20 min readSoftware development costs vary widely based on scope, service type, team size, engagement model, and project duration. Enosis Outsourcing analyzed 14,075 outsourced software projects, including 11,411 with disclosed budgets, to understand how real-world software development budgets are distributed.
Quick Answer
Among the 11,411 projects with disclosed budgets, the most common range is $10,000–$49,000, representing 36.9% of projects.
The market is almost evenly divided around the $50,000 mark. About 50.2% of projects fall below $50,000, while 49.8% reach $50,000 or more. At the higher end, 19.2% reach $200,000 or more, and 3.9% fall into the $1 million+ range.
These figures show why there is no single useful answer to the question, “How much does software development cost?” A small website project and a multi-year enterprise platform may both be classified as software development, but their budgets, team requirements, and delivery models are fundamentally different.
How Much Does Software Development Cost?
The EOS dataset reveals several clear patterns in how software outsourcing budgets are distributed across services, industries, team sizes, and engagement models.
The most common outsourcing budget is $10,000–$49,000.
A total of 4,215 projects, or 36.9%, fall into this range, making it the largest single budget category.Nearly one in five projects reaches $200,000 or more.
A total of 2,189 projects, or 19.2%, fall into the $200,000+ range, showing that high-value engagements represent a meaningful share of the market.Custom software development tends to have larger budgets.
Among the three major development categories analyzed, custom software development has the highest concentration of higher-budget projects. Its most common range is $50,000–$199,000.Staff augmentation is concentrated at higher budget levels.
Among 940 staff augmentation engagements, 37.6% reach $200,000 or more and 11.3% fall into the $1 million+ range.Financial services projects skew toward larger budgets.
A total of 29.0% of financial services projects reach $200,000 or more, compared with 17.8% in healthcare and 15.3% in e-commerce and retail.Nearshore projects show the highest $200,000+ concentration.
Nearshore engagements reach $200,000 or more at a rate of 24.1%, compared with 18.7% for offshore and 14.8% for onshore projects.The $1 million+ segment is small but significant.
A total of 447 projects fall into this range, representing 3.9% of projects with disclosed budgets.
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Get a Free ConsultationData and Methodology
The findings in this report are based on EOS Project Intelligence data, covering budget, service, industry, team size, engagement model, and duration records across outsourced software projects.
Item | Detail |
|---|---|
Publisher | Enosis Outsourcing (EOS), enosisoutsourcing.com |
Research property | EOS Project Intelligence |
Dataset | EOS software outsourcing project database |
Total projects | 14,075 published and endorsed projects |
Budget records analyzed | 11,411 projects with disclosed budgets |
Excluded | 2,664 projects, or 18.9%, with confidential budgets |
Data cut-off | September 8, 2026 |
Budget categories | Under $10,000 / $10,000–$49,000 / $50,000–$199,000 / $200,000–$999,000 / $1 million–$9 million / $10 million+ |
Service attribution | Projects may include multiple service tags and are counted in each applicable category |
Industry attribution | One industry tag per project |
Team-size analysis | 9,754 projects with disclosed budget and team-size data |
Duration analysis | 6,481 completed projects with confirmed start and end dates |
Important limitation: The dataset consists of published, client-endorsed projects and may therefore underrepresent failed, abandoned, or disputed engagements. Budget data is recorded in ranges rather than exact prices, so the report does not calculate averages or midpoint estimates from categorical budget data.
Full Budget Distribution
The 11,411 projects with disclosed budgets cover a broad range, although most are concentrated between $10,000 and $199,000.
Budget Range | Projects | Share of Projects With Disclosed Budgets |
|---|---|---|
Under $10,000 | 1,512 | 13.3% |
$10,000–$49,000 | 4,215 | 36.9% |
$50,000–$199,000 | 3,495 | 30.6% |
$200,000–$999,000 | 1,742 | 15.3% |
$1 million–$9 million | 423 | 3.7% |
$10 million+ | 24 | 0.2% |
Confidential, excluded | 2,664 | N/A |
Key thresholds:
50.2% fall below $50,000
49.8% reach $50,000 or more
19.2% reach $200,000 or more
3.9% fall into the $1 million+ range
The distribution is almost evenly divided around the $50,000 threshold. This shows that the most common budget band should not be treated as a default target. The appropriate budget depends on scope, complexity, team requirements, delivery model, and duration.
