The problem is that numerous factors can influence app development costs. Do you want to create an app that works on both iOS and Android? What country do you want to hire a development team from? What kind of app do you want to create? The cost of your project will vary greatly depending on the answers to these questions.

As a trusted software development company, we have created over 100 mobile apps since the company first surfaced in 2009. Being a part of the Apple Consultant Network, our article speaks from our own experience. Let’s delve into the most influential factors influencing mobile app costs and provide real-world app cost examples.

With this information, you’ll be able to estimate the cost of developing your mobile app. Anyway, feel free to contact our managers for a more precise estimate or further consultation.

1. What Factors Influence App Development Costs?

As with any complicated app development process, a variety of factors can influence the final cost. Here are the most important ones.

1. App Types (native, cross-platform, hybrid)
2. Platform (iOS, Android) 
3. Design
4. Features/complexity
5. Developer Rate (varies depending on location, hourly rate, and team size)

1.1. Android and/or iOS

Android and iOS are the two most popular mobile operating systems. They aren’t the only ones, but they rule the mobile world, with Android accounting for 69.74% of the market share and iOS accounting for 29.49% as of 2022, according to Statista.

When you begin working with a project manager on the first rough estimate for your app, one of the things you’ll research is the best platform to build for. What mobile devices does your target audience prefer? For example, 55.26% of mobile users in the United States use iOS, whereas in Poland, it is less than 10%. As a result, before deciding on an operating system, you must first research your target market.

If you choose one platform to begin with, the cost difference will be determined primarily by the length of development. iOS and Android development rates are roughly comparable.

Building an Android mobile app typically takes longer because your team will need to test on a wider range of devices.

1.2. Native, cross-platform, or hybrid app

When estimating the cost, the type of app makes the most difference. First, what exactly are these apps?

Native mobile apps are designed exclusively for a single mobile platform. It is impossible for a regular user to run an APK file (executable for Android) on an iPhone or an IPA file (executable for iOS) on an Android device.

Android and iOS use different programming languages and frameworks: Android uses Java and Kotlin, while iOS uses Swift and Objective-C. If your target audience owns both Android and iOS devices and you decide to support both platforms with native apps, you’ll need to create two apps: one for Android and one for iOS.

However, you can build a single app for both platforms (in addition to a web app or a responsive website):

1. App for multiple platforms
2. App hybrid

Cross-platform apps can be written in C# using Xamarin or JavaScript using React Native, while hybrid apps use AngularJS and its Ionic framework. All of these options are compatible with both Android and iOS devices.

You might be thinking right now. Why would I create apps for each platform when I could create a single app for both?

Indeed, developing a hybrid app is faster and less expensive than developing two native apps. However, you should be aware of the disadvantages that cross-platform and hybrid apps bring. Here is a brief comparison:

Despite these disadvantages, there are some popular cross-platform and hybrid apps, such as Skype, Slack, and Instagram. The trick is determining what type of app your company requires. Perhaps the disadvantages will be irrelevant to your application. But perhaps they will.

1.3. Cost of App Design

Great visuals are the foundation of a good app, so it’s no surprise that design can influence the cost of developing an app. Custom icons and design elements, such as screens, logos, and buttons, will take time and money to create. In addition, each screen in an app must be drawn separately. Making custom animations is an entirely different challenge, but they are frequently a winning feature.

However, great design does not always imply complex visuals. Sometimes simplicity is the best solution: depending on what your app does, it may be possible to use standard OS-provided elements that don’t take much time or effort to compose.

When it comes to games, design is an especially important component of the cost of mobile application development.

1.4. Features

The cost of developing an app is largely determined by the number of features — but this is not the only factor.

The complexity of those features can be more influential at times. Some features rely entirely on standard tools and APIs. Others necessitate the use of third-party APIs. A third type necessitates the development of custom algorithms.

It’s something of an industry standard to divide mobile apps into three categories based on complexity:

1. Simple apps have few features, most of which are either fairly standard or relatively simple to implement. Consider this type of app to be a minimum viable product (MVP), or an app with only the features necessary to collect feedback and validate the app idea. Some finished apps are similarly straightforward. Building a simple app can take between 2 and 4 months and cost between $18,000 and $60,000.
2. Medium-complexity mobile apps typically take 6 to 10 months to develop. Apps of medium complexity have more screens, features, and complex features than simple apps. If a simple app has a basic login feature, for example, a medium-complexity app would have Facebook integration. That’s just a simple example, but you get the idea. The cost of developing a medium-complexity app will most likely start at $50,000 and can rise to around $130,000.
3. Complex apps include features such as augmented and virtual reality, bots, payment integration, NFC (near-field communication), and media streaming. Development time can range from 7 months to more than a year, depending on the number of such complex features. The average cost of developing an app with complex features starts at $130,000 and can reach $500,000 or even more.

1.5. Backend

The backend, also known as the server-side, is the part of your app that is invisible to your users but supports some of the more complex features, such as device syncing and push notifications (though the latter can be handled by cloud integrations today). Servers host your databases, custom, and third-party APIs, and other applications.

A backend isn’t required, but if your app requires one, you’ll need to hire a separate developer, such as one who works with Ruby on Rails or Python. And, of course, that developer will raise the price of your app.

1.6. Workload

When asked, “How much does it cost to develop an app?” The answer is typically calculated based on the amount of time required for analysts, developers, designers, and testers to complete all stages of development. However, developers’ work can be calculated in two ways:

1. In hours, which is the traditional unit of measurement for task complexity. Developers estimate the time required to build each feature, allow for unexpected complications, then total the time for all tasks and multiply it by the hourly rate. Easy.
2. In story points, a system that is increasingly being used in Agile development. The idea behind the story points system is that instead of attempting to predict how long it will take to develop a specific feature, the feature (or story) is assigned a number of points for difficulty.

Story points are subjective. The team chooses the simplest story (one with the fewest risks and the least amount of effort) and assigns it to two story points. Then all of the other stories are compared to it and given points in comparison. Typically, stories begin with two points. Not 1, because something is always added or removed during development, and a story worth fewer points than the one previously thought to be the smallest may appear.

1.7. Team Size

It’s difficult to estimate the average cost of developing an app without knowing how many people are involved. After all, these are the people you’re paying to do the work.

A single UI/UX designer is usually sufficient for both iOS and Android apps, but an additional web app may necessitate its own designer. A backend developer is required if your app requires a server-side.

This team can be expanded for faster and more complex development, which will impact app development costs.

1.8. Outsourcing vs. Internal Team

Hiring a team of specialists to sit in your office and work solely on your project is what in-house development entails. Outsourcing means hiring a separate company to do the development for you without having the developers within arm’s reach.

Both options have advantages and disadvantages, but we’ll concentrate on the price differences here. To make a long story short, hosting a team of developers in-house is far more expensive than outsourcing. Having an in-house team means you’ll be paying for the followings:

• Salaries
• Taxes
• Additional office space and workstations
• Software and hardware
• Tools for developers
• Everything you pay for your regular employees’ social benefits and everything else

These costs vary greatly depending on where your office is located. Even general numbers are impossible to state. An in-house team is sometimes justified, especially if you have multiple mobile products that must be constantly updated. In other cases, outsourcing is a better option. And outsourcing can be calculated with some accuracy.

1.9. Development Team’s Location

The geographical location of the company you’re hiring accounts for the majority of the cost of outsourcing. Here is a list of countries organized by average hourly rates, from the most to least expensive:

• North America (the United States and Canada) – $100-150 per hour
• $110 per hour in Australia
• Western Europe (the United Kingdom, Germany, and Austria) — $90 per hour
• $50 per hour in South America
• Eastern Europe (Poland, Ukraine, Romania, and Bulgaria) — $40-50/hour
• $25 – 30 per hour in Asia (Vietnam and the Philippines).
• Egypt, Kenya, and South Africa — $30 per hour

We can estimate the average cost of developing an app in different regions using these approximations. To accomplish this, we simply need to go back in time and recall the average development time for each of the three types of apps:

• Small app for at least two months
• Average 6 months for a medium app
• 8 months to more than a year for a complex app

2. The Unknown Costs of Mobile App Development

The cost of developing an app extends beyond the development process. There may (and almost certainly will) be additional expenses to consider along the way. Here are the five most common hidden costs you may not have considered.

2.1. Upkeep and upgrades

The app’s release is undeniably significant, but it is not the endgame. As long as the app is available in app stores, you must maintain it, respond to user feedback, and provide regular updates. According to the Outsystems Survey, the cost of app maintenance during the first year after launch is approximately 50% of the cost of app development. The second year is usually 25%, and each subsequent year is 15-25%.

Maintenance and updating services typically include the following:

• Optimization of code
• Server enhancements
• Application updates and bug fixes
• New technologies and features
• Support for new operating systems
• Scalability of the app

2.2. Infrastructure expenses

These costs are primarily associated with app hosting on servers. The main goal here is to ensure that your platform can handle traffic spikes following the launch. The scalability requirements of your app will determine the cost of these services. Here is a list of infrastructure fees you may be required to pay:

• Server
• Storage of data
• Content distribution networks
• Integrations
• Tools for development
• Load balancing devices

2.3. Functional expenses

This section’s services are designed to help your app’s functionality. For example, you may need to subscribe to several services and set up third-party integrations. The cost of these services varies according to how many you require, and these expenses frequently include:

• Notifications via push
• Notifications via SMS
• Integration of social media
• Geolocation
• Gateways for payments

2.4. Level of app security

While you can completely delegate the development process to the hired team, there are a few aspects we recommend familiarizing yourself with, one of which is security. You can inquire about the development team’s security practices and discuss the best options for firewall protection, secure transactions, and other critical issues. Making the platform as secure as possible may increase the cost of developing an app, but it is well worth the investment.

2.5. Patenting applications

This legal step will protect your intellectual property rights while also assisting you if other app owners falsely accuse you of intellectual property theft. This must be completed before the app is released to the public.

During the patent application process, you will need to specify what makes your app unique, define the aspects of your app that you want to claim ownership of and provide a visual representation of the app.

The cost will vary depending on the country in which you file your patent application and the type of mobile app. A regular non-provisional patent in the United States, for example, can cost between $2,000 and $5,000.

3. App Development Cost Examples

As evidenced by the preceding, so many factors influence the development process that estimating the cost of creating an app on the spot is difficult. At Mind Studios, we write articles in which we share our insider knowledge of the development of various types of apps, including cost estimates.

Here are several examples of the costs of developing an app for both iOS and Android in 2022, as estimated by The Mind Studios with their $45/hour rate:

• FitBit-like fitness app — $84,600
• Tinder-like dating app — $108,470
• Discord-like VoIP app — $99,950
• $82,440 for an educational app similar to Udemy
• Signal-like messaging app — $100,080
• Headspace-style meditation app — $76,590
• Postmates-style food delivery app — $130,500-148,500
• IKEA Place-like augmented reality furniture app — $91,800-124,200
• $137,700-162,000 for a marketplace app like Etsy or eBay

How much does it cost to create an app you have in mind, and how can you find out? If you know exactly what you want to build, you can either contact an app development company for a rough estimate (which is what our contact page is for) or use an online app cost calculator.

Online cost calculators are straightforward web applications. They allow you to select from a variety of parameters and features, and then automatically calculate a rough estimate based on the rates set by the calculator. When using one, keep in mind that the majority of these calculators estimate the cost very, very roughly. Most are designed to obtain your email address and entice you to contact the development company.

4. Mobile App Development Cost – Interesting Facts

As you may have guessed, when we said numerous factors influence app costs, we weren’t exaggerating. And it’s not just the app development options that matter. Post-launch marketing and maintenance costs, economic conditions in the leading software service providers’ countries, and the evolution of the mobile app market all have an impact on the costs to launch a mobile app.

We’ve compiled a list of statistics about app development costs and the mobile app market in general that you may not be aware of.

• According to the Business of Apps, you should set aside at least $10,000 to plan your app’s go-to-market strategy.
• The cost-per-install (CPI), which is the price the app marketer pays to engage one user, can be used to calculate the cost of marketing. The iOS CPI in 2021 was $3.6 per app install, while the Android CPI was $1.22 per app install. Overall, app marketing can cost up to half the cost of development during the first year after launch.
• The average cost of maintaining software and, in particular, applications is approximately 15-20% of the cost of development.
• According to an Outsystems survey, more than 80% of mobile apps take 3+ months to develop, and 40% of applications take 6+ months to develop.
• According to Market Research Future, the mobile app development market will grow at a compound annual growth rate of at least 23.80% over the next eight years.
• According to Globe Newswire, the global mobile applications market is now worth US$ 112.6 billion and is expected to be worth more than US$ 307 billion by the end of 2031.

Given the last two forecasts on the list, it appears that the global mobile app market will continue to evolve at a rapid pace over the next decade, implying that app development costs will not decrease. So, if you’ve been thinking about creating your own mobile platform, now is the time.

