How Much Does itCost to Develop a

Web App?

PRESENTED BY

HALYNALEVKO

Engagement Manager,Romexsoft

Estimating the costs of web app development may seem like lookinginto a crystal ball - lots of fluff and no exact value. In this

presentation, we are breaking down the core pricing factors, whichinfluence the final price tag.

HOW MUCH DOES IT COST TOCREATE A WEB APP: THREE KEYAPPROACHES

In general, there are three different methodologies used to predictthe probable costs of web applications development:

Based on project specifications

Based on user stories

Based on equitable value

Based on project specifications method

To get really precise estimates you can use the three-point estimationtechnique, which implies creating three figures to represent the probabledistribution required, based on your best guesses and prior experience:

a= the best-case estimate

m= the most likely estimate

b= the worst-case estimate

A? B?M?

Based on user stories

You can follow the 5-W approach and base your stories around the followingquestions:

Who?

User stories are standardly paired with the agile approach to softwaredevelopment as it focuses on incremental and integrative development. Asuser stories are more vague than functional specification, the overall projectbecomes more flexible.

When?

Where?

What?

Why?

Based on equitable value

Here’s a sample staff break down from a custom web application developmentproject:

Senior UX developer to map user experience journey and architectureSenior UI designer to craft visual design and layoutsJunior UI to provide assistance and redundancySenior Front-End developer for coding and developing custom UI elementsSenior and Middle Back-end developers to code all the functionalityDevOps to establish building, testing and releasing environmentProject Manager to keep the whole project on trackTechnical Support rep to maintain the project onward what's

next?

Now estimate these hiring costs for each person – just tap into any publicrecord or salary survey data online e.g. at Glassdoor or Payscale. First add upthe salaries, next calculate all the hiring and overhead costs, which includeheadhunting, interviewing, onboarding and training.

So you should now have the numbers:

Compare that to outsourcing the entire project to a web applicationdevelopment company in another area or hiring a dedicated remote team.

In-house development Outsourcing

$300,000 per year $100,000 per year>Consider

outsourcing now?

HOW MUCH AN AGENCY WILLCHARGE YOU FOR A CUSTOM WEBAPP?

Actually, there are 3 classes of software development companies:

The “Extravagant” Class Companies

The “Moderate” Class Companies

The “Small Class” Development Companies

So what's so special in “extravagant” class companies?

These are the large established brands in the software developmentcommunity with a luxury office, well-paid executives.

Work only with a certaintype of clients

Characteristics

Build high-qualityproducts

A minimum project pricetag starts at $200.000

Developers can earn up tosix figures annually

But the overall process is far from beingnimble with a lot of extra fluff

happening around.

What about the “moderate” class companies?

These are the smaller companies with around 10 to 80 people in the office,reasonable spending and streamlined operations. Depending on where in theworld they are based, their hourly development rates will fall into the $40-$150 range.

Well organized, agileCharacteristics

Have considerable experience in design,usability, DevOps, technology migration

Capable of proceeding fasterwith the development process

Have proven track of experience inlarge scale development projects

Make the best partners bothin short and long-term runs

Or maybe the “small class” development companies?

These are the so-called “boutique” agencies with only 2-3 permanentemployees including the company’s owner/partners. The development hourlywages range from $35-$180 depending on their location.

If lacking proper organization andpowerful management, they are not themost suitable choice for a large-scaledevelopment project. But they areperfect for SMBs and self/Kickstarterbacked up projects.

Then you should consider independent contractors

People who quit their desk jobs and go solo typically base theirproject rate on their professional knowledge and experience, plusadditional factors like cost of living, spending habits, taxes etc.

In this case you should carefullyquestion the candidate andidentify whether:

Have a really tiny budget?

1. Are they doing freelance developmentfull-time or moonlight after their day job?

2. How many years have they been inoperations? A lot of people quit just withina year or two, so make sure to choosesomeone stable with at least 5 years ofworking independently behind their belt.

Here are the rough estimates of what you can expect in each case in terms offinal costs:

Let's wrap it up!

Choosing Java as the core technology for your web app can slightly reduce theoverall project costs as the technology is 100% open source with no additionallicensing fees involved. It’s stable, robust, secure at the go-to choice at ourcompany.

And a tip for you!

T H A N K Y O U F O R Y O U RT I M E !

W a n t t o k n o w m o r e ?C o n t a c t u s !

i n f o @ r o m e x s o f t . c o mr o m e x s o f t . c o m