How to Reduce the Software Development Cost With Dedicated Developers

Quick Overview: Since ancient times, businesses have always been in search of strategies to reduce the cost of production. Likewise, in recent times, CTOs have been going back and forth in finding how to reduce software development costs. So, we thought to bring light on the top approaches or ways to do so. Read till the end to understand the shortcomings of your software development and cost-reduction strategies!

Do not save what is left after spending, but spend what is left after saving.

When a famous and one of the richest personalities, Warren Buffett talks about money-saving, it makes deeper sense. We can’t overshadow the fact that money is the lifeline of a business. Following that, it is the prime duty of every CEO and owner to strategize ways to reduce development costs. 

Today, many startups have plans to enter the digital platforms with their unique software solutions. It requires extremely hard work and research to sustain itself in the highly competitive market. Making an online entity visible and powerful, it is common to spend on the software development process. 

Now, the market standards and changing circumstances are the underlying factors that impact the cost. So, to stabilize your process you need to study the factors affecting your cost reduction strategies.

What are the Impactful Factors Affecting the Software Development Costs? 

• Types of software development

To attract more benefits from software development, businesses sometimes add irrelevant features. But that should not be the case. You need to understand and figure out among the software development types. It is an essential part of your business idea and its market. Accordingly, you can build the right type of software to serve the right audience.

If you want to build a banking application, it demands you to go for web app development. Because users operate banking services from mobiles as well as desktops. So, the web app is the ideal way to make responsive solutions. Similarly, if you need gaming software, its configuration and frameworks will be different. Therefore, you have to decide on the different types of software development.

• Overall project size

Regardless you are a startup or a large business, the size of software development is the major determinant for your success. It is also an influential factor in reducing software development costs or vice versa. As represented above, the software types, likewise, the size depends highly on your business kind and its scope.

If the software type includes embedded solutions or new technology edge, the cost will be enhanced. On the contrary, the project might need minimal features and solutions, so it wraps up early. So, the size of the project can affect your budgetary plan.

• Duration of the project

Concerning the size, the time taken to build software will also be affected enormously. For instance, it can take up to 12 months or more to build high-quality and advanced technical software like banking or fintech applications. You need to plan your budget as per the project duration.

However, some development companies may exaggerate things to gain benefits for a longer time. Hence, you must perform market research and then finalize the agreement. 

• Experience level of developers

Choosing developers with domain knowledge and an attractive work portfolio is indeed favorable. Your software development journey becomes simplified without any hiccups. 

The U.S. Bureau of Labor Statistics projects a 26% growth in the demand for software developers in the next 10 years. It is above 371,000 jobs. In addition to that, the charges of developers also increase. So, it might affect the tight budget of small businesses or startups. 

Although you may get developers at cheaper rates, with less work experience. So, it will be a workable solution, but you shouldn’t expect them to perform advanced-level tasks. Yet for any less feature-required project, fresher to 2 years of experience is more than enough. 

In addition to that, you can comprehend the cost of hiring software developers based on the hourly rates from different regions. It will give you insights on the lower to higher prices. Therefore, you can better estimate the value and reduce software development costs.

Tip: You should prefer hiring developers from India to make the hourly rate fit your project budget. It has top-rated reviews and ratings on reputable platforms such as Clutch. Eventually, you can shortlist companies and get resources at lower prices than others.

Selecting the right tech stack

Choosing the right technology stack for your project is the influential element for cost. It would be better to get expert assistance while choosing a popular tech stack for software development. The professionals who have worked building robust software have learned the idea of it. 

So, they will suggest you the right programming language, framework, tools, API integrations, etc. As a result, you won’t end up wasting money on irrelevant technologies. Consult your project needs and get a list of essential tech stacks now! 

After you have the factors listed, you have to take into account methods to reduce software development costs. Here’s presenting the best practices to minimize the cost and optimize the development process.

7 Proven Ways to Reduce Software Development Costs

1) Preplan your entire process extensively

One of the common mistakes of CEOs and business owners is prioritizing budgeting over project planning. It is the cause of higher costs later on. That’s why you need to follow a pre-planning approach. 

Plan out the all-inclusive steps or aspects of software development from scratch till the end. It is a significant pillar for owners looking at how to reduce software development costs. You should have made a detailed blueprint of the product. Also, you must have a listing of uncertainty and benefits during the process. 

This is the foremost task which you can even begin by taking the inputs of stakeholders. Build a self-assess questionnaire and discuss it with them on the topics. Write down the answers with possibility metrics. So, it will assist in evaluating the project with minute details to major ones. 

With that, you will get clarity of concept which comes up with do’s and don’ts of the development procedure. It will automatically minimize your hustle on budget crunch, as you have a crystal clear overview. Thus, you can allocate the funds and eventually reduce the software development cost following your planning.

2) Evaluate cost differences in various hiring models

Next, the full-proof cost reduction strategy is used while choosing the right software engineers or team. Normally, outsourcing companies offer different hiring models to select from. You need to examine the hiring models and go for the most budget-friendly way. 

