Q: Why does your organization need custom software?

Your organization needs custom software especially when: <ul> <li>Technology is leaving your brand behind: With competition monitoring, deep data gathering and analysis, and increased productivity via automation, customized solutions can help you stay ahead of other businesses. </li> <li>Your current software limits your work: If your current product isn&rsquo;t doing its job properly, then it is time to let go of it, especially if it causes problems and slows you down. </li> <li>There is an increased necessity for manual work: If you already own off-the-shelf solutions that require manual workaround, you&rsquo;re not maximizing your productivity. Customized solutions can automate manual processes. </li> <li>Reaching customers is getting tougher: If you find it difficult to reach and manage your customers, then it might be time for a technological upgrade. </li> <li>Your business is expanding: As your business grows, your software requirements will change, and off-the-shelf products may become too limiting. Customized solutions will scale with you. </li> </ul>

Question 1

What is a software development company?

Accepted Answer

A software development company is a service provider that specializes in building programs, systems, platforms, and other digital interfaces to help businesses improve workflows, boost productivity, and customize existing programs according to their needs.

“Software development companies are the architects of innovation. They go beyond coding, addressing complex challenges, and crafting custom software solutions.

These firms empower businesses to streamline operations, boost productivity, and stay competitive in a rapidly evolving landscape. In essence, a software development company is the driving force behind digital transformation, shaping the future of industry and enterprise.” [Kane Jason, Client Success Manager at Ace Infoway]

Question 2

What are the different types of software development firms?

Accepted Answer

The different types of software development firms can be categorized based on these parameters:

Industry and field specialization

Platform and system type specialization

Healthcare software companies
Education software companies
HR software companies
Retail software companies
Telecom software companies
And more

Web development companies
UI/UX development
Mobile development companies
Enterprise software companies
eCommerce development companies
IoT development companies
Artificial intelligence and machine learning specialized companies
Cloud development
Big data-specialized companies
And more

Additionally, custom software development companies can be grouped based on their service types:

Staff augmentation or dedicated teams: They hire and manage teams of IT professionals dedicated exclusively to your organization, acting as an extension to its in-house team. This is typically a long-term partnership.
Project-based development: These are often short-term, one-time partnerships that last until the successful delivery of the client’s project.

Question 3

What does a software development company do?

Accepted Answer

A software development company creates, improves, and maintains software solutions for a variety of purposes across a wide range of industries, users, and organizations.

Software development companies conceptualize ideas and then create products that help brands improve workflows and optimize productivity. These products are usually referred to as “solutions” because they solve problems, ranging from the mundane and personal to the complex and professional. Software developers can also improve and personalize existing programs to meet an organization’s needs.

Besides custom software development, software development agencies typically provide these services:

Project management
Consulting
High-quality documentation
Product development
Software integration into other systems
Data migration
Big data and analytics
DevOps
Mobile app development
Website development
UI/UX design
eCommerce development
Specialized services
Software testing and product quality assurance (QA)
Troubleshooting
Deployment
Post-launch support
Cloud software solutions
And more

A software development company’s workflow usually comprises the following stages [Kane Jason, Client Success Manager at Ace Infoway]:

Understanding clients’ needs in-depth
Crafting highly detailed and accurate blueprints
Writing custom code to build and customize software
Performing stringent testing to ensure product’s reliability
Giving constant customer feedback for further improvement

Question 4

How much time does it take to build software?

Accepted Answer

Building software typically takes four to nine months. This timeline covers:

Phase

Inclusions

Estimated timeline

Discovery

Documentation of requirements and design

2-4 weeks

Planning, architecture & development

Coding and framework construction

3-6 months

Testing & compliance

Coding review, end-to-end testing, and user acceptance testing (UAT)

3-6 weeks

Question 5

How much do top software development companies charge for their services?

Accepted Answer

The top software development companies can charge from $30,000 to over $300,000 for their services.

The total cost of developing software depends on these factors:

Level of expertise
Third-party charges
Project scope and complexity
Number of platforms
UI/UX design
Technology stack
Team size
Location
Timeline

Depending on location, these agencies typically have a $20 to $200/hour rate. Here’s a breakdown by region:

Region	Average hourly rate
North America	Up to $200
Eastern Europe	$22 to $38
South Asia	$18 to $25

When it comes to the developer’s level of expertise, the hourly fee can be broken down further as follows:

Level of expertise	Average hourly rate
Junior programmer	$25 to $40
Mid-developer	$35 to $55
Senior developer	$45 to $70

Based on the size and complexity of the project, software products might end up costing the following:

Project complexity	Average project cost
Small apps	$30,000 to $45,000
Simple apps	$40,000 to $120,000
Large-scale apps	$100,000+
Custom CRM software for small companies	Up to $100,000
Custom CRM software for startups	$10,000 to $100,000
Complex apps	$200,000 to $300,000+

The more complex a project is, and the more developers are involved, the higher the expected cost. A small app that usually takes around 700 hours to develop comes at a lower price, while more complex software with server-side applications can have a six-figure price tag.