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Explore ProjectsSoftware Development Cost by Service
Budget patterns vary significantly by service type. Custom software development shows a stronger concentration in higher-value engagements than mobile application or website development.
Custom Software Development
Among 4,498 custom software projects with disclosed budgets, the most common range is $50,000–$199,000 at 33.7%.
Budget Range | Projects | Share |
|---|---|---|
Under $10,000 | 361 | 8.0% |
$10,000–$49,000 | 1,380 | 30.7% |
$50,000–$199,000 | 1,515 | 33.7% |
$200,000–$999,000 | 977 | 21.7% |
$1 million–$9 million | 251 | 5.6% |
$10 million+ | 14 | 0.3% |
$200,000+: 1,242 projects, or 27.6%
$1 million+: 265 projects, or 5.9%
Among the three major development categories analyzed, custom software development has the strongest concentration in higher budget ranges. This pattern is consistent with projects involving bespoke systems, complex integrations, and longer development cycles.
Mobile Application Development
Among 4,851 mobile application projects, the most common budget range is $10,000–$49,000 at 40.0%.
Budget Range | Projects | Share |
|---|---|---|
Under $10,000 | 580 | 12.0% |
$10,000–$49,000 | 1,942 | 40.0% |
$50,000–$199,000 | 1,519 | 31.3% |
$200,000–$999,000 | 660 | 13.6% |
$1 million–$9 million | 142 | 2.9% |
$10 million+ | 8 | 0.2% |
$200,000+: 810 projects, or 16.7%
$1 million+: 150 projects, or 3.1%
Mobile application projects appear across every budget range. Lower-cost engagements often involve targeted features, prototypes, or narrowly scoped applications. Larger projects are more likely to include backend systems, integrations, ongoing product development, and broader platform requirements.
Website Development
Among 4,099 website development projects, the most common budget range is $10,000–$49,000 at 36.8%.
Budget Range | Projects | Share |
|---|---|---|
Under $10,000 | 635 | 15.5% |
$10,000–$49,000 | 1,510 | 36.8% |
$50,000–$199,000 | 1,264 | 30.8% |
$200,000–$999,000 | 575 | 14.0% |
$1 million–$9 million | 112 | 2.7% |
$10 million+ | 3 | 0.1% |
Website development has the highest proportion of projects under $10,000 among the three major development categories. These engagements often include CMS implementations, redesigns, template customizations, and smaller web builds.
Comparing the Three Major Service Types
Service | Most Common Band | Below $50,000 | $200,000+ | $1 million+ | Projects |
|---|---|---|---|---|---|
Custom Software Development | $50,000–$199,000 | 38.7% | 27.6% | 5.9% | 4,498 |
Mobile Application Development | $10,000–$49,000 | 52.0% | 16.7% | 3.1% | 4,851 |
Website Development | $10,000–$49,000 | 52.3% | 16.8% | 2.8% | 4,099 |
Overall | $10,000–$49,000 | 50.2% | 19.2% | 3.9% | 11,411 |
Mobile application and website development have similar budget profiles. Custom software development stands apart, with a larger share of projects concentrated in the $50,000–$199,000 range and above.
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Find Custom Software TeamsStaff Augmentation in More Detail
Staff augmentation follows a different budget pattern from many fixed-scope development projects.
Among 940 staff augmentation engagements with disclosed budgets, the most common range is $50,000–$199,000 at 34.7%.
