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Why Are Software Development Price Quotes so Different?

We’ve seen a lot of clients come to us after wasting lots of money and lots of time with the wrong software partners. We won’t candy coat it – they’ve usually had terrible experiences, and for every one that comes to us, we assume several others just gave up on their software projects altogether. It’s a tough thing to see, and makes them very guarded as they naturally should be.

In fact, as we frequently tell our clients during our Free Discovery Session (an introductory meeting where we do an in-depth review of the project), we usually find more than half the folks knocking on our door got burned by some low-cost developer handling a prior project. And more specifically, it’s usually an offshore or remote developer, which creates a very negative perception of offshore development.

So what goes wrong?

First, the offshore folks. They’re usually pretty easy to find. They’re great at SEO (Search Engine Optimization), and the prices are so unbelievably low that it’s easy to understand how they attract customers. They’re easy to find, fast to quote, make the process sound incredibly simple, and as mentioned, offer very low prices.

But what are they really? In the end, they’re usually just programmers for hire. So maybe it’s easier to explain what they aren’t – they usually aren’t software architects, project managers, wireframe experts, UI/UX designers, technology experts, and business leaders. This is easy enough to uncover with the right questions, but we’ll get to that later.

You’ve got no ability to visit them locally to push through project roadblocks, or brainstorm solutions to obstacles.

Second, the U.S. based folks. Their team is located here exclusively. This will be your most costly option. You may or may not find the layers of talent you need, but what is certain is that you’ll need to be well funded.  They’re going to be loaded with folks making six-figure US salaries and that cost gets passed through.

Third, the hybrid software development model. This is actually SDSol’s model, and we’re unique in the Miami/Ft. Lauderdale area in offering this. We offer high-level talent that is locally based in our Coral Gables office. The planning, interactions, wireframing, software architecture, project management – these resources are here. But, we also fully own our own offshore location, staffed by a large team of developers that are direct employees. They aren’t outsourced, subcontracted, or shared – they’re part of the SDSol Team, and we run/own/manage that office.

So now that we’ve blown through the types of developers you’ll encounter, and an explanation of the hybrid software development model, we’ll explore what goes wrong with the low-cost / offshore quotes, and how can you sniff out the trouble before it happens.  Stay tuned for part 2 and part 3 of this topic.  Or contact us today to speak to a consultant.

 

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