Given a rate of $25 per hour, here’s a cost segmentation for a few key aspects of software development and their estimated time:

Software feature	Estimated project cost	Number of hours
Search	$300 to $500	12-20
Push notifications	$625 to $875	25-35
User login	$750 to $1,125	30-45
User profile editing	$1,125 to $1,500	45-60
Payment processing	$1,500 to $1,875	60-75
In-app calls	$6,500 to $9,250	260-370

As applications are essential in today’s business landscape, software development companies also offer mobile app development services. The cost of developing a custom mobile app varies greatly depending on the desired features.

The average costs for app development are itemized as:

App development project	Average project cost
Minimum Viable Product (MVP)	$5,000 to $20,000
Simplified app	$20,000 to $60,000
Average-scale app	$60,000 to $150,000
Complex, full-scale mobile app	$150,000+

“On average, software development budgets represent 4-6% of a company's total budget. Precise budgeting should align with the specific project's needs.” [Kane Jason, Client Success Manager at Ace Infoway]

The top 50 software development agencies on DesignRush charge an average of $59/hour. Roughly 6.1% of software development companies on the platform have a minimum budget of less than $1,000, while 6% have a $50,000 minimum budget.

Question 6

What is the difference between custom software and commercial software?

Accepted Answer

The difference between custom and commercial software is that the former is specifically designed and developed for a particular user, while commercial software is pre-built and available for purchase and use by anyone.

Here’s a breakdown of their differences and similarities:

	Custom software	Commercial software
Pricing	Flexible	Fixed
Features	Fully customizable Competitive advantage Scalability as needed Ongoing support	Built-in, out-of-the-box Results-driven based on consumer needs and general market strategies Broad technical pool Easy installation
Designed for	Unique requirements by specific users	Purchase and access by anyone
Example	Banking services	Microsoft Office

Question 7

Why does your organization need custom software?

Accepted Answer

Your organization needs custom software especially when:

Technology is leaving your brand behind: With competition monitoring, deep data gathering and analysis, and increased productivity via automation, customized solutions can help you stay ahead of other businesses.
Your current software limits your work: If your current product isn’t doing its job properly, then it is time to let go of it, especially if it causes problems and slows you down.
There is an increased necessity for manual work: If you already own off-the-shelf solutions that require manual workaround, you’re not maximizing your productivity. Customized solutions can automate manual processes.
Reaching customers is getting tougher: If you find it difficult to reach and manage your customers, then it might be time for a technological upgrade.
Your business is expanding: As your business grows, your software requirements will change, and off-the-shelf products may become too limiting. Customized solutions will scale with you.

Question 8

Why hire a custom software development company?

Accepted Answer

The main reason to hire a custom software development company is to obtain tailored solutions and leverage the latest technologies, allowing for scalability and seamless systems integration.

Providing specialized skills, experience, and flexibility, software development companies are key partners to businesses that want to thrive in an ever-changing technology-driven business environment.

Other reasons to partner with a specialized company are:

Proven software development methodology
More scalable solutions than off-the-shelf products
Advanced management tools
Dedicated technical support from experts
Dedicated maintenance
More robust cyber security measures
Automation
Integration between different departments within an organization
Superior quality
Timely completion

Here's a case study that reinforces these reasons further. TradeSmith partnered with software development company Itransition to create a cutting-edge platform for effective portfolio management and stock market updates.

Itransition launched the client's flagship investment management product, TradeStops, which gained a user base of 30,000+ traders and investors. Further demonstrating the benefits of hiring a top agency, TradeStops's total value of managed portfolios has exceeded $20 billion.

Question 9

How do I find the best custom software development company?

