How Much Does Software Development Cost in the UK

The UK’s software development industry is worth billions, with businesses constantly looking for custom solutions to improve their operations. Whether it is a new mobile app, a dynamic website, or a large-scale system, software helps improve your business.

As digital technology grows, knowing the cost of software development is essential for anyone looking to invest in tech.

However, the software development cost can vary depending on the project's complexity, the features required, the developers' expertise, and the type of software being created.

For example, a basic website might cost a few thousand pounds compared to a more advanced software solution, which can run into hundreds of thousands.

This article will explore the key factors affecting software development costs in the UK. We will also cover everything from pricing models to hidden costs, so you can better plan your next software project.

Whether you are a startup looking to build a minimum viable product (MVP) or a large company with a complex system in mind, this guide will help you understand how to budget for your software project.

What is Software Development?

Before we learn about the cost of software development, let’s first know what software development is. Software development is the process of designing, creating, testing, and maintaining software applications or systems.

It can include various services like web development, mobile app development, desktop applications, and enterprise solutions. The type of software you want to develop will affect the total development costs.

The software is developed by writing code and using various programming languages.

Here are some types of software development:

🔘Web Development: Creating websites and apps that work in web browsers.

🔘Mobile App Development: Creating apps for phones and tablets, like Android or iOS.

🔘Enterprise Software: Building software to help businesses run smoothly.

🔘Custom Software: Designing software that meets a business's specific needs.

🔘Game Development: Creating games for different devices and platforms.

Reasons Why You Should Invest in Software Development

Today, every business is competing, whether it is your e-commerce or any profitable business idea in 2025. However, investing in software development offers various benefits. Here is why it is worth considering.

1. Improved Efficiency and Automation

Investing in custom software helps businesses automate repetitive tasks, simplify workflows, and reduce human errors. This boosts productivity because employees can focus on important work while the software can handle the rest.

For example, a custom CRM system can automatically manage customer data, allowing your sales team to focus more on building relationships instead of entering data manually.

2. Competitive Advantage

By developing custom software based on your business needs, you can offer services and products that your competitors can’t copy easily. This makes you stand out in the market.

Custom software can help you deliver services faster, provide better customer experiences, and offer enhanced features that set you apart from others using standard solutions.

3. Scalability

As your business grows, your needs will also change. Custom software is built to grow with you.

It allows you to add new features, handle more users, and adjust the software to meet your changing business requirements without being held back by the limitations of off-the-shelf solutions.

4. Cost-Effective in the Long Run

While custom software may cost more initially, it can save you money in the long run. With off-the-shelf software, you might have to pay for ongoing licensing fees or require additional customisation, which can add up to the overall development cost.

A custom solution ensures you are paying only for what you need and reduces the need for frequent upgrades or fixes.

5. Enhanced Security

The software can be designed with stronger security features that meet your business's needs. Protecting sensitive data is very important in industries like finance, healthcare, or e-commerce.

So, if you have any healthcare, e-commerce, or fintech business ideas, you can invest in software development to ensure it has built-in security protocols, reducing the risk of data breaches or cyberattacks.

Recommended Reads: What is the Future of Cyber Security? Latest Trends, Threats, and Tips to Stay Ahead

6. Better Customer Experience

Software development lets businesses create user-friendly and visually appealing designs that cater to their target audience.

Whether it is a mobile app, e-commerce platform, or internal tool, the software can be made to improve the user experience by being quicker, more interactive, and easier to use.

7. Integration with Existing Systems

Custom software can be built to work smoothly with your current systems, like inventory management, accounting, or marketing tools. This helps different departments of your business work together better, reducing problems and making everything run more smoothly.

Understanding Software Development Costs in the UK

The software development costs in the UK can range from £40,000 to £500,000, depending on your project’s demand. This cost range can vary depending on the project’s complexity, technology stack, developer’s expertise, the type of software, and location.

For instance, for simple apps or websites, costs can start around £5,000 to £20,000, while for a more complex software solution, like custom enterprise applications, can range from £50,000 to £200,000 or more.