Budget Range | Projects | Share | All Other Projects |
|---|---|---|---|
Under $10,000 | 33 | 3.5% | 14.1% |
$10,000–$49,000 | 228 | 24.3% | 38.1% |
$50,000–$199,000 | 326 | 34.7% | 30.3% |
$200,000–$999,000 | 247 | 26.3% | 14.3% |
$1 million–$9 million | 100 | 10.6% | 3.1% |
$10 million+ | 6 | 0.6% | 0.2% |
Only 27.8% of staff augmentation projects fall below $50,000, compared with 50.2% of projects overall.
At the other end, 37.6% reach $200,000 or more, compared with 19.2% overall.
Editorial interpretation: This higher budget concentration likely reflects the way staff augmentation costs accumulate over time. An engagement lasting 12–18 months can reach the $200,000–$999,000 range even with a relatively small team. Because the dataset records total engagement value rather than hourly rates, it cannot isolate per-resource pricing.
Among staff augmentation engagements:
63.7% use teams of 1–5 people
54.3% are offshore
30.3% are nearshore
Software Development Cost by Industry
Industry provides useful context, but it does not determine software development cost on its own. Projects within the same industry can differ significantly in scope, team size, service type, and complexity.
Financial Services
Among 954 financial services projects, 29.0% reach $200,000 or more.
Budget Range | Projects | Share |
|---|---|---|
Under $10,000 | 78 | 8.2% |
$10,000–$49,000 | 304 | 31.9% |
$50,000–$199,000 | 295 | 30.9% |
$200,000–$999,000 | 205 | 21.5% |
$1 million–$9 million | 68 | 7.1% |
$10 million+ | 4 | 0.4% |
The $1 million+ rate is 7.5%, almost twice the overall rate of 3.9%.
Healthcare
Among 590 healthcare projects, 17.8% reach $200,000 or more.
Budget Range | Projects | Share |
|---|---|---|
Under $10,000 | 74 | 12.5% |
$10,000–$49,000 | 210 | 35.6% |
$50,000–$199,000 | 201 | 34.1% |
$200,000–$999,000 | 87 | 14.7% |
$1 million–$9 million | 18 | 3.1% |
$10 million+ | 0 | 0.0% |
Mobile application development is the most common service among healthcare projects in the dataset. No healthcare project falls into the $10 million+ range.
Buyers planning healthcare software development outsourcing should compare projects with similar regulatory, integration, and platform requirements rather than rely on the industry average alone.
E-commerce and Retail
Among 777 projects, e-commerce and retail have the highest proportion of projects under $10,000 among the major industries analyzed, at 21.0%.
Lower-budget projects often include theme customizations, Shopify implementations, and payment integrations.
$200,000+: 15.3%
$1 million+: 2.6%
Logistics and Transportation
Among 272 projects, 23.5% reach $200,000 or more, above the overall rate of 19.2%.
The $1 million+ rate is 5.1%.
The higher concentration may reflect the integration requirements commonly associated with logistics platforms, including fleet management, ERP connections, and real-time tracking. This is an editorial interpretation rather than a direct dataset finding.
Industry Comparison Summary
Budget patterns differ across industries, but the $10,000–$49,000 range remains the most common across every major category analyzed.
Industry | Projects | Most Common Band | $200,000+ | $1 million+ |
|---|---|---|---|---|
Financial Services | 954 | $10,000–$49,000 | 29.0% | 7.5% |
Logistics and Transportation | 272 | $10,000–$49,000 | 23.5% | 5.1% |
Engineering and Manufacturing | 323 | $10,000–$49,000 | 18.9% | 4.3% |
Software Development | 1,324 | $10,000–$49,000 | 20.9% | 3.9% |
Information Technology | 1,866 | $10,000–$49,000 | 17.8% | 4.1% |
Healthcare | 590 | $10,000–$49,000 | 17.8% | 3.1% |
Advertising and Marketing | 703 | $10,000–$49,000 | 16.6% | 4.0% |
Education | 601 | $10,000–$49,000 | 16.5% | 2.2% |
E-commerce and Retail | 777 | $10,000–$49,000 | 15.3% | 2.6% |
The most common budget band remains consistent across industries, but the share of higher-budget projects varies considerably. This shows why industry should be treated as one factor among several rather than a standalone predictor of cost.
