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June 20, 2024
How much does it cost to develop a software in UK? A simple question that runs through the mind of every startup founder, entrepreneur, product manager, or tech enthusiast.
The software development cost in UK lies between £30,000 to as much as £200,000 for small to enterprise-level projects. However, the cost highly depends on the complexity and other relevant factors like the type and size of the software.
If you are looking for a software development cost calculator, then this blog is for you as here we’ll uncover all the software development costs based on close estimations. That’s how you’ll have a prior understanding to formalize a budget for building the best app development software.
What is the average cost of custom software development in UK? Considering the diverse price ranges of software development, here are some relevant estimates according to the complexity to derive the average cost of software development in UK:
| Complexity Level | Average Cost | Example |
|---|---|---|
| Basic | £15,000 – £40,000 | Web App |
| Average | £40,000 – £80,000 | E-commerce Platform |
| Advanced | £80,000 – £150,000 | Enterprise Software |
Meanwhile, the story of software development cost doesn’t end here as these are just regular estimations. Apart from this, there are several crucial factors that you need to consider for price evaluation before availing of custom software development services.
In this blog, we are going to explain a complete software development cost breakdown.
- Relevant aspects that we’ll cover here are:
- Average cost of software development by types
- Average cost of software development by size
- Key factors that makeup software development cost
- Tips for minimizing software development costs
- Hidden costs of software development
- And more
Software Development Cost Breakdown
Usually, the cost of software development revolves around £40,000 – £80,00 and more. This cost is based on a rough estimate considering the ongoing average of cost to develop software projects in the market.
If you want to dig deeper to determine a precise cost, there are several parameters on which you can set the overall budget of the software. Before that, we have formalized the software development cost breakdown based on the following categories:
- Type of Software
- Size of Software
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Average Cost of Software Development by Types
The type of software has a huge impact on the software development pricing. Every software has its own complexity level considering the functionality and the user interface that are based on the overall scope of the project. Here are some popular software types that you can relate to estimate the cost of your software development project in UK:
1- CRM Development
Customer Relationship Management (CRM), is based on the development of efficient software to assist businesses. It enables them to manage interactions with their current and potential customers. For that purpose, it includes features for tracking leads, managing sales pipelines, and analyzing customer data.
Meanwhile, the cost of CRM development highly depends upon the complexity of the required functionalities. Specific customization needs, integration with other systems, and scalability options also impact the overall budget. Today, businesses invest in CRM development to streamline their sales processes by improving customer service.
Furthermore, development platform, deployment model (on-premises vs. cloud-based), and ongoing maintenance also affect the overall cost of CRM software development.
CRM software development costs: £80,000 for a platform on average providing a basic set of features with a few custom functions. On the other hand, the price of enterprise-level software with higher complexity may go up to £400,000.
2- SaaS Product Development
SaaS product development covers the development of web-based applications that users can access from the internet both by themselves (the user) and the administrator. The cost of SaaS product development depends on the complexity of the application and the user amount.
While multiple characteristics and security bills are parts of the cost, there are scalability needs that can further add to the total price. SaaS business development is a direction of movement involving a broader audience. This is what leads to the consistent reports and information they share with their customers.
Moreover, also these vital features including data storage, solving compliance requirements, and other maintenance issues are placed in the overall aggregate of SaaS service bringing the cost up.
SaaS software development costs: from £20,000 to £80,000 and even more depending upon the complexity and scale of the project.
3- Enterprise Software Development
Enterprise software is built through a customized approach to fulfill the specific needs of large organizations. These solutions include innovative features to automate the workflow with easy data management and team collaboration.
So, the cost of enterprise software development is affected by the complexity of features and scale of the project. It also includes the integration of existing systems and other security requirements. Usually, businesses on a large scale invest in enterprise software development to improve efficiency and gain a competitive edge.
Meanwhile, user training, data migration, and ongoing support are considered the important factors that impact the overall cost of this software.
Enterprise software development costs: from £110,000 to £400,000 depending upon the unique business requirements of a company.
4- CMS Development
Content Management Systems (CMS) are digital platforms that enable businesses to manage their content on the web. They can easily create and modify the content while remaining with the system. The cost of CMS development depends on factors such as the complexity of required functionalities for unique business processes.
Today, many companies use CMS development to maintain their online presence. With the help of publishing workflows, they can easily facilitate content creation. However, factors such as user interface design, content migration, and search engine optimization add up to the overall cost of CMS development.