The table below shows the cost of developing software based on the project size.

🔘Small to Medium-Sized Projects: For small to medium-sized projects, such as a basic website or mobile app, you can expect the cost to range from £5,000 to £50,000. These projects often focus on limited functionality, a clean design, and a shorter development time.

🔘Large-Scale Enterprise Projects: Enterprise software projects, like custom or cloud ERP systems, large-scale e-commerce platforms, or large mobile apps, are much more expensive. These projects need a big team of developers, designers, and testers and can cost you more than a small or medium-sized project.

🔘Offshore Development vs Local Development: Offshore software development might seem like a good choice because it costs less—sometimes 40-60% less than local UK teams. However, there can be challenges with communication, project management, and ensuring quality control.

On the other hand, hiring developers in the UK might cost more, but it has advantages like easier communication, faster work, and usually better quality. Working with a local team also lets you meet in person and have more control over the project.

Breakdown of Software Development Costs

The software development costs can be broken into various key stages. Here are the development stages that are often included in creating software and its costs.

1. Planning and Requirement Analysis

Cost: 10-15% of the total development cost

The planning phase involves gathering information, defining the project’s goals, and setting objectives. It helps both the business and developers understand what’s expected. It usually makes up 10-15% of the total budget, as it is the foundation for the entire project.

2. Design and Prototyping

Cost: £5,000 to £50,000 or more

In the design phase, the UI/UX design of the software is planned, including how users will interact with it. This step usually takes up 20-30% of the total cost.

The more detailed and customised the design, the higher the software development cost. During this phase, basic layouts (wireframes) are created, followed by more detailed mockups.

3. Development

Cost: £3,000 - £250,000 +

Another essential and main part of any software development is its development phase. It is where the actual coding happens.

Frontend developers work on the user interface, while backend developers handle the server side. Full-stack developers do both. It is the main part of the project and usually makes up 40-50% of the total project cost.

4. Quality Assurance and Testing

Cost: £5,000 - £50,000

During this phase, testing is done to ensure the software works well and doesn’t have bugs. Both automated and manual tests are used to ensure the best quality.

Manual testing checks if it is easy to use, while automated testing ensures efficiency. This phase typically accounts for 15% to 20% of the overall cost and is essential for ensuring the software is of high quality and ready for deployment.

5. Deployment and Launch

Cost: £5,00 - £20,000

Deployment is about setting up servers and cloud systems and making the software available to users. It might also involve connecting the software with other systems if needed.

Deployment usually costs 5-10% of the total project cost, depending on what infrastructure and integrations are required.

6. Maintenance and Support

Cost: 10-20% of the development costs per year

After the software is launched, it needs regular maintenance to fix any bugs, update features, and ensure it works well with other systems. This maintenance can cost another 10-20% of the original development cost each year.

Also Read: Mobile App Maintenance Cost: Affordable Solutions

Software Development Pricing Models

There are different pricing models used in software development, each with its pros and cons. Here is a quick look at the most common ones:

1. Fixed Price Model

In the fixed-price model, you agree on a set price at the beginning of the project. This model often works well for smaller projects with clear, well-defined needs. However, if the project’s requirements change during development, extra costs may apply.

Pros:

• Predictable costs for the client.
• Easier budgeting and financial planning.

Cons:

• Less flexibility for scope changes once the project starts.
• It can get expensive if the requirements are unclear or change mid-project.

2. Hourly Rate Model

In the hourly rate model, clients are charged based on how many hours developers work. Whether you want to build adaptive or utility software, this model is flexible, making it good for projects with changing needs. However, it can sometimes result in higher costs than expected.

Pros:

• It allows for changes in requirements and scope during the development process.

• Suitable for projects where requirements can change.

Cons:

• Less predictable cost, which can make budgeting challenging.

• The project may take longer if the requirements change frequently.

3. Dedicated Team Model

In the dedicated team model, a company hires a team of developers to work only on your project for a fixed period. This model is good for larger or long-term projects where the needs might change as the work progresses.