Team Size and Project Budget
Team size has one of the clearest relationships with project budget in the dataset.
Team Size | Under $10,000 | $10,000–$49,000 | $50,000–$199,000 | $200,000–$999,000 | $1 million+ | Total | $200,000+ Share |
|---|---|---|---|---|---|---|---|
1–5 people | 1,106 | 2,683 | 1,820 | 571 | 73 | 6,253 | 10.3% |
6–10 people | 123 | 791 | 1,017 | 684 | 128 | 2,743 | 29.6% |
11–15 people | 18 | 60 | 115 | 161 | 81 | 435 | 55.6% |
16–20 people | 3 | 8 | 32 | 56 | 34 | 133 | 67.7% |
21–25 people | 1 | 6 | 8 | 19 | 25 | 59 | 74.6% |
30+ people | 7 | 16 | 21 | 28 | 59 | 131 | 66.4% |
This analysis is based on 9,754 projects with both disclosed budget and team-size data.
Only 10.3% of projects with teams of 1–5 people reach $200,000 or more. That rate rises to 29.6% for teams of 6–10 and 55.6% for teams of 11–15.
The relationship is strong but not perfectly linear, particularly among the largest team-size groups.
Correlation does not equal causation: Larger projects often require larger teams, so the relationship works in both directions. A large team does not automatically make a project expensive, and a larger budget does not necessarily mean the team itself caused the increase.
Engagement Model and Budget
Engagement models also show different budget patterns, although these figures represent total project value rather than per-resource pricing.
Model | Projects | Most Common Band | Below $50,000 | $200,000+ |
|---|---|---|---|---|
Offshore | 7,012 | $10,000–$49,000 | 51.3% | 18.7% |
Nearshore | 2,456 | $50,000–$199,000 | 41.7% | 24.1% |
Onshore | 1,943 | $10,000–$49,000 | 57.1% | 14.8% |
Nearshore projects have the highest concentration of engagements reaching $200,000 or more, at 24.1%. They also have the lowest share below $50,000.
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See How PCS WorksOffshore projects fall between nearshore and onshore engagements, while onshore projects have the highest share below $50,000 at 57.1%.
These figures do not show that nearshore development is more expensive per resource. The differences may reflect project type, scale, or duration. Because the dataset records total engagement value rather than hourly rates, it cannot isolate per-resource pricing differences.
What Can You Build at Different Software Development Budgets?
Budget ranges become more useful when viewed alongside project duration, team size, service type, and ongoing engagement rates.
Budget Tier | Projects | Median Duration | Most Common Team | Top Service | Ongoing |
|---|---|---|---|---|---|
Under $10,000 | 1,512 | 3 months | 1–5 people | Website Development | 30% |
$10,000–$49,000 | 4,215 | 5 months | 1–5 people | Mobile Application Development | 44% |
$50,000–$199,000 | 3,495 | 8 months | 1–5 people | Custom Software / Mobile Application Development | 59% |
$200,000–$999,000 | 1,742 | 14 months | 6–10 people | Custom Software Development | 73% |
$1 million+ | 447 | 23 months | 6–10 people | Custom Software Development | 78% |
Median duration figures include completed projects only.
What Can You Build for Under $10,000?
Projects in this range usually involve smaller teams and more limited scopes. Common examples include CMS customizations, small mobile features, prototypes, and landing pages with backend integrations.
The median completed duration is three months, and most projects use teams of 1–5 people.
Full-scale platform development is uncommon at this budget level in the EOS dataset.
What Can You Build for $10,000–$49,000?
This is the largest budget category, accounting for 36.9% of projects with disclosed budgets.
Teams of 1–5 people remain dominant, and the median completed duration is five months.
Common projects include focused mobile applications, defined-scope web applications, e-commerce platforms, and smaller staff augmentation engagements.
