Custom Software Development Cost Survey 2026 - What Startups and SMEs Need to Know

Project Size	Cost Range (USD)	% of Companies
MVP	$50,000 - $1,25,000	71.4%
Medium Projects	$1,25,000 - $2,50,000	23.4%
Large/Enterprise Projects	Above $2,50,000	4.7%

Project Size	Cost Range(USD)	% of Companies
MVP	Up to $5,000	21.9%
Simple apps	$5,000 - $50,000	56.3%
Medium Complex Apps	$50,000 - $1,50,000	18.8%
Highly Complex apps	$100,000 - $3,00,000+	2.9%

Project Size	Cost Ranges (USD)	Percentage of Companies
Small-scale Website	$3,000 - $15,000	51.6%
Medium-scale Website	$15,000 - $50,000	21.9%
Large-scale website	$35,000 - $1,00,000	15.6%
Enterprise/Web Portal	$1,00,000 - $150,000+	9.4%

Pricing Model	% of Companies	Key Insights
Time & Material( Hourly Rate)	81.3%	The majority of software development companies bill clients on a Time & Material (hourly Rate) basis, as it provides flexibility and adaptability.  Charges are based on the time spent and resources utilized, creating a win-win situation for both developers and their clients.
Fixed prices ( Project-based Pricing)	65.6%	A significant percentage of companies offer fixed prices (Project-based Pricing), reflecting clients’ need for budget predictability for well-defined deliverables.  Clients should opt for a fixed pricing model for MVPs and smaller projects.
Dedicated team (Retainer/monthly basis)	59.4%	Almost half of the companies are willing to rent out their teams on a retainer basis, indicating a rising demand from clients for long-term partnerships and ongoing support for iterations and maintenance.
Milestone-based (Pre-defined deliverables)	46.9%	Work is broken down into phases (milestones), and so are payments. This performance-based payment model employs a hybrid approach, utilizing both hourly and fixed pricing methods mainly for medium to large projects.
Value-based (pricing based on perceived ROI)	16.3%	Emerging model, offered by a small percentage of software providers for premium services such as AI analytics and strategic consultancy

Takeaways: The popularity of pricing models such as “Time & Material” and “Fixed Price” signals the market’s preference for transparency and flexibility. 

Hybrid models, such as those involving Milestone and Dedicated teams, are also gaining traction due to their scalability and collaborative capabilities. 

And, what’s next: Value-based pricing may soon step into the spotlight.

As Allen Liu, Tech Lead & Content Specialist @FreSound observes,

“Time-and-material pricing used to be the most common way to set prices, but more and more clients want prices based on results or goals. They want proof of something more than just hours worked. There is also a bigger change going on: buyers now want business value that is directly linked to growth, not just service.”

Even Durmo echoed a similar view:

“Clients want more than just hourly bills; they want clear results and to be responsible for the work as a whole. This is even more important when it comes to AI. If tools can cut development time in half, people won't pay for that time. They want to pay for what it does.”

7.  What Payment Terms do Software Development Companies Offer?

Milestone-based billing dominates, mirroring the clients’ need for payments to be clearly structured around deliverables.  

Key takeaway: The Milestone-based model is the top choice among software development companies for payment terms, as it reflects industry preference for shared risk management and incremental delivery over fixed or hourly engagements.  

Combined Insights: Pricing + Payment Correlation

• The Time & Material Pricing Model (81.3%) complements Milestone-based Payments (68.8%), reflecting that even while projects are run on an hourly rate model, payments are structured around deliverables (milestones).  The arrangement meets the interests of both clients and developers. Accountability and minimal upfront risks for the client, while fair compensation and structured delivery cycles for the developer. 
• Dedicated team retainers (59.4%) align with the subscription/retainer payment model, as it would be helpful in long-term development projects. 
• Fixed-price projects can be paired with upfront payments, as they are typically smaller and lower-risk projects.  