Pros:

• Full control over the development process.

• Ideal for large, ongoing projects where the scope isn’t well-defined from the start.

Cons:

• Requires more attention from the client to ensure the project is progressing as expected.

• It can be expensive in the long term.

Factors Influencing Software Development Cost in the UK

Many factors can influence the cost of developing software in the UK. Let’s learn about these key factors in detail so that you can plan your budget accordingly.

1. Project Complexity

The complexity of a project is a key factor that influences software development costs.

If your software is complex, mobile apps have multiple features, or apps require you to integrate with other systems (such as third-party APIs), it will cost you more. This is because these projects need specialised expertise, take longer to develop, and require more testing.

However, a basic website or simple app can cost because it takes less time and requires fewer resources. More complex systems also need skilled developers, which means higher hourly rates.

2. Team Expertise and Location

Whether you want to build software like WebEngage or any other software, the experience and expertise of the development team play an important role in the cost of a project.

Highly skilled developers, especially those who know advanced technologies like AI, blockchain, or machine learning, will charge higher rates because of their expertise in handling complex tasks.

Also, where the development team is located affects the cost. In big cities like London, developers tend to charge more because of the high cost of living and demand for skilled workers.

Developers in smaller cities or rural areas may charge less, but it’s important to balance the cost with the quality and skills of the team to get the best value.

3. Development Timeline

The time needed to develop the software can also affect the development cost. Projects with tight guidelines or that need to be completed quickly can cost more because for such software, more people and working hours will be required.

Tight deadlines can also lead to unexpected problems, which can cause delays or need extra resources to ensure on-time delivery.

On the other hand, projects with longer timelines have more flexibility for changes, which can reduce stress on the team. If the project takes longer, clients may get better rates or spread the costs over time.

4. Type of Software

The type of software being developed greatly affects the cost of software development. Different types of software vary based on the complexity and features required, directly impacting the time and resources needed to develop them.

🔘Custom Software: It needs thorough planning, design, development, and testing, which makes it more expensive than ready-made software. The cost depends on how complex it is, but custom software usually costs more because it is built from scratch.

🔘Mobile Apps: Developing mobile apps, especially for both iOS and Android, can be expensive. Native apps cost more than hybrid apps because they need separate development for each, while cross-platform apps are built using a single codebase for both platforms.

🔘Enterprise Software: these are large-scale applications, like ERP, CRM, and HRMS, used by large businesses. They are complex and often need to connect with other systems, which can increase the development cost.

🔘SaaS (Software as a Service): SaaS products are cloud-based apps that support many users. They need to be scalable, secure, and updated regularly, which can increase development costs.

🔘Web Applications: Web apps are usually more affordable than native mobile apps but can still be costly depending on the features, like user login systems, databases, or third-party integrations.

5. Type of Developers

The choice of developers, whether you want a freelancer, in-house teams, or outsourced agencies, can influence the cost of software development.

🔘In-House Development: In-house teams are directly hired and managed by the client. While this provides full control over the development process, it can also lead to increased costs for salaries, recruitment, training, and office space. This is a good option for businesses with long-term software needs and want to oversee everything.

🔘Outsourcing: Outsourcing means hiring an external agency or team to handle development. It can save money, especially if you work with offshore or nearshore teams. However, it requires good communication and coordination. The cost varies depending on where the team is located.

🔘Freelancers: Hiring freelancers for specific tasks or components of the project is often more affordable than hiring full-time employees or a software development agency. However, freelancers may not have the resources for large projects or long-term support. They are an ideal choice for smaller, simpler projects.

6. Technology Stack

The choice of technology stack (the programming languages, tools, and frameworks used to build the software) also affects the cost. For example, using free and open-source tools can lower costs, while using paid or advanced technologies can increase the cost.

Also, emerging technologies like AI, augmented reality, or advanced data analysis need expert knowledge, which can raise costs. Cloud services, development tools (IDEs), or third-party platforms can add costs because of licensing fees, server setup, and ongoing maintenance.

