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How Much Does it Cost to Hire a Software Development Company?

The rise in the use of software applications in the daily lives of users has elevated the experience overall for both businesses and end-users. The quote – ‘The more the merrier’ stands correct in the case here as users demands have been rising and businesses have been working with software development companies to meet user demands. In the past few years, the rise in the count of software development companies has raised beyond expectation. This alone has given an upliftment to what businesses have been planning and how they are delivering it to users.

Now that the business and software development companies have a lot to plan and develop, the first step for the business is to start with finding the right software development partner to get the process started. Every business has a defined budget basis which they plan for the next development. Now that investment is going to be huge as software development is not at all cheap, it involves the costs of the team, their time and talent.

Though in the market, the cost of the team is standard and is based on per hour rate, this may go up if the team is expertise on latest trends and technologies like Artificial Intelligence, IoT, Chatbot and more. To be accurate, depending on the type of project, the experience of the developers, hourly rates ranges between $250 – $850 per hour.

Now that we have given the gist of what could be the price of developers, we will share a few factors that could raise the bar of costing while hiring the software development company. This will help you out in deciding the aspects to be included in the project and how they affect the overall costing of the project.

1)Type of Software

There is no denying that one software type cannot fulfill the requirements of all businesses. Some may look for custom software development while other enterprises, some may have emphasized towards the web, mobile, eCommerce, gaming and more types of development. The list goes on and on. Now that a business has the type of development they are looking for in mind, not all software development companies can fulfill your expectations.

A software with AI-powered, data analytics-enabled will be at the higher end as it involves high-end trends and technologies. On the other hand, developing any game software is also very expensive as it involves a lot of dynamic and creative edge. Enterprise applications too are expensive to develop as it specifically built for enterprises with exclusive needs. Software with IoT technology also comes at an expensive rate as developers have to build the software conspiring its connectivity with other internet-powered devices. Therefore, it is the complexity of the project that determines the cost of hiring a software developer.

2)Team Size, Experiences & Project Scope

A business may not want to indulge a lot of budget on the software development company. However, circumstances may lead to splurging a little extra than decided. The kind of project that business has in mind has a huge impact on the budget of the development. Depending on the idea, the team size is decided along with their experience. The higher the experience of the team, the higher the cost of the software development company. If the business wants an early delivery of the project, then more team members are required to complete the project in time. This again leads to an increase in the cost of the project.

Fact Alert: Common skills like WordPress, PHP, HTML, and CMS are available at fairly competitive rates. C++ and Kotlin developers are costly and may cost a few extra bucks.

Android app development: Since the introduction of both Java & Kotlin for Android app development, software engineer with knowledge of both languages add great value to the Android software development project which results into an expensive project.


Another factor that affects the cost of hiring software development is the geography from where the team is hired. At some locations like the US, the cost of hiring a custom software development company is fairly high. This goes the same with the case in Europe and Australia. To cut down the cost of hiring the company, many US, Europe businesses have started to hire software development companies from India, Poland, Asia, Ukraine and more. These geographies have excessive talents and offer the development of the software at a lower price when compared to native place.

However, this surely comes with a challenge that it is difficult to manage the hired software development company remotely, but the connectivity across the globe has improved and it is very easy to get the job done even without being present in the location physically.


The debate on hiring the software development company will continue for a long period of time. Per hour rate of experienced developers is standard but depending on the type of project and scope of the project, the cost exceeds the actual budget. While hiring, it’s essential for a business to channelize the expectations smartly and then hire the best partner that comes within the budget.


Siya Carla is the Solution Consultant at Finoit Technologies, a leading custom software development company which provides unique web design and mobile app development services. By creating interactive mobile apps for 450+ customers across the globe, Finoit enjoys a great reputation as a prominent mobile app development company.