In the situation that we are in right now, i.e. Post-Pandemic most of the businesses are planning to begin software development of their business for the sake of continuity.
Therefore, it has become really hard to imagine any business without dedicated software of its own. So, the maintenance of the software turns out to be costlier. And if I talk about a new company or a startup, the prices start to touch the sky and go till it does not replant the whole revenue.
So, the team of Engineer Master Solutions thought of facilitating your way through it. We interviewed our Founder Mr. Kapil Karda and asked him the same question, ”How can companies cut down the Software Development Cost?’
But, why limit our knowledge just to ourselves. Therefore, here is our Founder’s Guide on How to Cut Down the Software Development Cost?
6 Ways to Cut Down Software Development Cost
Define your Needs Clearly
Consider creating a Product Requirement Document (PRD) that describes the functional and non-functional parts of the application. Of course, the creation of PRD is quite tough but not having one makes you pay the high cost. If you will not create a PRD, this might cause a mismatch about the vision or aim of the application and even a lack of executive support.
Following are the benefits of a good PRD:
- A clear, defined idea saves time and money otherwise it would go with non-essential functionality.
- The PRD indicates the value of the product for the software development team and project holders.
- Development teams use PRD to determine what to build, the personas of the intended users, and the use cases the product must address
- It is the requirements that form the basis for a successful product, as they allow your development team to transform your concept into a fully functional application.
An outstanding PRD must have certain points like business requirements, product objectives, vision statement, different features, product, and technical specifications, and also select a platform.
Hierarchize your Qualities, Go WIth Lean Development Strategy
If you have the mindset to have all the features in your software, then let me stop you right there! Therefore, it is better to make a priority list of features using a lean development strategy is the best way to reduce the development cost and have more focus on important features.
Lean Development Strategy is also defined as a minimum viable product. Also, it is about curating and building an app with features that serve the purpose of the software and get it used by potential users.
- In order to make your software more attractive and cost-efficient, you need to align its features with its objective.
- Adding features increases the time and cost of designing, developing, and testing the product.
- Furthermore, adding features increases the cost of marketing the product and the time it takes for users to adopt it.
- The money saved from avoiding unnecessary features can be invested in marketing and the next iteration of the product.
- MVP or lean approaches can reduce costs by eliminating unnecessary activities.
Get your Structure Right
If you are building your house, and are confused between the space of bathroom and kitchen. Then, the architect has access to tools via which they can create 3D images to facilitate your way of vision. The cost of redesigning the whole plan in the diagram is nothing compared to rebuilding the house again physically.
If the problem comes up at the time of launch then multiply the normal amount by 100. Therefore, it is important to design the app completely before beginning its deployment.
- Create the proper wireframes for your software, defining every screen, flow, and data point. By defining every screen, flow, and data point, you will be able to determine what your product needs.
- You can convert your requirements into visuals using tools like Figma, Balsamiq, and Sketch.
- Make sure you have a very good visual designer to create a UI design for the entire UI/UX design.
- To test the entire UIUX, use tools such as Invision, Figma, and Sketch. Set up a design test group to identify any glitches.
- The cost of a post-development change in the design can be ten times greater than the cost during development.
Utilize Global Shoring Model
The time when offshoring was considered as a model to reduce the cost has passed. It was a hard way for project managers and founders to understand that offshoring costs more in the long term. On the basis of studies and experiences, offshore development faces many problems such as communication gaps, bad design, scope creep, and bad management. Moreover, there is a cultural gap that makes the client spend more time explaining but the result does not change.
Is going full onshore feasible?
Probably not unless you have deep pockets. Onshore work costs 5X more, and you’re hard-pressed to find the resources even with money.
What’s the solution?
Solution: Outsourcing in a global setting.
The senior team is located onshore and the rest is offshore in this engagement model. The senior team includes a Project Manager, Tech Lead, UX designers, developers, and testers who are based offshore.
- This strategy combines the best of both worlds: the customer connects with the onshore team at all times, which is simple owing to the shared timezone and culture.
- The strategy, design, and planning will be handled by the onshore team to ensure that the proper product is developed and that everything is conveyed.
- To explain the project, the onshore team collaborates with the offshore team. Offshore coders and testers will create the software and transmit it to the onshore crew.
- This makes things easier for the offshore crew because all of the needs and standards are in place.
- The approach saves the founders a significant amount of money; it costs about 20% to 30% less than the onshore model while still providing the same value.
Either Fixed Cost or Hourly Business
The reputable providers will make you choose between fixed cost and hourly cost for various parts of the projects if you outsource. However, it feels right to demand a fixed-cost project, the discussion below implies that a mixture of hourly billing for the design and fixed cost for the development is the most budget-friendly way.
- It is advised that you complete the design process on time and on budget, with development occurring at a fixed cost, since this will provide you with the best value for your money.
- Having hourly designers gives you and your designer the freedom to think creatively and come up with the best features.
- You can acquire an estimate from the designer on how many hours they intend to work, which can help you plan your budget.
- You can exhibit the designs and specs to any development business to acquire fixed cost estimates once you have them completed. Developers will find it easy to predict costs.
- If you try to go for fixed costs without adequate design, you and your development team will be treated unfairly, especially if scope creep occurs and everyone begins bickering about specifications and costs.
- Once you have a fixed development cost, you may attach it to milestones and pay as the milestones are completed.
- The hourly rate is recommended for software products with a wide range of initial specs that require extensive study and development.
- Because no one can truly anticipate the time and effort required for R&D projects, it is preferable to work on an hourly basis with certain estimations in place.
Perform Testing on Your Own
Now, you might get a question in your mind why should I do the testing myself, that should be the working of the development team. Well, the development team can perform the whole QA process but that could be more time-consuming for you.
Instead of this, you can have an outsourcing team that can do the smoke testing and sanity testing, and you can do the performance testing or user acceptance testing. UAT is not a chaotic process, you can learn it by watching some tutorials online.
- You can save on testing costs by doing detailed testing yourself and encourage the development team to be more quality-driven.
- You can hire a manual tester on Upwork for $15-20/hour if you don’t have the time or skills to do your own testing.
- Every release build should be tested.
The Software Products have become a necessity for every business in order to continue their journey in the market. You might require a custom website or mobile app or enterprise software to make the workflow of your business. Therefore, cutting down software development costs is a priority for every entrepreneur right now. You can reduce your software development costs and maximize your resources by following the above tips and hiring a reliable outsourced team.