7. Software Customisation and Features

The level of customisation needed for the software also impacts the software development cost.

Ready-made software that is adapted to the client's needs usually costs less than fully custom software because custom software takes more time to design, develop, and test to meet the specific needs of the business.

The more features, integrations, and custom parts needed, the higher the cost. However, custom software can meet your business needs and user demands perfectly.

Cost-Saving Strategies for Software Development

When developing software, there are strategies you can implement to save costs while maintaining the quality and functionality of the final product.  Here are some effective cost-saving techniques.

1. Use Open Source Technologies

Using open-source software can save a lot of money because you don’t have to buy costly licenses for proprietary software. Open-source tools, frameworks, and libraries are often just as good as paid ones and can be used to speed up development time.

Example: Using frameworks like React.js or Angular for building the front end or MySQL and PostgreSQL for databases can save money compared to using proprietary options like Oracle.

2. Agile Development

Agile development focuses on releasing the software in smaller steps,  making it easier to adjust and change throughout the development process.

By breaking the project into smaller parts, you can avoid adding unnecessary features and focus on the most important ones first. This helps prevent overspending on features that aren’t needed or valuable.

Example: By using regular sprint cycles and ongoing testing, you ensure the software meets the client’s needs, which helps avoid costly changes later on.

3. Outsourcing and Offshoring

Outsourcing parts of the project to regions with lower development costs, like Eastern Europe or South Asia, can help reduce the total software development cost.

Many offshore companies have skilled developers who charge less than local teams, letting you use your budget for more important parts of the project.

Example: Hiring a development team in Eastern Europe for backend work or hiring freelance UI/UX designers from countries with lower rates can provide cost savings while maintaining top-quality work.

4. Minimum Viable Product (MVP) Approach

Instead of building a complete product right away, consider starting with an MVP (Minimum Viable Product) by selecting the best MVP development companies. An MVP is a basic version of the software with just the main features needed to solve the problem.

By launching an MVP, you can reduce development costs, get feedback from users early on, and test your business idea before spending more on a fully-featured product.

Example: For a mobile app, start with a simple version that has only the basic features, like user authentication and core functionality. Then, improve it over time based on feedback from users.

5. Cloud Computing

Using cloud services like AWS, Google Cloud, or Microsoft Azure can lower costs for servers and maintenance. With cloud platforms, you pay only for what you use as they offer pay-as-you-go pricing models, which helps reduce upfront costs and makes it easier to manage expenses over time.

Example: Instead of investing and maintaining physical services, you can use cloud services to scale your app’s resources, which will save money on maintaining and upgrading physical hardware.

6. Resue Code and Libraries

Instead of building everything from scratch, you can save time and money by reusing existing code and libraries. Many platforms and open-source communities provide pre-built code that you can customise and add to your project, which reduces the time spent writing new code.

7. Automate Testing and Deployment

Manual testing can take a lot of time and cost more money. Automating the testing and deployment processes can save money, improve accuracy, and speed up the release cycles.

Automated testing frameworks like Selenium or Jenkins can test your software automatically, ensuring it works correctly without needing much manual effort.

Hidden Costs in Software Development

While it is easy to focus on the obvious costs of software development, there are many hidden expenses that businesses often don’t pay attention to. These costs can add up and greatly affect your total project budget.

Here are some hidden costs to watch out for.

1. Requirement Changes

As the project moves forward, changes to the original plan are likely to happen. Whether due to changing business needs or customer feedback, these changes can cause the project to take longer and cost more. The more changes there are, the higher the overall cost will be.

Solution: You should clearly define your requirements at the start to ensure the timely delivery of the project within your budget.

2. Testing and Quality Assurance

While many businesses set a budget for development, they sometimes overlook the time and resources needed for testing and quality checks.

The quality assurance tester ensures proper testing to prevent bugs and issues that can slip into production, leading to costly fixes, delayed launches, and unhappy users.