5. Mobile App Development Costs by Types

So, how much money does it take to launch an app? To answer this question, the development team must first understand the type of application you wish to create. There is no one-size-fits-all solution, but each type of mobile app has a standard set of features that will allow the team to create a rough estimate for the project quickly. In the table below, we’ve compiled a list of some of the most common app types. Remember that the estimates are based on a $25 hourly rate.

These are only a few of the most common types of mobile apps. If you have an idea for something unique and even innovative, please contact our business development team. We will gladly listen to your idea and answer all of your questions.

6. How to Reduce App Development Costs

If the prices listed above make you nervous, here’s a list of seven things you can do to cut the cost of mobile app development.

• Make a thorough plan

Can you draw it? Better yet! Bring a clear idea and a way to properly explain it to developers.

Make a list of the app’s technical specifications and requirements.

This can prevent miscommunication, nervous breakdowns, and financial loss. In our previous article, we discussed the significance of requirements.

• Outsource

Using outsourcing development services is significantly less expensive than hiring an in-house team, especially if you hire a team from a region with reasonable hourly rates.

• Beginning with a test

Although it may appear obvious, not everyone does this. Early testing helps you find bugs that, if not fixed quickly, can lead to more bugs in the future, necessitating the rework of entire features.

• Create an MVP/MLP

A minimum viable product, also known as a minimum lovable product, can assist you in gathering data and avoiding mistakes long before you launch.

• Maintain regular contact with developers and check on progress

This will keep you and your team on the same page and help you avoid major mid-development changes or adjustments.

• Find a reliable mobile app development company

It is sometimes better to pay a little more for a development team that is experienced in your field and has a good reputation. Examine previous projects and reviews on professional websites such as Clutch.

7. How to Precisely Estimate App Cost?

At Savvycom, we estimate the cost of app development in six stages:

1. You get in touch with us and tell us about your project.
2. We are contacting you to gather general information.
3. Our project managers conduct preliminary research and develop a rough estimate.
4. We will contact you with our estimate.
5. If everything is in order, we will begin a more in-depth discussion with you about the functionality and content of your app.
6. Based on all available information, we create a more precise estimate.

After the final app development cost estimate, there may be adjustments if new features are added or additional technology is required. Slight cost adjustments are possible with any changes. However, the cost rarely deviates significantly from the final estimate.

Before app development begins, reputable software development firms will usually provide you with a rough estimate of the mobile app development cost. The quote is based on your project description, as well as your business and technical needs. This data is compiled and summarized in a preliminary list of features.

It’s also worth noting that initial estimates and actual application development costs don’t always match up. Aside from the obvious assumption that the estimate was incorrect in the first place, another common cause of the mismatch is a change in the app development scope. This can occur if:

• Midway through the project, the client decides to increase the number of features or make other significant changes.
• The MVP launch or soft launch, during which initial feedback is gathered, indicates that the team needs to make some significant changes or even look for entirely new solutions.

Fortunately, in most cases, these disparities can be avoided by investing time and money in the proper discovery stage. That is the first thing Mind Studios does after accepting a new project. During the discovery stage, we determine whether there is a market need for the app, which features the target audience will require, and how we can differentiate the new product from the competition.

8. App Cost By Stages of Development

The entire app development process can be broken down into four major stages. Let’s look at how much each of them might cost and how much of the overall process they compensate for. Remember that the calculations below are based on a $25 hourly rate and apply to medium-complexity projects like an on-demand delivery app or a fitness app.

1. The discovery stage is when the team analyzes the market and the target audience, calculates the risks, and develops solutions that will help the app succeed.
   Time and cost estimates: 80 hours, $2,000
2. The UI/UX design stage is when a team of UI/UX designers decides on the app’s features and develops its visual concept. The outcomes of this stage are presented in the form of prototypes — visual mockups of each app screen.
   Time and cost estimates: 160 hours, $4,000
3. The development stage is when a team of developers turns the prototypes into a fully functional mobile application. The following estimate includes iOS, Android, and backend development.
   Time and cost estimates: 2080 hours, $52,000
4. Testing is the process by which QA engineers test the app and look for bugs to report to the development team so that they can be fixed.
   Time and cost estimates: 200 hours, $5,000

The project management component is an additional important component of the overall development cost. It is not a stage in and of itself, but rather a tool that assists the client and team in staying on the same page throughout the collaboration. This service takes 200 hours on average and costs $5000 for a medium-complexity project.

9. Conclusion

There are numerous factors that can influence the cost of developing a mobile application, including whether it is native or cross-platform, simple or complex, and developed in North America, Asia, or Eastern Europe. Even with the statistics on app development costs in 2022, making an accurate estimate without knowing the specifics of the project is difficult. However, in this article, we’ve covered the most common types of mobile apps on the market, so you can get an idea of how much your project might cost.

If you’d like a more accurate estimate for a mobile app, our business development team will gladly conduct a free consultation for you.

• Check out these ideas to find your best match IT Outsourcing company in a non-English country.

1. Significant language and cultural disparities

One barrier to an effective outsourcing experience is the very real difference between a typical employee in the U.S. and even the best offshore personnel. There are significant language, cultural and educational disparities between the English-speaking countries and the developing countries where outsourcing projects are often sent. These disparities have a marked impact on the ability of many offshore teams to fully understand the nuances of a project and to execute effectively.
While some software engineers may have learned English and been trained in their areas in English, they may still not understand English colloquial terms or design concepts that are, in fact, foreign to them. The difference in culture and upbringing can also be an issue, especially if they know English only in technical terms.
In some cases, companies will have an employee whose first language is English working with the staff on-site in that country in order to resolve any communication issues. This person can be the translator, so to speak, when questions arise or to be sure that ideas are conveyed clearly. Yet, not many companies are likely to hire them only for communication issues.

The differences in language and culture between English-speaking and non-English countries are important barriers that you need to consider before choosing an IT Outsourcing service. (Source: Internet.)

2. An extremely difficult working environment

Despite the fact that outsourcing can often provide quality labour at a drastically reduced cost, there are sometimes moral issues that accompany this type of labour.
Software development service providers offering IT Outsourcing often operate on a non-24/7 basis, potentially hindering their success if they cannot provide timely assistance to clients. Consequently, employees engaged in outsourcing projects may find themselves facing unfamiliar overtime demands, also known as OT. In cases where projects fail to meet client expectations, overtime becomes a routine necessity. Workers may also endure exceptionally long workweeks, up to eighty hours per week, including weekends due to timezone disparities. Additionally, the demanding workloads frequently spill into employees’ personal lives as they strive to meet deadlines.
This has a significant impact on health, family and social relationships. Spending most of their time to complete the tasks has them no time left to take care of themselves, not even their close relationships. Working overtime might gain a large amount of money, yet, some shameless companies do not pay adequately for OT. It is definitely something to consider when it comes to making long-term working decisions for people who want to be a part of this industry. Supposed they choose to barter time for money, how long would they stick to the job that exhausted them?

3. Security and trust issues with IT Outsourcing to a not native-English agency

When you outsource your IT to a third-party, you depend on them to comply with security and regulatory measures. Cloud computing services share their resources with other tenants. This sharing helps to save on costs and makes the IT scalable, but it does mean that other companies will be using some of the same servers and the same devices. This creates security concerns that need to be addressed, especially if the company has strict compliance requirements.
Some IT outsourcing companies in non-English countries are unreliable partners, because of the conflicting situation and political in their nations. For example, Ukraine is in a state of war, and it has a serious governability problem. This fact carries with it a number of implications to Ukraine’s capacity for sustainable infrastructure use. Hackers and spies are everywhere. What company would put its intellectual secrets in a harmful way, just to save a few bucks in the short term? Internet infrastructure is not as good as the EU, US, Israel, Australia, New Zealand and other English-speaking countries.
Hence, to choose an IT Outsourcing company that can assure your security requirements, remember to check out their background, certificates such as ISO 27001:2013 (as Savvycom achieved) and do not forget to ask them to sign on the NDA (non-disclosure agreement).

Never forget asking for NDA before discussing your ideas and projects. (Source: Internet.)

4. Quality of work could suffer if you do not assign tasks to a reliable agency

All of the benefits that come with outsourcing jobs to a foreign country go away if the quality of the work is not up to your standards. When IT outsourcing to a non-English country, most of them might locate really far from you. A contract would be signed through emailing, Skype without seeing who the third-party company really is.
Taking India for instance, if you look at the number of outsourcing companies in India, you will have your head reeling. There are too many of them, while only a few of them provide quality work. If the quality of work must be at par with your expectations and business goals, don’t simply go by what their websites say. What is on the social network might be exaggerated to attract more clients.
One must always discuss the quality requirements before agreeing to a software outsourcing relationship. If you do not receive the expected quality, then there must be some avenue of rescue that you can follow to ensure the problem gets fixed. Without these protections, the outcome for specific tasks may be quite underwhelming.

5. How people in Savvycom overcome IT Outsourcing challenges?

Founded in 2009 and run by Ms Van Dang – a brilliant and ambitious businesswoman, Savvycom has steadily grown and become a trusted partner with worldwide companies and organisations.
Since our potential clients are international, Savvycom is one of the first IT outsourcing agencies in Vietnam using English as our official language at work. As a result, we are positively confident to comprehend your ideas and transfer them into a satisfactory product in numerous fields. Many of us had the chance to work or study overseas, therefore, we fully competent in working in different times zones globally and can account for fluctuations and time shifts. With 92% of returning clients, Savvycom has strived constantly to delivery more mobile applications worldwide.
In terms of working culture, building a strong relationship among members not only as co-workers but also as good friends is also an important thing to increase our teamwork ability as well as understand each other’s strength. Therefore, we can determine and arrange the best match developers for clients during the projects. Applying Agile method in all departments is a way to reduce a lot of operation costs in Savvycom. Agile software development methodology is strictly used in Savvycom software producing process to make sure that every in-charge persons can get involved and distribute their comment and ideas to improve the quality of the software products.
Although the IT outsourcing to a non-English country issue will be argued back and forth until the technology is no longer relevant, Savvycom has steadily improved the working environment of the employees to deliver more successful applications to clients. What seems to be trendy in business strategy isn’t always a good strategy, especially in the non-English country. However, with all of our achievements working with over 100 international clients, we believe that every dollar spent on outsourcing at our company will worth.

Follow us as we’ll go over the basics of your Software Development Process, how everything goes during Software Development Life Cycle, and the 05 different management methodologies available out there. Trust our expertise as a leading software development company to guide you through this journey. 

What are basic steps of software development process?

You’re probably already familiar with the software development process steps if you’re a project manager. You must consider everything from requirements to stakeholder communication, development, and ongoing maintenance as the shepherd of a digital project.

These steps are essentially the same regardless of which software development method you use. However, as we’ll see later, the order and sequence in which they occur can vary depending on your needs, goals, and the size of your project and team (for example, some steps might be combined, duplicated, or run in parallel).

1. Analysis and Planning

Once a customer or stakeholder has requested a project, the first phase of software development is planning. This usually means looking into:

• Alignment: How does this project connect to your company’s larger mission and goals?
• Resource availability and allocation: Do you have the people and tools you need to take this on? Or do you need to outsource development?
• Project scheduling: How does this project fit your company’s goals and other tasks?
• Cost estimation: How much is it going to cost?

The planning phase ensures you’re starting off on the right foot. So try to make sure you include all of the departments that will be impacted by this project, including project managers, developers, operations, security, and key stakeholders.

You should have enough information at the end of the planning phase to put together a detailed scope of work (SOW). This plan details what’s being built, why, and how you see it coming together.

2. Requirements

The next step is to understand the technical requirements of this project. Every piece of software, tech-stack, whether it’s an app, website redesign, or new feature needed to solve a customer problem.

As you move on from the planning phase and continue to fill out the SOW, ask yourself and your IT Partner if you are going for software outsourcing company to route these questions about the specifics around this project, such as:

• What problem does this solve?
• Who’s going to use it and why?
• What sort of data input/output is needed?
• Will you need to integrate with other tools or APIs?
• How will you handle security/privacy?

Once the development team gets the answers, they can scope out technical requirements and testing terms and decide on a technology stack. This phase is also where you might start sprint planning (if you’re using an Agile software development process) or break down large tasks into more actionable steps.

3. Design and Prototyping

With all the requirements in place, it’s time to start designing what this software will look like and how it will function.

Depending on the software development process you’re following, this phase of the SDLC might mean you create simple wireframes to show how interactions will be included or make more full-fledged prototypes to test with users. Alternatively, you might decide you need more user feedback and create a design sprint to quickly get a feature or idea in front of your users.

This stage helps your team and client validate ideas and get valuable feedback before committing your thoughts to code.

4. Software Development

With everyone on board with the software’s proposed functionality and design, it’s finally time to build it according to the requirements and SOW. This phase is obviously the hardest and potentially riskiest stage of the SDLC (and each software development process we’ll discuss below handles it differently.) However, whether you’re working in Agile sprints, building an MVP, or using the more traditional waterfall method, the goal is to stick to the SOW, avoid deviating from the SOW, and create clean, efficient software.

