How do I find out the cost of website development?

The price of website development

how much is the program worth?” – probably this is the most popular question of the customer at the beginning of the project. Calculating the cost of software development is not as simple a question as it may seem at the very beginning of working with programmers.

A web project is not a loaf of bread. A web project implies a process and collaboration, as well as uncertainty in the initial formulation of the task.

What is important to understand when assessing the cost of a project

The price cannot be precisely determined if there are no exact requirements. It makes no sense to demand from the contractor an accurate estimate for a description like “How much will the Wildberries analogue cost”. If you need an accurate estimate, you must at least describe the requirements in the form of a technical specification for a certain amount of work.

Clearly define the boundaries of the first version of the product. If there are no boundaries, then the budget can potentially be infinite. The clearer the boundaries are defined, the less the web development service provider will be reinsured.

The cone of uncertainty of the budget and deadlines. At the beginning of the project, the requirements are very vague, so the budget estimate will have a large spread. As the project is being worked out, more details about the project will appear, and uncertainty will decrease. This factor allows you to refine the budget estimate.

The product is created iteratively. Don’t try to cram a lot of functionality into the first version. The larger the amount of work, the higher the inaccuracy in the initial assessment will be. Make the first version as easy as possible (provided that it can be further developed later, this is a critical moment).

How to determine the budget of a web project

Describe the concept of the product, specifying the main features and modules of the future system (i.e. set some boundaries of the first version of the product). Web project concept template.

Get the evaluation interval in the form of KP.

If you are satisfied with the assessment, then detail the first version in the form of layouts and technical specifications together with the contractor.

Invite contractors to evaluate the developed TOR modularly, i.e. in the context of the capabilities /modules of the system.

Thus, you will receive a detailed reasonable proposal for the project development budget.

Options for payment schemes on the development project

You can pay for the same job in different ways. There is no single correct payment scheme. Each scheme has its pros and cons.

Fix Price

The scope of work is determined, described in the form of a TOR. An estimate is created and agreed upon. The work is carried out according to a fixed estimate.

Positive: fixed expenses that are pre-determined.

Cons: the risk of a small but controlled overspending, a frozen task that cannot be changed during the work phase.

Time & Material

The payment is based on the actual development costs. These are usually the hours of programmers and other specialists. At the end of the reporting period, a cost report is provided.

Pros: you can change the task on the go, there are no disputes on the interpretation of the TOR and the boundaries of the stages.

Cons: the risk of overspending in case of unforeseen costs for system problems (debugging, optimization, etc.) is quite high.

Support at a fixed rate

The amount and volume of project support per month is determined.

Cons: the risk of overpayment in the absence of the need for support

Pros: you can require a minimum delay in the reaction of support technicians.

Hidden Costs in a Web Development Project that You Probably Don’t Take into Account

Consider these points at the very beginning of the project, try to get a detailed description from the service provider of how the following points in the project will be solved.

Performance optimization. The application can run fast on small data and slow when there is a lot of traffic or a large amount of data.

Adaptation of the mobile layout. Everything works well on desktop PCs, and some mobile browsers have minor problems.

Creating a technical task. The most important stage in the creation of the system, laying the foundation for the future product. It can’t be free.

Content filling, mass transfer of data to the database. There may be many minor problems with formats, layout, etc.

Integration with other systems. The integration task is always the least defined. There may be problems with non-compliance with the data transmission format, failures on one of the parties, and the amount of data transmitted may also be incorrectly determined.

Usability edits. It may happen that the service is developed, but there are a lot of edits on usability, and this again requires an additional budget.

Consider these factors in your project budget, and then there will be fewer unpleasant surprises at later stages of the project.

The price of the price is different. It is impossible to compare different offers in terms of price

We also see the importance and prospects of this direction and are developing our solutions for telemedicine:

a virtual doctor equipped with artificial intelligence who consults patients 24/7

an application for doctors and clinics that helps to conduct video and chat consultations with patients, automate the payment of teleconsultations, set up analytics, add integration with the clinic’s MIS

application that allows users to store important medical documents, receipts, results and calculate the amount of tax deduction for treatment

EdTech

The COVID-19 pandemic has affected almost all spheres of public life, and in particular, the need for new products for online learning has increased. Analysts of the American consulting company Grand View Research expect that by 2027 the global educational technology market will reach 285.2 billion US dollars, and in the period from 2020 to 2027 it will grow by an average of 18.1%.

Among the key areas in EdTech, experts highlight:

Effective solutions for distance learning

Educational institutions and private educators are adapting to new realities and need convenient tools for online learning. Including when teachers conduct classes in real-time format, and when students learn from pre-recorded lectures and perform tasks on them. We, in turn, also did not stand aside and developed an online learning platform for a client from the USA, which helps to record students, organize payments and conduct streams.

Introduction of artificial intelligence technologies for automation of routine tasks

Teachers spend a lot of time grading exams, checking homework and giving feedback to their students. AI is able to take on many of these routine responsibilities, even if it concerns creative areas. For example, we have developed several EdTech tools for an online drawing school. With their help, you can automatically check the work and correct standard errors.

In this article, we have collected the most significant, in our opinion, technologies and areas that are worth paying attention to if you plan to develop web projects in 2021. We wish you to turn them into a benefit for your business!