How to Calculate the Real Custom Software Development Rates


custom software developmentThe real cost of software development projects are dictated by varying degree of factors and considerations. There is the so-called fixed-fee projects, which can be pretty easy to plan out. However, such approach is not always flexible to adapt to changes in goals, requirements and scope. That’s why there must be another method to use in estimating custom software development rates.


Often referred to as the variable-cost approach, this method in calculating rates of custom software development projects are applied to projects with highly complex or are too big that pre-defining the cost of each of its components is doubly hard or impossible. This is a hurdle, no doubt and to get a realistic custom software development rates, developers will need to use a flexible approach in cost estimation.


The cause why projects get too difficult to pre-plan start with building components one by one, then testing each one of the same until finally subjecting for reevaluation the items. Developers will then gradually build up a highly or too complex system that a plan how much the sum of all parts would cost becomes difficult.


In most cases, two post-build custom software development rates are overlooked, and they are:


Maintenance and Support Costs


Even if your provider offer to give you free software updates and low cost or free support, you will have to inquire about maintenance and support rates of custom software development projects. They are in fact frequently costlier over the software’s lifetime than it cost you during the development or build stage.

For example, after the initial “warranty” period, bugs that will be found in the software require paid development time to fix, pushing the custom software development rates exceedingly higher than initially thought or planned.


System Downtime


It’s impossible to find your completed custom software lack any bugs versus off-the-shelf software. An explanation to this is that for-sale software were subjected to thorough testing. On the other hand custom software development rates would dramatically be affected by cost of development and testing. What is the likely effect? Downtime.

Dealing with downtime will amount to some expense for your project so choose strategically which option you will select: have server or lab equipment or get some backup to support you during downtime?


Having a contingency plan in the event that software and system failures occur can bring helpful benefits, such as scaled down custom software development rates for your budget. When you select the right company which can provide you with custom-built software, make sure to include all the rate of the custom software development.