5. Testing

You’ll most likely be testing, tracking, and correcting issues as your team develops the program. However, once the features are finalized, and the product is declared ready to go, you’ll need to conduct more testing. This could entail giving the effect to a small group of beta testers or tracking how consumers engage with it using UX tools.

While testing may be a lengthy stage of the SDLC, it is critical to avoid selling flawed software to real users. Bugs may ruin your reputation, cost you money, and, worst of all, take up hours of development time that could have been spent on new features, as we explained in our guide on bug tracking tools and workflows.

6. Deployment

Now that you’ve completed the heavy work and coding, it’s time to make your software available to all of your users. Pushing your code into production is what we’re talking about here. It’s up to your sales and marketing staff to come up with and implement a go-to-market strategy.

7. Maintenance and Updates

The SDLC isn’t over after your software is released into the open. Remember the term “lifecycle”? The end of one phase heralds the start of the next, and the same is true for post-launch.

Customer wants, and requirements change all the time. People will definitely uncover issues, seek new features, and enjoy additional or different functionality when they begin to use your software. (Not to mention basic application and software upkeep and maintenance to assure uptime and customer happiness.)

All of these requests should be routed back to your product backlog of tasks, where they may be prioritized and included in your product roadmap.

05 Best Software Development Processes (Methodologies)

Software Development Life Cycle (SDLC) is a step-by-step process bringing a product’s concept from the ideation stage to implementation and eventually to the market. Typically, the Software Development Life Cycle covers the following stages: 

• Requirement analysis
• Planning
• Software design, such as architectural design
• Software development
• Testing
• Deployment
• Maintenance and Updates

The Waterfall framework introduced the basic software development algorithm in the last century. The end-to-end software development life cycle has evolved significantly over time. The most significant shift occurred in the 1990s when the Software Development Life Cycle shifted from Waterfall to Agile approach.

The primary purpose of the Software Development Life Cycle is to provide high-quality software development within the time and price constraints. Therefore, software development procedures vary depending on management methodologies such as Waterfall or Agile. And we are going to learn more about the top 05 Methodologies down below.

1. Waterfall

The Waterfall software development process (also known as the “linear sequential model” or “Classic lifecycle model”) is one of the oldest and most traditional models that is used in building software. In its most basic form, you can think of the Waterfall method as following each step of the SDLC sequence and that you have to finish each one sequentially before moving on to the next. However, in most nowadays applications, the phases overlap slightly, with feedback and information being passed between each steps.

To many, this methodology is often known as the “plan-driven” process as to complete a project, you first need to know everything that needs to be done and in what order. Hence the name “Waterfall” as each section flows into the next one.

a/ Waterfall SDLC:

1. Planning
2. Requirements
3. System and software design
4. Implementation
5. Testing
6. Deployment
7. Maintenance/Updates

b/ Waterfall is best suited for:

Teams with strict organization and documentation requirements

The Waterfall software development approach works well when your goals, needs, and technology stack are unlikely to undergo significant changes during the development process due to its inflexible structure and significant upfront planning time (such as during shorter one-off projects).

In practice, the Waterfall approach is best suited for larger organizations (such as government agencies) that demand sign-offs and documentation on all requirements and scope prior to the commencement of a project.

c/ Waterfall isn’t best suited for:

If you’re testing a new product, need user feedback in the middle of development, or want to be more dynamic in your development process, the Waterfall development process is probably not for you.

While simple, the main disadvantage of this procedure is its lack of adaptability. You won’t be generating and testing MVPs or prototypes while changing your mind. As a result, unless your scope is well stated, you may find up committing to the wrong path without realizing it until launch day.

2. Agile and Scrum

The Agile software development process (and its most prominent methodology, Scrum) favors an iterative and dynamic development approach.

In contrast to the waterfall approach’s tight, sequential flow, cross-functional Agile teams work in “Sprints” of 2 weeks to 2 months to build and distribute useable software to customers for feedback.

Agile is all about moving quickly, releasing frequently, and responding to the genuine demands of your users, even if it contradicts your initial strategy. This means you don’t need complete requirements and a detailed SOW before beginning work. Instead, you’re effectively traveling in one direction with the expectation of changing direction along the way.

Assume you’re developing a new feature for one of your products that may have X, Y, and Z features. Rather than spending months producing everything, you would create the bare minimum that is both functional and usable (in what is known as a “Agile Sprint”) and then release it to your consumers.

This enables tighter feedback loops throughout the software development process, allowing you to adjust and respond to real consumer needs.

a/Agile SDLC:

1. Product Backlog
2. Sprint backlog
3. Sprint (Design & Develop)
4. Release working software
5. Feedback and validation (add to backlog)
6. Plan next sprint

b/ Agile is best suited for:

Product changes are made on a regular basis by dynamic teams

Agile is the software development process preferred by most startups and technology organizations for testing new products or making continual upgrades to existing ones due to its dynamic and user-focused character.

Agile allows firms to move faster and test theories without jeopardizing their livelihood on a massive release that their users despise, as it becomes easier to perform minor releases and gain user input. Furthermore, because testing occurs after each tiny iteration, it is easier to monitor defects or roll back to a previous product version if something more severe breaks.

c/ Agile isn’t best suited for:

Teams working with highly constrained budgets and schedules

On the other hand, because Agile is dynamic, projects can quickly go beyond their initial timescale or budget, cause issues with existing architecture, or be derailed by mismanagement. This implies it’s not the most superb option for risk-averse or limited-resource organizations.

Furthermore, utilizing Agile and Scrum requires commitment and a thorough understanding of the underlying methodology. That is why it is critical to have at least one committed Scrum master on your team to ensure that sprints and milestones are met, and the project does not stop.

3. Incremental and Iterative

The incremental and iterative software development processes lay somewhere between the structure and upfront planning of the Waterfall process and the flexibility of the Agile methodology.

While both are based on the principle of generating little bits of software and exposing them to people for feedback, they differ in what is created during each release.

Each “incremental” product growth in the incremental software development method adds a rudimentary form of a new function or feature. Consider creating an overarching strategy, creating an MVP with simply the essential functionality, and then adding features based on feedback.

However, under the Iterative software development process, each version released includes a rendition of all anticipated features. Consider creating a v0.1 with the most basic version of each feature and then upgrading it all at once in v0.2, v0.3, and so on.

a/ Incremental and Iterative SDLC

b/ Incremental and Iterative is best suited for:

Teams with specific requirements demand more flexibility than the Waterfall technique offers

Both give flexibility to your software development process without throwing out the primary strategy, making them excellent for large projects with defined objectives (or teams with less risk tolerance).

You obtain early feedback on your core feature with the incremental method, which can help you prove your business case immediately. The iterative approach, on the other hand, gives users an early view of what the final product could be, allowing you to collect better and more targeted input.

In both cases, you’re talking to users early on about what they want, which may save you time, money, and headaches compared to waiting until later in the development cycle.

c/ Incremental and Iterative isn’t best suited for:

Team that operates without a long-term technology strategy

Unfortunately, attempting to add structure to a flexible method has its own problems. Perhaps your company’s goals, strategies, or technologies evolve with time, rendering previous editions obsolete or inoperable. Perhaps your codebase has become cluttered and bloated due to adding functionality without considering efficiencies.

Furthermore, both approaches (particularly the iterative approach) necessitate extensive planning and architecture development early on. As a result, they are not suitable for smaller projects or teams who are still evaluating use-cases and attempting to identify product-market fit.

4. V-Shaped

The V-shaped software development process is a twist on the traditional Waterfall method that compensates for its main flaw: a lack of testing. Rather than working sequentially through the development process and leaving all testing until the end, each stage of the V-shaped process has a strict “validation and verification” step where requirements are tested before moving on.

a/ V-Shaped SDLC

1. Requirements
2. Specifications
3. High-level design
4. Low-level design
5. Development
6. Unit testing
7. Integration testing
8. System testing
9. Acceptance testing

b/ V-Shaped is best suited for:

Smaller teams working on projects with a limited scope

Suppose you have a small project with relatively precise (and static) requirements and scope. In that case, the V-shaped software development process is ideal. Instead of risking following a plan only to discover flaws at the end, it gives you plenty of opportunities to test along the way.

c/ V-Shaped isn’t best suited for:

Teams that require more flexibility and early user input

Even the best-laid plans go astray from time to time. And the process’ drawbacks are essentially the polar opposite of its benefits.

For starters, you don’t have much control because you’re following a strict structure and testing schedule. You still run the risk of building the wrong software for your business if you don’t get early input and feedback from your users. Finally, if you’re working on anything other than a small, simple project, it’s nearly impossible to create a detailed development plan ahead of time.

5. Spiral

The V-shaped process’ focus on testing and risk assessment is combined with the incremental nature of Iterative, Incremental, and Agile in the Spiral software development process. Once a plan for a specific iteration or milestone has been established, the next step is to conduct a thorough risk analysis to identify any errors or areas of high risk.

Let’s say you develop a feature that hasn’t been validated with customers as part of your strategy. You could create a prototype to test with users before moving into the full development phase, rather than just adding it to your current milestone. After each milestone is completed, the scope expands out (like a spiral), and you begin planning and another risk assessment.

a/ Spiral SDLC

1. Planning
2. Risk Assessment
3. Development and validation
4. Evaluate results and plan next “loop”

b/ Spiral is best suited for:

Working on large projects with risk-averse teams

Clearly, the main goal of such a procedure is to lower risk. Following a path like this might make sense if you’re working on a large or critical project requiring much documentation and validation. It’s also helpful if a customer isn’t sure exactly what they want and expects a lot of changes as the product develops.

c/ Spiral isn’t best suited for:

The majority of people

The spiral software development process, while unique in principle, is rarely used in practice due to the time and costs associated with taking such a measured approach. Instead, it’s usually utilized as an example of how to critically consider an iterative development strategy.

What’s The Difference Between Incremental, Iterative, and Agile?

There are a few key differences between them, despite their similarity. The incremental approach creates a fully functional feature with each increment. You build small portions of all features during iterative development. Agile, on the other hand, is a hybrid approach that incorporates elements from both approaches. You build a small portion of each feature one at a time during each Agile sprint, and then gradually add functionality and new features over time.

What are The 05 Basic Steps of Software Development Process?

At its most basic level, the software design process involves five stages: research, ideation, design, development, and iteration. These five aspects correspond to the most basic "who, what, when, where, and how" inquiries that must be answered in order to fully answer any collection of questions.

How Much Does It Cost To Develop a Software?

When it comes to software development, the cost can vary widely based on several key factors. These include the complexity of the software, the technology stack used, the geographic location of the development team, and the level of expertise required. For a detailed analysis tailored to your specific project needs, you might want to consult with a professional software development company. For a deeper dive into this topic, including a breakdown of costs by project type and tips on how to budget effectively, check out: How Much Does Software Development Cost?

In such situations, it’s prudent to consider a hiring model known as staff augmentation. Staff augmentation is a strategy where organizations expand their in-house teams by adding temporary staff who possess the skills and expertise needed for a specific project. This approach allows companies to quickly onboard skilled professionals, eliminating the need for a lengthy hiring process. It’s especially effective when the organization has a temporary increase in workload or requires niche skills that are not present in their existing team. 

1. What is And How Does Staff Augmentation Work?

Staff augmentation is a strategic approach used by businesses, particularly within the IT industry, to enhance their capabilities and workforce without the long-term commitment of hiring full-time employees. It offers a flexible and cost-effective solution for companies to temporarily fill skill gaps, address high workloads, or complete specific projects. Through staff augmentation, companies can swiftly acquire highly skilled professionals and easily adapt to changing project requirements or market demands.

This approach is especially useful in the ever-evolving world of software development, where technological advancements and the need for specialized expertise are constantly on the rise. Below, we delve deeper into the various aspects of this resource augmentation method, its benefits, and how it can be utilized effectively by organizations.

What is Staff Augmentation:

• A model where a company temporarily expands its in-house staff by hiring one or more outsourcing IT specialists.
• The extended development team or a software development company works closely with the company’s existing employees for a short period.
• It is a practical solution for short-term projects or when specialized skills are needed for a specific project.

Example of Staff Augmentation:

When a company faces a project that requires expertise outside the scope of their existing team, staff augmentation can be a valuable solution. This approach allows a company to bring in specialists to work on specific projects without the lengthy process of traditional recruitment.

• A company wants to update its internal CRM system but lacks the required specialists or experience.
• Instead of a lengthy recruitment process, the company hires an outsourcing software development vendor.
• The vendor selects competent engineers who have worked on similar projects and sends their CVs to the hiring company.
• The hiring company interviews and selects the best candidates to work on the project.

