How Much Does It Cost to Hire Software Developers?

Want to know the cost of hiring software developers?

Well, there are a lot of people in the USA and across the globe who want to hire software developers and also want to learn about the costs associated. However, it isn’t all that easy.

In recent years, the market has changed a lot. This is especially due to the covid-19 and its explosive effect. While some things are cheaper than before, most of the prices have only gone up.

A U.S. Bureau of Labor Statistics report shows that software developers’ employment will grow by 22% from 2019 to 2029, which is much faster than the average for all occupations.

In addition, demand for software developers in the United States of America has grown by 25% in recent years, as per LinkedIn reports.

But not every developer is always looking for a job change. Rather, The Stack Overview Developer Survey (2020) says that more than 57% of developers are open to new opportunities, but not job changes. But most importantly, 40 million software developer jobs are unfulfilled.

Now, all of this might seem like random facts, but they are factors that highly affect the cost to hire dedicated developers. As such, it isn’t all that easy to determine the cost.

For that reason, in this blog, we shall be looking at everything related to the cost of hiring software developers that you need to know. With that being said, let’s get right into it:

Average Cost to Hire Software Developers

Demand for software developers for hire is at an all-time high. But there is a cost associated with it and determining that can be a bit difficult.

The reason behind it is very simple. Every software development project is unique in its own right. For instance, you won’t find two software products with the same design, feature set, etc.You get the gist of it.

Consequently, the cost associated with software development is also unique. For that reason, it is not possible to deduce the software development cost without knowing about the specifications of the project.

Therefore, we won’t be able to give you the exact cost of developing software. But that’s not all. What we can give you is an average cost range of software development in which your project might fall. While this isn’t an accurate representation, it will give you some idea.

Therefore, the average software development cost can be anywhere between $15,000 and $300,000.

Now, with that out of the way, let’s look at the different factors that can affect the cost, in the next section of this blog.

Factors That Can Affect Cost to Hire Software Developers

Various factors can affect the cost to hire software developers. In this section of the blog, we shall be discussing some of these.

They are, as mentioned below:

• Complexity

The very first factor that can affect the cost to hire software developers is complexity.

Depending on your project, the complexity can vary. By the term complexity here we mean complexity of development.

Now, various things add up to the complexity of the project. For instance, the features, UI/UX Design, back-end, and so on.

The more complex the project is, the more expensive it is going to be. And the opposite of it is also equally true. So, keep this in mind when you are trying to figure out the development cost.

• Size of Project

The size of the project is yet another factor that can affect the cost of hiring custom software development company.

Now, it has to be said that different projects are of different sizes. Meaning they can be large-scale, medium, and small ones.

Depending on the size, the cost to hire software developers can highly vary.

• Testing Process

Well, in the development process, there are various processes, some of which are more important than others. However, something that you should keep in mind is, that testing is one of the most important ones.

Now, there are various tools and technologies involved in the process. All of these are used to test the software in every way possible.

While some of these tools and technologies are free for everyone to use, others can be quite expensive. So, based on this, the cost can also vary.

• Team Experience

Experience is what pays in the web and mobile app development industry.

Therefore, if you are working with a web and mobile app development company that has decades’ worth of experience, it is going to be expensive when compared to working with a rather newer company.

This means that the senior software developer’s hourly rate is much higher when compared to that of junior developers.

Now, while all developers are good at their work, some things are only gained with experience. This is true for any trade and not just development.

• Type

You see, software development is a broad industry that works as an umbrella term. There are various types of development here.

We will be discussing the different types and development costs associated with them later down the line. So, with this being said, let’s discuss other factors which can software development cost in detail below:

Different Ways to Hire Software Developers & Associated Cost

There are various ways through which you can hire software developers. The cost associated with the different methods of hiring is also varying.

In this section of the blog, we shall be discussing just that:

• Hire Freelancers

Hiring freelancers is one of the most popular methods today. In recent years, more and more freelancers have appeared.

This means you have millions of freelancers across the world. You can connect with them through various mediums. This includes platforms like Freelancer, Upwork, Fiverr, Job Portal App like Indeed, and so on.

Speaking of the cost to hire a freelance software engineer, it can vary from $60 to $100 per hour.  Nevertheless, you can also hire them for the entire project.

• Outsource to a Software Development Company

This is yet another popular method used by some of the top brands across the world. Top-of-the-line companies from Fortune 500 often opt to outsource their software development work.

Now, why is it a good option? Well, there are various reasons. They have all the required experience, resources, experience, and expertise, among other things.

