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software development

How to Reduce IT Software Development Costs Without Losing Quality?

Did you know that software development can cost even up to $1 million? The profits from this software can be much higher, but the challenge today is reducing the cost of software development without losing quality. What can you do to achieve this effect? In this article, you will find five helpful tips.

software development costs

1. Do market research.

Before you start any software development activities you have to be sure that your idea makes sense:

  1. Find your target group and do thorough market research.
  2. Get as much as possible data about your potential users: how old they are, where they live, what they are interested in, and most of all – what they expect and how your application can meet those needs. 
  3. Do a competitive analysis. Learn about your competitors’ solutions and assess the challenges they face. 

If you plan to develop a commercial app, consider how your software will differ from others and why your users should opt for it. What features can be beneficial and distinctive? Try to focus on the problem, not the solution. A suitable method here would be to survey potential users to get a better idea of the market.

2. Start with a good plan.

On the first point, we have no doubt. In building a scalable development solution, the most important thing is good planning. Remember that any changes in the project can cost the company a lot of time, energy, and sometimes frustration for team members. Therefore, you should make a plan thoughtful enough to reduce possible changes in the project direction. At this step, you should consider:

  • What is the main goal of your project?
  • What problem does it solve?
  • How much time do you need to implement it?
  • What is your planned budget for this solution?
  • How many employees do you need to develop it?
  • Do you have all the specialists on your team to complete the project?

3. Work with experts, and don’t waste your time on errors.

Usually, the most expensive part of software development is the cost of hiring employees working on it. It is a large cost associated with their salary and office maintenance, non-salary benefits, and high recruitment costs. Can you reduce these costs without sacrificing quality? After all, we don’t want you to hire just juniors or people without the right knowledge. However, there is a way to save money, and that is outsourcing IT services. If you run a company in a Nordic country, the US, Germany, or Switzerland, you can save several times by hiring Polish software developers.

Moreover, this solution can not only reduce costs but also bring many other business benefits

4. Specify your requirements.

Whether you choose to outsource or opt for in-house software development, you need to focus on clearly defining the technical requirements. If there is a lack of specificity or the requirements are misinterpreted, you will expose the company to a huge cost loss. Before creating a list of requirements, make sure you are aware of your company’s business needs and do a thorough analysis of your requirements. Creating proper documentation from start to finish will reduce the risk of potential misunderstandings, but there’s more to it than that. If your requirements are detailed, you’ll save time explaining misunderstandings to your team. This will allow you to attend to other business responsibilities.

5. Focus on good communication.

Even the best specification will not be fully effective if you have difficulty communicating with your team. Whether you’ll be working with in-house staff or an outsourcing team, you need to ensure a good flow of information. Team disagreements can cost your company a lot of time and money, yet completing the project is what matters most. What can you do? If you are looking for an outsourcing company, focus on cost reduction and communication. Check the level of English skills in the country and assess cultural differences with the country. For example, suppose your company is based in Europe. In that case, it will certainly be easier to communicate with employees from Eastern Europe, such as Poles or Ukrainians, than with Indians or Chinese. Communication is key not only to a successful project but also to a good team atmosphere and employee satisfaction, so it’s worth taking care of.


Are you looking for a way to reduce the cost of software development? You’re in the right place. Contact us and tell us about your needs. We will try to find the best solution for your business.