8. What Major Factors Increase Software Development Costs? 

According to the Goodfirms survey, location is one of the significant cost escalators, given the well-documented rate differences, but that’s not the only factor. Other additional factors, such as complex integrations, evolving tech stack, increasing developer salaries, and scope creep, all these factors are quietly but steadily escalating software development costs. 

Let’s look at the major cost factors that could be driving up your software development costs:   

#1. Project Complexity (features, integrations, security layers)

Complexity and costs go together. 

95.3% of the surveyed companies reported that the more complex the project, the higher the software development cost. 

Integrating multi-module ERPs, AI, APIs, security layers, and other components all escalates expenses due to the depth in planning, testing, and technical debt management required. The result? Longer timelines and escalating budgets.

#2. Technology Stack (AI, Blockchain, Cloud, Microarchitecture) 

Not all tech stack costs a premium.  

But the one that involves AI, ML, blockchain, or cloud-native infrastructures calls for specialized developer expertise, resulting in significantly higher software development pricing.  Almost 79% of the participants informed that the tech stack plays an uber role in escalating software cost. 

When it comes to AI, despite AI wearing many hats, the upfront AI investment may cost a bomb. Features such as NLP, CV, and predictive analytics are huge cost escalators, and so are data quality, model training, and integration complexity.  

As Nicola Onassis of Code Particle Inc explains:

“Clients often underestimate the hidden cost of AI features — data readiness, compliance (HIPAA, GDPR, SOC2), and model retraining are major long-term investments.”

According to the majority of Goodfirms survey participants, AI Integration alone can result in a 0-30% increase in cost.

#3. Team Size & Composition

Here’s another big cost amplifier, according to nearly 72% of the Goodfirms surveyed participants- the people behind the product.  

Senior-level talent and cross-functional teams are significant cost drivers, according to many of the surveyed participants, but at the same time, they admitted that they ensure higher quality and faster delivery. 

As noted by Hitesh Matlani (Avid Brio) and Ketan Patel (CodesClue Technologies), nearly 50-70% of the total software development cost can be tied to developers, UX/UI designers, QA, and project managers. Skilled developers (backend, frontend, mobile, cloud) are the largest recurring expense, far higher than tools or servers, Patel further adds. 

Ivan Olin (UplineSoft) and Veronika Nedashkovskaya (Rocketech) echo this.

“The biggest cost in software development typically comes from developer salaries. Skilled developers, especially those with expertise in sought-after technologies, command high salaries due to the demand for their skills.”

Simply put, talent costs, but then you cannot do without them. 

#4. Complex Client Requirements (frequent scope changes, unclear specs)

65.6% of the survey respondents reported that scope creep typically increased project cost by 10-25%. 86% of the respondents cited that changing client needs was a recurring issue, despite having clearly defined goals.   

As Kishan Verma of Bizople Solutions rightly points out:

”Even with precise initial requirements, clients often discover new features or integrations during development, making accurate upfront pricing difficult.”

According to the International Journal of Computer Applications, the impact of scope creep is greater in critical applications, such as healthcare, compared to non-critical applications, such as retail. (11)

A quick note: Most firms factor in a ‘scope buffer’ during the project planning phase, but it fails to prove effective in the face of evolving client needs. Even in mature development environments, scope management is not streamlined, resulting in cost risks.

The fix: Iterative client feedback loops and early-stage requirement validation to catch changes before they balloon into budget risks. 

#5. Maintenance & Ongoing Support

Companies have to spend an average of 10–20% annually on post-launch maintenance, bug fixes, and updates. That’s your software’s upkeep cost to ensure performance, stability, and security.

#6. Time to Market (TTM) Pressures

TTM is again one of the leading cost drivers, according to 42.6% of the companies. Rapidly growing competition and evolving markets are acting as a trigger point for companies to act quickly, from ideation to implementation, when rolling out new products or features. The pressure mounts from the need to stay ahead of the competition and keep pace with changing customer needs. To manage TTM pressures, teams resort to agile methodologies and MVPs, then iterate based on user feedback. 