Common Types Of Staff Augmentation Model:

Diverse projects call for distinct staff augmentation models, with variations based on project timelines and geographical considerations

• Short-term Augmentation: Suitable for small projects, when the in-house team is unavailable or there’s a high demand for developers.
• Long-term Augmentation: Used to fill a skill gap, reduce time for in-house staff employment, or cut costs; suitable for prolonged projects.
• Nearshore Augmentation: This model involves collaborating with an extended development team in a nearby region, providing advantages like similar time zones and cultural compatibility. 
• Offshore Augmentation: Collaborating with an extended development team in a distant geographical region which offers advantages like access to a diverse talent pool, potential cost savings, and around-the-clock productivity

Further Classifications of Staff Augmentation:

• Commodity Augmentation: Used when your project requires trustworthy specialists without a specific skill set for jobs such as manufacturing, warehouse work, or physical labor.
• Skill-based Augmentation: Suitable when you need a reliable team for tasks requiring specific skills, like spreadsheet use or typing.
• Highly Skilled Augmentation: Used when your project requires advanced skills that can only be obtained through extensive training and experience

2. So, When Should You Use Staff Augmentation Services?

Staff augmentation, as a strategy, holds significant implications for various business domains, particularly in the face of pressing personnel shortages, which are especially pronounced in the IT sector. The concept of staff augmentation encompasses the temporary hiring of skilled professionals from external sources to augment a company’s existing workforce. This strategy allows businesses to access the necessary expertise and skills required to execute specific projects or manage sudden workloads without the long-term commitment of hiring permanent employees.

The value of staff augmentation in addressing workforce challenges is further highlighted in CompTIA’s Workforce and Learning Trends Report. The report reveals that, during the pandemic, 40% of businesses continued to employ their personnel, and a notable 66% of companies have plans to continue doing so in the future. These statistics reflect a growing recognition among businesses of the importance of a flexible and scalable workforce, especially in times of unpredictability and change. 

Staff augmentation is particularly suited to businesses that meet the following criteria:

Possess an Established In-House Team

If you already have an in-house team in place, staff augmentation can be an excellent approach to bolster your workforce and fill specific skill gaps. It allows you to bring in experts with a particular tech stack or specialized IT fields to complement your existing team.

• Extending your existing in-house team.
• Bringing in professionals capable of performing specific workflow tasks or providing expertise in particular IT fields, such as automated QA, back-end development, blockchain, IoT, data science, and more.

Require Rapid Team Expansion

If you need to quickly bring in personnel with specific expertise, staff augmentation offers a faster alternative to traditional hiring. It allows you to save time by accessing a pool of qualified professionals readily available through vendors.

• Enables access to professionals with expertise in areas such as IoT, Dart, healthcare software development, and more.
• Reduces the time spent on searching for candidates by allowing you to review developers’ CVs and conduct interviews through vendors.

Have a Tech-Savvy Manager on Board

Staff augmentation requires effective management on your side. With augmented staff reporting directly to your company’s CTO or PM, having a knowledgeable and experienced manager is essential for successful collaboration and project execution.

• Management from your side, maintaining control over product development and team dynamics.
• A tech-savvy manager, preferably a CTO or PM, with sufficient experience and domain knowledge.

Seek Professionals with High-Level Skills

Staff augmentation projects typically involve skilled professionals who bring valuable expertise to your team. It’s a suitable approach if you need experienced engineers who can quickly adapt to your project and working environment.

• Experienced engineers with skills honed through training and experience.
• Rarely involve junior developers, as projects usually require immediate expertise without time for training.

Prioritize Effective Communication with the Team

If you want to maintain full control over your project and have direct communication with every team member, an augmented team can meet your requirements. Augmented staff integrates into your in-house team and reports directly to you, ensuring clear and efficient communication.

• Direct control over your project and team members.
• Daily reporting from team members who are part of the in-house team and subordinated to you.

In summary, staff augmentation is a flexible and efficient approach to expanding your workforce, accessing specific skills, and maintaining control over your project. By understanding your needs and utilizing staff augmentation effectively, you can achieve your project goals more effectively.

3. Staff Augmentation vs Outsourcing

Outsourcing offers a streamlined approach to the hiring process, providing businesses with two primary models for external collaboration: staff augmentation and project-based outsourcing. To help you understand the concept of staff augmentation and how it differs from project-based outsourcing, we’ve outlined the key distinctions between these two models in the table below.

Which is the better choice: staff augmentation services or project-based outsourcing?

Savvycom is thrilled to offer both staff augmentation services and top-notch outsourcing teams for hire! Why consider outsourcing with Savvycom? Here’s why:

• Embrace the agility! Adapt your project swiftly to dynamic plan alterations.
• Say goodbye to the hassles and costs of hiring, administration, or training processes.
• Gain access to specialists brimming with extensive experience in IT development outsourcing.
• Flex and bend! Our outsourcing model is tailor-made to effortlessly adapt to your unique business needs.

But wait, there are instances when staff augmentation services might be the perfect match for your needs. Let’s dive into those scenarios!

4. Staff Augmentation Benefits Unveiled

Dive into the world of resource staff augmentation and discover a treasure trove of advantages. From the immediate perks, like saying farewell to hardware or software development costs and the burden of office rent and taxes, to enjoying the nimbleness of a cost-effective and speedy hiring process. Let’s uncover more of the riches that await you.

Resource-Saving Marvels

Say goodbye to the days of reaching out to recruiting agencies or burdening your internal recruiters. With staff augmentation, you’ll save precious resources, freeing up time for your team leads and avoiding the laborious task of sifting through test tasks and conducting endless interviews. It’s all about aligning with your vendor’s timeframe. For example, at Cleveroad, clients can typically expect the perfect candidates to be on board within just 1-3 short days. The magic of efficient hiring is now at your fingertips.

Unleash Your Flexibility

The world of staff augmentation is your playground, where you can hire as many IT maestros as your heart desires. With the sheer ease of scaling your augmented team up or down, you’ll have the freedom to start with a diverse mix of talents, like two iOS developers, two QA engineers, and a UI/UX designer, and then streamline to focus solely on iOS or Android development. And the cherry on top? You can tailor your budgeting needs, agreeing on payment plans, hourly rates, and other finer details with your augmented vendor. Flexibility has never been so sweet.

Direct Communication – Your Way

Venture into the realm of outsourcing web or software development, and your vendor will be your guiding star, taking care of every little detail. However, with the power of staff augmentation, you hold the reins. You’ll be in the driver’s seat, personally assigning tasks, orchestrating sprints, and orchestrating the process with ease using your trusted corporate project management tools, like Jira, Confluence, and Trello. With developers reporting directly to you and being always within reach, you’ll enjoy seamless communication and full control.

High Productivity, Sky’s the Limit

Discover the magic of staff augmentation, where your team is wholly immersed in your project, pouring their time and energy into it. Their dedication and focus translate into unparalleled efficiency levels, outshining an outsourcing team juggling multiple projects simultaneously. Experience the benefits of IT staff augmentation services that truly make a difference.

Growth and Adaptability, Unleashed

Embrace the power of flexible hiring, letting you dip your toes into expansion without the weighty commitment of a full-time workforce. With team augmentation services, your growing business can explore new horizons, hiring project-based talent to test the waters of market acceptance without risking failure or investment loss.

Affordable Prices, Tailored to You

If employing full-time specialists seems out of reach, consider the beauty of hiring an augmented team. The cost of staff augmentation services factors in hourly rates, covering essentials like office rent, hardware, software, and training expenses. And the best part? Their price tag is typically more budget-friendly than in-house development services.

And now, for the grand finale! Vietnam takes the spotlight as a prime destination for outsourcing and outstaffing IT development. With its enticing quality-price ratio, vibrant technological ecosystem, vast pool of tech experts, and language barrier-free environment, it’s a true gem for businesses seeking top-notch IT talent. Unleash your potential with staff augmentation services that truly deliver.

5. Staff Augmentation Challenges Explored

While the allure of staff augmentation offers a bevy of benefits, it is imperative to be aware of the potential challenges that can arise. Being forewarned is being forearmed, and addressing these challenges head-on can help you navigate the complexities and reap the rewards of staff augmentation with ease.

Language & Time Hurdles

At the forefront of staff augmentation challenges lie the hurdles of language and time. The language barrier, a common obstacle, can lead to misunderstandings and miscommunication during the development process due to varying levels of English proficiency. To avoid this pitfall, take the initiative to assess the vendor’s English language proficiency, speak with company representatives, or engage directly with each team member.

Additionally, time zone differences can pose logistical difficulties for effective communication and collaboration. Alleviate this challenge by establishing a well-structured meeting schedule that accommodates all parties involved. In doing so, you can foster seamless communication and enhance the value of resource and staff augmentation.

Quality Assurance

Quality control is a critical concern, as subpar performance by developers can lead to project delays, cost overruns, and serious security risks for end-users. Managers who prioritize cost savings over other considerations may be particularly susceptible to this challenge. The solution is straightforward: conduct thorough vetting of the engineering team, including soliciting feedback from previous clients of the vendor, to ensure they have the necessary skills and competence to meet your staff augmentation requirements.

Security Matters

In the staff augmentation business model, security is paramount, as it involves integrating a third party into your internal operations. Safeguarding the security and privacy of both clients and projects is essential and non-negotiable. To mitigate security risks, staff augmentation companies should conduct regular security audits and adhere to all protocols for obtaining signed NDAs from the augmented staff, thereby ensuring complete security.

Technical Proficiency

Sometimes, the performance of an augmented team may fall short of expectations, particularly if the recruitment process was rushed. A thorough selection process is the key to success: scrutinize the candidate’s portfolio, focusing on their experience in your domain of interest, and assess their technical proficiency. Keep in mind that vendors typically do not assign a project manager, oversee development, or take responsibility for staff augmentation solutions. Hence, it is crucial to have a tech lead or CTO with ample experience and domain knowledge to effectively manage the team.

By acknowledging and addressing these challenges, you can effectively navigate the world of staff augmentation and harness its full potential to achieve your business goals.

6. How Staff Augmentation Works at Savvycom

Savvycom, a leading IT company in Vietnam, has been offering comprehensive software development services for over a decade. This includes, among other things, full-cycle mobile app development and web development services. Staff augmentation has been a frequent request from our clients, and with our extensive experience in this area, we are eager to share more about how the staff augmentation process works at Savvycom:

1. Initial Contact – The staff augmentation process at Savvycom kicks off when clients reach out to us to bolster their in-house teams. Our managers take the time to carefully understand and analyze these requests. Following this, a subsequent discussion is scheduled with the client to delve deeper into the specific details, such as the desired qualifications of the developers or the particulars of the staff augmentation contract.
2. Selection of Developers – Once we have a clear understanding of the client’s requirements, we meticulously identify and select the specialists with the requisite skill sets that align with the client’s needs. We then forward their CVs to the client for review and consideration.
3. Interview Process – After the client approves the CVs, the chosen specialists are subjected to a technical interview to assess their skills and competency. On occasion, the interview process may be conducted in two stages – initially with the CTO and subsequently with the CEO or product owners.
4. Contract Signing – Upon successful completion of the interview process and when all parties are satisfied, a contract is drawn up and signed, officially bringing the selected developers on board to become part of the project team.

At Savvycom, we pride ourselves on our proficiency and commitment to excellence, ensuring that the staff augmentation process is smooth and efficient, and that our clients are matched with the ideal candidates to achieve their project goals.

What is staff augmentation?

Staff augmentation is a strategy that allows companies to add skilled external talent to their internal teams on a short-term or long-term basis, depending on project needs.

How is staff augmentation different from outsourcing?

While both involve acquiring external talent, outsourcing generally involves transferring an entire function or project to a third-party provider. In contrast, staff augmentation involves adding individual professionals to complement an existing team.

What are the main benefits of staff augmentation?

1. Flexibility in scaling up or down based on project needs.
2. Cost savings due to reduced overhead and recruitment expenses.
3. Access to specialized skills that may not be readily available internally.
4. Ability to quickly respond to project demands without long-term commitments.

Are there any disadvantages?

1. Integration challenges with existing teams.
2. Potential concerns over intellectual property and confidentiality.
3. Possible cultural or communication barriers.

How do companies ensure a good fit when augmenting staff?

Companies often engage with trusted staff augmentation providers that pre-screen candidates, ensure cultural fit, and offer specialized skills aligned with project requirements.

Is staff augmentation only applicable to IT?

If managed properly, augmented staff can blend seamlessly into company culture. However, it's essential to ensure communication, onboarding, and integration processes are in place.

How to manage staff augmentation?

To manage staff augmentation effectively, establish clear communication channels, define project goals and timelines, provide adequate onboarding and training, regularly monitor progress & feedback, and ensure close integration with your existing team and company culture.

In this article, we, Vietnam’s leading software development company, will go over which project elements should be estimated, the many available projects estimating approaches, and how to get started with estimation techniques that greatly help with software project estimation in software engineering.

1. What Is Software Project Estimation?

In short, project estimation is a complex process that revolved around predicting the time, cost, and scope that a project requires to be deemed finished. But in terms of software development or software engineering, it also takes the experience of the software outsourcing company, the technique they have to utilize, the process they need to follow in order to finish the project (Software Development Life Cycle). Project Estimation requires the use of complex tools & good mathematical as well as knowledge about planning.

