Business

11 Ways to Reduce Software Development Costs

Too often, a company will go into a software development project with a murky idea of what needs to be accomplished by the end of it. This can slow down communication on the requirements and ultimately delay the entire process. If developers don’t know what needs to be done, you’ll wind up paying for more of their time and adding up months or even years of extra work time.

While the cost of custom software development varies from project to project, there are 11 ways to minimize the risk of additional costs.

Man sitting at laptop with graphs on the screen

1. Confirm there’s a need for your application

While it may be tempting to jump head-first into what feels like a revolutionary app idea, resist the urge to invest your money in a project until you’ve done some preliminary research.

As someone creating a tool, it’s imperative that you think backwards from the user end of your solution. Think thoroughly about the issues and obstacles facing the people who will ultimately be using your completed software application. Make a comprehensive list of things to consider and determine if the market truly does need your application.  

No one wants to invest thousands of dollars in something only to find out that no one really has any use for it. This is why a market study could save you (and make you) a lot of money. Completing thorough research on your target audience can not only show you that there’s a need for your project, but it could also help you identify key elements that should be included in your product. It’s always a better idea to start with the end in mind.

 

2. Finalize your project requirements

Now that you’ve determined there is a need for your application, you should have enough information to form a fleshed-out plan for your project. Being as clear and specific as possible on your requirements will give your software project a massive boost. With clear requirements, the right IT team can make your idea shine in less time and with fewer complications. The simpler the process becomes, the more money you save on your project. Plus, it saves developers the headache of guessing what it is you need.

If you bring a clear plan to the table, your software development team will also be more inclined to go above and beyond since you’ve removed unnecessary complications from the get-go.

 

3. Consider the pros and cons of where you outsource your software development team

There are a few ways to get a software application made, but the most popular way among companies is to outsource—you can read why this is the best option here.

When outsourcing, a vital factor is the location of the company you choose. Offshore outsourcing is when you hire a company abroad, often reducing the cost of hired work. However, doing so can also reduce the quality of the work you receive. The phrase, “You get what you pay for” always holds true. You may get cheaper labour, but due to time differences and communication barriers, the product may suffer as a result. These complications can also delay fixes that would otherwise be solved sooner with nearshore companies. 

Nearshore outsourcing is when you hire from neighbouring countries. This can be more expensive, but it can also increase the likelihood of success for your end-product thanks to sharing a time zone and language. A mistake that’s been made can be fixed within the day rather than having to wait in eight-hour shifts to get it resolved. 

The trick here is to determine the flexibility of your budget and time investment and find a company that can give you a high-quality project for a minimal cost.

 

4. Choose the right kind of contract

The first step is so critical to the success of your project that it will make a difference even in choosing a contract style with a third-party development team. How complex is your project? How many people will it take to build? How many additional changes or features are you factoring in?  

If your idea is small in scale and fairly simple, you’re safe opting for a fixed-price contract. This is when you agree to pay a certain price to get the project done. This is comfortable, since you know there won’t be any surprises when the bill comes in. A straightforward project makes this kind of contract possible and desirable.

If your idea is more complex and requires flexibility, you’ll want to choose a T&M (time-and-materials) contract. A project of larger scope will need flexibility in time and budget since it’s nearly impossible to create an accurate estimate for something with many moving parts. Making the mistake of choosing a fixed-price contract for a complex project will result in a poorly built solution that may or may not work as expected. This is a quick way to drain money, as you’ll be left with a low-quality outcome.

Having flexibility can result in a bigger expenditure than expected, but that’s why planning and organization will have profound effects when it comes to minimizing project costs.

Two people signing papers on a desk

 

5. Choose the right software development team

You might be surprised how a team with a good culture can impact the development of your app. A positive workplace culture is a must for any business, but this is especially true for software development work, which requires an above-average level of teamwork and synergy. There are multiple pieces going at any given time, and with a crunch for deadlines, you want a team that can rely on each other to get the work done and pass the baton on time.

