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Cost of development in Ukraine: formation of value

The cost of developing an application or a turnkey website is always formed individually. A fixed price is possible only for a ready-made product.

To estimate the approximate cost of the project, input data are needed, namely the type of product, its goals, functionality, etc. To form the final price, you need to draw up terms of reference based on the volume and complexity of the project, a detailed description of all tools, technologies and the expected result.

Below we will consider in detail the main forming factors of value.

What does the development cost consist of?

The final price depends on the customer’s requirements and the results to be achieved. The client sets out the basic principles and features of the project by filling out a brief or writing terms of reference. Already at this stage, rough estimates of the cost of the finished product can be made.

Turnkey development is a holistic process. To better understand what its cost is formed of, we need to take a closer look at each stage. This includes timing, prototyping, design, coding, testing, etc.

Estimation of cost and terms

First, you need to calculate the time required to develop and test the product. You can also calculate the preliminary cost but, at this stage, it may differ significantly from the final one, either upward or downward.

The cost and timing of work can vary due to the decisions regarding functionality or product design that cannot be implemented in a standard way. In this case, you will need to look for the best method for introducing the application into development, additional modules for interacting with third-party resources, etc.

Development of terms of reference

Terms of reference also affect the cost of the future project. Together with the customer, a detailed description is created with diagrams, pictures, and other explanations.

Technical details include:

  • Tasks the created product must perform
  • Design features
  • A place for data storage and structuring
  • Operation platforms (Android, iOS)
  • Type of coding, etc.

Terms of reference clarify the future concept of the project and makes it possible to more accurately calculate its final cost.

Product type: web, PWA, mobile, cross-platform

Cost depends, among all, on the type of product being developed.

Web and PWA. It was the web that appeared before any application, and has become almost ubiquitous. Thanks to the modern focus on mobility, pages have become responsive; if this was not enough, mobile versions of web resources have been created. At the moment, there are 2 options for web products: landing pages with data on goods or services and full-fledged applications for interacting with users. As for PWA, or Progressive Web App, it is a product developed using certain technologies in order to achieve the set goals. The latter may include launching the application regardless of the quality of the network connection, fast data exchange, and comfortable use.

Cross-platform. A cross-platform application is a product equally good for different OS (Android, iOS, Windows). Thus, the code is written only once, providing solutions for several platforms at once. This is a great savings for the customer’s money and time. The most prominent examples are Flutter by Google, React Native by Facebook, and Xamarin by Microsoft.

Native applications written for a specific OS, having faster code, and hybrids (web and native) are also worth mentioning.

Functionality

This is the major part of any product. Its price depends on the complexity of the application. Here you need to consider opportunities to be presented to users, whether you need to connect third-party resources, add buttons, screens, etc.

It is very important to develop and think out everything down to every last detail. So, the functionality may include the following options:

  • Registration/authorization — create an account, log in
  • Notifications — notify the user about changes, promotions or special offers 
  • Media — post videos, images, and other content
  • Chat — communicate with other users, support service, etc.
  • Shop — make purchases and payments
  • Search — simplifies the search for the desired product/service

It also includes multilanguage and other options. For example, when creating an app for a taxi or a delivery service, geolocation is required.

The more functionality you want to add, the more expensive the final product will be.

Prototype

A prototype, or a project layout, is required to demonstrate the operation of a future application. It can be static or interactive (with buttons, transitions, etc.). The layout helps assess the pros and cons of the future product as objectively as possible and minimize the need to make last-minute adjustments. Don’t be alarmed if the prototype design might seem primitive. It is only to assess the usability, functionality, and logic of the product. The prototyping phase is the best time to make changes. At later stages, this can significantly increase the development time and cost of the project.

Design

Design development can consist of several areas, such as:

  • Branding — identity, corporate identity and other visual aspects
  • Logo — development of an emblem, a recognizable graphic image
  • Development of UI and UX is an important aspect as it predetermines both the visual attractiveness of the product and the user comfort
  • Animation is an optional step that catches a user’s eye

Promotional materials, such as banners for advertising, press kits for the media, etc., are another thing to remember. The more detailed, the deeper the study of the design, the higher its cost.

Coding

When the main part of the work is over, the prototype is sent to the client for approval, and then for the adaptive coding. This action involves translating sketches into HTML (adaptation for any browser, device). Here, the alertness of the customer comes to the fore, because after he approves the concept the entire project is sent for coding.

Programming

It is the programmer who puts all the elements developed by the designer and assembled by the layout designer into operation. For example, a designer made a bright “Buy” button with a “Buy in 1 click” sign on it, but if this button is not activated, the visitor cannot purchase the product he needs. To do this, the specialist puts the attributes of the product in any programming language.

Content

Without content, an app or site is off the radar of users. This is a creative, interesting but quite challenging part of development. Content is prepared in advance, and then translated into the required format and placed on the pages of the resource.

Testing

Even though each product is checked for operability at the end of each development stage, it cannot do without final testing. This is an important step because an error can cost a fortune. Thus, we get a complex process, which considers several dozen different screen resolutions, different OS versions, hardware differences, a sudden disconnection, etc.

Support

Due to the regular update of platforms (Android, iOS), applications must also remain up-to-date. Users should constantly receive an improved version of the resource, so the developers write an update plan at the initial stages of work. Often, when a product is released, a basic version of the application is presented to the public but an update is released approximately every 14 days. Thanks to this, users see that the product is “alive” and is actively developing. The cost of technical support is usually modest but it helps to quickly establish feedback with the target audience.

Form of estimations: fixed, hourly

Depending on the format of the project, two types of payment – fixed and hourly – are used. The first is used when estimating small projects based on ready-made management systems. Such an appraisal scheme includes probable risks and unforeseen labor costs in the project value. This model assumes that the price and terms of the order are approved at the initial stages, after the terms of reference. A fixed estimate is convenient for the customer as the cost does not change throughout all stages of development, and the customer knows exactly the price of the finished project.

Hourly estimate is most often used for large, complex projects, when the entire scope of the upcoming work cannot be assessed at the stage of terms of reference, and therefore the exact cost is unknown. The definition of “hourly pay” confuses many customers but there is nothing to worry about. You don’t have to pay for all the developers’ working time. The whole process looks as follows:

  • The project is divided into several stages
  • The contractor prepares a list of works and technical requirements
  • A preliminary assessment is carried out according to the man-hour’s algorithm

As a result, man-hours are multiplied by the cost of an hour of work of a certain developer. During the execution of the order, the customer can control, adjust, and improve the project.

Result

From all has been said it follows that there is simply no single “portfolio” with a specific value.

Pricing includes the following factors:

  • A type of project (individual or standard)
  • A product type (cross-platform, hybrid, or progressive)
  • Functionality, design (the more complex the project, the more expensive it is)
  • Content (photo/video, text content)

Also, technical support, etc. The choice of performers also means much. Here you can choose between a freelancer or an agency. In the first case, the work may be cheaper but the quality is a toss-up. While cooperation with the studio will ensure high-quality and timely completion of your project, with the fastest possible response to any edits and changes.

To find out any additional information about prices, please fill out the form below, describe your project or idea. We will contact you to discuss the details.