In most cases, the whole estimation process would cost the company rather considerable cost & time at the very first stage of developing a brand new website, app, or software. However, this will act as the stepping stone to make the final result more credible, realistic, and customer-satisfying.

Whether big or small, every project is advised to employ project estimation as a crucial step to avoid unpredictable failure in the future.

2. Which Estimations Take Place During A Project?

Ultimately, there are six critical elements of a project that benefit from the use of project estimating techniques.

2.1. Cost

In project management, cost is one of the three primary constraints. The project will fail if you do not have sufficient funds to complete it. You can help set client expectations and ensure you have enough money to complete the work if you can accurately estimate project costs early on. Estimating costs entails determining how much money you’ll need and when you’ll need it.

2.2. Time

Another of the project’s three main constraints is the lack of time. It is critical for project planning to be able to estimate both the overall project duration and the timing of individual tasks.

You can plan for people and resources to be available when you need them if you estimate your project schedule ahead of time. It also enables you to manage client expectations for key deliverables.

2.3. Size or Scope

The third major project constraint is scope. The project scope refers to all of the tasks that must be completed in order to complete the project or deliver a product. You can ensure that you have the right materials and expertise on the project by estimating how much work is involved and exactly what tasks must be completed.

Three sides of a triangle are often used to describe the three main constraints. This is because any changes to one constraint will inevitably have an effect on the other two. You need to know the scope and schedule to accurately estimate the budget. If one of the three estimates turns out to be higher or lower than you anticipated, the other two are likely to be off as well.

2.4. Risk

Any unforeseen event that could positively or negatively impact your project is referred to as project risk. Estimating risk entails predicting what events will occur during the project’s life cycle and how serious they will be.

You can better plan for potential issues and create risk management plans if you estimate what risks could affect your project and how they will affect it.

2.5. Resources

The assets you’ll need to complete the project are known as project resources. Tools, people, materials, subcontractors, software, and other resources are all examples of resources. Resource management ensures that you have all of the resources you require and make the best use of them.

It’s challenging to plan how you’ll manage resources without knowing what you’ll need and when. This can result in people sitting around doing nothing or materials arriving weeks after you need them. 

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2.6. Quality

Quality is concerned with the completion of project deliverables. Products that must adhere to stringent quality standards, such as environmental regulations, may require more money, time, and other resources than those with lower standards.

Estimating the level of quality required by the customer aids in the planning and estimating the remaining five aspects of your project.  Because all six project factors are interconnected, forecasts for one can have an impact on forecasts for the other five.

As a result, applying the same software project estimation techniques to all six areas can help you improve your accuracy.

3. When To Do Project Estimation In Software Engineering?

By definition, estimating is a forecast. And according to a McKinsey report, overruns occur in 66% of all software development projects. This means that most of them fail to meet deadlines, go over budget, and deliver fewer features than expected. There could be various reasons for this, but at Savvycom, we often think that determining a transparent software development process prevents late deliveries and budget overruns.

3.1. Waterfall

The planning phase follows the project initiation in a traditional Waterfall project. Estimates for the six project aspects discussed above will be created and documented during this stage.

Estimates may be revised as new information becomes available throughout the project. Your project risk estimates, for example, will need to be updated as unknown risks are discovered.

3.2. Agile

Agile projects use a more iterative planning process. Projects are typically divided into iterations or sprints in most Agile frameworks. Estimates would be made at the start of the project, when the overall project backlog (list of features and requirements) was being created, and then again during each sprint.

Estimation can take place during the sprint retrospective as you update the backlog based on the sprint results. It can also happen during each new sprint’s planning session.

4. Project Estimation Techniques In Software Engineering?

“Making a workable project estimation that is precise and accurate takes the discipline of a surgeon.” – Savvycom

There is no one-size-fits-all solution, as evidenced by the variety of methods available. Making a perfect forecast that addresses all potential issues is extremely difficult. Software development is a dynamic process in which programmers are constantly learning new technologies and making new discoveries. This has a significant impact on the estimate.

However, throughout a decade of coding, our team at Savvycom has pointed out a few outstanding projects estimation techniques. We also recommend find out about this work breakdown structure guide.

4.1. Top-down Estimate

Top-down estimating assigns an overall time for the project and then breaks it down into individual phases, work, and tasks based on the work breakdown structure of your project (WBS).

If a client specifies that the project must be completed in six months, a top-down approach allows you to take that overall timeline and estimate how much time you can commit to each project activity while still meeting the deadline that has been given by the client.

4.2. Bottom-up Estimate

A bottom-up estimate is the polar opposite of a top-down estimate. You begin by estimating each individual task or aspect of the project using this method. Then you add all of the individual estimates together to create the overall project estimate.

This type of estimate is more accurate than the top-down approach because each activity is assessed individually. However, it takes longer to have a completed software estimation and requires more effort from the project manager as well as business analyst.

4.3. Expert Judgment

Expert judgment is one of the most widely used estimation techniques because it is quick and simple. To estimate projects, this method relies on the expertise and intuition of experts.

It’s most useful when you’re planning a standard project that your team has previously completed or has knowledge about. Top-down and bottom-up estimates can both be made using expert judgment.

4.4. Comparative or Analogous Estimation

To estimate project duration, comparative estimation employs past project data and a top-down approach. If similar projects took an average of eight months to complete, you’d expect the current one to take the same amount of time. Then, to get your lower-level work estimates, divide those eight months into tasks and activities.

4.5. Parametric Model Estimating

Parametric modeling makes use of previous project data as well, but it tries to adjust the data each time to reflect the differences between each project. This method estimates the current project by pro-rating the details of previous projects that you have completed.

Assume your firm is in the business of building homes. To calculate the average project cost per square foot of the house, use metric modeling to divide the total cost of all previous construction projects by the square footage of each project. Then you’d multiply that number by the current home’s planned square footage to get your overall project budget.

4.6. Three-point Estimating

Three-point estimating is a technique for generating bottom-up estimates that are sometimes used. You could assign three durations to a task instead of one; it may look like these: optimistic, pessimistic, and most likely. Your actual estimate is calculated by averaging these three numbers.

The PERT (Program Evaluation and Review Technique) method employs three-point estimating, but it uses a weighted average of the three, with the “most likely” guess receiving the most weight.

5. Step by Step to a Successful Software Project Estimation

Like what we’ve mentioned above: estimation’s goal is to predict the amount of money, resources, and time required to complete a project. But there is a lot to consider depending on the estimation case, be it a new project, changing teams for an ongoing project, or just contemplating a new idea for investment.

We have listed below a few tips to help you better visualize your future development plan:

5.1. Define Project Type and Environment

It’s critical to think about the framework in which the project will be executed before you start working on project estimation. In the world of project management, the two most common types of projects are waterfall (also known as cascade) and agile. Frameworks and methodologies for each type exist, including Prince2 (waterfall), Scrum (agile), Extreme Programming (agile), and others.

5.2. Understanding The Scope Of Work

When it comes to determining the size of your project, it’s crucial to decide what you want to accomplish and how far you want to go. According to reference material, there could be breakdowns in some functions. A detailed description of the probable scope and elements of the system will be provided.

Without considering these factors, the estimating work can become more unpredictable and challenging in some circumstances:

• Encourage conversation to improve understanding.
• You can learn a lot from the existing products similar to the ones you will develop.
• Spend more time researching the industry.

5.3. Prioritizing Tasks In The Project

Money, time, and manpower estimates and constraints on the project make achieving the stated goals considerably more difficult. The value of each functional priority must be clarified in these scenarios in order to concentrate on the most critical ones.

A precise estimate of the project’s priorities from the start would also help keep it on schedule. A lot of time and effort could be saved if fewer revisions and additional needs are required during the development process.

5.4. Choosing Estimation Techniques

Software development project estimation is often laborious and time-consuming. If done poorly, it may result in a client’s disappointment. You can choose from several methods and techniques that we have listed above.

5.5. Write Down Every Possibilities

During the estimation process, it is impossible to specify all conceivable assumptions. However, it is preferable to address as many of them as possible in order to prevent any potential for uncertainty. This will help the parties involved in the estimation process to have a better knowledge of each other.

5.6. Revising Your Estimation

As the saying goes, “Two heads are better than one.” While working on a software estimation project, revising with other estimators can help you anticipate projects much faster and more precisely. The only possible drawback is the time constraint involved. More people equals more ideas, as the saying goes. In this case, you – the project manager must be able to make an informed decision as to what suggestions and what changes to implement.

5.7. Use Software Estimation Tools

There are several software solutions used for estimation. While they won’t do the entire work for you, they will make it easier:

• For this, GitLab, Jira, and other Agile task management services can be used. The man-hours spent on each task can be tracked using time tracking software. This will serve as a reminder in the future.
• Redmine‘s cost estimation add-on makes calculations simple. It lets you set an hourly rate for each task and calculates the total.
• EcoSys can keep track of changes and link man-hours to costs. In a comprehensive table, it provides a complete estimate.
• Google Sheets and Microsoft Excel are also popular. They have calculation capabilities and are more user-friendly.

5.8. Special Request From Client

“The customer is always right” has to be one of the oldest sayings in the book when it comes to basically every buying or selling activity. Some clients may have special requests for their products. However, when the demand is too far-fetch, and over the horizon, you need to explain it to them. If it is done right, it becomes a framework for the evaluation of all future products that may lead to success.

How Do You Estimate a Software Project? | The Quick Guide

1. Break down the work into smaller tasks
2. Don't assume without asking questions
3. Propose adjusting the requirement
4. Factor in your degree of confidence
5. Agree on a sequence for estimating
6. Set a maximum time limit for each task

Why is Software Estimation So Hard?

Until around 2011 or so, most development teams used the Waterfall methodology to plan projects. Waterfall requires all the specifications of a software project to be defined upfront, which is very helpful to the estimation process.

But now, everyone is shifting their attention to Agile (Kanban, Scrum, etc.). Products are shaped through ongoing stakeholder conversations, and what is delivered may not precisely resemble the initial concept. MVPs (Minimum Viable Products) are released quickly, feedback is obtained, and improvements are made iteratively. While Agile has proved its value as a development framework, it has complicated things from a planning perspective.

So the question we need to answer now is: “How can we accurately estimate within a framework that thrives on continuous unplanned change?”

Which are The Difficulties For Both Front- and Back-end Developers?

Front-end Developers:

• They only receive wireframes for the design.
• The designs look easy, but there are no descriptions of animations.
• They get no specifications for different devices and screen sizes.
• The client doesn't actually know what they want until they see it.
• The client assumes that something is easy to achieve if they’ve seen it on another site.

Back-end Developers:

• The task description isn’t detailed enough.
• You’re new to the project, so you’re either missing the big picture or not understanding the overall business logic.
• The project uses 3rd-party services you aren’t familiar with.
• The project uses a technology you aren’t that comfortable with.
• The project’s requirements change as it progresses (holds true for front-end developers as well).

In this article, we will delve into every aspect of .NET software development, including its features, pricing, and recommendations for some of the best .NET application development services offered by leading software development companies.

1. What Are The Advantages of .Net?

“The .NET Framework (pronounced as “dot net”) is a software framework developed by Microsoft that runs primarily on Microsoft Windows. It includes a large class library called Framework Class Library (FCL) and provides language interoperability (each language can use code written in other languages) across several programming languages.

Programs written for .NET Framework execute in a software environment (in contrast to a hardware environment) named the Common Language Runtime (CLR). The CLR is an application virtual machine that provides services such as security, memory management, and exception handling.

As such, computer code written using .NET Framework is called “managed code”. FCL and CLR together constitute the .NET Framework.” – Wikipedia

The .NET Framework is a programming model that allows you to create and run apps for Windows, Windows Server, Windows Phone, Microsoft Azure, and XML Web services. Microsoft developed it, and it runs on Microsoft Windows. The Framework Class Library (FCL) is a comprehensive class library that offers language interoperability across many programming languages. The Common Language Runtime (CLR) is another component of the.NET Framework.

Long development times, inability to update applications rapidly, the high total cost of software ownership, and ease of deployment are only a few of the issues this Framework was created to address.

1.1. Why Companies Prefer .Net?

Microsoft’s .NET framework is one of the most widely used frameworks for developing software applications ranging from web to smartphone to Windows.

.NET framework can be easily used for the programming languages C#, C++, and VB.NET Shop. In addition, framework Class Library (FCL) and Common Language Runtime (CLR) are usually held by .NET (CLR).

1.2. The Advantages of Using .Net Software Development

• Platform Independence

.NET can be used to build any kind of application on any platform. Simply put, it is platform-agnostic (that is, it works on all platforms). For example, a .NET application development can run on various operating systems such as Android, iOS, Windows, and so on. .NET provides you with any possible solution when developing apps.

• Language support and easy deployment 

According to research, .NET currently supports 44 different languages. You have the option of using any language you like in your application. Another significant benefit is the ease with which .NET can be deployed. It offers support for application creation since it contains library class files.

