Online solutions, applications and software have become a must-have business accessory due to the increasing demand for personalized products among users and the competition among companies. Consequently, companies are investing heavily in developing and maintaining software to stay competitive, but also to set new standards. This trend has led to almost every company having some form of software development, whether in-house or outsourced, ranging from simple applications to complex enterprise solutions.
Growth and Demand for Software Development
According to the McKinsey Technology Trends Outlook Report from August 2022, in the coming decades, technology is expected to have a massive impact on every industry, with advancements moving rapidly from science to engineering and beyond.
All mentioned above means that the software development industry is expected to continue to grow, with increasing demand for software and digital solutions. McKinsey survey from June 2022 found that nearly 70 percent of top performers are using software to differentiate themselves. In addition, survey shows that two-thirds of companies have invested in some kind of software. These statistics demonstrate the widespread adoption of software development, as well as the increasing investments in this field.
Factors Affecting the Cost of Enterprise Application Development
The cost of developing an enterprise application can vary widely, depending on many factors such as the complexity of the application, the size of the development team, the geographic location of the developers, the technology stack used, the level of customization required as well as the specific features and functionality required. According to some industry estimates, the cost of developing a custom enterprise application can range from tens of thousands to hundreds of thousands or even millions of dollars, depending on the above factors.
Strategies for Better ROI in Enterprise Application Development
There are several ways that can help companies to make better ROI rate during the development of an enterprise application:
- Outsource development: Outsourcing the development to a third-party vendor usually is more cost-effective than hiring and maintaining an in-house development team. The main reason for this is that outsourcing eliminates the need for additional equipment and benefits that would be required for an in-house team.
- Open-source software: This can be used to build applications, which is often less expensive than using proprietary software, reducing licensing and development costs.
- Agile development: Using agile methodology helps reduce development costs by breaking down the project into smaller, more manageable pieces. This allows more efficient development and testing and, therefore, reduces the number of costly revisions that might be required later.
- Cloud hosting: Using cloud hosting helps reduce infrastructure costs as there is no need to maintain servers or other hardware on-premises. Additionally, cloud hosting is more scalable and flexible, allowing better cost management.
- Pre-built components: Using pre-built components or software libraries can reduce development time and cost as these components can be easily integrated into the application.
- Prioritize features: Prioritizing the most essential features of the application can help reduce development time and cost. This can also speed up the product launch onto the market, allowing the company to start generating revenue sooner.
Balancing Cost and Quality
It's important to note that while cost-saving measures can be helpful, it's also important to ensure that quality is not compromised. Cost cutting can lead to a poorly functioning application that may require costly revisions in the future. A balance between cost and quality should always be considered during the development process.
Solutions to Save Money in Enterprise Application Development
There are solutions in the market that can help save money during the development of an enterprise application.
One such solution is low-code development platforms. These platforms enable companies to build applications with minimal coding, reducing the time and cost required for development. Low-code platforms also provide pre-built components and templates that can be easily integrated into the application, further reducing development time and cost.
Another solution is the use of software development kits (SDKs). SDKs are pre-built software libraries that provide ready-to-use components for building applications. This can reduce development time and cost as developers do not have to spend time building and testing these components from scratch.
Lastly, there are consulting IT companies helping businesses to optimize their software development processes. These consulting services can include assessing current processes, recommending improvements, and providing training to in-house development teams.
And to conclude, keep in mind that there are options that can help you to develop quality software with high ROI.