Did you know that the initial cost of custom software development project can cost up to 10x the initial cost?
Many businesses contemplate building their own fit-to-purpose technology. What they often overlook, though, is the ongoing cost of updating and maintaining it.
Software development is an ongoing process, and it can be difficult (if not impossible) to foresee where issues might crop up, or how severe and costly they'll be when they do.
Understanding the Total Cost of a Custom Software Project
People often budget for the cost of deployment and forget to look at the total cost.
The total cost is the sum of all costs and expenses related to buying, implementing, managing, and maintaining software.
The total cost includes:
- The initial build
- Maintenance and upgrades
- Ongoing support
Software maintenance after a project is launched costs not just as much, but usually more than the initial cost.
Custom development comes with risks. Here's what frequently happens:
- Projects run over time and over budget
- Managers' time gets sucked up with project management responsibilities (hours that potentially add up tens of thousands of dollars in hidden expenses)
- In spite of all this extra time, the project doesn't turn out the way it was envisioned in the first place
Some MarketBox clients spent years sinking money into software before switching to MarketBox. Because of this, we strongly recommend the opposite approach: reach for off-the-shelf solutions that can be customized first. If those don't suit your needs then -and only then- begin mapping out a potential custom solution.
Building out a tech stack with existing technology products-especially tools like MarketBox, that are highly customizable- could save you hundreds of thousands of dollars in the long run. That's money that you could be investing in sales and marketing to drive growth.
For more, read our article about software maintenance costs and factors.
