What does custom software cost?

Mickey Fraanje · · 4 min read

A hand holding a stylus over a tablet, among printed charts and a calculator

The cost of custom software varies widely and depends on complexity, the features you need and integrations with existing systems. What can you expect? Custom software is designed around the needs of your organisation and often adds value straight away.

How is the cost of custom software determined?

Custom software comes about through close collaboration. Every custom project starts with a Blueprint: about ten hours of work, deducted from the project. It covers talks with stakeholders, mapping your needs, choosing a tech stack and a plan of action, with a concrete proposal for what comes next.

Often a Minimum Viable Product (MVP) is built first: a basic version of the software with only the most important features. It lets you start quickly, deliver value and gather feedback for further development. That keeps you in control of both the process and the cost.

What affects the cost of custom software?

The price of software development depends on:

  • The size of the project. More features and complexity mean more development time.
  • Technology choices. Sometimes specific frameworks or technologies are needed, and that affects the cost.
  • Maintenance and support. After delivery, software has to stay up to date and grow with new requirements. Allow on average 15 to 20% of the initial cost per year.
  • The expertise required. Not every project needs the same knowledge. For specialist parts, such as 3D visualisation, AI integrations or connections to specific systems, specialists join in for exactly that part. That adds to the cost, but you only pay for the expertise your project actually needs.

What does custom software cost on average?

Every organisation is different, so every solution is custom-made. As an indication, what a first version costs:

Project For example First version
Business application Internal tool, intake or planning system € 15,000 – € 30,000
Client portal or configurator Portal for clients or suppliers, product or quote configurator € 20,000 – € 60,000
Platform SaaS or a system with several modules, roles and integrations € 60,000+

The first version is a beginning, not an end point. After that, the software keeps growing with new needs and insights.

Example: how a project runs

  1. Blueprint. About ten hours: talks with stakeholders, mapping needs, choosing the tech stack and a plan of action.
  2. First version. The core of the application, live and in use, so real users work with it as soon as possible.
  3. Ongoing development. Two-week sprints, planned ahead up to the second year. Each sprint, you choose what adds the most value.

In this example, the investment came to around € 35,000 over two years, Blueprint included. Maintenance, keeping the software up to date and secure, comes on top of that.

When is custom software not needed?

Custom software isn’t always the answer. Sometimes an existing package is cheaper, faster and better. Lean towards off-the-shelf software when:

  • An existing package does what you need. For accounting, CRM, planning or a webshop there are good SaaS solutions. If your way of working fits them, a subscription is often the wisest choice.
  • Your way of working isn’t settled yet. While the process is still changing, it’s smart to find out with existing tools what you really need first.
  • A standard integration is enough. Many packages already talk to each other through standard integrations or tools like Zapier. If that connection exists, nothing needs to be built.

Custom software pays off when your way of working sets you apart, packages get in each other’s way or a lot of time goes into duplicate work between systems. Not sure? That’s exactly what the Blueprint finds out, and sometimes the outcome is that building isn’t needed.

Why invest in custom software?

Custom software is a smart investment: it streamlines processes, reduces errors and helps your organisation grow. It offers flexibility and scalability that off-the-shelf software often can’t.

Want to know what custom software would cost for your organisation? Start with an introduction about your idea. If it’s a fit, the Blueprint follows: that’s where a plan and a concrete proposal for what comes next take shape, with a price.

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