of your product will not be compromised by using any of the ways.

Understanding Why Custom Software is Expensive?

Developing custom software is expensive because, in custom development, everything is developed from scratch. Customer software development is different from the quintessential, and hence each custom-developed app or software is a huge mix of business logic along with innovative ideas.

custom software

Custom software is more likely the comparative benefit for companies as each software is unique, and leaves the competitors clueless about the weaknesses or strengths of the software. This increases the demand for customized software and apps, which results in high costs of software development.

Also, a well-developed software shows the efforts that have been put into it by the development team. And we know that every effort deserves money.

What Factors Increase The Cost Of Your Software?

There are a lot of factors that influence the software development cost. While MVP is a portion of the app, the factors are applied to that too. Following are the major factors:

Factors Increasing The Cost Of Your Software

Complexity Level of the Software

The price of developing software is highly dependent on the business logic, architecture of software, and the number of features that you want to have in the first launch. You’ll have to prioritize some of the necessary features and delay the others if you want to develop an MVP. You can minimize your budget, decrease the marketing time for the app, and spend it on testing the products with the users.

However, if you want to build a multi-featured app having complex logic, then you might want to increase your budget according to the software needs. Also, keep in mind that all the features won’t have the same implementation costs. For example, if you integrate a sophisticated AI algorithm into the app, then it will need more resources as compared to developing a calculator. Hence, it is best to make the list of required features that you want to have and then prioritize the ones which are necessary for the app.

Features to be Included in the Final Product

More features mean that your software development will cost you more, which is a direct equation. The point of releasing an MVP is to give users an idea of what the app will be like, and so if the amount of features at the core is more, then it will increase the MVP cost. Hence, it is better to add all the features in the final app so that you might get the idea of user reaction through MVP, and you will be able to rely on the app for business success.

Number of Team Members Required

We know that the functionality in software development is one of the biggest factors of increased cost. The price of software is directly proportional to the number of commands which a program needs. The increased number of program commands means that the price will be higher. The logic behind this is easy, as more people will be required to work on the project, and they will have to invest more time into the development of that project.

Team Members

A developer is needed to make every function work, or it won’t even start. This means everything you want in your program, including every element based on each command, will need to be placed in the program properly to make it work. Indeed, specific functions need a particular set of skills, and not all the developers have that. For example, If you are developing a particular app that needs the attention of senior app developers, then it is logical to assume that they will have higher hourly rates than the junior or medior level developers.

Every developer has a different pay grade according to their level, and the tasks are assigned to them according to the knowledge and experience each one of them possesses. Easy tasks are given to less experienced developers while the complicated features are handled by the professional developers.

As a customer, you will have to consider what goes into the development of the software that you desire so you can conclude the amount of work and resources that will be required. The number of experienced software developers increases when the project becomes more complex, which in return influences the project cost as well.

Timeline for Launching it

The project marketing time makes a huge impact on the success or failure of your project. You might fail to get the first users if you are too early in the market with your app. On the other hand, releasing your app or software too late in the market might bring you into the ocean of competitors. In that case, you might fail to stand out from the competition and get eliminated from the market.


Research and Development expenses might get affected by the deadlines. If you have a great app idea that needs to be built from scratch, then you might want to make an extended team of senior developers who will be able to put everything together more quickly. The changes in the composition of the team and increased wages will definitely have an impact on the software development cost.

Tips to Reduce Software Development Costs Without Compromising on the Quality:

There are cheaper software development options available in the market, but some of those are still preferred over others for custom software development. Custom software fulfills the distinct requirements of the users while helping you to get various facilities from one software. It also gives a unique identity to your brand and builds a strong image of your brand by giving your customers fast digital solutions. However, developing customized software is not as easy as it sounds, nor is it cheap. So, here is a detailed guide that can help you reduce software development costs without affecting the quality of the software.

Perform Good Research on the Target Market

The critical steps in app development are researching your targeted market and understanding the potential needs of all your future users. Your labor costs for the development of software would be capitalized if you will cope up better at this stage.

Idea validation goes hand in hand with the understanding of the target market, which is a step closer to reducing software development costs. The best way to make sure that your business or startup is in the right direction is to validate your software or app idea through proper research on your target audience and the market where the app or software would be launched. To make sure of that, you can use the tested and proven economic research methods like political, economic, social, and technical analysis, weaknesses, strengths, and threats, Design thinking, and group surveys.

Be Sure of Your Requirements and Expectations

Whether you decide to work with an in-house development team or outsource an agency, be sure to communicate the scope and objects as well as the requirements of the project. It means that when the project is ready to launch, you won’t need to spend hours communicating with the developers to understand how each function works. Now that will be beneficial for you when the project is launched, so you won’t have to spend hours learning every function that the software performs. It will minimize the back and forth of the fulfillment of requirements if all the detail is already provided, and then the developers will be more determined to work. It will help you to save more time and money on each task. If you don’t define the requirements at the start, then you would end up spending high costs according to extra working hours and missed deadlines.