#7. Development Methodology  (Agile/ DevOps/ CI/CD) 

Your development approach also affects cost. 

Agile means frequent sprints and iterations, leading to scope creep (10) and upfront operational costs more than the waterfall methodology (especially for fixed-price projects).

However, the trade-off of using Agile is reduced long-term risk and ensures better adaptability. No wonder 84.4% of participant companies rely on Agile for software development, as the risks are lower in the long run. 

#8. Security Protocols

Constantly updating frameworks, tools, and compliance standards means more work for developers, as well as retraining costs and refactoring legacy systems.

#9. Talent Shortage 

The shortages in AI, cybersecurity, and cloud engineering talent in North America and Western Europe have driven up hourly rates of software professionals. The trend is prompting many firms to adopt nearshoring and offshore outsourcing to manage their budgets.  

#10. Geopolitical Factors (regulation, sanctions, compliance) 

Geopolitics play a subtle but dominant role in software costs. Laws regarding data localization, cybersecurity compliance, and trade restrictions (e.g., AI export controls) result in additional administrative and integration costs.

Several factors can drive your software development costs, some of which are beyond your control, such as security protocols and geopolitical considerations. Still, the other reasons cited above, such as project complexity, scope creep, technology stack, and talent shortage, are issues that can be managed at the client’s end, whereby the custom software cost can be drastically reduced.  

Here are a few expert-backed strategies that could help you reduce software development costs without affecting the quality of your software much. 

How do you Calculate Custom Software Development Cost?

Project managers can use mathematical models to estimate software cost. The Function Point Analysis (FPA), COCOMO, and Delphi Method are widely popular cost estimation methodologies. ( COCOMO (Constructive Cost approach) uses several parameters to forecast the price of a software project, such as the size, complexity, and kind of software.  Mathematical models apart, if you want to calculate how much your software will cost, here's the equation. (5)

Estimated Cost = Base Project Type Cost + (Feature Development Costs × Complexity Factor) + Integration Costs + UI/UX Design + Testing & QA Costs + Maintenance & Updates Costs.

Let’s break it down: 

Base Project Cost: First,determine the initial cost of the software you want to build.  Whether it's a mobile app, a web app, an enterprise software, or another type of application, each type of application has a different baseline, so this is where your calculations begin. 

Feature Development Costs: Next up, the features. Consider user authentication, messaging system, payment gateway, etc. Each feature comes with its own price tag, time, and complexity, which collectively affect the overall cost. 

Complexity Factor: It goes without saying that complexity is a cost multiplier (usually between 1x and 2x). A simple MVP might cost you 1X, while a full-fledged custom solution or enterprise-grade platform would cost more. 

Integration Costs: Do you want your software to interact withCRMs, ERPs, third-party APIs, and databases? That’s where integration costs come into play. It often depends on the number of systems and the data flow between them. 

UI/UX Design: Wireframes, mockups, and interactive prototypes help you set the stage for an interactive product. And, of course, great design adds cost, but at the same time boosts usability and retention. 

Testing & QA Costs: Quality assurance ensures your software works as intended - through unit testing, integration testing, user acceptance testing (UAT), and bug fixes. Each layer adds cost, but omitting it entirely can actually be more costly. 

Maintenance & Updates Costs: Nope, the software story doesn’t end after launch.  Ongoing costs include fixing bugs, adding new features, updating the system, security patches, and general maintenance. Think of it as your software’s ongoing health plan.

How do you Cut Software Costs Without Compromising Quality?

Software development costs are skyrocketing, but they can be easily controlled if you know what to do and avoid inevitable mistakes from the start, such as having a clear roadmap for your software, using the MVP approach, reusing existing solutions, and more. 

Here’s a list of expert-backed strategies to de-escalate software development costs: 

#1. Have Clear Requirements and Planning 

Let’s face it - Vague requirements are budget builders. 

