How to learn the actual price of first-class software development services? Why do you pay miscellaneous rates for the same requirements and projects? What’s the matter?
It’s commonly recognized that for the same Request for Proposal you can pay a price varying from $3.000 to $300.000. In what way do they differ and how to choose a dealer?
In this article we are going to help you deal with this issue. Let`s first break down the providers in several categories:
- Mass Market
These are the companies that usually tend to offer development which is based on the already made patterns. Moreover, in the most cases, their software products are likely to be of the worst quality and consequently of the lowest rate. Therefore, it comes as no surprise that customers have to take their unsuccessful projects to more experienced agents and lose both their money and time. Such companies never refuse the projects, but at the same time, they do not focus on a successfully fulfilled job. Their goal is to find the cheapest workforce and spend on your project as little hours as possible. So, you will never succeed choosing such companies, since the provided service is at the lowest level.
In case of hiring a freelancer you are always at risk. The price depends upon the freelancer`s portfolio, experience, location, feedback and other things like that. So you should expect nothing but greatly ranging rates. While choosing a freelancer you should pinpoint for yourself only those people who are in freelance for at least one year and take into account such things as: skills, related experience, client feedback, rates and timezone.
- Small Company
Small businesses are privately owned corporations, partnerships or sole proprietorships that have fewer staff members (approximately 1-10) and less annual revenue than a regular-sized business or corporation. Because of lack of sources, they can’t take large complicated projects and alleviate risks related to the development process.
- Mid-sized company
In these companies there are normally 200-300 employees. Mid-sized companies usually have efficient, well-established and transparent management processes. Such companies are reliable enough to deal with, because of several reasons:
- experience with tailored software development;
- experience with related projects and ability to swiftly find additional sources for your project;
- experience in a number of programming languages, design, resolving complicated development needs and business analysis
- Large company
Such companies can quickly be recognized by the number of staff members (500+) as well as offices, since they are usually chains, based in many states with high turnover and a arising necessity for new genius.
- Premium development
Usually these companies serve for huge enterprises with projects commonly starting at $200k+ and are generally long-term. These companies are usually located in the most luxurious business centers and pay salaries above ordinary. Appointing a superior software development company is a safe way in most cases, as you can be sure your project will be completed with excellent quality.
Advice on choosing a vendor:
- If your project is uncomplicated and short term you may try your luck with freelancers.
- If your project is long term, the best idea would be to cooperate with mid-sized or large companies, so that you can be sure that they won`t leave your project half-done.
- If you are very affluent and your project is not in a hurry, it is OK to look for premium development companies or large development companies. You will have to pay much, but with minimum risks.
- If you need a good value for money on a par with long term relations, search for mid-sized companies that provide a mixture of resilience and trustworthiness at the same time.
Summing up, the key recommendation on your way to recruiting a distant partner would be never to select extremely cheap options. Actually, despite of portfolio, location, technology stack, company size the average rate should not be less than $25 per hour. Everything that is under $25 hourly rate should be a warning signal for the choice maker. To safeguard yourself against any risks, pick up your perfect applicant based on their competitive and relevant portfolio, communication and reasonable rates.
We hope our article was useful to you and answered all your unclearnesses.
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