• Best Architecture with Easy User Interface 

.NET Framework is a free and open-source website. For application development, you’ll need a powerful and dynamic IDE (Integrated Development Environment).

You can provide a practical application using the best-in-class architecture known as MVC (Model-View-Controller) architecture and an easy-to-use interface and better UI controls.

• Higher Performance

.NET is swift, as it includes just-in-time compilation, and it delivers a sensitive result due to its speed and higher performance. In addition, the response time is short with better dynamic user interface combined with an excellent versatile method that will satisfy any developers.

• Security, Reliability, Compatibility, and Scalability

⇒ .NET is a highly secure platform for developing secure software.

⇒ .NET is still a safe and secure platform to work on.

⇒ You can reuse code and components with other device tasks because .NET is compatible.

⇒ .NET is more scalable and robust in any situation, and it loads faster.

2. The Applications of .Net

According to Stackoverflow’s survey in 2018 and 2019, .Net usage is only increasing, and businesses need to understand how they can and should be leveraging .NET in their software projects.

2.1. Website & Mobile App Development

The more modern version is ASP.NET Core, which is used to create interactive websites and web applications. The.NET framework is suitable for web applications since it works on almost every platform and supports operating systems such as Android, Windows, and iOS — it’s challenging to find something that the framework doesn’t support.

It’s difficult to compete with such a high degree of usability, particularly when it comes to app growth.

2.2. Desktop App & Game Development

With .NET, developers can target over 25+ different platforms with a single code base. Game Studios can make games for, but not limited to, Windows, macOS, Linux, Android, iOS, Xbox, PlayStation, Nintendo, and mixed reality devices. The .NET Android app development capabilities further enhance its versatility.

C# is the most popular programming language in game development. The wider .NET community is also significant. There is no lack of expertise and support you can find from individuals and user groups, locally or online.

2.3. Microservices

Microservices are services that are lightweight, scalable, and deployable independently. Docker containers (for Linux and Windows) make deployment and testing more manageable by combining service and its dependencies into a single unit that can be run in isolation.

2.4. Machine Learning

ML.NET is a free, open-source, cross-platform machine learning framework made specifically for .NET software developers. With ML.NET, developers can develop and integrate custom machine learning models into .NET applications without needing prior machine learning experience.

ML.NET is an extensible platform, with tooling in Visual Studio and a cross-platform CLI that powers recognized Microsoft features like Windows Hello, Bing Ads, PowerPoint Design Ideas, and more.

2.5. Cloud App

.NET enables you to build fast, modern, and scalable cloud applications on all major cloud platforms. Azure is the best cloud for .NET developers because it was built with .NET software developers in mind. As a result, hundreds of Azure products run .NET natively and are integrated with Visual Studio developer tools.

Use project templates to get started faster and powerful debugging, publishing, and CI/CD tools to be more productive with cloud app development, deployment, and monitoring.

2.6. Internet of Things App

.NET is highly scalable and efficient, making it ideal for IoT device programming due to its interoperability and high performance. .NET has all of the characteristics needed for IoT software creation. ASP.NET Core, in particular, provides a robust toolkit with best-in-class security and out-of-the-box performance as well as cloud integration.

IoT is now widely used in several industries for various applications, and.NET supports hundreds of sensors, displays, and input devices and operates on a variety of platforms and architectures, including popular IoT boards like the Raspberry Pi and Hummingboard.

3. What Are the Pros of .NET?

3.1. Object-Oriented Software Development Model

.NET is based on object-oriented programming (OOP). OOP is a development model for breaking down software into smaller pieces that are easier to manage and combine. OOP compartmentalizes data into objects, i.e., data fields, and describes objects’ behavior and contents through the declaration of classes.

A modular structure helps define the behavior of objects and their interactions without managing inner object attributes. OOP simplifies programming by making the code manageable, easier to test, and respond to recurring issues. It also eliminates unnecessary programming and generally means less coding for developers. .NET makes it possible to reuse code and components and save time and development costs.

3.2. Reliable and Simple Caching System

Caching means keeping data in a temporary storage place to call it faster when needed. The stored data results from an earlier information request or the duplicate of information stored in other areas that would take longer to retrieve.

The caching system in .NET is robust and straightforward to use, and it’s also designed to be extensible. The Object Cache class allows developers to create a custom cache implementation to improve the performance and scalability of Windows client and server applications.

3.3. Visual Studio IDE

An Integrated Development Environment (IDE) is a single product for programmers that makes application development more accessible by providing all the tools needed to write and test software.

Visual Studio is a Microsoft IDE used for building, debugging, and publishing applications across all platforms, including Android and iOS. Visual Studio is integrated with .NET and provides the features of a language-specific environment.

The key features of the Visual Studio IDE:

• It’s used as a single IDE for all .NET applications.
• The IDE has integrated compilation and debugging features.
• Collaborative features include a Git-first workflow, real-time collaboration on the same codebase, and integrated code reviews.
• The solution can be used for applications based on code written in different languages.
• Visual Studio allows for customizing the environment to match user preferences.

Additionally, Visual Studio Marketplace offers a wide range of editor extensions from Microsoft and other providers to enable team collaboration, continuous integration, third-party connections, cloud development management, etc.

3.4. Cross-Platform Design of .NET Core

.NET Core is a cross-platform .NET implementation that allows the code to run on macOS, Windows, and Linux. Unlike the original .NET framework – which is not entirely open – .NET Core has a fully open-source code that ensures that a vast engineering community can continuously contribute to its development.

If you’re writing in C#, F#, or Visual Basic, your code will run on each compatible operating system. This enables companies to reach the widest variety of platforms while staying within the .NET ecosystem. At the same time, the cross-platform design ensures that the whole .NET community, with a large pool of different engineering skillsets, shares the experience.

3.5. Flexible Deployment and Easy Maintenance

One of the critical .NET Core features is flexible deployment. It can be installed as a part of your application or require a separate installation. The modular design contemplates including all the dependencies you need, and the deployment itself is as easy as copying a folder.

Another benefit is having multiple .NET Core versions running side by side on the same machine to cover different projects and seamlessly perform deployment tasks.

3.6. Universal .NET Standard

Since 2016, the .NET ecosystem has been enhanced with an extensive class library called .NET Standard. It’s based on the number of base class libraries for .NET Framework, .NET Core, and Xamarin. These are used to work with standard functions such as graphics rendering, database interaction, and manipulations with XML documents. The .NET Standard library greatly simplified developers’ work.

Before .NET Standard, a programmer had to redevelop an application or a library for the new platform and then distribute all the updates across various platforms. Currently, the library supports all dependent libraries across applications. However, you should check version compatibility to leverage .NET Standard successfully.

3.7. .NET Popularity and Community

For those of you who are wondering just how popular .NET is, a large community of .NET software developers is the answer. Interestingly, it unites engineers from small, midsize, and enterprise-grade companies. This means that almost any issue can be resolved with the help of community members.

Since .NET Core is open source, its libraries, runtime, and compiler are available on GitHub and have many contributions. According to the Stack Overflow 2021 survey, ASP.NET took fifth among the most popular web frameworks.

3.8. Automatic Monitoring in ASP.NET

ASP.NET has built-in automatic monitoring. The Windows Web Server strictly monitors web pages and applications that run on it. In case any issues such as memory leaks or infinite loops occur, it immediately alerts about them. This allows for directly correcting these behaviors and creating new processes. The monitoring ensures higher stability and transparency of .NET applications.

3.9. Powerful Roslyn and RyuJIT Compilers

.NET uses two compilers, Roslyn, to compile C# or VB code into CIL (common intermediate language), and RyuJIT, to run a just-in-time compilation of CIL into native code. The .NET community highly regards both compilers as Microsoft actively improves them.

Roslyn has been available since 2011. In 2014, it became open source and in 2015 was included in Visual Studio. Besides being open source, Roslyn exposes APIs to offer rich code analysis for the developer. Unlike traditional black-box compilation, with Roslyn, Microsoft Net developers can read the compilation data at every stage.

RyuJIT is responsible for compiling CIL to byte code. The full transition from the old JIT was completed in 2018 with the idea of improved performance. And generally, engineers agree that RyuJIT is faster. According to .NET 5 Preview 1 and Preview 2 released in spring 2020, numerous improvements to RyuJIT were made to enhance the quality of the machine code generated by JIT (“code quality” as Microsoft specialists call it). “In summary, about half of the following improvements are actual new optimizations, and the other half is due to changing the flow of RyuJIT to enable existing optimizations to apply to more code patterns,” noted .NET Team Program Manager Richard Lander.

3.10. Active Microsoft Support

Since .NET is Microsoft’s platform technology, you expect the company to support and develop it actively. But the point is that Microsoft is good at what they are doing. Perhaps there’s no other technology company with such a complete and coherent ecosystem that checks off all boxes for engineers, from IDEs and frameworks to cloud services.

As a leading .NET software development company, Microsoft does its best to evolve further. The transition to .NET Core was a significant step in ecosystem development, as it embraced the cloud and focused on performance improvements.

In 2018 Microsoft introduced the ML.NET framework for C# and F# languages. Also, let’s keep in mind the releases of .NET 5 and .NET 6 are already here, with .NET 7 being projected for 2022.

3.11. Easy Migration From .NET 5 to .NET 6

If you keep your applications constantly updated with the newest .NET versions, migrating from .NET 5.0 to .NET 6.0 won’t be a big headache. You first change the target framework from .NET 5.0 to .NET 6.0 on the Properties of your projects in Visual Studio 2022. Then you upgrade the rest of the packages within the project and run QA processes to see how everything performs.

Unlike the above, the migration from .NET Framework to .NET Core or between some .NET Core versions is not a walk in the park. In case your projects are based on earlier versions like .NET Core 3.1, migrating the app to .NET 5 before making a move towards the latest release is recommended.

4. What Are the Cons of .NET?

• Some Licensing Requirements. Not the entire ecosystem is open source. Some tools do require licensing, especially those released and distributed by Microsoft. Microsoft retains control over the product through the Microsoft Foundation.
• Memory Leaks. .NET has been known to experience memory leaks and issues caching. Of course, this is an issue for many languages — it’s not exclusive to .NET. Still, developers trying to produce lean products may be more inclined to use another language.
• Language. Though .NET supports programming in C#, F#, and Visual Basic, it doesn’t support all major programming languages. Developers who program in Java or Python, for instance, will not be able to program in .NET without learning another language entirely.

Some developers consider .NET an archaic or antiquated technology. While this may be true for earlier versions of the .NET Framework, .NET continues to grow and advance as an open-source product fueled by an active community. Additionally, embracing custom .NET software development allows developers to tailor solutions to specific business needs and overcome perceived language limitations.

5. Best Way To Hire .Net Software Developer

Another factual explanation given by Statista concerning .NET implementation is the framework’s use in 2020. Unlike other frameworks, libraries, and software, the survey discovered that 35.1 percent of respondents use .NET for different purposes, second only to Node.js.

5.1. Global .Net Developer Rate

With its place being high on the most used framework ranking list, most Python developer hourly rates range from $40 to $60 per hour globally.

5.2. Hire .Net Developer in Vietnam, Why?

Microsoft Net Developer hourly rates in Vietnam IT Market range from $20 to $40 depended on the experience and position of the developer.
Compared to hiring a developer in the United States or other countries like the UK, Netherlands, Ukraine, etc., the cost of hiring a developer in Vietnam is considerably lower. For example, a Vietnamese developer would cost you around 50 percent less than the global Python Outsourcing cost mentioned above.
According to TopDev’s report, Vietnam has about 400.000 IT Enginners and over 50.000 graduated IT Students from over 153 IT Institutions per year.

• Vietnam ranks 29th in terms of Skillvalue Worldwide in Developer Skills Chart Of Skill Value Report in 2018.
• Top 06 worldwide in Developer Skills Charts Of Topcoder Report in 2016.
• Rank 23rd worldwide in Developer Skills Charts of Hackerrank’s Report in 2016.

The .NET software outsourcing industry in Vietnam benefits from this robust IT ecosystem. And since the primary goal of outsourcing is to reduce costs, here at Savvycom, we always aim to provide the best possible quality at the most reasonable price for a growing business.

6. Conclusion

Dot Net Software is a Microsoft platform for creating apps, web software, and user interfaces. .NET is only one of Microsoft’s frameworks, but it’s the most common option for Windows servers on both local networks and in the cloud.

Priding itself as Asia’s leading software development company, Savvycom endeavors to provide comprehensive insights into development costs in this article. Let us delve into the intricacies of this subject matter.