A bad work culture can lead to miscommunications, mistakes, and missed deadlines. Additionally, a team like this can just be awful to work with. A combination of bad attitudes, a lack of camaraderie, and minimal discipline will produce less-than-desirable results. This is why it’s important to be thorough in your search for a development team. Here are a few key things to look out for when in the hiring process:

  • There is clear leadership in place

  • They have solid recommendations from reputable past clients

  • Team members seem eager to hear about the project and find solutions for it

  • The company has a set of values that they work by

  • The company prioritizes the health and happiness of their employees

The general feel of the people you first interact with will hint at the inner workings of a company; pay close attention to how they talk to each other and about other colleagues.

6. Value clear communication above all else

From the moment you get an idea for an application to the day it launches, if you hold communication as your #1 priority, the in-between will be a positive, enriching and fulfilling process. It’s up to you and everyone involved in the process to keep a strong chain of command, and one way to ensure this is by understanding the value chain.

The value chain is a practice that details the proper way to pass a task along. Each person in the chain is responsible for their own task, but the emphasis of the value chain dictates that each person must follow up with the next person in the chain in order to confirm that they have received what they need to complete their task and that they are doing so. This should repeat from the beginning of the process all the way to the end. If there is something pending, the value chain will help ensure every critical task is completed on time, and any blockers that come up are resolved.

7. Determine the best methodology for your project

There are several methods available that software development teams use as a way of organizing their efforts and implementing changes in the plan as it is being developed. Here is a brief rundown of some of the top choices:

Waterfall

This method follows rigid steps: determine the project’s requirements and scope, analyze those requirements, design, implement, test, deploy and finally, maintain. 

Feature-Driven Development (FDD)

Similar to Waterfall, FDD is viewed as an older methodology, a sort of precursor to modern Lean/Agile implementations. FDD still focuses on the goal of delivering working software frequently and is an especially client-centric approach, making it a good fit for smaller development teams. 

Agile

Agile is a process by which a team can manage a project by breaking it up into several stages. Constant collaboration with stakeholders and continuous improvement at every stage is the focus of Agile. This works by breaking projects down into little bits of user functionality called user stories, prioritizing them, and then continuously delivering them in short two-week cycles called iterations.

Scrum

Scrum emphasizes decision-making from real-world results rather than speculation. Time is divided into short work cadences, known as sprints, typically one week or two weeks long. At the end of each sprint, stakeholders and team members meet to see a demonstrated potentially shippable product increment and plan its next steps.

Find more info on software methodologies here.

8. Use a pre-built software foundation platform instead of starting from scratch

A solution to limited time and budget is to use a foundation platform that already has basic features built in. Depending on the nature of your idea, a solution like the ISU Core could save you up to 70% of the implementation cost of your project.  

A computer monitor displaying a software system called the ISU Core

A large percentage of software projects share the same requirements. Custom software developers have to rebuild these requirements on every new project, leading to a loss of time and money that can be avoided. With the main structure already set up, you will have the first version of your application in record time. This works for a wide range of projects, from simple solutions all the way to Enterprise applications. You can rest assured your needs are covered no matter the scale of your project. The ISU Core is used to create modern cloud, mobile and SaaS solutions/products, so consider using this if you’re looking to get started on a project of similar scope.

 

9. Invest in learning about software development 

Having a baseline understanding of how software development works can help you get the most out of your project. One vital concept to keep in mind is another methodology called DevOps.

This term comes from the combination of development and IT operations. DevOps is a set of practices and tools that aim to reduce the length of the software development life cycle, streamlining your project while keeping high quality and high output volume. This method complements Agile, as it emphasizes rigorous testing and re-assessment of the project as it is being developed. This certifies that the end product fulfills the requirements that were set out from the beginning.

When you outsource a project, knowing these strategies can help you communicate about them with your chosen team and ensure that best practices are being implemented throughout your project lifecycle.

 

10. Don’t be afraid of launching a minimum viable product (MVP)

Launching your product with only the essential features can allow you to receive crucial feedback on your project. There are no better people to receive feedback from than your target audience.

