One of the hardest things to do in software development is to determine how long and how much it will take to deliver a new software product. Should it be so hard? The answer is not straightforward.

Software costs estimation is inherently difficult, and humans are terribly bad at predicting absolute outcomes. No two projects are the same; each is unique in what it sets out to achieve and unique in the myriad of parameters that form its existence. Often, what appears to be a simple problem on the surface is much harder or technically challenging to implement in reality. And, undoubtedly, there will be ‘unknowns’ with the project that can only be identified when they arise.

Additionally, no two people are the same, whether you’re a customer, a developer or a user. We come preloaded with our own set of knowledge, experiences, values, expectations, attitude to risk, and ability to adapt.

Writing good quality software is bread and butter for senior engineers; creating awesome software products can be a much harder endeavor, for all involved.

But when it comes to software, understanding duration and cost are key in making strategic business decisions and this is true whether you’re creating a startup, realizing a new business opportunity, or enabling your business to perform better. The timing, return on investment and benefit delivered can make, shake or break your business. You’ll be asking yourself: What do we get for our money? Can we predict our costs? What will it cost to create the product we want? When can we launch? Will we get a quality product for our investment? Will it grow with our business? Will it deliver business value?

So, how do you go about estimating the size, duration, and cost of a project? Let’s explore Agile project estimation and software development costs, and how we do it at Toptal.

Read also: estimating software costs

Traditionally, using non-Agile practices, software projects have sought to fix functionality or scope and to let time and cost be a variable. This causes problems:

1. How do you know that the functionality you fix at the outset of a project really is the functionality that serves your business or customers best? More often than not, functionality or scope will change, which is why we hear about ‘scope creep,’ the outcome of desired needs being identified through the lifecycle of a project and being determined as necessary or compulsory
2. When cost becomes a variable we lose control over the return on investment (ROI) that we’re seeking to achieve. Increased cost is often a product of unidentified risks or changing requirements, which means we have to add team members to do more work in the same time frame or keep team members longer. Neither is desirable
3. When time is a variable, we lose control over the position in our market. Perhaps we miss an important industry date or our competitors get their product out before us, thus losing any competitive advantage our project may have had.

There are many other outcomes of variable time and cost, which are often negative and undesirable.

Of course, many customers and organizations seek to fix all three components of this ‘magic triangle’. Unfortunately, it’s nigh on impossible to realistically achieve. There are too many elements that conspire to unsettle this ideal, which ultimately end in products that don’t meet a need, take too long to benefit its customers or cost too much to realize business value.

Cost is a product of time and people (team members). Add more time, and you add cost for employing people for longer. Add more team members, and you increase the cost to deliver the same business value. The things we really want to avoid. This is why Agile principles believe in fixing time and team members and allowing the scope to be the variable component.

Which sounds better and increases stakeholder confidence, fixed cost or variable cost?

Of course, it’s important that a product delivers on its promises and the needs of its customers. It’s no good spending an exact amount of time and an exact amount of money if, in the end, you have a product that nobody wants or can use effectively.

So Agile contracts focus on the following:

• Fixed price work packages - The whole project is broken down into logical ‘mini’ releases which contribute to the full product outcome. Each release is a work package that is priced accordingly. As a work package is completed, future work packages are re-estimated based on what we have learned from the previous one. This avoids unnecessary contingency and allows for a level of re-prioritization and new/revised features to be defined by the customer.
• Early termination - This allows the customer to seek to terminate the project early if enough of the product has been delivered and there is no further ROI to be achieved by retaining a project team that will only continue to deliver marginal gains. This clause is typically allowed at any time and is valid as long as the project team and customer have maintained a strong, trusting and close working collaborative relationship. The benefit for the customer is that the project will finish early, having delivered all the valuable features necessary to make the product viable. In return, the supplier is paid 20 percent of the remaining contract value and offsets the risk of retaining staff.
• Flexible changes - Change is a theme that runs strong through the veins of Agile software delivery. We expect to not know everything we need to make a product successful from the outset. So, we promote change, based on relevant data and feedback, to ensure that the right product is delivered. At the end of an iteration, changes can be swapped out for old features no longer deemed necessary or a priority. As long as the change is of equal value, there is no further cost. If the change is of lower value, additional work can be identified or pulled forward from the remaining backlog. This clause is valid as long as the project team and customer have maintained a strong, trusting and close working collaborative relationship throughout the project.
• Additional work - Through the life of a project, more features may be identified that would not be achievable under the existing fixed price contract. For this scenario, either additional newly priced work packages can be added to the end of the project or revert to time and materials.
• Ranged estimates - There are two ways that estimates can be ranged in an Agile project contract: a range of duration or a range of features. A range of duration allows for an estimate to say that the project or work package will take 12 to 16 weeks for a given set of scope. However, adding duration adds cost as you keep project team members for longer, or it means they can’t be released to work on other development projects. At Toptal, we prefer to range features across a range of story points, keeping the scope as the variable but promising to deliver a minimum level of value to the customer within the fixed time frame of the work package or overall project.

