How to make logistics app development more cost-effective

Despite the logistics app being proficient with an annual market growth rate of 5%, it is still a pretty big investment. Any software development process is timely and costly, and everyone who thought of ordering this service must have thought about its cost-efficiency. 

A lot of people avoid custom logistics app development due to the prices. Ready-made solutions have lower costs, however, they aren’t as efficient as an application custom-tailored to the unique needs of your business. This is why IT outstaffing company RexSoft wrote this article! It’s aimed to help you figure out how to make logistics app development more affordable. 

So, without further ado, let’s dive deep into the topic and find out the cost-efficiency hacks that you may have not known before! 

An average price of logistics app development

Before we start finding the ways to cut costs, let’s find out the initial costs from the beginning. So, if you’re looking for a logistics app development you probably already know about what you want to see in the software of your dreams. Whether it’s going to be heavy or light, how many features you’d like to see there, on which platform it should run, etc. 

All this will form the paycheck for the logistics app development. If all you need is a simple application without a complex structure and lots of features, your total might be around $20,000 – $40,000. Keep in mind that even for the lightest applications you still need a few developers for front- and back-end parts of the software, designer, QA-engineer (at least partially engaged), and a project manager. 

If you bear in mind something more complicated and heavy, that supports real-time updates, has a more complex security system and features, then you will have to invest more as well. Such an application might have a total cost of around $100,000. 

As a pretty big investment, logistics app development might seem like a huge risk to take. However, recognizing the opportunities for profits and efficiency growth, you might be looking forward to taking this risk. And we have some ideas for you about how to make it a little bit easier on your budget. 

Let’s take a closer look.

Outsourcing as a way to make logistics app development cost-effective

This is one way of making logistics app development more affordable. Outsourcing means that you hand the development process over to the software development company. They create the solution you dreamt about but you probably already know all that. 

The trick is to order outsourcing from offshore companies. They usually have lower hourly rates than the US developers, so you might be able to afford more with this cost-effective solution. The location of a software development company means a lot. For example, Germany and other Western European countries will still have high rates that might even exceed the US companies’ prices. 

However, the logistics app development in Eastern Europe on the contrary will be much more affordable. 

Now, let’s see the real numbers. The US developers’ rates are range from $70 to $150, Western European developers charge around $50 to $200 per hour, and development experts from Eastern Europe have a $20-50 hourly rate. 

This way, if you outsource in the US and have 4 people in your team, you’ll have to pay $400 for one hour of their work. Let’s say it’ll take you around 4 months (160 hours each) to develop a logistics app. This way, it’ll cost you around $250,000 for the logistics application. 

Then, if you outsource in Western Europe you’ll have to pay your team of 4 people around $600 per hour. For 4 months of development, you’ll pay around $380,000. 

But logistics app development in Eastern Europe will cost you less. You’ll have to pay around $160 per hour to a team of four, and $100,000 total. It’s more than 2.5 times cheaper than the same amount of work then the US developers might charge you. 

However, the location of your logistics app development partner isn’t the only thing that might help you lower the development cost. 

Outstaffing as a way to make logistics app development cost-effective

Outstaffing is one more way to make logistics app development more cost-efficient. Shortly speaking, outstaffing allows you to hire one or several technical experts to work on your project part- or full-time. You also may engage the developers hourly, so that they can power up your own development team if you have one. 

This engagement method allows you to fully control the time and costs you spend on logistics app development. So, if you feel like something goes out of hand, you always have a way to fix it. Here are some more outstaffing benefits you’ll get: 

1. Quality management — the team or an individual developer have their own managers who ensure that they work according to your requirements and deadlines;
2. Legislated by law — cooperating with an IT outstaffing company RexSoft is legal since we work according to the US law and our developers are bound by the contract and NDA;
3. Reliability — freelancers with the same working model won’t give you any security warranties, they aren’t bound with contracts. Our developers can guarantee the quality results on time and total non-disclosure of your private information;
4. Control and flexibility — you not only control the amount of time we spend on your logistics app development, but you can switch between full- and part-time schedules according to your needs, or pause the development if needed.

This flexible cooperation model will give you a chance to customize the logistics app development costs so there’s really no way to find out how much will it cost. It’s your choice now!

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Don’t be overwhelmed by the prices for logistics app development. There are plenty of ways to achieve the desired results without spending as much, and we’ve barely scraped the surface. To learn more, contact us!