There are three types of hiring models;

• Dedicated– It is the appropriate model to offshore the developers or team dedicatedly for your software development project.

• In-House– Hiring in-house developers for projects to work as full-time employees with daily shift timings.

• Freelancing– Freelancers are self-employed persons, who work on many projects simultaneously. They find and finalize the projects independently and manage every aspect of the project by themselves. 

Among these, your selection should undertake the quality and cost of both factors. Getting into just the lower rates model may result in the cost of quality of the software. So, complicated software development can’t be given to the hands of freelancers. They already deal with a bunch of clients. 

Now, recruiting an in-house team necessitates office space. It will incur capital expenditure. Consequently, the dedicated developers model is the ultimate and pocket-friendly solution. Aside from this, some CEOs also compare team extension vs dedicated team. It is better to discuss the project needs and negotiate the prices before the documentation.

3) Look for IT Outsourcing Services

Instead of onboarding the in-house team or developers, you should choose IT outsourcing for your project. The remote employees are usually ready with clients’ time zones. You can hire a dedicated developers team who has specialized in managing projects. 

Aside from that, the development process is driven with 2x faster speed. Kudos to their domain proficiency.  

Ever since COVID struck the world, the remote work culture has been expanding and showing great results. Following that, outsourcing has become a new trend.

The quick communication and streamlined workflow encouraged the developers to explore new skills. Thus, your project will get full-fledged technical solutions. You can reduce software development costs with dedicated developers as a benefit of outsourcing. It is more reasonable than in-house or other models.

4) Cut down on Infrastructure Costs

We all agree with the quote penny saved is a penny earned, right? The more you save costs on less important things, the better you can reserve for business in the future. From the time you connect with a dedicated developers model, your spending on infrastructural costs will diminish.

Hence, we are emphasizing continuously hiring dedicated programmers remotely. You can save the expenses of;

• Equipment
• Furniture
• Electricity bills
• Wi-Fi connections
• Rent, etc.

These are the elements of capital expenditures (Capex) that will get nil if you follow the right strategy as mentioned above. So, the choice is yours. Moreover, you can further discuss how to hire the dedicated developers CEO’s guide from us. 

5) Highlight the fundamental features

Focusing on the primary features during the development process is essential. Instead of researching and integrating advanced features, you should definitely emphasize the ease-of-use functionalities first. So, by selecting only the user-friendly features, you can cut down the development cost to a greater extent. 

For example, adding profile creation, navigation, and other features to ensure the user experience. So, if you have chosen necessity over desire, it is a successful strategy to reduce software development costs.

6) Go for low-code or no-code MVP

Now, you can minimize the development cost in your MVP stage. However, many CTOs skip the minimum viable product (MVP) development as an option. Let me tell you it is a critical stage to determine your business scope in the long run. 

Additionally, it’s not a cost-consuming step to perform. Building an MVP will hardly take up to 4-5 days. There are plenty of no-code tools accessible. You can develop your MVP without even the need for professional developers. 

As you know MVP needs just basic features and user interface to show up the target customers. No-code development tool is the best companion for you. It is among the undervalued ways to reduce development costs.

However, if you want some basic to mid-level features, you can surely go for the low-code platforms available. It is immensely beneficial to utilize low-code MVP for projects like healthcare applications. Hence, you can oversee the response of the initial users and make improvements accordingly.

7) Initiate testing from the early stages

The testing of the software is generally treated as the last stage of the development cycle. Because after that it was immediately approved for deployment. It becomes problematic sometimes. When the product is in testing mode, it will bring the list of errors, bugs, broken codes, responsive issues, etc. 

Despite making the testing a closure step, consider performing tests at every stage. The source code of the programming part is the crucial one. So, if there was any error in the source code, it would be compounded among the codes. As a consequence, your software will face major obstacles in the future, which will incur hefty costs.

It is advisable to review codes and debug errors as you proceed with coding. Ensure to check the tools and third-party libraries to eliminate the loopholes well in advance. So, when you outsource the project, consider having reports on regular quality control. This way, you can even get efficient learning of how to manage a remote development team. 

Explore Our Reduced Development Cost Approach with Countless Opportunities!

The roadmap to successful software development has many hurdles on the way. From project complications to timeline to cost, you need to tackle so many factors. It will be highly beneficial if your responsibilities are delegated to an innovative IT Outsourcing Company like Rlogical Techsoft. Wondering why choose us? Have a look at our refined strategies to build robust software with new tech and lower prices.

• Well-versed with market dynamism
• Flexible development procedure
• Cross-domain Experts
• 14+ years of Experience
• Eliminates bottlenecks of the process
• Backup plan for uncertainty
• Developers from junior to senior level
• 97% client retention rate

Furthermore, our dedicated developers will guide you to reduce the overall cost. Their experience and knowledge will help in making the right decisions for your project. Open the doors to prosper and accelerate your business growth in the upcoming years!