Doing this can give you a trail of evidence that will lead to your project’s success, as you’ll have access to data that will give you the positive and negative aspects of your application so far. This can help you pivot your development toward creating the tool that your audience wants. You can also determine more accurately if your project is worth pursuing. If no fish bite the hook, reeling it back in can save you the extra time and money that comes with keeping it in the water, so to speak.

 

11. Don’t get too caught up in design

While it may be one of the more exciting aspects of building an application, focusing too much on the look of the app can be a detriment to the usability of it. Keeping a balance between beauty and usefulness is an art, and both are important for your end user. Your app must be modern and inviting to your user, while also being intuitive and logical. The best way to strike that balance is to work with a team of experts with experience in creating stunning designs with top-notch useability.

 

In The end

Each step when done together can save you thousands in the long run. It’s entirely possible to avoid the potential turbulence every software project could face. Remember, clear requirements, thorough communication, brushing up on software knowledge and methodologies, and knowing the best outsourcing practices for your project can all contribute to a smooth and successful launch. Give your idea the expertise it deserves by hiring experienced professionals.

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs to produce the best ROI. Find out why startups, all the way to Fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

Written by Natalie Mansilla

FinTech Going Green: 7 Companies Built on Promoting Environmental Sustainability

Social movements are powerful and heavily influential in this day and age of innovation. Social justice communities are arguably the loudest they’ve ever been with the help of social media platforms and news-sharing outlets. 

People can express their thoughts and ideas to audiences on these platforms, allowing interactivity. It could be argued that as a result of this acceptance, justice and initiative are now the public's language. With activism comes brands aiming to connect with consumers by taking a position. 

Among the major initiatives of today is eco-friendliness, which in 2022 contributes to the majority of consumers' desire to support a brand or product. There is a genuine desire to save the planet that brands can materialize by promoting and creating opportunities to fund sustainability. 

Recently in Canada, for example, the government has said they’re going to require every vehicle sold in 2035 to be entirely electric. Another example is big players like Google, Apple, and Amazon, who promised to take drastic measures to minimize their carbon footprint. One last example is The Climate Clock in New York City at the Metronome which counts down how much time there is until damage to the climate becomes irreversible.

Environmental sustainability is a factor that is increasingly prevailing as a pillar of businesses' survival during this time. More than 65% of executives deem it “necessary” for market survival in 2022. It’s non-negotiable then for financial institutions to contribute to this movement and “go green”. 

We could say that this is one of the greatest approaches to public relations an organization could take at the moment, but that would be rather redundant in contrast to what some of these companies have done and are doing. With that being said, here are some initiatives from businesses in the FinTech realm that have based their approach on some form of environmental sustainability:

1. TreeCard

This unique initiative focuses on reforesting areas worldwide while simultaneously eliminating plastic. A TreeCard is a credit card made of wood. The business model works through the company taking a fee on a per-usage basis from the merchant. 

This accumulation of fees then goes to planting trees on behalf of the customers. It should be mentioned that typically, this fee would be taken as profit, but TreeCard puts 80% toward their replanting initiative. 

2. Stripe Climate

Stripe is a major entity in the financial industry. They launched Stripe Climate as a way for businesses to donate 1% of their profits to fund the development of carbon removal technologies. 

From a business perspective, this is brilliant, especially since participating organizations will receive a badge from Stripe for their clients to see (which we could even dare to call free marketing).

3. Joro

This app hit the mark for its target audience beautifully through its slogan, which states “build a solution as big as the problem”. Joro partnered with FinTech giant Plaid to reduce the impact of carbon emissions. 

They make this possible by tracking users' purchases and displaying graphs in the app for users to see where their spending is going and how it impacts their carbon footprint. Someone using Joro will effectively be able to steer their spending habits in an environmentally friendly direction.

4. Raise Green

Many people love to support their local communities as opposed to something global. Raise Green allows users to find businesses nearby that have green initiatives (this technology is backed by IBM). 

Once someone has found a cause that interests them, they can invest and own a piece of that project. Users enjoy the transparency of this platform; once they’ve invested, they can watch their investment generate clean energy (that is measured in kWh).