According to Robert Hartman of VioPixel, “Many projects overspend because requirements are vague or constantly changing.” 

In other words, businesses should be crystal clear about what and why they are building something before writing a single line of code. 

Khader Handal of Element Media LLC reinforces this:

“Getting clearer requirements from the client, analyzing the system, and building the roadmap clearly from the beginning would decrease the costs a lot because of the time saved.”  

Harsh Makwana of Tripearltech Private Limited and Shafiul Hasan of Vivasoft Ltd echoed similar sentiments: 

“Pre Execution Documentation and locking the customer requirements before starting the project reduces costs.”

Or as Devendra Singh of Biz4Group puts it succinctly: 

“Plan clearly: lock scope early, validate with prototypes to avoid rework." 

Bottom line: A carefully planned roadmap today ensures you stick to your goals and budget tomorrow.

#2. Focus on Agile, Lean, and MVP-First Approaches

Here’s the thing: Agility means efficiency. 

Manoj Kumar ofUcodice Technologies Pvt. Ltd.advises:

“Adopt agile methodologies such as Scrum and Kanban to keep development lean and flexible.”

Kanban minimizes costs by limiting the number of work in progress (WIP) and visualizing tasks. Scrum reduces costs through short, fixed sprints, resulting in early feedback and improved quality, thereby preventing costly rework.

Additionally, launching an MVP (Minimum Viable Product), which involves building only the priority features first, helps validate concepts and prevents over-engineering.

Dennis Lenard of Creative Navy says it best:

“Don’t build a spaceship when your users just need a bicycle. Clear goals, early feedback, and ruthless simplicity keep quality high and budgets intact. In other words, discipline.” 

EvenJulia of Gecko Dynamics agrees: 

“Start from a minimal set of functionalities to test the efficiency-” 

In short: Think MVP-first. Test and launch fast.

#3. Reuse Existing Solutions and Open-Source Tools 

Why reinvent the wheel when you can stand on the shoulders of giants? 

Reuse proven frameworks, components, open-source tools, and APIs to cut time and costs. 

As Nedashkovskaya rightly puts it, 

“Be a smart assembler, not a custom builder.”

Luke Chaffey of AIWise adds: 

“Leverage what already exists. Pre-existing codebases, frameworks, and SaaS platforms can dramatically cut costs and delivery time, especially for SMEs. My approach is: don’t reinvent the wheel if a trusted provider or platform already solves 80% of the problem. That way, budget is spent on the last 20%, the customisation and integration that makes the solution unique and high-quality,rather than wasting resources duplicating infrastructure.”  

And, don’t forget low-code/no-code platforms and cloud-native infrastructure - they are an integral part of the tech stack these days for faster, cheaper builds. 

#4. Adopt Automation, CI/CD, and AI Adoption

Continuous Integration/Continuous Deployment (CI/CD) pipelines and AI tools are the backbone of testing, deployment, and documentation processes these days. 

The Role of AI in Reducing Software Development Costs.

Almost 90.6% of the Goodfirms surveyed participants indicated they have adopted AI to reduce software development costs, and nearly 61% believe AI will trim costs by 10-25%.  (More than 97% of GitHub survey respondents reported having used AI coding tools at work at some point.)(6)

Diana Babaeva, founder & CEO of twistly.ai, shares:

“AI tooling reduces normal engineering hours by about 15-30% on all my engagements, creating tighter estimates and movement towards value/outcome pricing.”

Here’s where Software Companies are using AI the most: 

According to the survey, software developers view AI tools as productivity boosters, not replacements. 

As the CML Team aptly puts it:

“AI tools can help if you use them as a complement.” 

#5. Optimal In-house Resource Allocation

Here’s where many companies mess up. 

Illia of SYTOSS observes:

 “In enterprise environments, the primary cost driver often stems from inefficient vendor management and suboptimal resource allocation, leading to inflated expenses across all stages of the development lifecycle.” 