As far as the cost is concerned, If you outsource your project to a software development company it will cost you around $25-$45 per hour.

• Assemble In-House Team

Well, it is by far the most expensive method. Since you want to hire dedicated software developers to become your employees, staying in your office, you have to pay them a full salary.

Therefore, you have to pay them a salary. The average software developer salary is $50,000 – $120,000.

• Part-Time Developers

If you think you don’t have enough work to occupy a full-time developer and can’t justify the cost associated with the same, you can also explore this option.

Various veteran developers are offering part-time development services. And a part-time software developer’s hourly rate is between $15 and $75.

How Much Do Software Developers Charge Per Hour? Hourly Cost To Hire Software Developers In Different Locations

The software developers’ hourly rate also highly depends on the region you are hiring them from.

The location of the developer is one of the largest factors that affect the cost of hiring developers. So, to give you an idea about the same, we shall be looking at the same below:

These are the hourly rates for hiring developers in different parts of the world. However, location isn’t the only factor that can affect the cost. As we have read previously in the blog, the type of app can also affect the same.

We shall be discussing the same in the section below:

Types of Software Development and Cost

There are various types of software in the market. Mobile apps, PWAs, desktop software, etc all fall under the category of software. And when you say, how much it costs to hire software developers, doesn’t specify which ones.

Therefore, we shall be looking at all the major types of software development as well as the costs associated with them.

Moving on, these are, as mentioned below:

• Cloud – SaaS development

One of the most popular types of software development is the cloud-based one.

Cloud-based services have been around for a long time. And in these years, they have only grown more and more popular. Now with this said, it is safe to mention that, SaaS app development is one of the most popular cloud-based solutions.

For those wondering how much this cost. Well, you can expect SaaS development costs to be anywhere between $50K and $500K.

• Mobile App Development

Well, how can we speak of development without mentioning mobile app development?

Now, the cost of developing a mobile app depends on various factors and we won’t be going into that.

However, one of the major factors is whether you choose an iOS or Android app development company i.e. the app development platform.

Nevertheless, you can expect the cost of developing a mobile app to be between $15,000 and $60,000.

• Web Development

Following right behind mobile app development is web development. It is one of the largest development industries.

Now, people hire all kinds of developers across the world and there are various platforms. So, the cost to hire web developers depends on the framework or language you choose. Let’s look at that briefly:

Popular Software Development Industry and Cost

Even within the different types of software development that we discussed above, there are different industries. Depending on the industry, the specifications of web or mobile app development projects can highly vary.

For that reason, we shall be going through some popular industries as well as the average cost of development associated with them.

• On-Demand App Development

On-demand is one of the most popular mobile app development fields out there. Naturally, it is one of the most prominent software development solutions.

On-demand app development has helped many businesses reach the top of their game, developing millions of dollars.

If you want to do the same, it would cost you anywhere between $75,000 and $240,000.

• CRM Development

CRM development is trending software that has helped many businesses around the world boost their sales and streamline their operations.

It is one of the most popular core software solutions in the market. The cost to develop a customer relationship management software would cost you between $25,000 and $ 35,000.

• CMS Development

CMS refers to the content management system. As the name suggests, these systems are used to manage content on websites and other web applications.

Now, this is an essential part of website management, allowing the admin to keep their content up to date. This is what makes this one of the best software solutions out there.

CMS development cost is around $3,000-$9,000.  

• Fintech App Development

Financial technology or Fintech app development has been growing quite popular recently. Now, there are various niches in which Fintech can be divided.

We will be looking at the cost of each of them below:

• Healthcare Development

Now, this is a solution that has grown quite popular in recent years due to the pandemic. Didn’t all of us see how important healthcare was in a pandemic-like situation?

Well, healthcare app development isn’t only helpful but also highly profitable. It will cost you anywhere between $30,000 and $ 65,000.

Hire Experienced Software Developers: An Affordable Option

Businesses from across the world want to hire software developers. But not everyone knows how much it costs to hire software developers. Well, this issue was addressed in this blog.

Here, we have seen everything related to software development cost and various factors that can affect it.

However, if you are looking for an economical option, we are here to help you. As a market-leading software product development company, we can help you with the same.

Niketan Sharma

Niketan Sharma is the CTO of Nimble AppGenie, a prominent website and mobile app development company in the USA that is delivering excellence with a commitment to boosting business growth & maximizing customer satisfaction. He is a highly motivated individual who helps SMEs and startups grow in this dynamic market with the latest technology and innovation.