5. Trine

The first thing that sticks out about Trine’s branding is the one-liner that goes “For people, for the planet, for profit”. This ethos is perfect for their brand since the goal is to be transparent while spreading awareness of their product in addition to environmental issues that users can support. 

The business model is constructed as a peer-to-peer loan platform that aims at supporting solar energy initiatives. Users can get involved by investing in these projects starting at a minimum of $25. In 2022, the platform has seen investments from more than 10,000 people. 

6. Treelion

Here is an organization that beautifully exemplifies what it means to be a sustainable FinTech company. Their product is providing a decentralized network for businesses to track and manage their digital eco-friendly products through blockchain. 

Their product effectively becomes an enabler for the creation, development, and flow of capital, among green digital economies and ecosystems.

7. Aspiration

This platform is a doubleheader. One that solves the needs of the planet through reforestation, and one that supports people’s future by providing an IRA (Individual Retirement Account). 

Both features are made possible by using an aspiration card which rounds up every dollar spent and uses spare change to plant trees. The IRA is created by users investing in sustainable businesses, allowing you to save on taxes by opting to defer them until you retire. 

The Benefit of Green Finance

Digital banking is already more beneficial to the environment in comparison to traditional banking, which one can glean from the sheer elimination of driving to the bank, paper statements, and delivery of statements. If we’re going to state that FinTech is paving the way to an environmentally sustainable future, we need to step back and realize why that is.

First of all, finance is the only way people can function in the world day-to-day, nonetheless building a future. So, this is something everyone uses. Imagine if something every person uses was directly benefiting the sustainability of the world. This is a necessary movement. This is not to say that every business should base their model on it, but to have options aligned with this movement would be the ideal situation.

What’s Next?

In this section, we saw some green FinTechs that worked to create sustainability using B2B and B2C approaches. At this point, these businesses have strides to make before they become profitable. It is a new approach for FinTechs that shows promise for the future in terms of business and environmental sustainability. What matters most for organizations looking to get started in this sector is having the right software to support their efforts.

Written By Ben Brown

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

 
 

Hiring Software Developers as a Start-up in 2022: What You Need To Know

Every startup will be anxious to get their product on the market as fast as possible. Getting out there will give you healthy exposure and show you how you’ll need to maneuver to succeed. Additionally, you want to get ahead of the competition and promote/develop based on experience. This is crucial but takes time, and if you want to know how to be as efficient as possible during that time, you’ve come to the right place.

When it comes to hiring software developers as a startup, there is no shortage of routes one can take, but realistically, an outside development team is your best bet. The reason being is that while the external team is taking on the project, the business can focus on planning, marketing, and promotion. Getting your name out and dropping the reel into the market's water is just as important as having a product worth buying, otherwise, you’re just fishing in the desert. With that being said, let's get into the meat and potatoes of how you can hire a team of developers:

Difficulties of searching today

It’s only fitting that you’re aware of the obstacles that go into recruiting software developers in this day and age before you begin scouting. Hiring developers is an unavoidable task for start-ups since new businesses will likely not have an experienced team from the get-go. Building a team of developers involves finding and adding members which typically comes with its own batch of challenges. Here are three general speed bumps you can expect:

Shortage of local talent: For companies, there are many beneficial aspects when it comes to hiring locally since they’re more accessible than, say, working with someone in a different timezone. Unfortunately, talent shortages are very prominent. According to Gartner, talent shortages account for over 60% of the barriers to adopting new technologies. Surprisingly, this is well ahead of costs and security measures. This fact impacts the biggest and smallest companies, which means start-ups are certainly not exempt.  

Retaining talent: In cases where a startup has secured highly experienced and skilled software developers, there is no certainty that they will retain them. One of the biggest factors in this issue is that larger-scale companies are facing the same talent shortage as everyone else. This means they typically have more to offer in terms of perks and compensation than what a startup could offer to talented programmers.