Solution: You can invest in automated testing and ensure there are enough resources for thorough quality checks to avoid expensive fixes later.

3. Post-Launch Maintenance

Software still costs money after it is launched. Maintenance tasks like fixing bugs, updates, security fixes, and improving performance can add to the maintenance costs over time.

Solution: Plan for ongoing maintenance and include it in your initial budget to ensure the software gets the support it needs after launch.

4. Communication Barriers

When working with offshore or remote teams, communication barriers can lead to mistakes, delays, and errors. These can ultimately result in higher development costs due to rework and lost time.

Solution: Implement clear communication methods, like regular meetings, project management software, and task tracking, to prevent misunderstandings and reduce delays.

5. Intellectual Property (IP) Protection

Developing custom software often involves creating unique technologies that require proper protection through intellectual property agreements. Without proper legal protection, businesses risk losing their IP to competitors or facing legal issues.

Solution: Set a budget for legal services to ensure that contracts, non-disclosure agreements (NDAs), and patents are properly handled.

Why is Arramton an Ideal Software Development Partner in the UK?

Arramton is one of the best software development companies in the UK and is a great choice for businesses looking for excellent and high-quality software development.

They have a skilled team experienced in various technologies like mobile apps, web applications, and cloud computing. With a proven track of successful projects for both small businesses and large enterprises, they understand different client needs.

They offer flexible pricing options to suit your budget and provide cost-effective solutions while ensuring top quality. Their team focuses on clear communication and keeps you updated throughout the software development process, ensuring your project runs smoothly.

Also, Arramton Infotech offers ongoing support and maintenance to keep your software updated and bug-free after launch.

The Bottom Line

In conclusion, the software development costs in the UK depend on the team size, complexity of the project, location, technology stack, and type of software.

Small projects can cost between £5,000 and £20,000, medium projects range from £20,000 to £200,000, and larger projects can exceed £200,000. It is important to choose a development team that understands your business needs and develops software within your budget.

You can use some cost-saving strategies to save on development costs while maintaining quality. Also, don’t forget about the hidden costs, as they can add to your total cost and ultimately affect your budget for the project.

If you are looking for an excellent and experienced team to help with your software development, Arramton is a great choice. They offer high-quality and scalable software solutions with expertise in different technologies. Get in touch with Arramton today to start your project!

Frequently Asked Questions

Q1 What is the average cost of developing a mobile app in the UK?

Ans The cost of developing a mobile app in the UK varies depending on factors like app complexity, platform (iOS or Android), and design requirements. The cost of software development can range from £5,000 to £50,000 or more. A simple app with basic features can cost less than an app with advanced features. Also, ongoing maintenance and updates are required after launch, which can add to the development cost.

Q2 How do I choose the best software development company in the UK?

Ans You can choose the best software development company by looking for their experience in the type of software you need, whether it is a web application, mobile app, or enterprise solution. Other steps you can take are:

🔘Check their portfolio for previous projects similar to yours.

🔘Look for their technical expertise in programming languages, tools, and frameworks. 

🔘Should provide open communication about timelines, costs, and progress.

🔘Check client reviews and testimonials.

Q3 How long does it take to develop software in the UK?

Ans The timeline for software development in the UK depends on the complexity and scope of the project. However, it usually takes around 2 to 6 months to over a year to develop software, depending on whether you want simple applications or websites or complex and custom software.

Q4 What are some common hidden costs in software development?

Ans Some common hidden costs in software development include post-launch maintenance, security measures, and future software updates or scaling.

Q5 How much does it cost to develop an enterprise-level software solution in the UK?

Ans The cost of developing software solutions starts at around £50,000 for a basic solution but can easily rise to £500,000 or more for complex systems that involve integrations, scalability, and high-security features.

Q6 Can I save money on software development by hiring offshore developers?

Ans Yes, hiring offshore developers can reduce software development costs as developers in countries with lower living costs generally charge less than those based in the UK. However, there can be some potential drawbacks, such as communication challenges, time zone differences, and quality concerns.