6 Keys Factors Affecting App Development Cost

Developing an application incurs various expenses influenced by specific factors crucial for budgeting and planning. Let’s delve into these pivotal elements shaping application development costs:

• Complexity of features: Advanced functionalities or intricate algorithms drive up development costs as they demand more resources and expertise.
• Design requirements: Tailored and elaborate designs consume additional time and effort from designers, thereby impacting overall expenses.
• Mobile platforms and devices supported: Whether an app will be developed for iOS only or has an Android version as well. What specific devices hardware will it support, e.g. iPhone 13, iPhone 12 Mini, Samsung Galaxy S10 Plus, and so on.
• Development time: Longer development cycles directly correlate with higher costs, emphasizing the importance of efficiency in the development process.
• Third-party integrations: Incorporating external services, APIs, or software components amplifies complexity and may necessitate supplementary expenses.
• Maintenance and support: Post-launch activities such as maintenance, updates, and ongoing support significantly contribute to the overall cost of ownership, influencing expenses over time.

Considering these factors, there are typical benchmarks for app development project costs derived from comprehensive research conducted by various companies. These benchmarks provide valuable insights into estimating costs across different types of applications.

Type Of Application

The type of app you’re creating can really affect how much it costs to develop. Let’s break it down:

• Social Media Apps: Think Facebook, Instagram, Twitter.
• E-commerce Apps: Like Shoppe, Lazada, eBay.
• Gaming Apps: Examples include Wildrift, Simcity, Candy Crush Saga.
• Education Apps: Think Duolingo, Udemy.
• Healthcare and Fitness Apps: Like Mi Fitness, Medscape, MyFitnessPal.
• Travel Apps: Examples include Airbnb, TripAdvisor, Travelloka.
• Productivity Apps: Like Trello.
• On-Demand Apps: Think Grab, Uber, Postmates.

Each of these categories comes with its own set of requirements and complexities, which affects both time and cost. Below, you’ll find estimates for how much time and money it generally takes to develop each type of app, based on calculations from an app development cost calculator.

We can see that each type of application, serving a different purpose, will have different timelines and costs for building the application, depending on its intended use.

App development costs vary by region

Average price map of mobile application outsourcing

The costs of app development vary significantly across regions, reflecting the diverse economic landscapes worldwide. In North America, developers typically charge between $60 to $200 per hour, reflecting the region’s higher living standards and operational expenses. Similarly, Western Europe and the UK maintain rates ranging from $25 to $160 per hour.

Conversely, Eastern Europe offers more competitive pricing at $17 to $150 per hour, attributed to a growing talent pool with lower living costs. In Asia, particularly India, rates can be as low as $13 to $80 per hour, making it the most economical option. These variations arise from factors such as economic conditions, living expenses, access to skilled labor, and market demand. Understanding these regional distinctions is crucial for businesses aiming to optimize their app development budgets while ensuring high-quality outcomes.

Cost of hiring an app developer

When considering hiring an app developer, several factors affect the total cost and the choice of pricing model. Skilled developers charge higher rates due to their experience and expertise. There are different pricing models to choose from, such as fixed-price and hourly rates, which offer flexibility depending on project requirements and budget.

Experienced developers ensure a higher quality end product but may come with a higher cost. Conversely, less experienced developers may offer lower rates but could result in a less refined final product. For instance, hiring an in-house development team is one of the costliest options, with the average salary for a US-based app developer being approximately $113,125 per year. On the other hand, freelancers offer a more cost-effective solution, with average hourly rates ranging from $13 to $60, making them suitable for smaller projects or when specific expertise is required.

Ultimately, the choice of hiring option depends on the budget, project needs, and the desired level of involvement in the development process.

App maintenance cost

Application maintenance fees are also a necessary expense

Maintaining your app is like keeping your car in good shape—it’s crucial for its long-term performance and relevance. Usually, maintenance costs fall between 15% to 20% of what you initially spent on development. This includes things like updates, fixing bugs, beefing up security, and making sure the app runs smoothly.

Consistent support is key to keeping users happy and adjusting to their feedback and any new tech trends. As the digital world keeps changing, regular maintenance not only fixes problems now but also sets your app up for future success and keeps your users satisfied.

Cost for Each OS Platform

Each operating system comes with its own price tag. In this section, we’ll furnish you with cost estimates for various operating system platforms, including Android, iOS, and Hybrid.

IOS app

The cost of developing an iOS app can vary significantly, influenced by several factors. These factors include the complexity of the app, design specifications, and the necessity for custom algorithms. Moreover, given that iOS app development necessitates a Mac system and proficiency in Xcode, the availability of skilled developers familiar with these technologies can further influence the total cost. On average, the expenses associated with iOS app development typically fall within the range of $75,000 to $500,000 or higher, contingent upon the project’s scope and unique demands.

Android app

When it comes to developing an Android app, the average cost is subject to several influencing factors. These factors encompass the complexity of development, feature prerequisites, and the challenge posed by platform fragmentation due to the diverse array of Android devices. Ensuring compatibility across numerous devices and screen sizes can extend development timelines and inflate costs. Generally, Android app development expenses range from $50,000 to $500,000 or beyond, contingent upon project specifications and the degree of customization involved.

Hybrid app

A hybrid app is a mobile application that blends features of both native and web apps. It’s crafted using web technologies such as HTML, CSS, and JavaScript, yet it’s enclosed within a native container. However, it’s essential to note that while hybrid apps offer cost benefits, they may not always match the performance and user experience standards set by native apps.

Additionally, optimizing hybrid apps across various platforms might incur additional expenses. On average, the costs associated with hybrid app development typically fall within the range of $90,000 to $700,000, making it a compelling and cost-effective choice for businesses seeking cross-platform compatibility.”+

Real-World App Cost Breakdowns

Now that we have a solid grasp of the key considerations in “How much does it cost to develop an app?”, let’s delve into two practical examples for your reference in this section.

Tinder

Developing an app akin to Tinder involves several considerations like the features included, the complexity of the app, and how long it takes to build. Typically, the cost for such a project ranges from $25,000 to $120,000. Key features encompass login pages, user authentication and authorization, user profiles, in-app messaging, GPS location services, push notifications, and an in-app payment gateway. This cost estimate covers everything from design and development to testing, server infrastructure, backend setup, and ongoing maintenance. Features like user profiles, swiping, messaging, geolocation, and push notifications all factor into the overall cost. Additionally, integrating advanced features like AI-driven matchmaking or video chat functionalities can further increase development expenses.

Tinder, which launched in 2012 with an initial funding of $485,000, has enjoyed tremendous success. In 2021, the company raked in revenue exceeding $1.6 billion, with projections indicating it will surpass that figure in 2024.

TikTok

Developing an app similar to TikTok entails various factors such as complexity, features, and development duration. On average, this can range from $20,000 to $100,000 and may require approximately 1,200 hours to build. This estimate covers design, development, testing, video streaming infrastructure, user authentication, content management, and backend work. Features like video recording, editing tools, filters, effects, social sharing, and user engagement mechanisms all contribute to the overall cost. Additionally, integrating features for user-generated content moderation, real-time analytics, and scalability to handle high traffic volumes may entail extra expenses.

Tips And Tricks On Rating An App Developer

When considering an app developer, there are some important things to remember. Firstly, it’s crucial to be clear about what features you need. This means figuring out what your app requires, how much you can spend, when you need it done, and which platforms it should work on. It’s also helpful to learn about common mobile development technologies to understand what kind of app you’re looking for and to help pick the right development company.

Secondly, you should look at the full range of services the developer offers. Choosing a well-respected company with a good track record means you’ll have access to skilled professionals who can handle every aspect of making your app, from designing it to testing it thoroughly.

Consider the following factors when choosing an application development partner

Thirdly, it’s a good idea to talk to developers in person. This lets you see how much they know and how well they understand your app idea. Also, checking out their previous work gives you an idea of how good their work is and whether they’ve done anything similar before.

Lastly, it’s important to think about security and following the rules. Making sure developers are willing to keep your information safe by signing agreements and talking about who owns the app’s ideas upfront helps protect sensitive information and keeps data private while you work together.

By keeping these tips in mind, you can assess and choose the right app developer for your project.

Furthermore, we’d like to introduce you to a top-notch and reliable option: Savvycom. The company, with headquarters in the USA, Australia, and Vietnam, is renowned for delivering high-quality software outsourcing solutions. Simply reach out to us, share your ideas, and let Savvycom’s team of experts strategize and develop the perfect app for you efficiently and with the utmost quality assurance. Explore Savvycom today for a seamless experience!

Recap: How Much Does It Cost to Develop An App?

In wrapping up, figuring out how much it’ll cost to develop an app is like untangling a bunch of threads. There are a bunch of factors that come into play, like how complicated the app is, which platform it’s meant for, and where the developers are based. What kind of app it is—whether it’s for social media or gaming—also makes a big difference in the price tag. Plus, there’s a noticeable gap in costs between making apps for iOS, Android, or going with a mix of both.

Let’s dive deeper and learn more about the reasons why you would choose Java for your company’s development project as well as Java Developer Hourly Rate.

1. What Are The Advantages of Java?

Many custom software development companies provide seamless custom software development services since Java lets you build stable, scalable, and multi-tiered applications for different business requirements. Java allows you to create anything from simple apps to massive, end-to-end business solutions. Furthermore, unlike other programming languages whose importance and usability have waned as time and technology have progressed, Java continues to improve with each new update (JDK 17).

1.1. Why Companies Prefer Java?

When compared to other programming languages such as C#, Ruby, Python, and others, Java is without a doubt the most common among developers and businesses. It’s commonly used to make mobile applications, personalized software apps, and e-commerce solutions, among other things. For many programmers, Java is the beginning and end of their careers.

In the coming years, Java will become much more robust. So far, the best decision made by the company’s software decision-maker has been to launch your next project in Java. Every programming language has its own set of advantages and disadvantages.

Java is no exception, with a few drawbacks and a slew of benefits. Nevertheless Java tend to be the best and simplest option when compared to other programming languages to choose the best choice for your project.

1.2. The Advantages of Coding in Java

Why choose Java over other programming languages?

• Java programs may run across different platforms without making changes like desktops, mobiles, embedded systems, etc.
• Java is an open-source, free programming language that supports multithreading and offers robust network support.
• Java is a highly secure, predictable, and stable programming language that enables cross-platform development.
• Java has a broader community and support available due to its extreme popularity worldwide.
• Expert Java resources are easy to avail as compared to other programming languages. Also, Java is easy to learn, primarily when used with IDEs.
• Java is based on the bytecode programming language that allows a single program to run anywhere with the help of a virtual machine.
• It offers seamless compatibility when you want to switch from one version to the next.

What makes Java more Suitable?

• Python: Python programs are generally expected to run slower, making Java a more preferable choice by enterprises than Python.
• C++: There is an automatic garbage collection facility in Java, but this facility is not given in C++. Most objects are destroyed manually by the code.
• Ruby: Ruby and Java programming languages have a lot in common. Both programming languages complement each other and can be used together when required.
• C #: If you are developing an application for a Windows phone, you should choose C#. If you are creating an application for the android phone, you should choose Java in that case.
• PHP: If programmers don’t have any time constraint, then they should opt for PHP. If the project emphasizes features like scalability, security, or performance, then you should choose Java.

2. The Applications of Java

Even though Java is no longer the only officially supported language for Android development and is far from the only choice for web programming, it keeps up with the competition. Java is the #1 language for DevOps, AI, VR, Big Data, Continuous Integration, Analytics, Mobile, Chatbots, and Social.

2.1. Mobile Applications

For the creation of mobile apps, Java is the official programming language. It works with Android Studio and Kotlin, among other programs. You’re probably curious why just Java. The explanation for this is that it can run on the Java Virtual Machine (JVM), while Android executes class files using the Dalvik Virtual Machine (DVK). These files are then packaged together as an Android device package (APK). With Java and its OOPs rules, Android has a higher level of security and simplicity.

2.2. Web-based Applications

Web applications are also written in Java. It offers extensive support for web applications via Servlets, Struts, and JSPs. You can build any kind of web application you like with the aid of these technologies. This programming language’s simple coding and high security enable developing a wide range of health, social security, education, and insurance applications.

2.3. Enterprise Applications

Many software developers choose Java for writing applications, and Java Enterprise Edition (Java EE) is a widely used framework that includes an API and a runtime environment for scripting. Network software and web services are also included. JavaEE is also the backbone for many banking applications that use Java from the user interface to the back server end.

2.4. Scientific Applications

When it comes to scientific coding calculations and mathematical processes, software developers see Java as the tool of choice. These programs are designed to be highly safe and fast. They have a higher degree of portability and need less upkeep. Java is used in some of the most powerful programs, such as MATLAB, for both the interacting user interface and the core system.

2.5. Gaming Applications

The open-source most popular 3D-Engine, the jMonkeyEngine, supports Java and has unrivaled capability for developing 3D games. However, garbage collection cycles can cause noticeable delays in games, which can cause latency issues. This problem will be resolved in future JVM versions.

2.6. Big Data technologies

Java is responsible for the existence of leading Big Data innovations such as Hadoop, as well as the most powerful programming languages such as Scala. When designing Big Data applications in Java, it is clear that Java is the foundation.