Accepted Answer

The steps to finding the best custom software development company for your business are as follows:

Identify your project objectives, requirements, budget, and KPIs.
Understand the different software development technologies and decide which technology to use for your project.
Research service providers on top agency rankings and professional platforms.
Search for potential companies with experience, expertise, and portfolios in your domain. The more your partner understands your target market and competition, the better it can meet your needs, provide high-quality solutions, and deliver quickly.
Consider their location.
Look through the tech stack they use.
Look for software development companies with expertise in user experience.
Shortlist five agencies based on client reviews and portfolios.
Send them a project brief and require a software development request for proposal (RFP).
Review custom proposals once they are submitted.
Arrange interviews to discuss your project in detail and assess their capabilities and resources.
Know their software development methodology and understand the project plan.
Ask about QA testing and maintenance.
Inquire about after-development or post-launch support.
Learn their cybersecurity measures, practices for protecting products and code, and crisis management plan.
Examine team structure and dynamics, processes, and communication style.
Decide on your final choice based on the information gathered.

If you need assistance finding the right software development agency, visit our Marketplace and let us know the details of your project. We'll thoroughly search our extensive Agency Directory to find the top candidates that best suit your needs. We'll connect you with two to five shortlisted agencies so you can choose the ideal match for your business — all for free.

Question 10

What questions should I ask custom software development companies before hiring one?

Accepted Answer

Consider asking these key questions before hiring a custom software development company:

Its Relevant Background

What are your core areas of expertise?
What similar projects have you completed?
Do you have references from past clients?
What regulatory compliance requirements in my industry have you worked with?

Company Services and Processes

Which development methodology do you use and why?
What is your approach to project management, strategies, and KPIs?
Which coding languages and technology frameworks do you specialize in?
How do you deliver your custom software development services? Do you work on a project-based or dedicated team model?
What security and data privacy measures do you take?
Do you provide after-launch support and maintenance? Is there a post-launch maintenance fee?

The Project

How many people are on the software development team assigned to our project, and what are their specializations?
How do you approach the first phases of the project?
How do you determine how long the project timeline will be?
Do you outsource any project tasks to contractors?
How often can we expect updates and progress reports?
How will you update the project in the future?
What is your post-launch policy? What happens if we're less than satisfied with the output?
How do you handle intellectual property (IP)?
Who will own the code after launch? Can you share the project's track record?
What files will I have access to during the project?
What are the services included in our total project cost?
What would the actual deliverables be?
Who will be the designated point of contact throughout the project?
How do you handle project disputes or conflicts?

Question 11

What are the top software development agencies in the U.S.?

Accepted Answer

Kanda Software
- 4.8 stars on DesignRush (15 reviews)
- 4.7 stars on Google (7 reviews)
- Top clients: OneSky, Rue La La, Imprivata, Lionbridge

Itransition
- 5.0 stars on DesignRush (21 reviews)
- Top clients: PayPal, Adidas, PepsiCo, eBay
BairesDev
- 4.9 stars on DesignRush (25 reviews)
- 4.3 stars on Google (27 reviews)
- Top clients: Google, IBM, Salesforce, Rolls-Royce
Diffco
- 5.0 stars on DesignRush (20 reviews)
- 5.0 stars on Google (21 reviews)
- Top clients: Nokia Care, Food Rocket, NCRIC, International Business Times
Codup
- 5.0 stars on DesignRush (43 reviews)
- 4.5 stars on Google (44 reviews)
- Top clients: Unilever, Dyson, Harrods, National Wildlife Federation

You can also go through the listing above to learn more about the top agencies. Narrow down your search according to location, fees, client reviews, team size, and other parameters.

Question 12

How can DesignRush Agency Directory help me find a reliable custom software development company?

Accepted Answer

With an average 4.7 rating on Google and Trustpilot, DesignRush Agency Directory can help you find a reliable custom software development company. We have a team of agency and technology experts, who handpick the listed agencies on our platform.

Read our DesignRush Agency Ranking Methodology to learn more.

Question 13

How legitimate is the content in the hiring guide?

Accepted Answer

To deliver reliable and accurate data in our hiring guide, we’ve consulted two industry experts. They have verified its accuracy and provided further valuable insights, which are designed to guide decision-makers on their journey to hiring a software development company.

Kane Jason is a dedicated Client Success Manager at Ace Infoway. He combines technical expertise with industry knowledge and excellent communications skills, ensuring that clients stay competitive in their markets. Previously, he led a successful project for one of the largest advertising agencies in Hollywood, enhancing and integrating system components, automating data entry, and addressing technical challenges.

Ciril Sreedhar is the CEO of Sreyas IT Solutions Pvt Ltd. He’s served 20% of the company’s client base for over a decade, overseeing the projects and operational activities. Skilled in SQL, Oracle Database, Requirements Analysis, PHP, and Strategic Planning, he and his team have successfully forged a seven-year partnership with Drivers Domain UK, developing complex projects such as an online booking system and a risk assessment platform.

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