The Hidden Costs Of Custom Software – What Businesses Need To Know

Custom software development can be a powerful tool for businesses looking to automate their operations, streamline their workflows, and boost their productivity.

However, the process of creating custom software is often shrouded in mystery, and many businesses find themselves frustrated by unexpected costs, delays and final production.

One of the most common complaints about custom software development is the way that companies charge for their services, understandably.

Specifically, many companies will give their clients a ballpark figure for the cost of the project build but also start charging for every phone call, email, and meeting.

These “unexpected costs” not quoted in the project build will come out of the project build budget too and they clearly don’t add any value to the software the client is receiving.

For those businesses with limited budgets, this can be a major issue and can cause contention.

For example, they may start out with a budget of $70,000, only to find that most of that money in the kitty was spent on administrative tasks and meetings rather than actual development work.

This can leave businesses in a precarious position:

Simply put, they were unsure of how much more they will need to spend to complete the project.

And if they find this information of who the budget spend works too late, they need to know whether they should cut their losses and move on.

To address this issue, some custom software development vendors offer fixed-price software development services.

Instead of charging for every interaction, they provide clients with a clear, upfront price for the entire project, taking on the risk of cost-blow out for things like unforeseen administration themselves, rather than pass that on to the client later on without warning.

This fixed-price approach can be a game-changer for clients, as it allows them to budget more effectively, avoid unexpected costs and get a final product they are happy with, even if it costs “more” in the quote upfront.

While there may still be delays and unforeseen issues, the fixed-price model ensures that your business knows exactly what it will be paying upfront, reducing the risk of going over budget or wasting money on unproductive interactions.

Of course, not all companies offer fixed-price custom software development services, and you will need to do your due diligence when selecting a development partner.

However, by being aware of the hidden costs of custom software development and seeking out transparent, fixed-price options, you can ensure that you get the software you need without breaking the bank.