This means balancing team composition (pairing seniors with juniors), and assigning the right projects to the right teams, thus reducing rework and additional costs. 

#6. Outsourcing and Remote Sourcing 

Outsourcing, building remote teams, and automating repetitive tasks are tried and tested formulas to reduce costs. 

So, it comes as no surprise when industry people echo similar sentiments. 

Minkle Kalra of Mooglelabs advises: 

“Outsourcing specialized tasks to expert partners while keeping critical IP in-house cut costs. 

Likewise,Pham Thi Mai Huong of AgileTech Vietnam notes: 

“We optimize costs through strategic resource allocation — keeping core development and architecture design in-house while selectively outsourcing non-core or repetitive tasks to trusted partners.”

George Fironov of Talmatic adds:

“By building flexible remote teams and automating repetitive tasks, companies can optimize resources without cutting quality.” 

And, as Elisha Aywak, of Teknikali Tech, sums up:

“Even using distributed teams in regions with lower costs can help, provided strong communication and quality controls are in place.”

Rajesh of RisingPoint LLC wraps it up perfectly: 

“Define requirements clearly from the start, build an MVP first, use open-source & pre-built components, automate testing & CI/CD, hire the right talent, not the most expensive, use agile methodologies (Scrum or Kanban), outsource non-core tasks, monitor & optimize cloud Infrastructure, and track & analyze development metrics.” 

What are the Top Software Development Trends in 2026?

The majority of the custom software development trends that are expected to sweep the software space in 2026 are already having a significant impact in 2025. Think: AI, Low-Code/No-Code, ethical use of AI, sustainability, automation, CI/CD pipelines, Extended reality, AI+human involvement, balancing innovation and responsibility, the list goes on. 

Yet, we have just scratched the surface here.

Let’s take a quick glimpse of what’s next - and what tech leaders are saying about them. 

#1. The Rise of AI-Assisted Development 

The software development process is going to be speedier than ever before, with AI no longer playing a sidekick role, instead an all-rounder role, generating code, documenting it, testing it, and more, thus freeing PMs, engineers, and designers to focus on higher-value, more satisfying tasks requiring human creativity and judgment. (7)

Sergii of Uran Company captures this shift perfectly:

 “The next evolution in software development will come from integrating AI agents directly into the dev process, from code generation and testing to deployment monitoring. This will create a hybrid model where human creativity and AI automation coexist, accelerating delivery while keeping quality high.” 

But then, as we know, AI on its own can only do so much. It needs a human handler to work its magic. In other words, only with the clear, context-rich human prompts, which only experienced developers can provide, can AI tools generate the right code. The prompts and the resultant codes must be continually tested, debugged, and possibly regenerated before they can be used. The point being, AI amplifies the efforts of senior developers. 

However, it can have a crippling effect when junior developers use them, as it can impact their problem-solving and debugging skills. 

As Idea Maker warns:

“Everyone thinks AI can generate full code, but it can’t handle complexity. In skilled hands, AI is powerful — but it can also cripple less experienced developers.” 

#2. The Low-Code/No-Code AI Platforms 

Low-code/no-code platforms have officially become the new playgrounds for AI. Both developers and non-developers can utilize it to build AI solutions for various industries, including healthcare and business automation, speeding development and deployment. These AI-enabled platforms offer visual interfaces, drag-and-drop components, and even pre-built AI models to help you build AI-powered apps with little or no coding.  In short, such platforms have democratized the development of AI and also reduced the need for large teams.     

As FAIR Consulting Group puts it:

“I believe the convergence of Low-Code/No-Code platforms with AI will significantly transform how businesses build and scale applications. Democratising software creation will empower non-technical users while accelerating digital transformation. ”

And they are not alone. As Yurii Shunkin of Leobit  adds:

“Platforms and Low-code/No-code are already arriving. As robotics and biotech are looking more complex and strategic, LCNC allows clients to get their Software to market sooner and see the results more often, similar to Platforms.” 