What Can You Build for $50,000–$199,000?
Projects in this range are more likely to involve complete products, custom internal systems, integrations, or larger ongoing development requirements.
The median completed duration is eight months.
Custom software development and mobile application development each appear in 43% of projects in this budget band.
What Does a $200,000–$999,000 Software Project Look Like?
Teams of 6–10 people become the most common size.
Custom software development appears in 56% of projects, while staff augmentation appears in 14%.
The median completed duration is 14 months, and 73% of engagements are ongoing.
Projects in this range commonly include complex platforms, enterprise applications, and multi-system integrations.
What Does a $1 Million+ Software Project Look Like?
A total of 447 projects fall into this category.
Custom software development appears in 59% of projects, staff augmentation in 24%, and QA and testing in 13%.
A total of 78% are ongoing engagements, while the median duration among completed projects is 23 months.
These projects commonly involve multi-year platform development, retained engineering teams, enterprise migrations, and other large-scale outsourcing programs.
Correcting Common Buyer Misconceptions
The dataset challenges several common assumptions about software development budgets and outsourcing models.
"There Is a Standard Cost for Custom Software Development"
There is no single standard price.
Among 4,498 custom software projects, budgets range from under $10,000 to more than $10 million.
The most common range is $50,000–$199,000, but 8.0% fall below $10,000 and 5.9% fall into the $1 million+ range.
Scope, complexity, team requirements, integrations, and duration all influence the final budget.
"Staff Augmentation Should Always Be the Cheaper Option"
The data does not support this assumption.
A total of 37.6% of staff augmentation projects reach $200,000 or more, compared with 19.2% of projects overall.
Staff augmentation and fixed-scope development are not directly comparable. Staff augmentation provides ongoing capacity, while project-based work usually focuses on a defined output. Duration therefore plays a major role in total engagement value.
"Offshore Development Is Cheaper Than Nearshore"
Offshore projects have a lower $200,000+ concentration at 18.7%, compared with 24.1% for nearshore projects.
However, this does not prove that offshore resources cost less.
The difference may reflect project scale, type, or duration. Hourly rate data would be required to compare per-resource pricing accurately.
"A Larger Team Means Faster Delivery"
The dataset does not measure development speed or efficiency.
Larger teams are associated with larger budgets and broader project scopes, but that does not mean they complete projects faster.
Large teams often work on more complex engagements, which may also require longer delivery periods.
Does AI Reduce Software Development Costs in 2026?
AI-assisted development can change how software teams write, review, test, and maintain code, but faster code generation does not automatically mean a proportionally lower total project cost.
Software delivery still requires requirements definition, architecture, design, testing, security, integrations, deployment, review, and ongoing maintenance. AI-focused products may also introduce additional costs for model usage, data infrastructure, evaluation, security controls, and specialized engineering.
The EOS dataset records total project values but does not measure whether or how individual vendors used AI-assisted development tools. It therefore cannot reliably determine how much AI reduced or increased development costs across the projects analyzed.
For buyers, a more useful question is:
If AI improves development productivity, where does that benefit appear in the proposal: a smaller team, a shorter timeline, a lower total cost, or more functionality delivered within the same budget?
How to Estimate Your Software Development Budget
Software development benchmarks are most useful when they help buyers evaluate their own project assumptions. Before requesting proposals, consider the following factors.
What Are You Building?
Start with the type of project.
A website, mobile application, custom platform, enterprise integration, and ongoing development program can have very different budget profiles.
Is the Engagement Discrete or Ongoing?
A total of 54% of EOS projects are ongoing with no recorded end date.
If the product requires continued maintenance, development, or expansion, the budget should account for the ongoing relationship rather than only the initial launch.
What Team Size Does the Scope Require?
Team size provides an important reference point.
For example, a 10-person team on a $30,000 project would be unusual within this dataset.
Which Projects Are Most Comparable?
Broad market averages are less useful than projects that closely match your own requirements.
