Cost is perhaps one of the biggest headaches in software development, for clients and developers alike.
It’s no secret that software is becoming more expensive to create than ever before. Nowadays, it’s going to be difficult to create a quality app for less than $10,000.
And that’s not counting the uncertainty that surrounds software development. Even a few planning mistakes can balloon costs dramatically.
That’s why it would be prudent to familiarize yourself with tactics that could help you minimize your software development costs.
Let’s begin with the most important.
Table of Contents
Document your requirements
Having clear requirements is critical if you want to control how much you spend on a project.
After all, how would you know which resources you need if you don’t know exactly what you aim to accomplish?
The problem is that most software project teams don’t document the requirements well enough. Or they just prefer to forego documentation to save on costs, as the comic below depicts:
Now, you have two options here—nearshoring or offshoring.
Offshoring is the classic setup, where you hire a team from a distant country that offers the best cost savings, such as an American company sourcing an Indian developer.
However, there are huge obstacles, such as the language barrier and time zone differences.
Consider a company in Western Europe that wants to hire a software development team.
They can cut their costs by up to 75% if they hire a Croatian developer like DECODE (which offers both nearshore and offshore services) instead of sourcing it locally.
As a result, you can build and evaluate software faster and much more often. The process also naturally involves the client more, so they can constantly give feedback throughout.
You can also find defects and issues much earlier in the development cycle. Not only does this lead to a more stable product, but it also helps you avoid costly fixes later on.
You can see that bugs were detected almost immediately using an Agile approach. In contrast, a more traditional methodology like Waterfall delayed detection until much later.
First coined by software engineer Steve McConnell, this refers to the fact that cost estimates vary by as much as 400% when done at the beginning of the project.
Thus, any predictions will most likely be wrong.
The variance is most severe when using a linear methodology like Waterfall.
This uncertainty, however, can be reduced with Agile methods. Thanks to rapid iteration, the team can quickly refine the software earlier in the project.
This can also help narrow down a more accurate time and cost estimate much earlier.
Selecting the right tech stack can make a huge difference in your bottom line, so you must put the appropriate amount of time and effort into that decision.
Your tech stack refers to the technologies you’ll use to develop your software. This includes the programming language, third-party tools, hardware, database systems, and cloud services.
Every software requires a different tech stack. For example, fintech apps would benefit from a more secure language like Java and APIs like Open Banking.
The danger here is discovering you used the wrong tech stack in the middle of development.
When this happens, you have no choice but to redo everything—wasting time and money in the process!
So, how do you choose the right tech stack? Here are a few best practices.
First, look at your budget. Some tech stacks will be much more expensive than others, so you must decide if they’re worth the cost.
Also, determine if a free alternative would be a better approach. For instance, OpenStack is a free, open-source alternative to Azure for cloud computing.
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Next, look at the expertise of your team. It’s better if a team member is already well-versed in the technologies you will use.
Otherwise, you’ll spend time and money ensuring that they learn it.
If you plan to scale your software in the future, make sure your tech stack allows you to. Otherwise, it might disrupt your growth later on if you need to migrate to a new platform.
Finally, you should consult your development team before making any decisions relating to the tech stack.
They would know the technologies and programming languages that work best for your project.
Build an MVP first
A minimum viable product (MVP) is a bare-bones version of your app that contains only the essential features.
Its main purpose is to validate your idea before you commit more funds to the project.
An MVP is a powerful cost-reduction tool because it allows you to get feedback from end users and clients early in the process.
You can use this feedback to refine your MVP, enabling you to get even better insights.
This virtuous loop can help you detect and fix problems sooner when they’re cheaper to tackle. At worst, you’ll avoid spending money on a project that’s doomed to fail.
MVPs work because they’re relatively cheaper and faster to produce than a full-fledged app. The typical app costs a minimum of $40,000 to build, but an MVP is only a fraction of that.
So while MVPs might cost you money, in perspective, they could save your budget.
Begin testing early
Traditional software development postpones the testing phase until later in the process. But this could be a critical and costly mistake.
If you want to minimize costs, testing your software as early as possible is the best approach.
The reason you should do this is shown in the diagram below:
As you can see, fixing a bug is 100 times more expensive when the software is already launched. In other words, you can cut your costs by up to 99% if you catch errors early on.
The 1-10-000 Rule is why Agile methods like Scrum are so great at producing quality software. If you recall, these methodologies involve early and constant testing.
But there are also other frameworks that you can use to ensure you test early enough. One of these is the software testing life cycle (STLC).
The software testing life cycle is a framework that ensures systematic and consistent software testing throughout development.
In this method, the QA team is involved at the very beginning. Once the project requirements are fulfilled, the testers begin to analyze them and devise a testing plan for the project.
They’re also vital once the software is launched, as they compile all the test documents and hand them over to the maintenance team.
With the STLC, the QA team takes on a more prominent role. This allows you to achieve a stable, high-quality result.
Take advantage of automated testing
Testing is an essential task for ensuring quality software, but there’s no denying that it can be expensive and time-consuming.
Fortunately, you can use automated testing to help reduce some of that cost.
Automated testing runs a test case on behalf of a human tester. It does this through a test script, which is code that instructs the computer on evaluating the software.
As expected, automation speeds up testing dramatically. This, in turn, reduces the payroll costs of your QA team.
Automated testing is also capable of consistent, repeatable tests. It helps mitigate human error, which could help you uncover more errors than manual methods.
Unfortunately, automated testing only applies to tests that can be quantified. For example, measuring load times and uncovering technical errors can be revealed with automation.
However, subjective metrics like UX and aesthetics are beyond the capabilities of automation. These require the judgment and opinions that only a human tester can provide.
Nevertheless, using automation when appropriate can help lower your project costs.
The best cost-reduction tip
We have one last tip for you, and we feel it’s the most impactful.
Hire the right team!
An experienced, skilled, and reputable development team like DECODE can do wonders for your budget.
Our ability to create quality software on time and with minimal bugs can help you manage your costs easily. Not to mention we have a few proven money-saving tactics up our sleeve!
Marko started DECODE with co-founders Peter and Mario, and a decade later, leads the company as CEO. His role is now almost entirely centred around business strategy, though his extensive background in software engineering makes sure he sees the future of the company from every angle.
A graduate of the University of Zagreb’s Faculty of Electrical Engineering and Computing, he’s fascinated by the architecture of mobile apps and reactive programming, and a strong believer in life-long learning. Always ready for action. Or an impromptu skiing trip.