But then, there’s more behind this shift. The rise of low-code/no-code development is being supported by edge computing and cybersecurity frameworks. Edge computing, in particular, enables applications to process data closer to the sources - whether it’s a factory sensor or a wearable device - leading to faster response times, greater data privacy, and better scalability. Edge computing combined with AI-driven platforms results in real-time, distributed innovation that’s secure and efficient. 

As Nicola Cogotti of Alpha Cogs insightfully notes:

“Beyond the obvious drivers like AI and blockchain, I believe the convergence of Low-Code/No-Code platforms with AI will significantly transform how businesses build and scale applications. Democratising software creation will empower non-technical users while accelerating digital transformation. At the same time, edge computing and cybersecurity frameworks should not be underestimated, as they will be essential in supporting secure, real-time, and distributed innovation. The key will be balancing rapid adoption with governance, scalability, and ethical use of technology. “

#3. Responsible and Sustainable Engineering

Let’s admit it, innovation and responsibility should go together, or else it won’t last.

The same idea was endorsed by the majority of survey respondents as they emphasised responsible and sustainable engineering as the defining theme of 2026 and beyond. With global data center electricity consumption projected to double by 2030, to a staggering 1,065 terawatt-hours, due to the growing demands of artificial intelligence and data processing, sustainable software practices are expected to surge in 2026 and beyond. (8) Given this, businesses will be willing to adopt AI compliance, explainability, and energy-efficient architecture not just as ethical choices, but as something that offers them a competitive edge.  

“Explainability in AI systems and ethical software design will be key differentiators for organizations that want to build long-term trust.”  - Mooglelabs 

“Sustainability in software will increasingly drive decisions. Optimising cloud usage, minimising model training waste, and focusing on efficient architectures will be a differentiator.” AIWise  

In short, efficient architectures save both planet and profit. Additionally, collaboration between software engineers, environmental scientists, and policymakers will help shape a more sustainable digital ecosystem. (9) 

#4. Integration, Automation, and Scalable Delivery

Hidden costs result from failures in system integration and the use of mismatched tools across teams. When development, testing, and deployment environments aren’t aligned, inefficiencies crop up, resulting in silent slowdowns, fixes that take longer than usual, and quality becomes inconsistent. 

So, what’s the solution?” Integration + Automation. 

As Lanard rightly points out, “Every poorly integrated tool or manual deployment step bleeds time and productivity. Investing in smooth, automated pipelines drastically reduces wasted hours.” 

Automating workflows and standardizing infrastructure across teams through a consistent toolchain, shared environments, frameworks, and CI/CD systems results in predictable outcomes and reduces manual effort. 

Automation reduces manual workloads across development, testing, project management, communication, and client engagement. It accelerates delivery by automating repetitive tasks, improves quality by minimizing errors, and enhances collaboration through real-time updates. Automation cuts overhead costs, boosts productivity, and enables scalable, consistent workflows, ensuring high-quality results while freeing teams to focus on strategic priorities - Techwink Services. 

Long story short, automation isn’t about acceleration, but about repeatable processes that ensure stable, steady, and scalable growth. 

#5. Extended reality  (VR/ AR/ MR)

XR is a combination of immersive technologies, including VR, AR, and MR.   It’s a new playground for developers to blend the real world with computer graphics, creating new interactive experiences. 

Today, developers are utilizing XR to create immersive experiences in various fields, including gaming, training, remote assistance, and product design, using specialized tools and platforms. Moving forward, a shift is on the cards as XR will progress from being a niche technology to a mainstream tool driven by improved hardware, progressive AI, and specialized development frameworks.  

Extended Reality (XR) - encompassing Virtual and Augmented Reality - is poised to catch fire in 2026. As hardware becomes more affordable and powerful, its applications are rapidly expanding from gaming into mainstream enterprise, healthcare, and e-commerce, driving the next wave of immersive digital interaction. SumatoSoft 

XR will no longer be a niche technology; it’s on its way to becoming a mainstream development tool, especially as businesses seek immersive ways to train, assist, and engage users.

