3 Crucial factors determine the overall cost of apps development


In the business world, almost everything has a cost, including apps. The most common IT need for outsourcing is software application development. In fact, either the entirety of this function or at least a portion of it has been outsourced by 60% of US and Canadian businesses. Depending on two business priorities, these technology partners might have headquarters in their own nation or, more frequently, projects might be offshored. obtaining a cutting-edge solution at a reasonable cost and securing a team that is knowledgeable about the required technology.

In contrast to other countries, where costs may be as much as 60% lower, an American software developer may charge upwards of $150 per hour. US businesses are moving to India because of these advantages. These are our insights based on nearly 20 years of working with clients in the US and around the world. While the cost of app development could be as low as 5000 USD for simple apps, there are many factors that go into pricing.

How to calculate an app development budget in broad strokes.

We will discuss these factors later in this article. The total cost of developing an app depends on a variety of variables. However, businesses are interested in learning what kind of numbers they might be looking at. There isn’t a simple formula for estimating the cost of app development. The number of hours required for each stage of development can only be approximated. An approximate cost for developing an app for your company can be obtained by multiplying this by the average hourly rate of the development team. This pricing is merely a suggestion, though. Numerous less obvious factors influence the final cost, driving it up or down.

The final cost will be influenced by a variety of less obvious factors, which could increase or decrease it.

The development costs of three well-known apps.

Take a coffee, relax, and read on as we discuss the factors that may influence the price of developing an app in more detail. Here are three different popular app categories and how much they probably cost to develop in the beginning. This will shed light on the relationship between complexity and pricing. There is no need to introduce Uber. Despite being a very popular ride-hailing app, Uber is actually made up of 3 separate but linked applications.

There are three mobile apps total: a driver app, a passenger app, and an admin panel web app. It has cutting-edge features like advanced route optimization, SMS, push notifications, and payment gateways. Depending on where the development team is located, the price of such a sophisticated app will likely be in the range of $300,000, plus or minus $100 to $150,000. Tinder comes to mind first when dating apps are discussed.

Users will find the functionality to be fairly straightforward. It depends on whether you swipe right to like and swipe left to dislike. Authorization, creating user profiles, GPS location, a profile-matching feature, and push notifications are among the features. Again depending on where development takes place, such an app would cost between 45,000 USD and $75,000 and require about 1000 hours of development.

Finally, an e-commerce app like IKEA uses augmented reality and necessitates a 3D representation of the products as well as third-party integrations like social media and WhatsApp sharing. Real-time dashboards, integration with payment gateways, and recommendations for products powered by AI are all features of this system. Such an app would cost anywhere from $55,000 to $120,000. These three instances of complicated app development. Simpler apps, like those created for internal business needs, can be developed for as little as $16,000 to $32,000 over the course of three to four months.

Three crucial factors determine the overall cost of developing an app:

All the elements that will have an impact on the final cost estimate are succinctly presented in the above illustration. There are numerous smaller contributing factors in addition to these three major ones:.


1. Apps complexity

It all comes down to how many features the app will have and how many functions need to be created. Getting the app’s design just right frequently takes up a significant portion of the development process. UX and UI are based on user engagement levels, element placements that follow user eye patterns, and color psychology. And this is a very condensed explanation of the complexity of app design. A calculator app is an example of a simple app with a low-tech screen.

An example of a mid-level app is the EHR app, which has a customized user interface (UI), API integrations, data, and multiple screens. An example of a complex app is a telehealth app, which can serve a variety of roles and perform multiple tasks while frequently incorporating animation features and real-time data synchronization. It takes more than 8 months to develop a complex app.

2. The team’s location.

The projected amount spent on IT outsourcing in 2023 is $519 billion, up 22% from the figures for 2019.

It can take more than six months to a year to develop a medium-to-complex app. A variety of crucial roles are always played in a team effort. The hourly wage for a comparable technology specialist position can vary by region. An important point we’d like to make is that iTech typically advises fixed pricing for difficult app development. You can get a sense of the typical estimates for various roles by knowing the hourly rates in various locations.

3. The operating system that will be used by the app.

Making this important choice will directly affect how much it will cost to develop an app. It all depends on whether you are creating a native app or a cross-platform app. It would be necessary to write two separate pieces of code, one for iOS using Swift and one for Android using either Java or Kotlin, if a company decides to create a native app and wants to target both iOS and Android smartphones. Although the cost will double, the performance will improve. It is “write once, use anywhere” if you choose a cross-platform app.

A group of expert Flutter or React Native app developers will be necessary. A single codebase may result in lower costs, but they do have one small drawback—unlike native apps—they are not able to utilize all of the built-in capabilities of the mobile device. A less than ideal user experience is a small price to pay. The costs mentioned do not include the operational expenses of third-party integrations, such as payment gateway fees, infrastructure expenses, such as server and app maintenance costs after launch.

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