Logistics App Development: How to Decrease Costs for It

Logistics App Development

Much of today’s business is closely related to logistics. Delivery of goods, transportation, control of the distribution of goods in stores or warehouses – all this requires digital solutions to keep up with the times. That is why logistics app development services are in-demand on the IT industry market today. But at the same time, on-shelve solutions offered by large developers are not suitable for everyone.

Custom logistics app development allows you to get exactly the product that will be 100% effective for your business and will take into account its features. But many business owners stop a step before choosing a custom development due to its cost. We decided to talk about what budget should be included in the development of a logistics application, and how to reduce costs. And as an example of successful cases of such development, we will take the experience of the logistics app development company RexSoft.

  • An Average Cost for Logistics App Development Services

There are lots of agencies and companies, nothing to tell about single freelancers offering their services in the field of logistics app development. Yet, their rates are not always affordable. On average, the cost of logistics/transportation applications starts from $20,000. This is the cost of a minimally functional app that will not meet all the expectations of the customer. To get something usable and better designed, be sure to budget the sum twice higher.

This is what concerns small and medium-sized businesses. When logistics app development services are required by large corporations or extended networks of postal services, e-commerce marketplaces, or malls, the cost of the application can reach $100,000-$150,000 depending on the scaling, functionality, and lots of other reasons.

These rates include salaries for developers’ teams, costs for design, development itself, business analyses, marketer’s services, etc. And they are actual for American-based development agencies. Yet the world is not limited only to them. In RexSoft, we’ve highlighted 3 main tips on how to reduce costs for the development of an application for your logistics goals.

  • How to Reduce Costs When You Need Logistics App for Your Business

First of all, it’s worth considering how to find a decent developer. The US market is full of IT specialists of this kind, but they are either already employed permanently in this or that project, or require sky-high salaries, or do not have sufficient qualifications. And in this case, you can make a tactical move and turn to the services of offshore developers. And for this, there are two effective business models of cooperation.

  • Choosing Outsourcing Business Model to Hire Development Team

Outsourcing has become one of the most popular models in the pandemic era. With it, there is no need to keep IT specialists on staff, pay for their workplace and pay a regular salary. Moreover, if your project involves a one-time development and minimal product maintenance. Outsourcing allows you to hire a specialist or a development team remotely, for a specific period and on specific conditions. In such a team, you will receive all the necessary services without the need to monitor. The implementation of tasks – this responsibility is assigned to the outsourcing company. Offshore specialists require half the payment of locals. While you additionally save on renting jobs and free up time to solve your business problems instead of monitoring developers.

  • Outstaffing Logistics App Development Services

Another model that will allow you to reduce development costs. But at the same time give you the opportunity to constantly keep your finger on the pulse of the progress of work on your application is outstaffing. In an IT outstaffing company, you, as in the case of outsourcing, receive a full range of services for the development of a logistics application, but at the same time, you interact with the team as a leader. All control over the implementation of tasks and their setting are within your competence. Of course, the cost of such services will be even cheaper.

It is not worth stopping a step away from an effective solution. If your business requires the introduction of a logistics application into the company’s ecosystem. There is nothing easier than ordering it from RexSoft offshore specialists. This will save you time and help reduce the project budget at least several times.

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