How to Estimate the Cost of Offshore Software Development
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How to Estimate the Cost of Offshore Software Development

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No matter what field you are contemplating, planning, or implementing a project in, costs and expenditures are always a top concern. Based on budget approvals at various companies, each company's desired price will also become different from others. In addition, a number of other factors such as industry specifics, specific market characteristics, customer preferences, etc. also have a significant influence on operating costs in general and software development in particular.

We regularly incorporate quality measures into all aspects of our life, and the same applies to the creation of offshore software. Technology is all-embracing across the world, and software items of excellent quality are gaining appeal. Since they can assist companies to tackle complicated challenges - functioning as a ‘tech-buddy’. If you wonder what to do with an idea, what will the service provider do with your concept, and how much the right service package costs, then this article is for you?

This article – written by Saigon Technology, one of the leading software outsourcing companies in Vietnam - expresses the basic concepts of the benefits of offshore software development to objective and subjective factors that can directly impact prices; and thus, allows you to easily estimate and condense information at final cost reference rates.

 

What Can You Benefit from Offshore Software Development?

Cost-efficient

For the experienced team of specialists, it is deemed cheaper to explore both extra options and not to compromise their performance or quality of work. As it increases, staff may only focus on a certain project for their business, which needs to comply with strict time limits. They no longer have to worry too much about technology (for non-tech companies or tech companies that staff shortage is taking place).

Available talent globalized

You would access dynamic and talented people worldwide if you pursue offshore outsourcing. Your provider not only supports you with specialists in different areas but also reduces labor shortages, poor customer engagement, communication...

 

Cost Estimation Tips

Following the general reports on the rates of software development companies in the world – with the most typical example of web app development (if you are also interested in web design and looking for a provider, this would be a pretty perfect price estimate), we propose the following product ranges in terms of price:

Easy apps

With basic structure, simple requirements, and not too intricate product chains. We have to complete such Easy apps for $3,000 - $17,000 approximately 1 month.

Pro-leveled apps

Since the amount of funds grows, requiring strong customer engagement and is professionally developed. The price of the Pro-leveled one is between $17,000 - $55,000 and takes around 3 months.

Complex-leveled apps

Web apps are specially designed for owners and with the optimal UX/UI. Owners can achieve a consistent profit at this level while automating their business activities. We spend around 6 months working on difficult projects at a cost of $55,000 - $80,000.

Corporation apps

Since it must be tailored for companies of varying sizes – from small ones to large ones. It took us over 6 months to grasp the culture of business and enterprise adequately, and complete the big task for more than $100,000.

 

Stages of Offshore Software Development Affecting the Final Costs

An offshore software development project is conducted based on the following typical stages:

Clear idea building

The stage of creating the concept is first and important. If the stage "ideas" is not concentrated, an application will not be engaging and distinctive. The owner of the web application will have to think about the following questions (or more, upon your realistic situation) at this stage and answer them:

  • How precisely are you expected to obtain outcomes while dealing with application developers?
  • Do you really want your software development to have a corporate identity based on current trends or basic values?
  • What time of year do you need to get the results of your software development? Or is it just a fledgling idea and has yet to be completed?
  • How much is the budget that your business will spend to pay for software development services?
  • Would you consider onshore, nearshore, or offshore software development?
  • How much profit do you predict after the software outsourcing project is completed?

Research and adaptation

The next essential question is how to develop a web application that is both attractive for users and capable of overcoming prospective competitors. The survey, therefore, seemed like an essential step.

Coming to agree on both sides' criteria

The development team and the client settle down one final time before executing the project for discussion, listen, and recognize the problem. In order to better understand one another and simultaneously foresee challenges and barriers, both parties may anticipate everything, all demands and wants are communicated.

Determine your whole project scope

It is time to put your concept on paper once you have refined it. Developing an RFI, RFP may tremendously assist you and your services supplier to present your development team with a more precise quote.

Preliminary estimation

Do not mistake the final price estimate. The estimate is the period of time, technology, and effort your project needs to achieve in the hours and workloads. It is not actually stone-walking to estimate the cost of an offshore development team.

Other expenditures

You do not employ a developer, you hire a firm, a corporation. Those additional costs may vary depending on your project, but they generally include the cost of the indirect transaction, the company service charge or margin, the travel expenditures, and, if necessary, additional equipment or licenses.

Additional tip:

What if your budget is "more modest" than most of the processes, formal recommendations, and theories from software development companies? Well, for now, a Minimal Viable Product (MVP) might be a good solution for you. MVP is a product version with only sufficient functionality to satisfy early clients and offer feedback in the future product design. Clients may reduce expenses quickly and remove unneeded edges from and them.

This isn't necessarily a factor you can rely on and ask for a cost estimate, but it can be a pretty good option to be able to keep a closer view on fluctuating prices, across limited budgets and must be spent carefully. Just ask software outsourcing companies to provide MVPs (if available or appropriate) so you can get it well.

 

What Can We Offer You?

Our dynamic operations in Ho Chi Minh city & Da Nang city – Vietnam, perform at premium offshore software development prices. In order to provide clients a superb quality in our services, we encourage breakthrough cooperation and Agile development. If you are interested in collaborating with us, simply approach us by providing your brief requirements here; and we definitely assure you that our team with over 400 experienced talents would bring your project to success.

 

As a Leading Vietnam Software Development Outsourcing Company, we dedicate to your success by following our philosophy:

YOUR SUCCESS IS OUR MISSION.

Vietnam software development company

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