By TPS People

Custom Software Development Price & Hourly Rate in 2023


Companies of all sizes are investing in custom software to boost internal operations, expand into new markets, and spur more creative thinking among employees.

When looking to hire a software development services, you’ll find a wide range of possibilities, each with its own set of price and conditions. In this article, we made this handy reference of custom software development price guide & hourly rate in 2023 to aid in your decision-making.

How many types of custom software development companies ?

Custom software development companies are no different from other service providers in that they come in all shapes and sizes, with rates that vary widely.

Based on our research, we have identified four distinct types of outsourcing software development

“Enterprise Class” Custom Software Development Companies

Enterprise Class consultancies, the industry leaders, employ hundreds or even thousands of developers and consultants and deal with governments and top companies that can afford their exorbitant prices.

The typical cost of a project is between $200,000 and $100,000,000.

Hourly fees for developers and consultants range from $385 to $850, with the latter being the norm.

Oftentimes, the high prices charged by these businesses are justified by the quality of service they provide.

“Big Business Class” Software Development Companies

Consulting firms catering to the large business market often deal with corporations that have sizable budgets but not enough to hire an enterprise-level firm.

They typically employ anything from one hundred to one thousand programmers across many locations worldwide.

They are less costly than the Enterprise Class, but still not inexpensive. From $125,000 up to and including $5,000,000, the hourly rate will be between $220 and $330.

“Mid-Market Class” Custom Software Development Companies

You can usually find the optimal price-to-quality ratio among consultants in the middle market.

In most cases, they employ between 10 and 100 people and focus on serving medium-sized and small enterprises.

Hourly rates of $110 to $220 may be expected for projects with budgets of $500,000 to $5,000,000.

If you’re searching for a reliable service that doesn’t break the bank, a mid-market consulting firm with a solid reputation might be a great option.

“Small Class” Custom Software Development Companies

Companies in the Small Class software development sector often operate with a small number of workers and little overhead.

They often collaborate with startups, local small companies, and medium-sized regional firms and may have anything from two to ten workers (including the founders).

For jobs between $10,000 and $500,000, their hourly charges may be anything from $82 to $137.

Small Class development companies often focus on one facet of software creation, such as user interface and user experience design, e-commerce solutions, mobile app development, or the use of a certain framework or language, such as Ruby on Rails, Node.js, React.js, or another.

Software development hourly rates by country



North America


South America


Latin America


Western Europe


Eastern Europe


Central Asia


East and South Asia








This article provides a high-level summary of software development costs that should assist you in understanding the process and making a deliberate choice. Having so many alternatives to choose from is convenient, but it may also cause confusion.

If you’re considering betting on outsourcing or employing in-house developers, you should first determine what you want to accomplish and how much money you have available. Then, weigh the pros and drawbacks of both choices before deciding on a course of action: whether to staff up with in-house programmers or to seek outside help for the development process. Finally, choose a dependable collaborator who will assist you in developing a high-quality product.