How Much Does Custom Software Development Cost in India?

A CXO’s Guide with Insights from Software Development Companies in India

Introduction: Why Pricing Clarity Matters for Decision-Makers

For CXOs and technology leaders, custom software is often the backbone of digital transformation. But before committing to a new CRM, ERP, or SaaS platform, the immediate question is:

“What will this cost, and how do I ensure the spend translates into measurable value?”

Unlike off-the-shelf software, custom development has no fixed sticker price. Instead, it depends on scope, team structure, infrastructure choices, and long-term ownership costs.

In this blog, we break down key pricing drivers for companies doing custom software development in India, explore common pricing models, and explain why software development companies in India offer one of the most cost-efficient yet high-quality options globally.

Section 1: The Key Cost Drivers of Custom Software Development

Custom software pricing in India is primarily influenced by:

1. Project Scope & Complexity

Simple apps (basic workflow automation, single-module tools): $4,000–$10,000
Mid-scale systems (e.g., CRM, inventory management): $12,000–$30,000
Large enterprise platforms (multi-module ERP, AI/ML integrations): $40,000–$150,000+

Complexity grows exponentially with third-party integrations, security compliance, and advanced analytics, AI models, LLMs, so larger projects cost proportionally more.

2. Team Composition & Indian Rates

Team composition greatly impacts the project pricing.

Projects needing a team of 4–5 developers need a dedicated team leader or shared project manager — this adds to the cost.
Experienced team members contribute to the cost increase.
Team members with advanced skills like AI, DevOps, or cloud management increase the cost of the project.

India Advantage: Similar skill levels compared to U.S./EU teams, but 3x–5x less expensive thanks to lower living and operational costs.

3. Development Timeline

Time equals cost. For example:

A 3-month MVP with a 4-person team costs roughly $6,000–$12,000
A 6–9 month full-fledged product with an 8-person team costs $30,000–$60,000
A year-long enterprise solution with 12+ team members can reach $150,000–$250,000+

Efficient project planning (often done via a discovery or “Sprint Zero” phase) reduces risks of timeline and budget overruns.

4. Technology Stack

Open-source stacks (React, Node.js, Django, etc.) keep costs lean.
Enterprise-grade stacks (SAP, Oracle, AI/ML pipelines) or high-security needs (HIPAA/GDPR) may require specialized expertise, increasing costs.

Choosing a mature stack with strong developer availability in India lowers long-term maintenance costs.

5. Infrastructure Costs

You’ll also need hosting & deployment infrastructure:

Infra Option	Monthly Cost in India (USD)	Best For
Shared Cloud (AWS/Azure)	$50–$300	Startups, small apps
Dedicated Cloud Servers	$300–$1,500	Mid-scale SaaS/enterprise apps
On-Premises Setup	$10,000–$50,000+ (one-time)	Regulated industries, govt apps

Most Indian firms now recommend cloud-first approaches due to scalability and lower upfront costs.

6. Post-Launch Support

Budget 15–25% of initial development cost annually for:

Regular bug fixes
Security patches
New feature rollouts

For a $50,000 app, expect $7,500–$12,500/year in upkeep.

Section 2: Pricing Models from Indian Companies

Software development companies in India generally offer three commercial models:

Pricing Model	When to Use	Pros	Cons
Fixed Price	Clear scope, MVPs	Budget certainty	Limited flexibility
Time & Material	Evolving requirements, Agile builds	Pay for actual effort	Variable cost
Dedicated Team	Long-term product roadmaps	Acts as your extended team	Higher monthly retainer

Indian providers are flexible with engagement models, meaning you can start small (fixed) and scale to a dedicated team as the product grows.

Section 3: Why Software Development Companies in India Deliver Superior ROI

Partnering with Indian developers isn’t just about cost savings—it’s about value + capability:

Skilled Talent Pool: India graduates 1.5M+ engineers annually, trained in modern stacks, AI, ML, blockchain, etc.
Cost Arbitrage Without Quality Loss: Lower living costs translate into affordable hourly rates while still adhering to ISO/CMMI/global standards.
Global Collaboration: English fluency & timezone alignment enable 24/7 productivity for U.S., EU, APAC clients.
Mature Outsourcing Ecosystem: 3 decades of IT exports have built strong infrastructure & governance for quality delivery.
Flexible Scaling: From 2-person MVP teams to 50+ enterprise squads, India can scale engineering capacity faster than most regions.

For example: A 6-month SaaS MVP that might cost $120,000–$180,000 in the U.S. can be delivered by a top-tier Indian firm for $40,000–$70,000 — same quality, much better ROI.

Section 4: Typical Price Ranges for Projects from Indian Firms

Project Type	Team Size	Timeline	Price Range (USD)
Simple Workflow App	3–4 people	2–3 months	$6,000–$15,000
Mid-scale SaaS Tool	5–6 people	4–6 months	$15,000–$40,000
Complex Enterprise App	8–12 people	6–12 months	$80,000–$150,000
AI/ML or IoT Platform	10–15 people	9–12 months	$120,000–$250,000

These figures include Indian developer rates, cloud infra, and QA cycles, offering a realistic picture for CXOs planning budgets.

Section 5: Practical Tips for Budget Owners

Start with a Discovery Sprint: Many Indian firms offer a low-cost scoping phase (~$3,000–$5,000) to refine specs & costs.
Plan for TCO, not just build cost: Budget infra + maintenance from Day 1.
Prioritize outcome-driven partners: Look for firms that ask “Why build this?” instead of just “What to build?”
Think hybrid: Start with a small fixed-price MVP then shift to dedicated teams as you scale.

Conclusion

Pricing custom software development is all about clarity and context. By understanding the key cost drivers and engagement models, CXOs can make smarter, ROI-focused decisions.

With software development companies in India, you gain:

Global-grade engineering talent
Pricing that’s 3–5x more cost-efficient than Western markets
Flexibility to scale teams without scaling costs

For businesses looking to innovate while staying budget-conscious, India isn’t just an outsourcing hub—it’s a strategic software partner ecosystem.