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    Understand the Custom Software Development Cost for Your Business

    Khonita Nur Fitri

    March 10, 2023
    Custom software development cost - calculator

    As a business owner, you might wonder about developing a custom software for your business. Custom software can be an excellent solution for companies to optimise their operations and provide better customer experiences. However, the custom software development cost can be a major concern for many business owners.

    This article will explore the factors affecting custom software development and cost breakdown. Also, we provide insights on how to keep costs under control while still getting the software you need.

    Factors That Affect Custom Software Cost

    Custom software development cost - paper project

    Several factors affect the custom software development cost. Here are some of them:

    Types of the Project

    Project size is a critical factor that influences the custom software development cost. It is usually divided into three types: small, medium, and big.

    Small Projects

    Small custom software development projects usually take 1-3 months, involving a few software developers. The cost of such projects can range from AU$30,000 to AU$50,000. Usually. they often involve building software for basic business operations, such as inventory management, invoicing, or scheduling.

    Medium Projects

    Medium-sized custom software development projects typically take 3-6 months to complete and require a larger team of experienced software developers. Such projects cost around AU$50,000 to AU$150,000. Some software that can be considered medium-sized development are Human Resource management system, CRM or Project Management system.

    Big Projects

    Large-scale projects in custom software development typically take a long time to finish. For large companies that use a wide variety of business processes, these projects generally involve developing highly sophisticated software.

    There are a number of personnels who are involved in a significant project: PM, QA, a project manager, programmers, and QA testers. As a result, prices may vary between AU$200,000 and AU$600,000. The development of of ERP, SCM, or CRM software frequently treated as complex projects.

    Project Type

    The type of the solution required is a significant factor affecting the custom software development cost. Its cost varies depending on the complexity of the project. For instance, a simple web application can cost between AU$5,000 and AU$ 10,000. However, a more complex application with intricate features can cost over AU$100,000.

    Target Platforms

    Custom software development cost - platform

    The environment that the software will be run in is another significant cost factor. The cost varies based on whether the application is built for iOS, Android, or cross-platform use.

    The development of an iOS application can cost between AU$80,000 and above while an Android application can cost between AU$8,000 and AU$15,000. Cross-platform development is usually more expensive, ranging from AU$60,000 and above.

    Set of Features

    The more complex the software’s features and functionalities, the higher the cost. Additional features, such as integration with other systems, machine learning, Artificial Intelligence, and advanced security measures, can significantly increase the custom software development cost.

    For instance, a custom CRM system with basic features can cost between AU$50,000 and AU$100,000. However, a more complex system with advanced features can cost over AU$300,000.

    Purpose of the Project

    The business domains that a custom software development company specialises in can also affect the cost. For instance, an e-commerce application may cost more than a simple information website because of its complexity. A custom e-commerce application can range from AU$20,000 to AU$100,000.


    The custom software development cost also depends on the resources required to build the software. The budget of hiring these professionals varies depending on their expertise, experience, and location. Hence, the cost of hiring a development team in Australia is higher than in other countries, such as India, the Philippines, or Indonesia, due to higher hourly rates.

    Let’s say your product needs a front-end and back-end developer, a QA expert, and a Project Manager, each costing AUD100 an hour. They work 3 hours daily, and your project may take up to three months. The total cost of development will be around $86,400. As you can see, the custom software development cost will be high.

    Maintenance and Support

    Maintenance and support services are necessary to keep the software up-to-date and bug-free. Their costs vary according to the complexity of the program and the scope of the support services required. Typically, maintenance and support services cost between 15% and 20% of the initial development cost annually.


    Custom software can be a very useful tool for businesses that want to improve how they run and how they treat their customers. However, the cost of developing such tool can be can be a major concern for many business owners.

    Business owners should carefully consider these factors when budgeting for custom software development to ensure that they receive high-quality software that meets their needs within their budget.

    At our software house, we understand the importance of delivering high-quality custom software solutions that meet the unique needs of each business owner. Our experienced team of developers and project managers will work with you to provide a detailed cost estimate and ensure that your project is completed on time and within budget.

    If you are interested in learning more about our custom software development services, please visit our website or contact us today to schedule a consultation.

    So, don’t hesitate to invest in custom software development and start reaping the benefits today!

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