Sunday, 8 November 2015

How Much Does It Cost To Build An App?

One of (if not) the most prohibitive hurdle to
developing your own app is cost. First off, you
have to make a concrete calculation weighing
anticipated business gains against the cost
outlay for development and support. According
to many market research studies, including
leading firms like Forrester, development costs
are can represent only the tip of the iceberg.
Once you take the time to spec out and build
your dream app, you’ll find little things that
you could have done better; or U/I updates
that would make it more intuitive; or Google
released a new update to Android; or Apple
changed the resolution on the newest
generation of iPads. Whatever the case may
be, more than 80% of IT personnel polled in
2012 by AnyPresence found that their firms
were updating their apps at least twice per
year. A third of the respondents were pushing
new updates every month. Forrester estimates
that only 35% of any app’s lifetime cost is
covered in initial development. This is a major
stumbling block for many companies, and
rightly so.
       

Apps are not an experiment that you can play

around with and just see how the market

responds. The future of enterprises is mobility

and only companies that fully embrace and

integrate mobile strategies effectively will

thrive in this landscape in the months and

years to come. So, swinging and missing on

app development is unacceptable in the

modern business atmosphere.

In addition to development representing but a

portion of an app’s full cost, most companies

looking to work with a mobile solutions partner

(or even app developer if you want more of a

vendor/client relationship) don’t know what

type of cost ranges within which any given

app could fall. There are a huge number of

factors to consider, and every app is different

in some way or another. As such, there are no

perfect predictions to be had. However, we

can provide you with some general cost

brackets broken down by complexity and,

therefore, required development effort.

At their most basic levels, apps come down to

hours. Whatever feature you want, whatever

U/I style you desire, whatever working

relationship you want with your developer or

parter will all affect the number of hours that

a firm needs to complete the project. Some

companies might quote their rates based on

features you request, others might take your

specifications and simply give you a flat cost

amount, while others will just estimate the

total number of hours required to complete

the project, break that down by employee

type, and give you a granular estimate that

way. Regardless of the method employed,

each company is making an internal

calculation about how many hours they

anticipate the project will require (based

mostly on the feature requests and the

complexity of any external hardware/software/

API integration) and which resources that

company will have to utilize to accomplish you

goals. So, we can break down the cost

buckets similarly.

Every feature your app incorporates equals a

certain number of design, programming,

project management, QA, and revision hours.

The more features you request, the more

hours required to deliver all of them, and the

more the app will cost. The more complex the

feature, the more hours required, and the

more the app will cost. As such, the ideal

working relationship with any vendor or partner

is with someone willing and able to itemize

each feature by the hours required to develop

those features, cross referenced with the

respective cost per resource hour. That way,

you can obtain a granular overview of where

the largest cost factors are. If your partner

can do this for you, you can make informed

decisions about which features are the most

important or which features you might think

about scrapping to save costs.

Most market research I’ve seen categorizes

mobile app costs into three buckets:

Lower-level complexity, smaller feature list,

generally one mobility platform: <$50,000

Medium-level complexity, medium-sized

feature list, 1-2 mobility platform(s):

$50,000 – $150,000

High-level complexity, large feature list, 3+

mobility platforms: $150,000+

The cutoff between the medium and high

complexity buckets can vary some depending

on the study at which you look, but it’s

generally $100K+ or $150K+. Being more

realistic for an enterprise context, high-

complexity mobile solutions will generally run

$150,000+. But, this categorization might not

clear much up if you don’t know where your

app falls in the spectrum to begin with.

For example, if you want to build an app that

simply interfaces with your backend database,

parses and analyzes that data, and then

displays the information you want via a native

tablet app on only one platform, that’s a

relatively simple app (assuming your back end

is well designed and any legacy hardware or

software isn’t too hard to integrate into).

If you want to build a field sales application

that supports offline data collection and

caching, third-party hardware integration for a

credit card reader, API support for payment

and credit card security protocols, backend

database integration, and social sharing?

That’s going to fall into the second bucket

and run you anywhere from $50,001 to

$149,999 based on how many total features

you deem necessary.

If you decide to completely overhaul your CRM

and you want to build a new solution from the

ground up, including microphone and camera

integration into the application, learning

algorithms, backend integration, custom

performance metric reporting, shareable and

group editable files, individual device

management, individual app management,

individual logins, varying security protocol

levels based on employee department, division,

title and seniority, custom VPN requirements

by device or by app, you’re looking at a very

complex application. Many of these things are

absolutely necessary for your ultimate app,

but you have to know that every feature you

add, and as each of those features requires

more and more expertise to deliver on, the

higher into zone three you’ll climb. That’s not

a bad thing by any stretch, because you’re

building a more comprehensive, safer and

more useful solution. But as your solutions

become better, it simply requires more to build

them.

So long as you can find a mobile solutions

partner with the discipline and forethought to

forecast each feature by hour and resource on

the front end, you’ll be able to choose the

features you can’t live without and which

features can wait for v2.

A word to the wise, though — even if you find

such a firm and make the best choices for

your business, always beware that support,

updates and continual improvements often

require far more capital than building the v1 of

the app in the first place. Know that choosing

to build a mobile app is a long-term

investment to solidify your place within your

target consumers’ digital lives and stick to

that mindset. It’s not about the extra few

dollars you spend now, but rather how can you

build an integrated solution that will stand the

test of time and generate business returns for

years and years to come.

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