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7 Cost-Saving Secrets of Software Development You Didn’t Know Before

Is your project budget exceeding the limit? Want to know how to reduce the cost of software development? There are many ways to build a cost-effective solution for your business needs without sacrificing quality. We have listed down a few proven ways that even big companies adopt to keep their cost under budget.

7 Cost-Saving Secrets of Software Development You Didn’t Know Before

Before That Do You Know What Makes a Software Expensive?

A simple software can cost you more than $50,000. But it can be more expensive if 

Reason 1: Your Project is Complex

The more complex and feature-rich your custom software is, the more time and resources it takes to develop. That means more expensive it will be.

Reason 2: You Don’t Have a Skilled Team

Software developers who know all the ins and outs are in high demand. Hiring them for your in-house project is expensive. Moreover, there is a need for project managers, quality assurance engineers, business analysts, UI/UX designers, and DevOps engineers. The bigger the team, the more the cost of hiring.

Reason 3: Your Project Scope is Not Decided

As projects progress, it's tempting to add new features or functionalities. While this can improve the custom software, it also adds to development time and cost.

Though these reasons are not the only culprit, knowing them beforehand helps you look for cost-saving areas.

Also Read: Must-Follow 8 Best Practices for Outsourcing Cybersecurity Services

So How to Reduce the Cost of Software Development

If you have just started the project, chances are you can save more than those whose project is in progress. Nevertheless, adopting these cost-cutting strategies is beneficial in the long run.

Strategy No. 1: Carefully Think About Your Needs 

Cost creep, a phenomenon that refers to a gradual increase in cost than what was originally decided, is common. Though your software needs would change during the project's progress, if the overall cost is more than expected, something is off.

Not doing proper research on aspects such as who will use this software, and what type of features would be very useful for the audience increase the cost. It increases further if these requirements are not properly communicated to the development team.

So, do proper research and document every requirement for a proper understanding of the project needs.

Strategy 2: Launch With Key Features Only 

Don’t follow a “Do-It-Once” approach. Once the software product is ready for launch, making changes is more costly than the actual development.

Instead, develop a minimum viable product or MVP. It is a cost-savvy approach where you can add only necessary features that make the product worthy for the target audience.

It reduces the unnecessary expense of software development besides saving your time and resources. Also, you would be saved from launching a less-valuable product in the market.

Strategy 3: Automate Partially or Completely

A little automation won’t hurt the quality of your software project, instead, enhance it. Software development automation tools help in code generation, testing, and even deployment.

These tools reduce the time your team would otherwise spend on repetitive tasks. It means they have to work fewer hours and you can quickly launch the software product in the market.

Strategy 4: Don’t Outsource Everything  

Although you can outsource the entire software development team, filling the gaps with external resources is the best way to save money. Hiring only what you need will save approximately 30-70%.

Say you have a mobile app development team but there are no QAs or test engineers. Hiring only QAs for full-time or part-time will be less expensive than hiring a permanent employee.

Strategy 5: Adopt Agile Practices

Agile means “to be able to move quickly and easily.” It is a very popular methodology in the world of software development where development happens in short and trackable phases known as sprints.

Next phase begins after the previous phase clears the test. So, if there is any change in the first phase, the second one remains unaffected. This iterative approach allows faster development besides easing the code revision.

Furthermore, agile methodology saves you from the financial loss that comes in case the final product needs major changes.  

Strategy 6: Use Cloud for Scalable Infrastructure

Developing a software product means an upfront investment in hardware and maintenance. Cloud computing helps you save money with their Pay-As-You-Go model. You can use infrastructure requirements such as servers, databases, and other needs.

These services are scalable means you can upscale or downscale whenever you want without wasting money. Microsoft Azure, AWS, and Google Cloud Platform are a few popular cloud services you can use.  

Strategy 7: Carefully Decide the Vendor's Location 

Other than choosing the right software development partner, consider the right location too. Why? Software developers have different expertise in certain technologies and programming languages making them expensive.

However, their hourly rate varies depending on the location. For instance, the average hourly rate in North America is $77 whereas it is $28 in Asia Pacific. This is just an overview and not an actual cost. For accurate estimation, consult your preferred software development partner.  

Also, consider the type of contracts you would be signing. A fixed-price contract would seem cost-effective initially but exceed budget if the project is complex. By carefully selecting the region, type of outsourcing needs, and contract, you can save more money.


A high-quality software product is what every business wants but this should not come at a high cost. Many are still living the myth that software development is always expensive.

It’s not if you have done the proper market research and implemented the above-mentioned strategies. These methods help in saving up to 15-20% of the actual cost considering other factors too such as specific requirements and the cost of software developers.

If you want to know how much it exactly cost to build a software, feel free to contact our consultants.

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