Compare vendors based on similar services, industries, team sizes, technologies, and project complexity. This also gives buyers a more practical way to understand how to find an outsourcing partner with relevant delivery experience.
What Could Expand the Scope?
Integrations, compliance requirements, infrastructure needs, technical complexity, and post-launch changes can all increase project scope.
Budget planning should account for these uncertainties before development begins.
What Costs Should Buyers Plan for Beyond Development?
The initial development estimate may not represent the full cost of building and operating software. Depending on the project, buyers may also need to budget for:
Product discovery and requirements definition
UI/UX design and prototyping
Third-party APIs, software licenses, and subscriptions
Data migration from existing systems
Security testing and regulatory compliance
Cloud infrastructure, monitoring, and DevOps
Quality assurance across devices, platforms, and integrations
Post-launch maintenance, optimization, and feature development
Not every project will require all of these costs, and some vendors may include them within the initial proposal. Buyers should confirm what is included, what is excluded, and which costs are expected to continue after launch.
What Should You Verify With Vendors?
Ask potential vendors to provide examples of completed work involving similar services, industries, technologies, and levels of complexity.
Before comparing proposals, clarify:
What is included in the quoted scope?
Which assumptions were used to calculate the estimate?
What team roles and seniority levels are included?
How many people are expected to work on the project?
What delivery duration does the estimate assume?
Are discovery, design, QA, DevOps, and project management included?
Are infrastructure and third-party costs included?
How will changes in scope affect the budget?
What costs are expected after the first release?
Has the vendor delivered projects with similar scope, technology, industry, and complexity?
A lower proposal is not necessarily a lower-cost engagement if important work has been excluded. Comparing the assumptions behind each estimate can be more useful than comparing headline prices.
Relevant project experience often provides stronger context than a general pricing benchmark.
How to Use These Benchmarks
Software development benchmarks provide context, not a final price.
The EOS dataset covers 14,075 outsourced software projects ranging from small website modifications to multi-year enterprise platforms. No single average can accurately represent every type of engagement.
These benchmarks can help buyers:
Compare proposals against similar projects
Identify potential mismatches between budget, scope, and team size
Understand how service type and engagement model affect project patterns
Evaluate whether vendors regularly work at the required project scale
Build more realistic expectations before requesting proposals
The most useful question is not simply:
"What does software development usually cost?"
A better question is:
"What do projects similar to mine typically look like, and has this vendor delivered them before?"
Data Limitations
Selection bias: The dataset consists of published, client-endorsed projects and may underrepresent failed, abandoned, or disputed engagements.
Budget ranges, not exact prices: EOS records project budgets in predefined ranges. The report therefore analyzes budget categories rather than exact average or median prices.
Engagement value, not hourly rates: Budget figures represent total project value. Staff augmentation and other long-term engagements can accumulate substantially over time.
Confidential budget exclusions: A total of 18.9% of projects have confidential budgets. Their exclusion may influence the observed distribution if they are concentrated within particular budget ranges.
Engagement model and cost: The dataset shows associations between delivery models and budget distributions but does not isolate per-resource pricing differences.
Data cut-off: September 8, 2026. Projects beginning or completing after this date are not included.
These benchmarks are intended as reference points, not fixed pricing rules. Comparing your requirements with projects of similar scope, team size, service type, and delivery model provides a more useful basis for budget planning.
Use Cost Benchmarks to Build a More Relevant Vendor Shortlist
Software development benchmarks can help determine whether a proposed budget is realistic, but cost should not be evaluated in isolation.
The next step is to identify companies that have already delivered projects similar to the one you are planning.
On Enosis Outsourcing, buyers can compare software companies based on their services, industries, technologies, project experience, and other relevant delivery signals.
Instead of asking only:
“Which company fits my budget?”
consider asking:
“Which companies have successfully delivered projects similar to mine at the scale I require?”
Use the EOS company and project database to identify vendors with relevant delivery experience, then compare their capabilities before requesting proposals.
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