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5 min read

Factors that affect the cost
of mobile app development in 2023

Android

iOS

IT Consulting

Mobile

Eugene Shapovalov

Head of Mobile

Date: Sep 8, 2022

Upd.: Sep 8, 2022

As our long-term practice shows, the cost of mobile application development is a sensitive issue and a key point in negotiations. You must have noticed that the price spectrum for the development of custom mobile solutions is extremely wide and difficult to calculate on your own. In this article, we’ll show what major factors influence the final development costs and introduce the Innowise Group’s cost optimization approach.

Mobile app development process

Mobile app development is a complex process, which is influenced by numerous factors, from the choice of a platform to the type of monetization. At the same time, mobile app development follows standard processes for custom software engineering. Each development step requires time and specific expertise. Below, you can find typical stages of the software development process based on the Scrum methodology.

01 Requirement elicitation Our team gathers all functional requirements to estimate the project cost and scope of work.

02 Contract negotiation We discuss all the contract terms, setting the cooperation and pricing models, deadlines, and working processes.

03 Design and prototyping Our team creates a UI/UX design and defines the core functionality of the product.

04 Architecture building We build preliminary solution architecture to provide a comprehensive vision of software capabilities.

05 Iteration planning We define the objectives, tasks and deadlines for each iteration.

06 Requirements walkthrough Our team produces detailed requirements for specific project stages or product features.

07 Daily meetings We hold daily online meetings to monitor the stages of the software development life cycle.

08 Coding Engineers perform the process of writing software code.

09 Unit testing Developers test individual units of the source code for proper and efficient operation.

10 Quality assurance QA engineers test the product for security, bugs and verifying functionality.

11 Solution deployment DevOps engineers cover continuous integration, deployment and delivery processes.

12 Maintenance and support We ensure the stable and continuous operation of the developed software.

01 Requirement elicitation

Our team gathers all functional requirements to estimate the project cost and scope of work.

02 Contract negotiation

We discuss all the contract terms, setting the cooperation and pricing models, deadlines, and working processes.

03 Design and prototyping

Our team creates a UI/UX design and defines the core functionality of the product.

04 Architecture building

We build preliminary solution architecture to provide a comprehensive vision of software capabilities.

05 Iteration planning

We define the objectives, tasks and deadlines for each iteration.

06 Requirements walkthrough

Our team produces detailed requirements for specific project stages or product features.

07 Daily meetings

We hold daily online meetings to monitor the stages of the software development life cycle.

08 Coding

Engineers perform the process of writing software code.

09 Unit testing

Developers test individual units of the source code for proper and efficient operation.

10 Quality assurance

QA engineers test the product for security, bugs and verifying functionality.

11 Solution deployment

DevOps engineers cover continuous integration, deployment and delivery processes.

12 Maintenance and support

We ensure the stable and continuous operation of the developed software.

Factors that affect the cost of mobile app development services

Development type

At the first step, product owners face a crucial choice: cross-platform or native development. In many ways, the choice is influenced by the business model, as some customers opt for only iOS or Android development services. But most often, business owners and startupers need to create mobile applications compatible with both operating systems.Native mobile development approach involves platform-dependent technologies, i.e. Java, Kotlin, Objective-C, and Swift. As for cross-platform apps, they are developed on Flutter, React Native, Xamarin, .Net MAUI, etc.In many instances, cross-platform development reduces app engineering costs by about 20-40% compared to native app development. However, it’s important to take into account functional compatibility, performance nuances, integration capabilities, and other features. Read our article Native vs cross-platform mobile app development to explore more details on these approaches, their benefits, and their differences.

Project complexity

It stands to reason that the higher the complexity of the mobile application, the more time engineers spend developing it. Accordingly, the cost of app development also increases. The level of complexity is largely determined by the functions of the application, as well as their number and type. The cost is also directly affected by app compatibility with modern gadgets, including smartwatches, glasses, bracelets, and other wearable devices that are integral parts of everyday reality.

On top of that, you should bear in mind the features based on advanced technologies such as webRTC, AR/VR/MR, blockchain, machine learning, IoT, etc. Even app monetization methods (in-app purchases, freemium, etc.) affect the project’s duration and cost. For instance, if you consider in-app subscriptions, software engineers should think through and implement the logic of updates, cancellations, payment options, etc.

Integrations

Possible integrations that can affect the cost of mobile app development include:

Third-party integrations, i.e. integrations with payment services, insurance services, maps, etc.
Integrations with internal systems, such as CMS, CRM, ERP, inventory management software, HRM systems, and more.
Integration with advanced technologies, including blockchain, AR/VR/MR, AI, etc.

Project team

The crucial issue is the project team’s lineup and expertise level. Each mobile development project needs particular human resources to be involved: mobile developers, QA engineers, project managers, business analysts, UI/UX designers, architects, and possibly others.

One of the most important factors is the deadline. If you are on a tight schedule, you need to expand the team of developers. However, keep in mind that there will be a bit more time required for code review, CI/CD process, and communication.

Mobile app development cost estimate and optimization by Innowise Group

With each potential client, our company negotiates on a win-win basis. We provide several alternative options for project implementation, offer various cooperation models, and draw up the corresponding price proposals. Thus, business owners have several project implementation roadmaps with all details explained and various cost estimates on the table.

Outsourcing development

Innowise Group provides IT outsourcing development services and offers multiple cooperation models, including turnkey software development, dedicated teams, and staff augmentation. Outsourcing the mobile development project can significantly reduce the final cost: namely by 10-40% and even more. Such high rates of cost reduction are based on the clear benefits of IT outsourcing: access to extensive expertise, time-saving, flexibility, risk reduction, and more. Besides, the hourly rates of IT specialists in Central Europe compare favorably with the wages of developers in the United States.

Agile development

With Agile methodologies, it’s more convenient to manage large- and mid-scale development projects, as the whole scope of work is divided into smaller tasks, phases, and modules. Using Agile development practices, Innowise Group’s team leverages crucial benefits to mobile app development, including fast engineering, increased transparency, flexibility, and risk mitigation. This approach allows you to effectively control the project budget, product quality, and team performance. Therefore, Agile models have a positive effect on the final cost of the developed mobile application.

MVP development

A minimum viable product (MVP) is a launchable prototype of a mobile application empowered with core functionality. The MVP release can help notably reduce software development costs in various ways. For instance, an MVP is an excellent way to impress potential investors in the early stages of development and raise money for further project implementation. According to Innowise Group’s experience, an early MVP release can help identify fundamental flaws and fix them as well as attract the target audience and get feedback from it.

To sum up

The key factors that influence the cost of mobile app development include development type (cross-platform or native), project complexity, required integrations, and project team. With these aspects in mind, you can better understand the perfect way to develop and release your mobile application. If you need to get an accurate estimation for your mobile app development, feel free to turn to Innowise Group’s team.

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Factors that affect the cost
of mobile app development in 2023

Mobile app development process