CMS software development costs: between £15,000 to £40,000 for a basic platform with design, limited custom features, and other relevant factors. The cost may increase based on the increasing requirements according to the complexity of the software.
5- E-commerce Development
E-commerce software runs on digital platforms that make it possible for companies to reach customers directly the very moment that they decide on the purchase of some products or services over the internet. The budget for e-commerce development may be affected by the complexity of the platform, the number of products or categories, as well as the targeted audience.
Software costs are affected by the support of additional settlement networks, shipping options, and security measures that are also in this budget.
The spread of businesses in different scales is another key point in developing e-commerce as they seek to get hold of a larger community of customers which will consequently lead to increased sales and revenue.
Additionally, a mobile app development company can be your perfect partner when providing your customers with a simple shopping experience in the time of digital era.
There are additional factors like the mobile responsiveness of the design, inventory management, and after sale services like maintenance that account for the cost of e-commerce software to a great extent.
Software development costs for a custom eCommerce system: start from £40,000 and go up to £80,000 based on the complexity and scale of the system.
| Software Types | Cost Ranges |
|---|---|
| CRM | £80,000 – £400,000 |
| SaaS | £20,000 – £80,000 |
| Enterprise Software | £110,000 – £400,000 |
| CMS | £10,000 – £40,000 |
| E-commerce Solution | £40,000 – £80,000 |
Average Cost of Software Development by Size
Categorizing software development pricing in UK according to business sizes provides valuable insights into the variable investment levels required for software projects.
Startups prioritize affordable solutions for market entry, SMEs focus on scalable software for competitiveness, and large enterprises invest in innovative systems for operational efficiency.
So, understanding the unique needs and budget parameters of each business size helps you further customize the development approach of the software to gain optimal value for ROI.
– Startups
For startups, the cost of software development is a critical consideration. They strive to launch their products or services within limited budgets. Usually, minimum viable products (MVPs) remain the priority for startups to test their ideas and attract initial users or investors.
Meanwhile, the focus remains on building precise, agile solutions that deal with the core business requirements while remaining cost-effective. Even a well-structured software solution can enable startups to automate processes.
As a result, they can scale their operations, and create a difference in the market. Such innovation can help them lay the foundation for future growth and success. The average cost to develop software in UK for a basic solution revolves around £20,000 – £40,000.
– SMEs
Small and medium-sized enterprises (SMEs) require software solutions that are scalable and flexible to facilitate their evolving business needs on a decent budget.
Usually, these businesses are limited in resources and aim for powerful software tools at a medium expense to streamline operations and improve productivity. That’s why most SMEs opt for customizable solutions that can adapt to changing requirements and integrate easily with existing systems.
So, a custom software solution can empower SMEs to compete more effectively in their respective markets. It will help to drive growth and achieve long-term success. The cost to develop software in UK for such applications ranges from £50,000 – £80,000.
– Large Enterprises
Large enterprises have complex and diverse requirements that lead to the development of innovative software solutions. There are global companies that operate at a large scale and require enterprise-level software to manage their operations, data, and interactions across various departments.
Therefore, large enterprises need to invest in high-quality software solutions to ensure efficiency for competing in the market. For that purpose, customized software is suitable as it can address specific problems, optimize workflows, and support strategic initiatives within the organization
The cost to develop software for such a level solution is usually higher and takes a long period in production. Starting from £80,000 to £400,000, the cost of enterprise software in UK can be diverse depending upon overall requirements.
| Software Sizes | Cost Ranges |
|---|---|
| Startups | £25,000 – £40,000 |
| SMEs | £50,000 – £80,000 |
| Large Enterprises | £80,000 – £400,000 |
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Key Factors That Makeup Software Development Cost
The cost of software development is formalized by multiple factors and each of them plays a critical role in determining the overall budget. These factors involve various aspects of the development process and directly impact the complexity and quality of the final product.
So, a clear understanding of these factors is essential for businesses to effectively plan and budget for their software projects. That’s how they can ensure successful outcomes and optimal return on investment.
1- Software Complexity
The complexity of a software project is a fundamental element of its development cost. Complexity is based on various factors, including the number of features and the diversity of business logic. Meanwhile, data processing requirements and integration with external systems have their own influence.
Highly complex projects often need extensive planning, coding, and testing that lead to increased development time and resource allocation. As complexity grows, so does the software development pricing. This is because developers require more time and expertise to structure complex designs and resolve the challenges.
