In our modern digital world, businesses are increasingly faced with the decision of whether to invest in custom software solutions. This article will guide you through the various factors that affect the cost of custom software and help you determine if it is the right choice for your business. It will outline some of the common factors and then provide you with some examples with guidance pricing to help you.
Imagine asking the same question about having your own house built. How much would that cost? You’d expect the cost to vary based on what you wanted. Do you need a garage? Are you having an indoor pool? There may also be some unavoidable complications or regulations to consider, for example, the requirements around electrical installation safety, or the plot of land you have may need extra foundation work. You can see that it quickly becomes a very complicated question to answer.
Software is similar in that there are a large number of factors and choices that will affect the cost. Here are some high-level factors to consider.
Complexity and Size: The more complex and larger your project, the higher the cost. This includes the number of features, the integration with existing systems, and the scalability requirements. For example, a simple application to digitise spreadsheets will be much less expensive than a comprehensive digital transformation project involving complex processes and large amounts of data.
Customer-Facing vs. Internal Use: If your software requires intricate designs that fit your brand and a user-friendly interface because it will be used by customers, this can increase costs. Customer-facing systems often need more attention to detail in terms of design and usability compared to internal systems which focus on functionality.
New Technology vs. Unique Approach: Using the latest technologies or implementing a unique approach can also drive up the cost. Cutting-edge technology might require specialised skills or tools, leading to higher development expenses. Comprehensive testing of new technology integration is essential to ensure the software works correctly and is bug-free.
Integrations with Other Systems: Integrating with existing software and databases can increase complexity, especially if the existing systems are outdated or poorly documented. The use of third-party APIs and services can add to the cost due to licensing fees and the need for additional integration logic.
Scalability and security: Applications handling sensitive data (e.g. financial data, personal health information) require robust security measures, which can be costly. Compliance with regulations such as GDPR, HIPAA, or PCI-DSS can add more cost. Designing software to scale with growing user bases or increased data loads can require more sophisticated architecture and planning.
This is a complicated subject by itself, and it is important that you consider your options carefully and choose the path most suitable for your situation.
See our article, advantages and disadvantages of bespoke software.
While there is no one-size-fits-all answer to this question, here are some examples that may help you with your planning and decision-making.
Basic Digitisation of Spreadsheets or Manual Processing (£5,000 – £15,000):
This involves creating a simple application that automates basic tasks currently done using spreadsheets or manual methods. The project typically includes data entry forms, basic reporting, and simple workflow automation. This can save time and reduce errors in daily operations, making it a cost-effective solution for small businesses or departments within larger organisations.
Large Digital Transformation Project with Complex Processes and Data (£50,000 – £200,000):
A comprehensive overhaul of existing systems, integrating multiple processes, and handling large volumes of data. This type of project may include developing custom software that integrates with other enterprise systems, implementing advanced analytics, and possibly creating mobile and web applications for various user roles. It’s suitable for organisations looking to streamline operations, improve data accuracy, and gain actionable insights from their data.
Complete SaaS Platform (£60,000 – £150,000):
Developing a Software as a Service (SaaS) platform involves creating a web-based application that can be accessed by multiple users over the internet. Features typically include multi-tenancy, user authentication, data security, billing, and scalable infrastructure. This option is ideal for businesses looking to offer subscription-based services to their customers, enabling them to access the software from anywhere with an internet connection.
Mobile Application (£20,000 – £40,000):
Creating a mobile app for iOS and/or Android platforms. Depending on the complexity, this could range from a simple app with a few features to a more complex app with advanced functionalities like geolocation, push notifications, and integration with other systems. Mobile apps are particularly useful for businesses aiming to provide a seamless experience for their customers on the go, or for internal use by employees to improve productivity and efficiency.
Start Simple: Begin with a minimal viable product (MVP) and gradually add features and functionality over time. This approach helps manage costs and allows you to refine the product following user feedback.
Cost-Benefit Analysis: Assess the efficiencies and benefits your custom software will bring. Quantifying these benefits can help justify the investment. Remember to consider the cost of doing nothing and continuing with your current systems.
The SeriouslyRAD® Framework leverages tried and tested technologies to streamline system development, enabling the rapid delivery of robust, feature-rich applications at a lower cost. Its modern, scalable architecture ensures easy extension and maintenance, while built-in security and user-friendly interfaces enhance reliability and usability. By integrating best practices and continuous feature updates, this framework supports seamless business process management, file management, document generation, and reporting, ultimately providing a cost-effective, scalable, and secure solution for diverse business needs.
It allows us to provide systems with a bug-free guarantee and ensures that you’ll be spending your time and money wisely.
Investing in custom software is a significant decision that requires careful consideration of your business needs, budget, and long-term goals. By understanding the factors that affect the cost and weighing the pros and cons, you can make an informed decision about whether custom software is the right solution for you.
For further insights, check out our blog post about transforming spreadsheets into a system with a real-world example spreadsheet zero to hero.