#6. Composable / Modular Architectures 

The software development market will move beyond microservices to adopt composable and modular architectures.

It’s about shifting from monolithic applications - one massive, rigid system - to creating software made of reusable and interchangeable modules, thus adapting to changing business needs. This will allow organizations to future-proof their systems, enhancing agility and dealing with technical debt more efficiently. (10)

Leveraging composable systems and workflow orchestration, businesses are moving away from monolithic platforms toward ecosystems of modular tools stitched together through APIs and automation. The value is no longer in one big “all-in-one” product, but in how seamlessly you can integrate and adapt multiple specialised solutions into something greater than the sum of its parts. AIWise

#7. Human Creativity + AI collaboration

With almost 90% of the software developers using AI, there’s no denying that AI and development are inextricably linked.  

“The future of software isn’t just about building apps — it’s about building intelligent, interconnected systems that combine AI, automation, and human creativity.” Ghulam Mustafa  Saivra Technologies LLC 

Smart teams are using AI as a creative partner — to generate ideas, write cleaner code, catch bugs early, and so on — while keeping decision-making and problem-solving firmly human-led.

“Technology should solve real business pain, not chase hype. The right people and clear ownership cut waste more than any tool.” Biz4Group LLC. 

And here’s where it gets interesting: AI isn’t just changing workflows — it’s creating new roles altogether.

As WEB RECRUITERS put it:

AI will create new roles — Prompt Engineers, AI Version Analysts, and Implementation Managers — reflecting how human expertise evolves alongside intelligent systems. 

As organizations increasingly adopt AI, responsible use of AI is crucial. The Department of Information Technology at Kibabii University recommends developing an AI toolkit that evaluates AI models on various parameters, including fairness, transparency, and accountability. This toolkit should include guidelines for data sourcing, model evaluation, and best practices for developers, helping organizations align their AI initiatives with ethical standards. (5)

#8. Adaptability, Governance, and Future-Ready Architectures

Continual technological changes leave little room for rigidity. 

Successful companies of the future will be those that adopt these innovations quickly but responsibly, rather than jumping onto every trend bandwagon. These companies test ideas in controlled environments, learning what works before scaling them up. 

As one leader explained,

“We focus on adopting innovations quickly but responsibly — leveraging research and pilot projects before full-scale deployment.” Kanstantsin Siomkin, CleverDev Software

However, adaptability without governance is utter chaos.

As software systems become more complex, spanning AI, cloud, and data-driven services, governance ensures that your innovations are in line with your business goals, ethically grounded, and regulation-ready. 

Bottom line: The industry is moving towards future-ready architectures that are powerful, resilient, and adaptable. 

The software industry is moving toward an era where value delivery matters more than code delivery. Companies that embrace future-ready architectures, prioritize security, and integrate ethical AI principles will be best positioned to deliver sustainable impact for clients in 2026 and beyond. - Mehul Rajput, MindInventory 

In short, software development is about building future architectures that scale gracefully, combining fast adaptation with disciplined governance.    

#9. Balancing Innovation with Maintainability

Adopting every trend is not a sustainable practice. Smartest teams focus on building maintainable, adaptable solutions that minimize technical debt and deliver value. 

“A key point often overlooked is the balance between innovation and maintainability — what matters is choosing technologies that can scale long-term without inflating costs.” Mallow Technologies  

True innovation isn’t about chasing every new framework, API plugin, and more — it’s about engineering for longevity.

“Focus on scalable, maintainable solutions that balance cost, performance, and user experience—emphasize long-term ROI over short-term fixes.” Smartupworld 

The software leaders of 2026 will be those who adapt the right technologies in the right way for the long term.

#10. The Human Element: Talent, Culture, and Continuous Learning

Nearly every respondent emphasized that people and culture are still the most significant cost — and the greatest differentiator. Investing in learning, collaboration, and clarity of ownership drives efficiency far more than any tool or framework.

