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Top 5 Ways To Reduce Your Project Cost By Hiring Dedicated Developers?

Everything has an alternative, so as for software development services!!


It’s a resistant question to ask, whether developing custom software with an in-house support team is really a far-sighted settlement? Aren’t you chosen a baffling route to get a personalized application when software development companies in India are just one tap away to deliver the best software solutions at budget-friendly prices…

Let this be a discussion for later…

Before getting into tips to find the best mobile app development services for your business, it is worthwhile to understand whether outsourcing is the way to reduce your project development cost?

I guess it’s an absolute solution to meet your business needs and match the increasing completion of the shrinking market. Hold on! Don’t go with my words…

Here are a few gathered facts to support my statement!

According to the survey report of Clutch, 37% of small businesses are managing their business process with outsourcing whereas 52% are planning to outsource in 2019.

Approx 54% of all companies are using third-party application development services to connect with their customers.

78% of businesses globally feel satisfied with their outsourcing partners.

24% of businesses outsource the services to increase work efficiency and 18% to receive expert assistance.

According to Satista, India and China are the leading outsourcing countries, making approx $150 billion in IT experts.

Global business process outsourcing market is expected to reach $220 billion by 2020.

No matter what size of business you are managing, keeping the software development cost under control is the biggest concern of all enterprises. Businesses can use this data to better inform their outsourcing decisions including what tasks they should outsource and how to evaluate their mobile app development outsourcing partners.

If you are still not convinced to outsource the software development services, then read further. In this blog, I’ll tell you how to reduce your software development cost without compromising the budget, quality and growing needs. 

This blog has covered:

  • Why Custom Software Development Cost Overrun?
  • Why hire Dedicated Developers Instead of Building in-House IT Teams?
  • Useful Strategies To Reduce The Software Development Cost
  • Final Words

Outsourcing software development companies or hiring dedicated developers to meet your IT needs is one of the daunting tasks for the businesses. Hence, let’s discuss each point in detail to make an informed decision before hiring third-party application development services for your business…

1. Why Custom Application Development Is So Expensive?

custom development

Everyone’s eyes are glued to unlock the secrets to ensure that their software project stays on a budget…but HOW?

After crunching the numbers and gathering facts, it has been concluded that 35% of enterprise IT projects run over budget, only 25% of teams manage to launch the project with the original budget.

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While developers are often lookout for clever ways to keep their projects in line, but unfortunately fail to manage their project cost under defined borders. When it comes to the word “Custom” every developer thrive to integrate latest business logic and innovative idea. However, how this can toss your development cost? Don’t know why?

Here are the common reasons and some figures why custom software development cost overrun

  • According to Harvard Business Review, projects go over budget by 27% of their intended cost.
  • Approx, one in six projects faces a budget overrun of 200%. (Harvard Business Review)
  • IT failure rates are estimated to be between 5–15%, accounting for a loss of $50-$150 billion per year in the US alone, according to Harvard Business Review.
  • Organizations with 80% or more of projects being completed on time but significantly waste the budget due to poor project performance, PMI, 2017.

Why Development projects go over budget?

a. Poor Planning

Does anyone tell you, the right planning and execution is the key to success?

Proper planning is one of the important components for eliminating software development costs. You need to know what exactly your needs are and what would be your budget limits. Therefore, planning is necessary for accurate management and allocation.

b. Lack of Communication

lack of communications

Miscommunication between a client and developer can put your company at a major risk. Over-communicating, under-communicating, and micro-management is a big reason for the failure. That’s where third-party web development solutions come into the role and ensure clear-cut communication.

c. No Testing

Overconfidence is always dangerous! Have you also taken the risk to launch the software without testing? If yes, then get ready to play the blame game!

Testing is basically done to make sure that the software runs smoothly without bugs. However, if testing is done prior to the complete development, then solving bugs can be more costly.

2. Why Business Prefer to Outsource Software Development Companies Instead Building In-House Team?

Just have a look at this graph, representing the major shift in outsourcing software development services in one year.

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In today’s rapidly changing scenario, if you are looking for a one-word answer to your business challenges, then outsourcing is the word that has proven to be a great success for many companies worldwide. Outsourcing will not only reduce the web development cost and time but also focus on its core competencies.

As the gig economy grows, more and more companies are looking forward to hiring a dedicated software development team that understands the future trends and help you succeed in the industry. Here’s why outsourcing always a well-thought decision for your business?

a. Project Cost Reduction

Outsourcing developing services is all about cost reduction. However, this is not the alone deciding factor when it comes to renting a coder. IT outsourcing companies will become partners and system integrators for their clients. The outsourced talent will not only focus on cutting costs but also on offering value-added services to the clients.

b. Leveraging Expertise

Enterprises are not always fully equipped with technical expertise to manage their operations. Working with limited resources and an in-house team of experts will not sufficiently fulfill the demands of the organizations. Ultimately, this will lead the businesses to opt to hire dedicated software developers that enables you to add the expertise of working on a specific area.

c. Smart App Solutions


Over the past few years, the number of applications has drastically increased. The rapid growth of the application has marked along with the growth of the Internet of Things in the market. In fact, the investment in IoT has increased to trillions of dollars within just a couple of years. If you also want to be a part of this rising app community, then it is worth to rent a coder to meet all your business needs.