Be Involved And Communicate Well to Reduce Your Software Development Costs

Communication is important for software development. You need to make sure that all the requirements are communicated and understood by the developers. Every deliverable, every issue, and every idea can increase or reduce the cost. You can begin by scheduling meetings daily where both the teams can discuss the flow and ask the developers to document each change and progress. This document can be used as a road map. Any change from that document will add up in your budget. And knowing that fact will help to minimize the guesswork attentively and reduce the potential cost increase latitude as well as the chances of project failure.

Involved And Communicate

This methodology will result in effective communication as the customer will be updated at each step along with our development team. Also, the customers will have full access to each progress and health of the app project, and there won’t be any sudden back draws in the delivery of the project.

Go For the Necessary Features; Leave Additional Ones

Stakeholders are excited and need information on the features of the software when it comes to the projects. And this is usually before the drawing up of the costs. Make sure to have the features of your project which are necessary for the first draft. Just remember, when it comes down to customized software development, you might want to roll out a few versions for trial.

Begin with the chunks of app or software with the necessary requirements, and once the scalability and profits have been proven to the investors, then you can go with the subsequent extensions of the software. It will decrease the cost of development and will help in carrying out the research of the target market to see how your customers are dealing with the product.

Choose Only Experts To Work On Your Project

At times, working with offshore developer teams can be a beneficial strategy for cost reduction. These offshore developers can be too competitive in pricing since the wages are lower and there is a surplus of experienced professionals.

Expert to work

Although you will need to carefully choose which organization you will want to work with because there are many risks involved in merging with an offshore team as communication can be an issue because of different time zones. You can always use Zoom for meetings and to make sure that the team is right for the project. Once the project is decided, then it is necessary to arrange meetings regularly to check up on the progress, discuss the issues, and discuss the next steps that should be taken.

There are a few things to consider before finding an offshore development team. Look at the website of the company, find out its history, and check the reviews. If they seem like a good match, then take the next step to meet them. Ask as many questions as you want; this is the best way to analyze the team. And once you are satisfied with the company, you can start working.

Start from an MVP (Minimum Viable Product)

One mistake that most of the startups make and even the businesses do is they want to go for the development of full-fledged apps or software. This can result in issues and challenges at the time of software launch. It further leads to excessive costs as you might have to start from scratch. So, instead of choosing a complete project, begin with a small viable project and get feedback on it. Most organizations find out that they need to make amendments and change some features before the launch of the final software.

Adopt Agile Methodology From The Start

Agile is not a cost-cutting method or a magical pill. It refers to the insurance for market exchanges. By designing your project using this method, you can make sure that your project remains flexible and can adapt to the market changes.

Agile Methodology

With this method, you will have your finger on the pulse of the market dynamics and changing expectations of the user, which means you can always change your business strategy, adapt, and develop a new product which will be according to the needs of the audience even when the requirements have been changed during the process of development.

Test Your Software In The Early Stages

You should always begin software testing and the flow of users during the early development cycle of the software. Bugs and errors usually start to develop during the stage of requirements and design and grow into other stages eventually. Testing at the early stages gives you a greater chance to identify the issue and bugs quickly and resolve it before the whole software is developed. It reduces the risk of corrupting the application quality.

Test Your Software

Also, if you manage to find bugs at this stage of development, then it means lesser re-designing and lesser re-work, which means no extra costs. Adding the QA from the beginning adds major problems and conflicts to the surface along with questioning the functions, which might not cross the minds of developers or clients. Also, it saves the cost which would be invested in the whole process.


In a nutshell, we can say that beforehand planning, and better communication reduces the software development cost. Your costs will more likely be in check if you have successfully managed 80% of your software needs and budget accordingly. Also, communicating about the goals of software and requirements with the stakeholders will assist you in developing an accurate roadmap of the project. The most important factor for the cost is the pay of the development team. So, you would want to go with the cheap and best development team. The right partner can deliver your work on time while ensuring the quality of the project. They will also communicate with you on each step of software development so that you won’t have to worry about anything at all.

We know that finding the best and most responsible team can be a hectic task. At Origami, we provide you with the best software development services along with strategic planning and successful app launch. We know communication is the key, and we always keep it in mind while working with our clients. Also, our team has expert developers who are skilled to work on a project of any difficulty level. They make sure that each project turns out into a successful app or software so that you can be one step ahead of your competitors. And the best thing is with Origami, and the cost won’t be an issue. Our services are cheap, affordable, and second to none. So, let’s join hands today for a well-planned success tomorrow.