How to reduce the costs of Software Development Services | OptimusFox

How to reduce the costs of Software Development Services?

Posted On  September 23, 2020 in  

by OptimusFox

How to reduce the costs fo software development?

How to reduce the costs of Software Development Services?

Software development can be problematic if you do not manage it properly. Whether your goal is to develop commercial software or a custom software solution, it can be challenging. Also, it can be quite a costly one if you are not sure how to do it right. In this blog post, we want to highlight some points on how to effectively approach the development stage. As a result, it helps to significantly reduce your costs of software development services without affecting the quality of product.

Choose the right pricing & business model

Try to plan your budget with a holistic view of the complexity and costs of building your software. Also, choose the business model that is best suited to your goals: fixed-cost, time-and-material, or dedicated-team.

Fixed cost

Mainly, there are two reasons why customers have always preferred fixed-cost contracts: the budget is predictable and strict deadlines. It also provides a low risk in terms of money and puts the development team on a strict path to follow. But, lack of flexibility in development and a longer time-to-market is often creating a major impact. It comes at a very high cost in today’s rapidly changing world. That is why we see the use cases of this traditional model getting reduced with the passage of time.

Not only your time spent in pre-development grows rapidly, but you also risk going through annoying process of requirement changes. Also, shifting deadlines and cost adjustments in case there are some new ideas. Therefore, this approach is only suitable for short-term, limited size projects with crystal-clear business requirements. For anything that takes longer than a month or two to develop, you should probably opt one of the other two models.

Time and material

Whereas the fixed-cost model loses its momentum, the time-and-material approach is becoming acceptable. Considering that today’s market environment is very unpredictable, companies can no longer afford to spend a very long time in developing a large project, because no one, especially their competitors, will wait for them to launch it. That’s where the time-and-material model comes in to address this issue with great flexibility.

Applying this model, your vendor will engage you with the project regularly. Through proper planning and day-to-day communication, your software product gets developed in iterations. According to this model, you decide on the priority basis about each feature. These features are implemented step by step, where you get a working version of your product with each iteration. The give-and-take of this approach is that the decided budget and fixed deadline replaces with higher flexibility, lower risk, and faster Return on Investment (ROI).

The model is suitable for today’s dynamic market and projects of any size. It serves best for projects with unsure requirements and those which belong to a very competitive field. A world where you have to rapidly adapt and make your time-to-market much shorter.

Dedicated team

This approach is pretty easy to understand when it comes to the description – you find a company that is best qualified for the job, and hire or rent a team of professionals for a certain period of time. Such a team might include developers, project managers, graphic designers, testing engineers, QA specialists, and whoever else you need and your vendor has to offer according to your project goals. Do not forget the quality assurance services as it assures the quality of your products

Dedicated-team is an exceptionally flexible model in terms of requirements and also the development stage in general.  Where the scope, workload, deadlines, and costs entirely depend on you. This approach proves to be the simplest in terms of calculating and tracking the development costs as you pay a decided monthly sum. And it depends on the number of professionals you hired, their salaries, and the fee you and your vendor agreed upon.

Check your requirements

A qualified vendor should be capable enough to analyze and research the problem you’re trying to solve. It assists you to create the most precise business requirements for your software development project without any ambiguity. The clearer the requirements you establish with your vendor through joint collaboration, the more accurate estimates you get. As a result, there is a strict path for your vendor and reduces the time and cost spent on development. This will leave no chance of misunderstanding of data types, business logic, system behaviors, and functionality. Moreover, it enables your vendor to develop a solution that caters to your business needs best.

Utilize your testing capacity as soon as possible

Using your testing and QA team to work on your software solution early will keep you away from potential risks. It is very important to remember that when your product releases, every bug could cost you a hundred times more to fix than it would during the development phase. If you begin testing at the first stage of development, it will help you remove most of the issues before they even start appearing. This is important to help your team optimize the development cycle as both manual and automated testing will enable your team to get continuous feedback. It helps to check the scope of the project. As a result, you can develop your product in a short time, less rework, and security of your budget from unforeseen problems.

Emphasize on usability rather than visual impact

UI/UX design is one of the core elements of a highly successful software product. It should definitely remain one of the top priorities in your development strategy as it can bring a huge ROI in the long run. However, if your budget is a bit short for a full-fledged design phase and you need more flexibility at the development stage, there is a way to save costs without compromising the quality of your design. Rather than completely ignoring design, you should prefer user experience over aesthetic looks. Most importantly, make the navigation and layout of your software as friendly and handy as you can. Don’t waste much time deciding what would be the best color for that one particular button.

Final thoughts

Think about software development with the future in mind. Make sure your development team knows that you want an extensible software solution. Build trust with your vendor and let them know all the short- and long-term goals you are planning to achieve with your software product. It helps to list downall the required twists, additional features, and changes. Day-to-day communication and building trust will make further development of your released product much smoother. It ensures the continuous addition of functionality without affecting the quality or disturbing your budget.