Now let’s come to the question that has been asked in the starting that what strategies you need to adapt to minimize the project development cost. Whether hiring the best software development company in India is enough to control the increasing cost of the project or you need to integrate other factors as well as …let’s discuss!

3. How to Minimize Software Development Costs?

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When it comes to reducing the cost of application development, the first thing that pops up in your mind is to do-it-yourself. However, it is not as simple as it might sound, especially if it is attributed to software development.

However, the rapidly increasing cost of custom software development has posed some serious challenges for enterprises in general and for the software development industry in particular. So how to manage a software development project with 100% cost efficiency. Minimizing the application development cost is a complex procedure as it includes various factors to think upon.

Let’s put some limelight on useful tips and strategies that help you minimize the software development cost.

a. Turn To Third-Party Development Services

Malcolm Forbes, Former publisher of Forbes says that “Never hire someone who knows less than you do about what he’s hired to do”.

With the overwhelming insurgence of new technologies for businesses to leverage in order to stay competitive, many businesses have finally realized the need for bleeding-edge skills at the workplace.

According to 2018 Global Outsourcing Survey report of Deloitte, more than 500 executives from the leading organizations indicate that outsourcing solutions-led by automation and cloud- are rapidly transforming traditional outsourcing.

Studies have shown that countries like India, Ukraine, Mexico, China result in approx. 40% decrease in software development costs by renting a coder. Many companies believe the myth that outsourcing can add up the cost, whereas, if the truth be told, it saves you from running over-budget and help you develop a custom app in a limited time frame.


The initial cost saving comes in the form of absence of in-house salaries, employee perks, taxes, benefits, and zero spendings on software architectures as well as physical capital investment.

Hiring the dedicated team of developers means, choosing your choice of developers and designers on the basis of any technical criteria at the lowest price. You know why and how they help you save a lot? Outsourced software development companies have an enormous pool of talent, masters in handling both old and new technologies and offer tailored solutions without compromising the quality.

Nevertheless, outsourcing itself is not a way to achieve success…You should pay attention to various factors while choosing the web application development company. Make sure that is reliable and prompt in fulfilling the required tasks. In addition, always keep in mind that the cheapest services can turn into a poor-quality delivery, so carefully hire software developers for your needs.

b. Collect Project Requirements and Define Right Objectives

Verble words can be easily misinterpreted or forgotten! So collect your project requirements and define clear goals on paper, therefore, developers can easily understand what you want to get. Make sure you collect the right comprehensive set of requirements as wrong directions, huge changes, rework, management conflicts can add up a great cost.


To achieve your objectives, you need to carefully prepare the document with the proper involvement of end-users, product owner and technical people. Well-defined goals will lead to better project results.

c. Planning and Hiring the Right Resources

Planning is a very critical point, as once the right requirements have been molded into the right objectives, there will be a better chance to get serious project outcomes.

For example, the planning to develop an app with insufficient resources will lead to delays, compromise the quality and cause other management issues including overrun the budgets. So minutely defined resource planning should be done.

The success of application development greatly depends upon the team you are working with. Hence, make sure you hire the right technical specialists and choosing the right tools and infrastructures that greatly impacts the quality of the product.

d. Test Your New Development Company

While outsourcing the development company is completely worth but how can you claim that they will develop a premium quality product in a specific time and budget? Nevertheless, the bad choice of web app development companies will fail to stand by their promises. One expert tip here is to give your new software development team a five-day task and see how they will manage it.

Testing your new team will reduce your final cost of software development and able to fulfill the task quicker.


Continuously increasing software development cost is one of the major concerns for enterprises but still, there are several tips, tools, strategies, and resources available to reduce the cost of development.

The cost of the project can be easily saved by simply joining hands with the best software development company in India or by hiring dedicated developers that can understand your project needs and able to deliver quality products at budget-friendly prices.

With this blog, hopefully, you have understood

  • The huge ratio of software development project failure working with in-house developers.
  • Major pitfalls that increase failures while managing the project.
  • Expert strategies to reduce the cost of development.

Today, the major demand is coming for building mobile apps. Hence, these clients should contact and hire a reputed mobile app development company to build their mobile apps as it will save them lots of app development cost. 

The demand for website development and experienced website development company will always be there as people love the concept of websites for more information, to check or verify about the features and cost of products and to read customers’ reviews and feedback.

Xicom is a top outsourcing software development company which is expert in developing software, web applications and mobile applications at an affordable cost. You can Contact Us for all of your software development needs. To convince yourself more, you can check the Portfolio of Xicom to know more about what kind and quality of software solutions, web and mobile applications we have built over the years.

One thing is sure outsourcing your software development work will reduce your overall cost and will open the gates of success for your company.

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Founded in the year 2002, Xicom is a CMMI Level-3 & ISO 9001:2008 certified offshore web development company with a strong team of 100+ highly skilled IT experts, catering result-oriented and cost-competitive solutions to SMEs across the US, UK, Japan, Australia and many parts of Europe.