It’s worth remembering that you can always add more scope later. Perhaps you’ve started to earn revenue, you’ve increased users or reduced costs. Either way, it’s much easier to ask for more money and time if you’ve already demonstrated a return or improvement and are delivering business value.

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Custom software development means the designing of software applications to address the challenges faced by users within an enterprise business. Custom software development services address the users’ needs better than off-the-shelf software or readymade software.

For example, Microsoft Office or Adobe Photoshop, which are specifically designed to address the challenges of the diverse needs of software users. Inevitably, you cannot modify or update the functionalities of these software solutions according to your needs.

On the other hand, customized software development needs a detailed plan and is created by a custom software development team or in-house software developers. The custom software development process includes:

• Designing
• Developing
• Deploying
• Maintaining Software

A custom software solution is developed keeping the company’s management, branding, implementation needs, and business processes in mind. Look at McDonald’s, it uses POV technology to serve millions of customers with their customized orders.

Before you finalize the software development plan, let’s discuss the steps to create a custom software project for your business in the next section.

Whether you are an entrepreneur or planning software development for a small business, follow these 5 points and get a clear answer to how to develop custom software. So, let’s dive deeper and understand each step in a very simple manner.

1. Identify Your Business Challenges

How to develop software? When you have this question, first you need to identify core business challenges. We all know that every business has its own unique work process and business needs. One specific software can never fulfill the requirements of each business.

Therefore, you need a custom or tailor-made solution to solve your entire business-related challenges, such as:

• Managing a large number of employees
• Increasing work efficiency
• Boosting business revenue

So, when you start to develop your own custom software application, identify your business challenges first that you are concerned about the most. Discuss your challenges and requirements thoroughly with your management team, business leaders, and employees.

After this discovery phase about your challenges, it is time for you to analyze the requirements that can help you minimize the difficulties.

2. Analyze Your Requirements

Once you have a list of all your challenges, focus on the features and functionalities that you want to integrate into the software solution. Make sure you only add those advanced features that would help you to streamline your business process in the long run.

So, analyze what you actually need and what can be helpful for you to streamline the business. Let’s take an example to understand this step in a better way. Suppose you run an on-demand business and are facing challenges to manage customers’ data or probably looking to generate new leads.

In fact, according to a study, it is found that without CRM, 79% of marketing leads never convert into sales. We are sure that you wouldn’t let this happen to your business. And just like you, no other entrepreneur would be ready to lose their marketing leads.

Therefore, we have also shared some of the advanced and common features that you can consider for your custom software application. Here are the key features:

• Customer relationship management (CRM)
• Accounting and financing
• Task scheduler system
• Security
• Integration with existing systems
• Migration from off-the-shelf software to new software
• Work automation

Once you decide on all the features and functionalities for your software, create software architecture design.

Read on: custom software for business

3. Hire a Custom Software Development Company

There is a pool of top software development companies in the custom software development market. Therefore, it becomes extremely difficult to choose a development company that understands your requirements and offers you the exact same results you need.

In fact, many enterprise businesses prefer working with top software development outsourcing companies. Recently, the global outsourcing market size has reached USD 92.5 billion in 2019. Also, here are some of the benefits of outsourcing to a custom software development company.

