How Much Does Software Development Really Cost for Your Company

The $50,000 question: How much does it REALLY cost?

"We need a management system for our company. How much is it?"

If you ever asked this, you probably received vague answers:

• "It depends on the scope..."
• "Between $10,000 and $200,000..."
• "I need to better understand what you need..."

All true. But nothing useful.

In this article, we give you concrete numbers based on real projects we've developed for 10-50 employee companies.

Real breakdown: Projects by type and cost

Basic Project: Simple Management System

Typical features:

• Basic CRUD (create, read, update, delete records)
• 3-5 main modules
• Admin panel
• Basic reports
• 10-20 users

Examples:

• Customer management system
• Basic inventory
• Service registry
• Internal project management

Cost: $12,000 - $25,000 USD

Timeline: 2-3 months

For whom?

Startups or small companies that need to digitize basic processes.

Medium Project: Enterprise Management Platform

Typical features:

• 5-8 integrated modules
• Roles and permissions
• Advanced reports + dashboards
• Integrations with 2-3 external systems
• 20-50 users
• Basic mobile app (optional)

Examples:

• B2B order system with catalog
• Logistics management platform
• Light ERP for retail
• Technical service management system

Cost: $25,000 - $60,000 USD

Timeline: 3-6 months

For whom?

Growing companies (10-30 employees) with established processes that need software that adapts to their specific operation.

Real case: B2B distribution system

• $35,000 USD
• 4 months development
• Online catalog, orders, inventory, admin panel, reports
• 200+ customers using the platform

Advanced Project: Complete Enterprise System

Typical features:

• 8+ complex modules
• Multiple integrations (ERPs, payment gateways, external APIs)
• iOS + Android mobile apps
• Complex data processing
• Advanced analytics
• 50-100+ users

Examples:

• Complete customized ERP
• B2B marketplace platform
• Complex traceability system
• Multi-tenant SaaS platform

Cost: $60,000 - $150,000+ USD

Timeline: 6-12 months

For whom?

Established companies (30-100 employees) with complex and industry-specific processes that need competitive advantage via software.

Real case: National traceability system

• $80,000 USD
• 7 months development
• Multi-platform mobile app, complex backend, integration with government systems
• National-level use

What the cost includes (and what it DOESN'T)

✅ Typically included:

1. Discovery and design

• Process mapping
• Wireframes and UX/UI design
• Technical architecture

2. Complete development

• Frontend (web/mobile)
• Backend and APIs
• Database
• Integrations

3. Testing and QA

• Functional testing
• Basic security testing
• Bug fixes

4. Initial deploy

• Hosting/cloud configuration
• Production deploy
• Initial configurations

5. Training

• Team training (2-4 sessions)
• Basic documentation

6. Post-launch support

• 30-90 days included support
• Critical bug fixes

❌ NOT included (additional costs):

1. Hosting/infrastructure

• Monthly cost: $50-500 USD/month
• Depends on traffic and complexity

2. Domains and SSL certificates

• ~$50-200 USD/year

3. Third-party services

• Transactional emails (SendGrid, etc): $10-100/month
• Payment gateways: transaction commissions
• External APIs: according to provider

4. Ongoing maintenance

• Optional: $300-1,500 USD/month
• Includes: updates, security patches, minor new functionalities

5. Future functionalities

• Additional modules: according to scope

Internal breakdown: Where does your money go?

For a typical $40,000 project:

Discovery and design (15%) - $6,000

• Product Manager: 40 hours
• UX/UI Designer: 80 hours

Backend development (30%) - $12,000

• Senior Backend Dev: 240 hours
• Database, APIs, business logic

Frontend development (25%) - $10,000

• Senior Frontend Dev: 200 hours
• Interfaces, dashboards, responsiveness

QA and Testing (10%) - $4,000

• QA Engineer: 80 hours
• Manual and automated testing

Project Management (10%) - $4,000

• PM/Scrum Master: tracking, coordination, communication

Infrastructure and Deploy (5%) - $2,000

• DevOps: server setup, CI/CD, monitoring

Buffer and contingencies (5%) - $2,000

• Minor changes, adjustments, unforeseen

Factors that increase cost

1. Complex integrations (+20-40%)

Connecting with legacy systems, enterprise ERPs, or complicated APIs can add $5,000-15,000 to budget.

2. Native mobile apps (+30-50%)

If you need native iOS + Android apps (not hybrid), count $12,000-25,000 additional.

3. Complex data processing (+15-30%)

Machine learning, video analysis, image processing: specialized technologies cost more.

4. Advanced security and compliance (+10-25%)

Certifications, security audits, specific regulation compliance.

5. Multi-language support (+10-20%)

System internationalization for multiple markets.

Factors that REDUCE cost

1. Clear and defined scope (-15-25%)

If you arrive with documented processes and clear requirements, you save time in discovery.

2. Simple and functional design (-10-20%)

Minimalist UI vs elaborate custom design can save $3,000-8,000.

3. Component reuse (-10-15%)

If you can use open-source components or templates instead of custom from scratch.

4. Iterative phases (-20-30% in phase 1)

Launch MVP with core functionalities, add modules later.

Comparison: Different markets

Development in Uruguay:

• $40-80 USD/hour (senior devs)
• $40,000 typical project

Development in Argentina:

• $30-60 USD/hour
• $30,000 typical project
• Risk: economic stability, regulatory changes

Development in USA/Europe:

• $100-200 USD/hour
• $100,000 typical project
• Same quality, 2.5x the cost

Offshore development (India, Pakistan):

• $15-35 USD/hour
• $15,000 typical project
• Risk: variable quality, communication, time zone

Why Uruguay is sweet spot:

• Quality comparable to USA/Europe
• Cost 40-60% lower
• Compatible time zone (Americas)
• Fluent English
• Political and economic stability

Payment options and financing

Traditional model (most common):

30% initial - Upon signing contract

40% mid-project - Upon reaching key milestone

30% final - Upon production launch

Monthly retainer model:

For long projects (6+ months), some teams offer monthly payment:

• $5,000-10,000 USD/month for 6 months
• More cash flow for your company
• Flexibility to adjust scope

Equity + cash:

For startups with high potential:

• 50% cash + small equity stake
• Not all dev shops offer it
• Only if there's long-term vision

The key question: Is the investment worth it?

Don't just look at cost. Look at ROI.

Typical example: B2B management system - $35,000

Year 1 savings:

• 20 weekly hours recovered: $2,600/month
• Error reduction: $800/month
• More sales through efficiency: $3,000/month
• Total: $6,400/month = $76,800/year

ROI: 5.5 months to recover investment.

If your projected ROI is less than 18 months, it's excellent investment.

Next steps: Get a real budget

Every project is unique. These numbers are guides based on real experience.

For YOUR specific budget:

Schedule free 30-minute consultation:

• We understand your specific need
• We give you real cost estimation
• Realistic timeline
• Financing options

No commitment. Just clear numbers so you can decide.

Ready to know how much YOUR project would cost?

Schedule your free consultation and get a detailed budget in 48 hours.