15 best ways to minimize custom software development costs for startups

This article is a submission by Radixweb. Radixweb is a diverse and versatile data processing and Business Process Outsourcing (BPO) company located in the Philippines.

Software development is a constantly advancing field that is becoming the need of the hour for organizations today. As technology evolves, enterprises rely heavily on software solutions to increase efficiency, streamline operations, and automate processes.

Also, per software development statistics, 84.7% of software projects are based on enterprise apps, and 53.6% are based on business automation. However, developing a software solution from the ground up and tailored to the business needs may get expensive for any startup with a tight budget.  

In fact, costs vary substantially depending on your software solution, business needs, tech stack used, experience, customization level, and the software development company you partner with.

As startups seek to innovate and gain a competitive edge in the ever-changing business landscape, managing custom software development expenses is crucial for organizational growth. Custom software development services sometimes get high for startups. 

Okay, don’t stress! In reality, the condition is not as gloomy as you may think. So, if you’re a startup considering minimizing custom software development costs without compromising quality?

Well, congratulations—your quest ends here! We’ll share some helpful insights on how startups can efficiently reduce software development costs without jeopardizing quality and efficiency. 

15 ways to reduce the cost of custom software development 

I’ve enlisted some of the best ways to minimize the cost of developing software solutions accustomed to your business needs: 

1. Utilize source solutions 

Open-source solutions help businesses save money by preventing licensing expenses linked with proprietary software. Moreover, open-source solutions are more reliable and secure for digital transformation than their proprietary counterparts.                                    

2. Use cloud services 

Cloud services like Microsoft Azure, Google Cloud Platform (GCP), and Amazon Web Services (AWS) help reduce custom software development costs by providing cost-effective storage capabilities and on-demand scalability.                 

3. Manage software licenses 

Managing software licenses can help minimize expenses linked with custom software development services. Hence, by tracking which licenses and rights are in service and when they will expire, startups can ensure they only pay the cost for the ones in use.                                

4. Follow DevOps approach 

DevOps practice is a software development approach that focuses on collaboration and automation. Hence, utilizing DevOps tools such as Ansible and Jenkins, a custom software development company can enhance speed and efficiency while minimizing expenses related to manual operations.

5. Use low-code platforms 

Using low-code development platforms like OutSystems and Mendix can minimize expenses. It eliminates the need for expensive custom software development.

Low-code can be used to build custom applications rapidly and seamlessly, saving startups time and money.                                      

6. Adopt agile approaches 

Today, 63% of IT teams are adopting agile approaches. Agile methodologies like Kanban and Scrum can help companies minimize expenses by accelerating development cycles.

Hence, by breaking down software projects into smaller segments, development teams can concentrate on every specific task simultaneously, ultimately helping accelerate the overall process.    

7. Invest in quality assurance           

Quality assurance is essential to custom software development and cost optimization. By investing in efficient quality assurance processes, you can identify and rectify errors early.

This helps save money by preventing further re-work or delays while developing custom software solutions.                            

8. Go for automation   

Opting for automation in software development processes can help minimize expenses by eradicating manual labor and enhancing efficiency.

You can use automated tools like continuous integration, test automation, and code refactoring to reduce development time and simplify business operations.                              

9. Build an onboarding process   

Building an onboarding process can help minimize the custom software development cost by ensuring that novice developers are quick and accurate.

Organizations can set expectations and clear guidelines to ensure that new software developers can start the ball rolling and contribute without delay when managing software development projects.                           

10. Follow best practices and standards   

Implementing best practices and standards can help minimize certain costs related to custom software development. Organizations can develop secure and cost-effective software by following industry standards and employing tips and tricks. 

11. Reuse existing code 

Reusing the existing code helps minimize the custom software development costs by eradicating any need to write new and fresh code. So, software developers can easily and rapidly build on existing features and functionalities using existing code while preventing rewrites during software development.                  

12. Utilize free tools (the smartest ones!) 

Free tools like Bitbucket and GitHub help businesses save money by eliminating any requirement to acquire software licenses. In addition, free tools often come with a large community of expert developers who are always ready to help with issues like bug fixes.           

13. Invest in high security 

Investing in security measures can efficiently help reduce the cost of custom software development. Wondering how? By preventing cyber-attacks and expensive data breaches.

Startups can easily protect their business data from hackers or malicious actors by investing in security tools like encryption and firewalls, which can help minimize development costs. 

14. Automate redundant tasks   

Automating redundant tasks also helps reduce the overall expense when opting for custom software development services by de-blocking developer time. By automating cost testing and code reviews, startups can emphasize their resources more on other significant development aspects.                                                                  

 15. Invest in the right tech stack 

Investing in the right tech stack allows you to automate specific processes and free up your personnel time for other essential activities. Also, custom software development services will help companies save money on labor costs due to less manual work and increase overall efficiency. 

Successfully minimize custom software development costs

Crafting a custom software solution from scratch can be a costly venture. This statement is especially true for startups or small businesses that are budget-bound and do not know how to minimize their custom software development costs. Hopefully, these clever tricks mentioned in the article will help you develop a software solution efficiently and affordably. 

To help you follow these practices, it would be best to partner with providers of expert custom software development services. The experts will understand your business needs and objectives for developing custom software solutions. And help deliver robust software solutions for startups.