Question Clearly sourced

Expert knowledge for digital decisions

What does custom software cost?

Short answer

The price is calculated as effort multiplied by daily rate – not from a price list. Three factors determine the effort: the number of different workflows, the number of interfaces to other systems, and requirements regarding rights and traceability. Whoever wants a reliable number needs a concept beforehand.

What drives the cost

Not the number of screen masks, but:

Different workflows. Ten masks for one process are cheaper than three masks for three different processes with different rules.

Interfaces. Each connection to a third-party system brings its own coordination, test data and error cases. It is rarely the big item in the planning and frequently the big item in reality.

Rights and traceability. "Everyone sees everything" is cheap. A graded role concept with logging is not – but may be legally required.

Data migration. The effort almost never lies in the import, but in cleaning up the legacy data.

Why there is no price list

The same description – "a customer portal" – can mean eight weeks or eight months. Whoever names a fixed price without a concept either includes a large buffer or will renegotiate the project later.

How to arrive at a reliable number

  1. Initial meeting – goal and starting situation
  2. Concept with scope definition
  3. Estimation based on this, with a range

Only the third step provides a number you can rely on.

Where you can really save costs

  • Limit the scope. Half of the initially desired functions are not used in the first year.
  • Get something running early. Requirements clarify during testing, not during reading.
  • Clean up legacy data before migration begins.
  • A contact person with decision-making authority. The biggest cost factor in projects are waiting times for decisions.

What to expect

Request an estimate with range, not a single number – and a breakdown by sections. Then you can see which part drives the cost and cut it purposefully.

Also ask about ongoing costs starting from the second year. An offer that doesn't answer this is incomplete.

Key facts

Cost Driver 1
Number of different workflows
Cost Driver 2
Number of interfaces
Biggest Cost-Saving Lever
Limit the scope

Sources

All external claims are backed by traceable sources.
  1. 01
  2. 02

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