“Invest in talent and culture — the right people and clear ownership cut waste more than any tool.” Biz4Group LLC 

If you are seeking long-term success, heed that advice. 

Additionally, remember that teams that prioritize continuous learning and cross-functional training will embrace technology shifts effortlessly. They’re resilient, agile, and forward-looking.

“Empowering teams through ongoing training ensures adaptability in an era of rapid change.” Jellyfish.tech 

11. Bioinformatics Software - Software + Biology 

Bioinformatics software analyzes and interprets biomedical data for life-changing insights. The software combines principles of biology and computer science for data collection, analysis, and visualization. Traditionally, the data collected was riddled with errors due to manual processes. But, not anymore. Today, bioinformatics software automates complex analyses, thus improving accuracy and accelerating research cycles that traditionally took months.

At its core, bioinformatics is an interdisciplinary field; it’s essential to have a deep knowledge of software engineering and biological issues to develop a solid, scalable, and reusable application.    

Andrei Sergeenko of Scand, when it comes to Bioinformatics Software, companies will be focusing on building “ protein folding models, digital twins of the human body, and personalized medicine platforms.” 

The insights shared by industry experts were eye-opening. The tech buzzwords, such as AI, automation, and low-code platforms, are sure to be the bedrock on which software will be shaped. But then, that’s just one part of the equation. Trust, strategy, ethics, and human judgment will form the other side of the equation. The leaders shaping the next generation of software are those who are good at balancing innovation with responsibility — turning technology into a tool for sustainable, scalable, and ethical growth.

Wrapping Up

Software development cost will never be a stagnant affair. Market trends and emerging technologies are sure to impact the cost. However, since the money involved is substantial, it’s always better to scale as your project needs grow, rather than blindly following any latest trend or technology. And you might now agree as well that the developer location also matters a great deal. And now, with AI powering software development, the software scope will increase, as mentioned by one of our participants, rather than decrease, as a senior-level developer will be able to complete 20 jobs within the same time span with AI as they used to do with 5, which they previously did.   

Research Methodology

The Goodfirms 2026 Software Development Cost Research Survey was conducted between September and October 2025, capturing responses from over 100 software development companies worldwide. The study combines quantitative (Google Form) and qualitative insights (expert interviews) to estimate average software pricing and identify influencing factors across global regions. Even a systematic literature review was conducted to ensure our pricing tiers are not off the mark. (4)

Survey Design and Data Collection

• Respondent Profile: Founders, CTOs, project managers, and business analysts.
• Regions Covered: North America, South America, Western and Eastern Europe, South Asia, Southeast Asia, and the Middle East. 
• Company Sizes: Small, mid-sized, and enterprise-grade firms.
• Tools Used: Google Forms and expert interviews 

A detailed breakdown of participating companies, including services offered, location, and size-based distribution. 

Types of Services Offered by Software Companies 

Nearly 91% of software companies offered Web Development services, followed closely by Enterprise Software (88.6%), Mobile App Development (79.5%), and AI-powered Software Development (79.5%).  

82% of companies offered full-stack development (e.g., combining web, mobile, and AI solutions), enabling clients seeking multiple services to obtain discounts and, more importantly, ensuring smoother project management under one banner. 

Location-Wise Breakdown of Companies 

To ensure balanced cost comparisons, participants spanned multiple regions.

Here’s the breakdown: 38.7% of the survey respondents were from Asia. 24.1% from North America. 19.4% of the companies were from Eastern Europe, while 11.4% from Western Europe. Oceania and Africa each have a 3.2% share. This mix minimized regional bias that could inadvertently influence pricing interpretations.

Company-Size Breakdown 

Nearly 86% of the respondents were from start-ups to medium-sized companies. As these software companies price their software that’s within the reach of clients who run small and medium-scale businesses, we decided to target this cost survey at small and medium-scale companies.

We sincerely thank our research partners for their valuable insights.