2- Development Platform
The choice of platform highly impacts the overall cost of software development. Whether it’s web-based, mobile, or a combination of both, each platform has its unique development requirements. They have their own toolsets and ecosystems on which the development approach depends.
For instance, Native mobile app development usually requires separate codebases for different platforms such as iOS and Android. It results in higher software development prices compared to cross-platform solutions that leverage a single codebase to facilitate different platforms.
Moreover, platform-specific considerations such as performance optimization, device compatibility, and app store guidelines further contribute to the overall expense of the software development.
3- UI/UX Design
User interface (UI) and user experience (UX) design are crucial elements of software development. They directly impact the usability, interaction, and user satisfaction. A well-designed UI/UX enhances the overall user experience and facilitates fluent interaction.
Meanwhile, the designing of UI/UX is based on proper planning, prototyping, user testing, and iteration cycles. It also includes customized design elements, animation effects, and responsive layouts.
Furthermore, multiple accessibility features contribute to design complexity and require a separate focus. That’s how all these aspects collectively influence overall development costs.
4- Backend Development
Backend development deals with the server-side logic, database management, and system integration components of a software solution. The complexity of backend architecture, database, and system integration impacts development costs.
Meanwhile, custom backend solutions are created to cater to unique business requirements. They need extensive development efforts, including database design, API development, security implementation, and performance optimization.
On the other hand, the backend can also take advantage of pre-built frameworks, cloud-based services, or third-party APIs to reduce the development cost. However, it may limit the customization options and scalability in the future.
5- Team Hiring Model
The choice of team hiring model directly influences software development prices and the overall outcome of the project.
In-house teams offer greater control, communication, and alignment with business objectives. However, they cost way higher due to their top salaries, benefits, infrastructure, and training expenses.
On the other hand, outsourcing development to a custom software development company as external vendors or offshore teams can provide cost savings while accessing in-depth skills, and scalability advantages. However, it requires careful recruitment, project management, and proper collaboration to eliminate the risks and ensure quality standards.
When it comes to hybrid models, you can combine in-house and outsourced resources as per the flexibility to control the increasing budget. As a result, it allows businesses to leverage the benefits of both approaches based on project requirements, timelines, and budget parameters.
How Much Does It Cost To Develop Software In The UK?
Software development costs for small businesses usually fall between £20,000 and £90,000, while large enterprises might invest around £60,000 to over £400,000. However, startups aiming for an MVP typically budget between £4,000 and £20,000 due to limited resources.
Like any other region, UK has its own range to determine the cost of developing software. Meanwhile, the table provided here gives an overview of the standard cost variations of different software projects, estimated from our insights into software development costs in UK.
Although these figures provide a general idea, actual costs may vary depending on the overall services of software development companies UK.
| Business Size | Minimum Cost (£) | Maximum Cost (£) |
|---|---|---|
| Small | 4,000 | 20,000 |
| Medium | 20,000 | 90,000 |
| Enterprise | 60,000 | 400,000 |
Hidden Costs of Software Development
Hidden costs can impact the overall budget of software development projects. They often lead to budget exceed and project delays. Therefore, it is essential to account for these expenses before they can stress resources and affect the project’s success.
1- Maintenance Cost
Here are the hidden costs of software development that come under the maintenance of a solution:
– Web hosting: Continual expenses for web hosting services can grow, especially for busy or resource-heavy websites, so budgeting wisely is crucial.
– Domain and SSL: Securing your domain and SSL certificates comes with recurring costs, adding to development expenses.
– Email services: Subscriptions for email marketing or CRM platforms may add extra charges, impacting project budgets, especially for businesses relying on email.
– User experience updates: Ongoing improvements to user experience based on feedback may require extra design work, adding to costs beyond the initial project.
– Tech support: Budgeting for ongoing technical support post-launch is vital to ensure software functionality, as maintenance services are necessary for performance.
2- Marketing Cost
The following are the hidden costs of software development that add up during the marketing of the product:
– SEO: Boosting visibility and traffic with SEO strategies may require outsourcing or investing in SEO tools, adding to project costs.
– Social media: Using social platforms for marketing may mean spending on ads or hiring social media services, which adds to the budget.
– Information structure: Organizing content for better user navigation may need specialized help, increasing project costs.
– Email campaigns: Running email marketing involves tools and content creation, adding to hidden expenses.
– Sales funnels: Creating conversion pathways needs content, tools, and analytics, contributing to project costs.
– PR: Building buzz with PR may require agency fees and event sponsorships, impacting the budget.