Managing the budget: When a new company is hiring in-house, they will have to be very mindful of what finances will be allocated to taxes, onboarding, social security, equipment, etc. In a lot of cases, these costs add up to something new businesses simply cannot afford. In this case, businesses find software development outsourcing companies to be far more beneficial.

How outsourcing can benefit you

All hope is not lost when it comes to hiring developers in 2022. Some outsourcing service providers have identified the challenge and built an approach to make it work. Here are just a few of the benefits that come from the outsourcing model:

Big talent pool: Going the outsourcing route opens up companies' access to all sorts of technology specialists, niche market experts, and developmental expertise. Additionally, software development outsourcing businesses have teams and talent to cover a very diverse range of IT needs (Cloud Computing, DevOps, UI/UX design, etc).

Budget-friendly: Recall that one of the challenges with hiring in-house developers is having the incentives to offer associated with living and compensation. By outsourcing, companies reduce costs significantly since they are handing their project over to a company responsible for their employees as well as your needs. This is especially helpful when it comes to taking the arrangements for workspaces and equipment off your plate.

Scalability and flexibility: Outsourcing services are usually very flexible and accommodative. Team sizes can be maneuvered to fit the needs of the project by bringing in the right talent and number of individuals for different tasks.

At this point, we’ve established where the hiccups are in hiring a development team and how to avoid them. Ultimately, every startup wants to put itself in the best possible position to succeed down the road, and that starts with identifying goals. New businesses will then want their projects built around these goals which is why experienced developers are so valuable to startups. With that being said, here is the step-by-step process for startups hiring software developers:

Step 1: Define your project’s goals and the requirements of your product

Before you even pick up the phone looking for developers, you need to identify the scope of your project and outline it clearly. Get specific, and lay out the goals and requirements vividly, as well as business and technical specifications. 

Figure out who’s going to be in charge of the team— you’ll need project managers for your end, the vendor, or even a solo project manager. A major priority must be finding someone to take care of UI/UX design unless you already have that arranged. Key tip: Having already built a prototype makes the transfer of design to the developers far easier. 

Lastly, keep the deadline on the front burner to ensure every process can be ready in time. This is non-negotiable for projects in a startup. With everything put together, your list should look something like this:

  • Requirements

  • Project scope outlined

  • UI/UX design ready

  • Features are clear and categorized

  • Allocate management

  • Budget

  • Timeline

  • Find developers

Once this is complete, you can move on to your search for developers.

Step 2: Outline communication standards

After defining your requirements, you’ll need to understand how your partnership with the software development company is going to flow. In most cases, service providers will have plenty of options for cooperation so that you can decide which best fits your requirements.

If you’re more so in the market for a team of software specialists, then the service provider can assign a whole team of IT specialists who are experts with your requirements. Typically this will include a project manager, UI/UX designers, front and back-end developers, and more. In most cases, these teams operate according to the time and material your project needs.

Ultimately, the startup will want to be incredibly transparent with developers to ensure every necessary measure is taken.

Step 3: Think about where the outsourcing company is located

Outsourcing companies exist all over the world, which can make it easy to get lost when trying to find the best one for you. You’ll want to shop around and think about the potential communication barriers (eg. time zone or language).

The United States alone accounts for over 300,000 outsourced jobs annually, contributing over $60 billion to the $92 billion industry. Still, Canada is a primary destination for American companies looking to outsource nearshore. 

The ISU Core

The ISU Core is a foundation platform that can save you up to 70% of implementation costs, and you own all the source code. The best part is our pre-built features like Intelligent Dashboards, Emailing Capabilities, Secure Authentication, Simple User Interface, and much more. It’s also mobile, web, and desktop ready. Your solution can be up and running in just days.

The Takeaway

Hiring your development team is a critical stepping stone for a startup. As you’ve hopefully grasped by now, this is not something to be taken lightly as it can make or break your success as a company. You’ll want to have dedicated plenty of critical thinking time to the project and its scope. 

When all is put together, the last piece is choosing whether you want an in-house team or a custom software development company like ISU Corp. The decision is going to be unique to your business and what you think is best based on the scope you’ve created.

Written By Ben Brown

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.