2.7. Business Applications

The Java EE platform is intended to assist developers in developing large-scale, multi-tiered, scalable, dependable, and stable network applications. These technologies are created to address the issues that large businesses face. Enterprise applications are often complex due to the features that make them efficient, such as security and reliability.

By providing a development model, API, and runtime environment that enable developers to focus on functionality, the Java EE platform reduces the complexity of enterprise application development.

2.8. Cloud-Based Application

Cloud computing refers to the distribution of IT services over the internet on a pay-per-use basis. It offers a low-cost approach for IT infrastructure. Java has features that can assist you in developing applications to be used in SaaS, IaaS, and PaaS production. Whatever the need, it may help businesses develop applications remotely or assist businesses in sharing data with others.

3. Best Way To Hire Java Developer

JavaScript and HTML/CSS were the most widely used programming languages by software developers worldwide in early 2020, according to Statista. Approximately 68 percent of respondents said they used JavaScript, and 63.5 percent saying they used HTML/CSS. SQL stands for Structured Query Language. The top five most commonly used programming languages in the world were Python, Java, and C++.

3.1. Global Java Developer Rate

Java is a general-purpose language that is concurrent, class-based, and object-oriented and was first released in 1995 to allow application developers to “write once, run anywhere.” Java is one of the most widely used programming languages, particularly for client-server web applications, with a developer community of nine million people. Java was used by 45.4 percent of technical developers in Stack Overflow’s 2018 Developer Survey, compared to 37.9% for Python and 10.3 percent for Ruby.

Consider the disparity in hourly rates for various engagement forms, such as temp, part-time, and freelance, when recruiting Java developers. Developers hired for full-time jobs can charge different rates depending on whether you want someone on-site or completely remote.

Freelance Java developers typically charge between $61 and $80 per hour.

3.2. Hire Java Developer in Vietnam, Why?

Java Developer hourly rates in Vietnam IT Market range from $20 to $40 depended on the experience and position of the developer.

Compared to hiring a developer in the United States or other countries like the UK, Netherlands, Ukraine, etc., the cost of hiring a developer in Vietnam is considerably lower. For example, a Vietnamese developer would cost you around 50 percent less than the global Java Outsourcing cost mentioned above.

According to TopDev’s report, Vietnam has about 400.000 IT Enginners and over 50.000 graduated IT Students from over 153 IT Institutions per year.

• Vietnam ranks 29th in terms of Skillvalue Worldwide in Developer Skills Chart Of Skill Value Report in 2018.
• Top 06 worldwide in Developer Skills Charts Of Topcoder Report in 2016.
• Rank 23rd worldwide in Developer Skills Charts of Hackerrank’s Report in 2016.

And since the primary goal of outsourcing is to reduce costs, here at Savvycom, we always aim to provide the best possible quality at the most reasonable price for a growing business.

4. Conclusion

Java has become a language of choice for delivering global Internet solutions due to its robustness, ease of use, cross-platform capabilities, and security features.

• Java is a simple language to understand: Java was created to be simple to use, making it easier to write, compile, debug, and learn than other programming languages.
• Java is an object-oriented programming language: This enables you to build modular programs and code that can be reused.
• Java is platform-independent: Java’s ability to switch effortlessly from one operating device to another is one of its most important advantages. The ability to run the same program on various platforms is critical for Web applications, and Java achieves this by being platform-agnostic at both the source and binary levels.

Savvycom Outsourcing Guide

But you should know that many factors affect IT Outsourcing costs, and it would be wise to consider first before deciding whether you need to outsource or not!

1. What Is IT Outsourcing?

A company may use one provider for all their IT requirements or multiple service providers to deliver different elements

“Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally, and sometimes involves transferring employees and assets from one firm to another.

The practice of handing over control of public services to private enterprises, even if on a short-term limited basis, may also be described as “outsourcing”. Outsourcing includes both foreign and domestic contracting, and sometimes includes offshoring or nearshoring (transferring a business process to a nearby country).” – Wikipedia

IT Outsourcing refers to the uses of an external service provider to deliver some or all of the IT functions required by a business including managing infrastructure, directing strategy and running the service desk.

IT outsourcing providers can take full responsibility for all IT maintenance and support, this is often called a fully managed service, or they can provide additional support for an internal IT team. This is sometimes referred to as co-sourced IT support and is usually an approach taken by larger organizations. The average Spend per Employee in the Segment IT Outsourcing is projected to reach US$102.92 in 2021, according to Statista.

2. Why Would You Choose IT Outsourcing?

IT Outsourcing – The Way To Go In 2021

In 2019, the global traditional outsourcing industry generated 92.5 billion U.S. dollars in revenue. In that same year, the total contract value of the business process outsourcing (BPO) market amounted to 26 billion U.S. dollars. There are lots of advantages that can be gained from software outsourcing or, in general, IT outsourcing.

The main benefit is cost savings due to lower hourly rates for IT services and tax rates at a given location. Additionally, companies can access a larger talent pool to hire specific expertise while saving time and concentrating on direct business processes. There are many more reasons why you should consider IT Outsourcing for your business. Let’s find out more below:

2.1. IT Outsourcing Pros And Cons

One of the main success factors in software development is the team that will participate in the project. At Savvycom, there is always a Project Manager, a group of developers that, depending on the project’s scope, will include native iOS and Android developers or ReactNative or Flutter developers, frontend, backend, full-stack developers that are indispensable for developing the solution. UX/UI Designers who work on the app interface design phase and QA Engineers are responsible for testing the software and the final product’s ultimate quality.

2.2. Does IT Outsourcing Reduce Development Costs?

“Almost 27% of organizations outsource to reduce cost, only 36% are basically innovators and around 37% are actual growth-seekers who use outsourcing as their one of the best tools to optimize the business operations” – IBM research

In 2016, the leading driver for using outsourcing services, according to business executives, was to cut costs. Other drivers included, enabling focus on core business and solving capacity issues.
IT outsourcing for small businesses is very beneficial, as these companies save precious money that is needed for the further development and improvement of future operations. Even giants like Telecom, Unity Technologies, and Alibaba reduce their development costs utilizing IT outsourcing.

3. IT Outsourcing Costs

IT outsourcing partners typically charge by average per-hour rates. It could range from 20 USD to over 40 USD per hour for some off-shore software development companies. The western markets for developers could get even pricier, up to 50 USD or more per hour.

There are 2 basic models of IT outsourcing which need to be considered before looking at pricing:

3.1. Fully Outsourced IT

When the Company that you run don’t have internal IT Team

Your company has no in-house IT team, or your team is already overload with the amount of work in a specific period, and you don’t want them to have burnout. In this case, the MSP provides troubleshooting, security monitoring, backups, updates, and more. Servers may be stored and managed by the MSP at an off-site data center. The MSP or outsourcing company should be considered your strategic technology partner.

Now let’s say you have a healthcare company and you want to create a telemedicine app, but you don’t employ any developers. You don’t see any sense in creating new job positions only for the project’s duration, or maybe you have an in-house team able to develop an Android app, but not the iOS version. Therefore, you can outsource your project (or part of it) to an external provider. In this case, we are talking about fully IT Outsourcing Model.

3.2. Co-Managed IT

Co-Managed Services can help you build a better employee culture

The organization has an existing IT team but is looking for assistance. This case could include offloading routine computing system work such as updates, backups, security monitoring, and even help desk to free up internal resources. Or the opposite, where the primary staff is in place to run the day-to-day tasks, but specialized talents are not available in-house.

Imagine that you want to create an enterprise app for production process management. Let’s assume you have your team that can create this app, but you lack an iOS developer. It doesn’t make sense to hire a new person as the developer is only needed for a small part of the project, so your best option would be outsourcing. You can contact an IT Outsourcing Company and subcontract a developer who will still work in this software company, but you will pay for the hours worked on your project.

4. When IT Outsourcing Is The Right Option For Your Business?

35 percent of respondents stated they currently outsource IT services as it frees up resources to focus on their company’s core business (Statista)

In 2019, the market size of information technology outsourcing amounted to 66.52 billion U.S. dollars. There is no doubt that IT Outsourcing not only gives you access to the international talent pool while saving development costs and speeding up the development process. It would be best to consider these factors before deciding to outsource is the perfect solution for you.

4.1. Lack Of Technical Knowledge Or Flexibility

IT Outsourcing will be the perfect match for you if you lack technical knowledge or the local talent pool cannot provide you with enough experts. Sometimes projects require specific skillsets that can be hard to find on-site if your staff has not been adequately trained.

Velocity or flexibility is often the issue as well. If you choose to outsource, which means you want to get a flexible team of available engineers.

4.2. Micromanaging Is Not Good For Business

Micromanagement results in the manager losing track of the larger picture

IT Outsourcing is a great way to avoid the so-called micromanagement. Project managers often are supervising unimportant details while possibly ignoring the relevant ones. This fact is not only time-consuming but also tiring and ineffective. As an executive who handles the task directly, you can probably introduce more value to higher-level jobs. It will help you focus on business aspects like marketing, fundraising, or sales.

If you choose IT Outsourcing, experts from the other company you choose will address all the IT decisions. That way, you can focus on taking the business to the next level while gaining a competitive advantage.

4.3. Reduce Cost & Time

Choosing to outsource software development services rather than giving the task to an in-house team will significantly reduce development costs. This way, you avoid salaries, bonuses, benefits, and other hidden expenses required for retaining happy employees in your company. 

Tech companies specializing in both solutions providers & IT Outsourcing often explore new technologies that can introduce cost savings and bring business value that your competitors will get years later.

4.4. Always Stay Innovative

Staying Innovative can drive businesses forward

Working with a professional software development team ensures consistent innovation for your business. IT Outsourcing companies need to remain competitive in the market, so they always explore new and efficient ways to solve a problem. Thanks to multiple projects they’ve worked on they have a more significant knowledge tank. The right outsourcing provider is always up to date with the latest solutions and technologies to make sure that you are keeping up with the market.

Jio Health – Telemedicine App Built by Savvycom

Build Your App The Professional Way With Savvycom?
Our team can help you with the development of your application. Contact us to get a free initial consultation regarding your project and its estimation in terms of cost, timeline, and needed technical talent.

4.5. High Standards From The Start

IT Outsourcing companies offer experts in a wide range of technologies. This way, with one contract you access a variety of specialists. Reputable software development companies hire people with excellent training and established knowledge standards. They create growth paths for their employees together with mentoring programs and skill evaluations now and then.

In short, IT Outsourcing gives you the ability to find developers and C-level specialists like CTOs. This process provides you with advantages like gaining an unbiased view from a top-level professional. You will gain a new perspective and set up an appropriate workflow and Agile principles.

5. IT Outsourcing in Vietnam – Ideal Location?

IT Outsourcing Costs in Vietnam are around 90% less than in the U.S. and other countries in Europe that means you can save a lot more funds for further development and other business venture. According to BusinessInsider, Vietnam is ranked 5th in the “Best countries to outsource to in the World in 2019” list.

5.1. The IT Labor Force

Employees retention rates in IT Companies is usually low

Vietnam recognizes and promotes the importance of education and training. Nowadays, the country has a 96% literacy rate, and 80% of its college graduates hold degrees in the sciences (Vietnam Economic Times). This makes Vietnam an exceptional country for outsourcing technological projects because the highly educated population has a high level of scientific and technical literacy.

The labor force also has much lower turnover and much higher stability than most other countries active in outsourcing. Overall, software outsourcing companies in Vietnam have an IT-related turnover rate of less than 5%, whereas, in many other countries, such as India, this turnover rate can be 10% or even higher.

5.2. Stability Post Covid-19

Covid-19 elevates the need for IT outsourcing for most companies. Meanwhile, Vietnam has risen on top as the second-best countries to control and minimize the worldwide pandemic’s negative impact. Nevertheless, Vietnam is a very stable country, which creates a hospitable business environment for IT Outsourcing.

5.3. No Language Barrier

Vietnamese Developers often have to sharpen their English Skill before applying for a Job

Unlike many Asian languages such as Thai, China, or Japanese, Vietnamese use the Latin alphabet, just as English does, making it relatively easy for Vietnamese speakers to learn English. In Vietnam, English is the second most popular language, and the majority of Vietnam’s college graduates have high English proficiency. Consequently, most IT workers in Vietnam can communicate easily in English when working on outsourcing projects.

6. Consider IT Outsourcing to Vietnam

Vietnam is the ideal location to outsource

Vietnam is widely known as the destination for many companies looking for high-quality technology outsourcing providers. Vietnam IT outsourcing attracts companies with favorable rates, experienced teams, the professionalism of developers, the pool of talent, high quality tech education, cultural similarities, and much more.
Below you can find some general recommendations for IT outsourcing that will ensure that everything will run smoothly:

• Identify your business and technical goals as early as possible
• Plan the project budget and timeline considerations way in advance
• Make sure that the vendor utilizes adequate project management processes and development tools
• Set up the payment process clearly
• Sign NDAs and clear agreements
• Plan to be involved in the development process greatly, especially in the beginning

Savvycom Outsourcing Guide

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