– Marketing: Allocating funds for paid ads and campaigns should be considered as extra costs for gaining market traction.
Tips for Minimizing Software Development Costs
Even after estimating the software development budget, there are effective ways to reduce expenses and optimize resource utilization throughout the development lifecycle.
By implementing strategic measures and leveraging cost-saving techniques, businesses in UK can control the overall budget while ensuring efficient project outcomes.
1- Offshore Development Firm
Partnering with an offshore development firm can offer significant cost savings without compromising on quality. Offshore teams often provide competitive pricing due to lower labor costs in their respective regions.
As a result, it becomes a cost-effective option for businesses seeking affordable development solutions.
2- Discovery Stage
It is better to invest in the discovery phase rather than bear extra costs during the development of the project. It can help identify project requirements, risks, and potential challenges before execution.
That’s how you can make informed decisions and eliminate risk efficiency. Moreover, businesses can minimize, prevent costly rework, and streamline the development process by having clarity about their project scope, objectives, and technical specifications.
3- MVP Development
When you incorporate a minimum viable product (MVP) approach, it helps you to prioritize essential features and functionalities. It delivers value to users while minimizing development costs and marketing efforts.
So, businesses can validate product assumptions by focusing on core functionality and iterating based on user feedback. As a result, it will reduce development expenses, and you can alter it accordingly without investing in unnecessary features.
4- Minimalist Design:
A minimalist design offers simplicity, usability, and clarity for the users. So, you can reduce design complexity and development effort while enhancing user experience.
Businesses can optimize development resources by prioritizing clean layouts, intuitive navigation, and streamlined interfaces. That’s how you can minimize design revisions, and accelerate time-to-market without compromising on appearance or functionality.
5- Hire Professional Developers
You can ensure efficient project execution by investing in skilled and experienced custom software developers. With better code quality and adherence to best practices, the software development cost will reduce automatically.
By hiring professionals with expertise in relevant technologies and domains, businesses can minimize development errors. It will help to optimize code efficiency and eliminate the need for extensive rework on technical issues.
Software Development Cost Calculator
Having proven experience and a deep understanding of software development, we are well aware of the fact that every business is unique. Therefore, we provide our undivided attention to each query that turns our way regarding the software development cost.
As a digital transformation consultancy in UK, we facilitate each client in a fulfilling manner to ensure a wholesome experience by helping them estimate the right cost of their software project.
Our whole process for software development cost estimation is simplified and it involves the following steps:
1. Development (63%): Involves coding and programming to build the software’s functionality.
2. Project Management (15%): Includes the project’s planning, collaboration, and resource management.
3. Quality Assurance (15%): Ensures the software meets quality standards through testing and validation.
4. UI/UX Design (7%): Focuses on creating a visually appealing user interface for optimal user experience.
Based on our proven experience in the industry, here’s an approximate breakdown of these major factors that you can consider as a software development cost calculator:
60% (Development) + 15% (Project Management) + 15% (Quality Assurance) + 10% (UI/UX Design)
= Total Software Development Cost
However, it’s crucial to note that these figures serve as estimations and may not invariably align with every project.
The actual cost of software development can vary from this distribution depending upon the unique requirement of each project.
Software Development Cost Estimation At TekRevol
Having proven experience and a deep understanding of software development, we are well aware of the fact that every business is unique. Therefore, we provide our undivided attention to each query that turns our way regarding the software development cost.
We facilitate each client in a fulfilling manner to ensure a wholesome experience by helping them estimate the right cost of their software project. Our whole process for software development cost estimation is simplified and it involves the following steps:
1. Consultation Call: Our process kicks off with an in-depth consultation call where our team engages with clients to understand their requirements, and objectives for the software project. It allows us to gather essential information and insights to guide us in the upcoming stages of the project.
2. Project Analysis: Following the consultation call, our team conducts a comprehensive analysis of the project requirements based on factors such as scope, complexity, and desired features. This analysis helps us determine the resources, technologies, and timeline needed to deliver a successful software solution.
3. Quote & Architecture Drafting: Based on the project analysis, we provide clients with a detailed quote that outlines the cost breakdown for the software development project. Additionally, our team provides the initial draft of the architecture to provide clients with a clear understanding of the project scope.
4. Final Proposal: Once the quote and architecture draft are reviewed and approved by the client, we finalize the proposal. It includes all project details, timelines, costs, and deliverables. That’s how we ensure transparency and alignment between our team and the client before initiating the software development process.
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