• Saves time
• Minimize risks of software development projects
• Makes scaling easier
• The larger labor pool of talented professionals
• Access to multiple services

Look at the following image to know the 3 steps of outsourcing to a software development company.

When it comes to a reliable technical partner, we can assure you that Space-O Technologies has always been an ideal choice for entrepreneurs. We believe in providing the best software solutions to your complex business needs. We truly understand your requirements and deliver the best custom software services without compromising their quality.

In fact, we are ranked amongst the top software development companies on GoodFirms and Upwork. We have 100% job success on Upwork with more than 950+ jobs done.

We are also sharing a checklist that will help you while choosing an outsourcing company. You can consider any of the preferred factors to select the best software company.

We will now move ahead to the next step, where we will discuss the development of custom software and testing parts of the software.

4. Software Development and Testing

Now you have decided on the bespoke software development company as per your preference, you can start the software development process by signing an NDA (non-disclosure agreement). To keep your proprietary information and idea safe, signing an NDA is essential.

Also, know that this step is the longest one where you will need to invest your time to build custom software solution. Being an owner of the enterprise business, you will need to ensure that everything is in line and the development process is going smoothly.

For this, you can regularly contact the project managers or get in touch with the dedicated development team. Also, know that when all the components such as system requirements, the architecture, and the wireframe are in line, the plan execution would be a lot easier and faster.

Once your customized software application is ready, the software development team will carry out the testing phase. This phase will also involve various types of functional and non-functional testing. This is either achieved manually or automatically.

In case any bug or error is detected, it will be fixed and re-tested. The whole testing process will continue until the quality of your software matches the original requirements. The software development team will ensure that everything is smooth and the customized application software is offering you the same results that were expected.

After successful testing, your software will be ready to get launched.

5. Software Deployment and Maintenance

This time, you and your users will start getting familiar with the system. You all will start using the software. Therefore, you need to note that the development company will support the software application post-release as well.

You can choose to install the software in your existing system. Later, under the guidance of the development company, end-users will be trained for using the software. Gradually, your team will learn to operate the software, and the integration of software with existing systems can be implemented.

In case your software needs maintenance or up-gradation, you can contact the development company. However, you need to talk to the software development company beforehand about whether they will offer the maintenance services or not. This will streamline the whole software development process and avoid you paying maintenance costs.

After discussing these 5 steps, you know how to create a software program from scratch, and it is now clear how you can start the whole software development process.

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· Sustainable Solutions: As sustainability becomes increasingly important, incorporating eco-friendly features into your bathroom design is a smart choice. Opt for water-saving fixtures, energy-efficient lighting, and eco-friendly materials such as recycled glass or reclaimed wood. Bathroom designers who prioritize sustainability can help you create a green oasis without compromising on style.

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In the world of hospitality, pubs stand as quintessential gathering spots where patrons come together to unwind, share stories, and revel in the company of friends over a pint or two. Behind the convivial atmosphere lies a robust system of financial management known as pub accounting. Ensuring the smooth flow of profits amidst the clinking of glasses requires meticulous attention to detail and savvy financial strategies. In this guest post, we'll delve into some invaluable tips and tricks for mastering the art of pub accounting.

· Embrace Digital Tools: Gone are the days of manual bookkeeping. Modern pub accounting thrives on the efficiency and accuracy offered by digital accounting software. These platforms streamline tasks such as inventory management, payroll processing, and financial reporting, allowing pub owners to stay organized and gain real-time insights into their business performance.

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· Monitor Sales Closely: Understanding sales trends is crucial for making informed business decisions. Pub owners should regularly analyze sales data to identify peak hours, popular menu items, and seasonal fluctuations in demand. This information can inform pricing strategies, menu adjustments, and promotional activities to maximize revenue potential.

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Overall, mastering the intricacies of pub accounting is essential for maximizing profits and ensuring the long-term success of any establishment. By embracing digital tools, tracking inventory closely, monitoring sales trends, controlling costs, staying compliant, investing in staff training, and seeking professional advice, pub owners can navigate the financial complexities of the industry with confidence and precision. So, raise a glass to profitable pub accounting – cheers to success!

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