Budget Wisely: Factors You Can't Ignore in Software Development

Budget Wisely: Factors You Can't Ignore in Software Development
9 min read
26 October 2023
Budget Wisely: Factors You Can't Ignore in Software Development

In today’s digital landscape, businesses are increasingly turning to software solutions to streamline their operations and maintain company continuity, with cost-effective software development topping the priority list in the aftermath of the pandemic. However, software development is fraught with complications and potential hazards. In this feature, 13 industry professionals, including founders and CTOs, reveal typical software development issues and suggest effective cost-cutting techniques. These ideas provide a road map to success in software development cost management, from stressing quality assurance and testing to implementing iterative development methodologies.

Budget Wisely: Factors You Can't Ignore in Software Development

1. Revisions Ripple: The Cost of Iterative Changes

Nirav Oza, CSO & CCO, Ace Infoway

The software development process often involves a series of iterations, where specific features or components undergo modifications or refinements. It’s not uncommon for projects to see multiple revisions, especially when developers aim for perfection or when the scope changes. Each iteration or revision demands additional hours of work, which naturally inflates the project’s overall costs. From reworking code to reassessing functionalities, and even potential debugging, every tweak can lead to a domino effect of tasks that can stretch the budget.

To manage costs effectively, it’s crucial to have a clear project scope from the outset. Regular communication between stakeholders and developers can help align expectations and reduce the need for extensive revisions. Using iterative development models like Agile can also help by setting clear goals for each phase and obtaining feedback early, thus reducing the chances of major overhauls later on. Setting a predefined limit on revisions, unless absolutely necessary, can also ensure that costs remain in check.

2. Adopt an Iterative-Development Approach

Michael Chen, Head of Growth, Notta

One significant factor that influences the cost of software development is the project’s scope and complexity. The more features and functionalities you want to include, the higher the cost will be.

To mitigate this, I recommend adopting an iterative-development approach. Start with a Minimum Viable Product (MVP) that includes only the essential features. This allows you to go to market quicker and gather user feedback. Based on real-world data, you can then prioritize additional features, ensuring that you’re investing in elements that genuinely add value to the end-users and your business.

3. Invest in Quality Assurance and Testing

Leonidas Sfyris, CTO, Need A Fixer

Many software development projects fail because they didn’t do enough testing. This kind of oversight often leads to problems that cost a lot to fix after the project has been launched and can even threaten its success. A proactive approach to testing is the best way to reduce this risk. At our company, we invest in strong, automatic testing tools and methods from the very beginning of a project.

We strongly believe in testing things all the way through the development process, and we stick to this practice religiously. We’ve been able to create a culture of quality awareness on our team by using best practices for quality assurance in the industry, like test-driven development and regular code reviews. Including both coders and quality assurance experts in the testing process has also always helped us find a wider range of possible problems.

4. Hire Qualified Specialists for MVP Projects

Daria Erina, Managing Director, Linked Helper

For a small MVP project, it’s crucial to hire highly qualified specialists who can work quickly without getting overly idealistic. Run-of-the-mill developers might get bogged down by minor details or get stuck on some problems for a long time.

To assess developers’ abilities, it’s better to use test tasks during the recruitment process. As the project grows, you add junior and middle developers to your team. This allows for efficient task distribution based on implementation costs. Senior developers tend to solve very simple tasks not much faster than junior ones, which means that they get more expensive.

At the same time, juniors might take a long time to solve complex tasks, making their overall cost higher than that of senior developers. To manage development effectively, establish a culture of coordination, task distribution, control, and monitoring. This helps in assigning tasks correctly and supporting weaker colleagues, preventing them from getting stuck.

5. Start with a Clear Project Plan

Jay Toy, General Manager, 88stacks

The difficulty of the project is one thing that has a big effect on how much it costs to make software. Costs tend to go up when software projects are more complicated and have a lot of features, connections, and special needs. It’s important to start with a clear, well-defined project plan to avoid this.

Together with your development team, write down the project’s needs and goals, and then rank the features so that you can focus on the most important ones. When it makes sense, use existing tools and platforms as well. This can save time and money on development.

Talk to the development team regularly to monitor their work and make sure that any changes or additions to the project’s scope are dealt with quickly so that it stays within its budget.

6. Upskill Team for Chosen Tech Stack

Adil Advani, Digital PR and Marketing Director, AnySoftwareTools

In my years working in software development, an often-underestimated factor influencing cost is the learning curve associated with unfamiliar technologies or platforms chosen for the project. If a team isn’t well-versed in the chosen tech stack, development can slow, leading to increased costs.

To mitigate this, I advocate for thorough tech stack evaluation before project commencement, ensuring it aligns with the team’s expertise or allocating time for training and upskilling before diving deep into development.

7. Consider Maintenance as a Continuous Cost

Jessica Shee, Marketing Manager, iBoysoft

Maintenance isn’t actually a software development cost, but it should be considered with the same priority as other factors. This is because it is a continuous cost that will keep affecting your budget. Hence, you need to decide if maintenance is something you can keep spending on.

Will you have to downsize your project so maintenance costs fall too? These recurring costs can eat up a lot of your budget, so it’s crucial to add it to your expense sheet.

8. Prevent Scope Creep with Thorough Planning

Fahd Khan, Director of Marketing and Technology, JetLevel Aviation

One pivotal factor influencing the cost of software development is “scope creep.” To mitigate this, a well-defined project scope is essential.

Scope creep occurs when additional features or requirements are introduced during the development process, often without proper evaluation. This can lead to increased development time, resource allocation, and ultimately, higher costs.

To address scope creep, we emphasize thorough project planning and requirement analysis before development begins. Establishing a clear and detailed project scope document, with all stakeholders aligned, is crucial.

Additionally, implementing robust change management procedures ensures that any proposed changes are evaluated for their impact on cost and timeline, preventing uncontrolled expansion of the project scope.

9. Take a Blended Approach to Outsourcing

Ankit Prakash, Founder, Sprout24

In the intricate world of software development, especially when working across diverse geographies, one predominant factor affecting costs is the variance in hourly rates and skill sets across these regions. Imagine you’re buying coffee beans. If one region offers premium beans at a higher price, while another offers decent quality at a lesser rate, which do you choose? Do you compromise quality for cost, or vice versa?

To mitigate this, a blended approach is recommended. By leveraging the strengths of each region — say, design expertise from Ukraine, back-end development from India, and quality assurance from Vietnam — both cost and quality can be optimized.

Isn’t it fascinating how diversification, a principle often lauded in investment portfolios, can be so aptly applied here? This method not only hedges against the risk of relying on one region but also ensures that we get the best talent from each, leading to a win-win situation.

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Conclusion

Navigating the intricacies of Software Development costs is essential, and to help you on this journey, we’ve gathered insights from a dozen industry experts. They highlight key strategies, from investing in quality assurance and adopting a blended outsourcing approach to hiring specialized talent for MVP projects and preventing scope creep.

Emphasizing the importance of a clear project plan, pre-designed templates, and technology assessments, these experts also stress the significance of upskilling teams. An iterative development approach is recommended to manage costs effectively. In conclusion, by addressing these factors, software development expenses can be controlled, ensuring successful projects without breaking the bank.

 
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Aditya Jani 54
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