How does a software house price IT projects?
The IT project estimation process is more than just a simple cost calculation—it’s a detailed analysis of business needs, product goals, and potential risks. Every professional software house, before providing a price, must thoroughly understand what is to be built, who will use it, and what results it should deliver.
The first step is functional requirements analysis. This includes a list of modules, user roles, interactions, and dependencies between system elements. Next, the technical team performs a complexity estimation, determining the number of work hours required to implement each feature.
At this stage, understanding the context is also important—whether the system will be developed in stages or as a whole. At Nugosoft, we often recommend starting with an MVP (Minimum Viable Product) to reduce risk and quickly validate the concept on the market.
On the technical side, costs are heavily influenced by the choice of technology and architecture—for example, React, Vue, Next.js, or Node.js. Equally important are integrations with external APIs, payment systems, or authentication services. Each of these functions requires separate implementation and testing.
Additionally, a software house considers code quality, testing, security, UX/UI, and technical documentation. These are elements that may not be immediately visible in the final product but have a significant impact on its durability and scalability.
In summary, a good IT project estimation is not a “table-based offer.” It’s a process that requires analysis, experience, and collaboration with the client. Only after understanding the business needs can a be provided.
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Yes, an MVP (Minimum Viable Product) is a basic version of the app that allows you to test the idea with minimal investment. This helps validate the product concept before developing the full version.
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Check their industry experience, technologies, portfolio, client reviews, and approach to communication and support. Matching their methodology to your project is also key.
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For SaaS applications, React, Angular, or Vue.js are commonly used on the frontend, and Node.js, Django, or Ruby on Rails on the backend. The choice depends on project requirements, integrations, and scalability needs.