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IT Consulting

What Does the Custom Software Development Cost?

14 March 2023 by Sara Wahba

What is the custom software development price? Custom software development costs range from $5,000 to $100,000. However, prices vary within this wide range due to several factors influencing software development costs.

After reading the above, you may be convinced that the cost of developing custom software is exaggerated and that it costs much more than other packaged software. You might think buying off-the-shelf software (OTS) is more accessible than spending a lot of money developing custom software.

However, we advise you to continue reading until you are sure of this inaccurate statement until you know how effective custom software development is, especially in the potential ROI it can provide you.

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Why is custom software more expensive than packaged software?

To understand the apparent price range between custom and off-the-shelf software, you must first know the custom solutions and their requirements. So, What is Custom Software Development?

Simply, when a company stumbles on finding what it is looking for in packaged software, it should hire a custom software development company to provide its custom solutions. 

You can create a custom solution for your unique requirements in a custom software development company. Thus, offering you a competitive advantage, better performance, and unlimited options. As a result, your company stands out from the competitors, packaged solutions sold in bulk, and are all the same. You can design these custom software explicitly to support your needs and requirements and positively impacts end-user customers.

Where do all these costs go?

Let's learn with Kapsys here; why custom software is expensive. So where do all these costs go? 

The Software Scope

The cost of custom software development varies with the scope of each software. One custom software may have more features than another. The more features are designed into custom software, the higher it costs. For example, suppose you hired a custom software design and development company to create a tailored software that collects data only without analyzing it. In that case, it will cost you less than a custom software that collects, analyzes, and develops data. Each feature added to the customized program will have a different price and associated expenses than the other features. Every detail, and customization will mean additional costs, in addition to the costs that go to manpower and technology resources. The cost of custom software development for small business is of course different from large business due to their different needs and capacity. 

The Custom Software Design and Development

After defining the required scope of the custom software, the design and development process begins. First, custom software developers go through a very complex process to make the custom software meet the client's needs. Then, the developers proceed on a meticulous developed approach to wireframing and sitemaps of the custom software to review the completeness of the custom software architecture. Next, they include all the features required by the customer and, finally, the graphics and coding. 

Custom Software Integration Cost

A dedicated program cannot function without integration. A custom software integration is necessary to work with the different platforms and applications that a custom software may connect to, etc. These features have to work together for the integration to occur. For example, Some clients may require their custom software to integrate with many technologies such as blockchain, IoT, AI, ML and AR/VR. Definitely, including and integrating all technologies requires additional costs for analysis, design, planning, and testing results. 

Data Migration

Data migration is one of the most critical processes in custom software development. The data migration process may vary to include upgrading to a new system or merging data from an existing platform with new system data. Developers take a lot of time and effort to complete this complex process. First, developers analyze coding rules, prepare new scripts, test the effectiveness of data migration, and then make necessary adjustments, if any. Besides, data migration is a time-consuming process, so all of this will add up to the cost. 

Testing and deployment

The countdown to finalizing custom software in the testing and deployment phase begins. First, the developers submit their custom solutions you can test accurately to ensure the product is free of any problems. Suppose they find a problem with the product. In that case, the developers refer to it and provide an immediate solution to avoid future problems during use for a successful customer experience. The developers provide the custom software to the customer after ensuring that the solution works effectively and optimally and that it does not contain any broken scripts or bugs that could affect the quality of the product. 

Changing Requirements

Custom software has the advantage of being adaptable to changing client requirements. Since the customized programs are made specifically for the customer, it is necessary to meet the customer's needs, no matter how those requirements change. However, on the other hand, designing custom software, adjustable and scalable solution means more time and cost. 


Custom software allows you to use technology to solve a specific problem in your business. When you prove that customized software solutions are effective, improve your performance, and save a lot of your materials, the cost becomes negligible next to your benefits.