As the world of technology keeps evolving, the growth of a software development company delivering high-quality solutions is sure-fire. The increasing popularity of SaaS is evident, with trends suggesting a 27.5% growth in 2028 from USD 130.69 billion in 2021. As SaaS enjoys a high adoption pace, the demand for custom pharma software is increasing. Are you planning to develop such software for providers, ACOs, independent practitioners, or hospitals? One big question comes to mind- How much money will it take?
We must consider the multiple aspects of building custom pharma software to answer this effectively. In this article, we will take you through the various breakdowns and cost components that will give a fair idea of calculating the cost of developing custom pharma software.
Cost Components of a Software Development Company
The Team at Work
At the heart of any software development company is the team that delivers stunning custom software solutions to the clients. This includes folks like software developers, designers, project managers, and QA testers. Based on your project’s complexity, the team decides a perfect combination. The team members’ experience levels and skill sets determine the cost of the software development team.
The Timeline of the Project
When it comes to building custom pharma software, every second in the process counts. The amount of time that every team member works on the project gets added to the total price tag. The timeline is decided for the following tasks-
- Brainstorming
- Writing the code
- Testing/QA
- Fixing bugs
The cost depends on how much time this entire process will take and also on the experience of the developers working on it. In the process of developing custom pharma software, a software development company will not deploy all the resources at the same time. To start with, the designers will have more work and will be assigned more man-hours for the project. At a later stage, the folks who write the code will join and take over the maximum man-hours in the timeline. Understanding the man hours each individual is expected to take in order to complete the task is essential in calculating the cost.
Miscellaneous Costs
There are certain costs that are not connected to the team; they are related to the software development company you select for the project. These include office space rent, software licenses, and other operational costs. Even though you won’t be directly charged for these costs, they do add up to the total bill!
Profit Margin
Like every other business, a software development company works to earn profits. After paying all the abovementioned charges, the profit percentage shall be added. The profit margin can be as low as 20% and can range up to 50-60% depending on the selected software development company in USA.
Negotiation Cap
In the software development scene, it is common for clients to ask for certain discounts on the entire package. As a clever marketing move, top software development companies in the USA always add a negotiation cap on the cost. The negotiation cap is the extra percentage of charge added to the total bill, which allows the business to provide offers or discounts. It is generally 10-15%, which gets waived off when a client asks for a discount. It allows the business to balance between a happy client and a financially healthy company.
Customizing The Cost Breakdown For Custom Pharma Software
When it comes to understanding how much a custom pharma software will cost, it is essential to note that there’s no one-size-fits-all approach. The kind of software being developed plays a significant role in deciding the cost. Let’s look at the broad categories here-
Manufacturing Automation Software
If your goal is to develop software that will assist the manufacturing process of a pharma company, this will cost you more than any other category. This is mainly because of its integration with manufacturing machines, complex codes, and strict rules. Experts with specific skills and a lot more effort are engaged in such projects, which end up increasing the cost.
Electronic Health Record (EHR)
Electronic Health Records, or EHR, are meant to manage patient records. The core purpose of software in this category is storing important patient information on a shared database accessible to both provider and patient. Even this kind of software requires the expertise of developers in a software development company, but compared to manufacturing automation, this is simpler.
Specialist-Centric Software
These kinds of softwares are tools that assist providers and administrators to improve the overall quality of care. Other than platforms like EHR, there are other softwares which allow controlling specific hardware. For example- X-ray devices often need multiple tools for a provider to decipher the image. A SaaS product can help simplify and make the process faster! Hospital billing and management softwares are also considered under this broad category.
Remote Patient Monitoring System
IoT technology has revolutionized the healthcare SaaS industry by introducing Remote Patient Monitoring Systems. These systems were prevalent before the COVID-19 pandemic set in; however, their popularity has increased immensely since the pandemic. The reduction of direct contact forced an increase in demand for RPM. The global market for RPM is hinted at a worth above $1.7 billion by 2027. It is a nearly 128% increase from the recent statistics! Such software aims to continuously monitor patient health data for better quality of care. The quality of care increases because continuous data is always better than episodic data received from the patients.
Concluding it
Creating custom pharmaceutical software is like a journey that needs a map of costs. You can make smart decisions by understanding the bits that make up the expenses – like experts’ pay, daily costs, profits, and more. Don’t forget that the kind of software you’re making matters, too. So, take this knowledge and set sail on a successful software-making adventure with the top software development company in USA.