Management Cost and Value for Software Development

To know the price of any developing a piece of software, it is important to know to how software development is priced. It demands on a many factors. The difficult thing among others is how long and how much it will cost to make a new piece of software. Estimating the cost of software is difficult and in many cases, we, humans are uncompetitive to foretell the cost outcome. No two projects are identical. Each one is different from all others, and there are countless points that go together to make it.

Further, who the software are going to use also determines the cost of software. Users, developers , customers have such predetermined set of attributes which influence the cost of software making. These include their knowledge, experience, readiness to take risk, expectations, and ability adjust to the tech environment and the like.

Determining the cost of a piece of software is the determining the costs of a project. Estimating the cost may not be a science. There are numerous factors that influence the costs.

We’ll discuss briefly the factors that determine the cost – how much does software development cost. Any piece of software (software elopement project) encounters three fundamental obstacles in terms of people, schedule and its scope. The quality of the software depends on these factors.

The team

Building a great team that can perform and deliver the optimal work takes considerable amount of time However, over time, the team gains knowledge and developers get competency in developing the product.

As the team develops competence, it makes them more effective. Thus, they will be able perform at a greeter speed. The Bruce Tuckman model on software modeling elucidates all the stages of developing software that the team must dealt with. Unlike when the team was formed, now it moves to an advanced stage, where people go beyond the limits to work on the project. During this time, conflict between team members my ensue. It is time consuming to make the team to come to the normal mode and start working for the project.


In software development unknowns lead to errors. The accuracy of an estimate falls as the project becomes obsolete.. In Agile, teams work on fixed pieces of work. This makes it easier to discuss and determine the scope. In incremental approach, each iteration team adds value to the business. The role owner of the product is to define the goal and value of business.


The team constantly waits for feedback from the product owner and the stakeholders in business so they can adjust the work to reflect their expectations. The objective of such approach is to get the maximum value for business by making what customer expects.

Thus, the cost of software development depends on a complex set of factors that are often not in the hand of he any single agency. A simple piece of software such as a mobile application will cost between $20k to $80k depending on the factors that we discussed here going into making the product.