Software Development Cost

Moon Technolabs 

Cost management directly impacts the success of a project. Hence, it becomes important to monitor, control, and maintain software development closely. It also helps identify and address potential cost overruns before it’s too late. 

What is Software Development? 

Software development is a process of activities that software developers of a software development company use to create computer software applications. The process involves the phases of creating, designing, deploying, testing, and maintaining throughout a cycle called the Software Development Lifecycle (SDLC).

Different Types of Software

Wavy Line

Software development is primarily carried out by software developers, programmers, and engineers, with each role constantly overlapping with the others. These include building libraries, managing and merging databases, and routing communications. 

Yellow Leaf

1. System Software

If a computer system is a layered model, system software is the interface between hardware and user applications.  The best example of system software is an operating system (OS), which manages all other programs on a computer. It keeps running in the background to maintain a computer’s basic functions and help users run higher-level applications.

2. Application Software


Application software refers to computer programs that perform specific tasks when a user directly interacts with a piece of software. The sole purpose of application software is to assist users in performing specific tasks.

3. Embedded Software

Embedded software applications are specialized programs within non-PC devices. They work either as a microchip or as a part of another application sitting on top of the chip. They perform specific tasks; however, unlike PC apps, embedded software contains fixed hardware requirements. Hence, it’s created specifically for the particular device that it runs on.

4. Web and Mobile Application

Web applications are accessible through web browsers and run on remote servers. They are device-agnostic and can be accessed from any device with an Internet connection. Examples include online shopping platforms, social networking sites, and email services.

Average Cost of Software Development

Time and effort are the most significant factors when determining where to start, what the ideal timeframe should be, and what the most reasonable hourly rate for hiring a developer should be. Yet, there is no straightforward answer to decide the average cost. It could be as low as $10,000 and can go up to as high as $1,00,000 or even more.

Factors That Make Up the Software Development Cost

1. Labor Cost 2. Infrastructure Cost 3. Tools and Licensing Cost 4. Project Management Cost 5. Testing and Quality Assurance Cost 6. Maintenance and Support Cost

Moon Technolabs Cost Estimation

Estimating project costs involves multiplying project resource costs by project time. However, we at Moon Technolabs also understand that complexities may arise as some resources may have multiple roles and only work part-time.


Financial security is important in each aspect of our lives. Software projects also fall in the same category if organizations and development teams implement effective cost-management strategies. Forming the core of successful software projects, effective financial planning strategies always result in better on-time completion.