Defining the cost of platform development involves a thorough assessment of various factors. While estimating the exact cost can be challenging, here are key steps to help you define the cost:
- Clearly define the scope of the platform development project (identified key features, functionalities, and deliverables).
- Break down the project for a more granular analysis of the tasks and resources required for each part (UI design, backend development, database setup, integrations, additional customizations or configurations).
- Determine the resources required for platform development (number and expertise of platform developers, designers, testers, and other team members; inhouse or outsourcing options, project duration, and effort required).
- Evaluate the technology stack and infrastructure required for the platform development (the cost of licenses/subscriptions, scalability of servers, hosting, cloud services, and databases).
- Estimate the platform development timeframe based on the scope and complexity of the platform (quantity of features, customization and dependencies level, resource availability).
- Analyze the cost of QA and testing efforts (test cases, test environments, the involvement of testers, automated testing tools, external testing services)
- Allocate budget for maintenance and support costs (regular updates, bug fixes, security patches, user support; inhouse/external resources, service-level agreements (SLAs).
- Account for unforeseen circumstances or changes in requirements during the development process and include contingency and miscellaneous expenditures in your budgeting.
Consolidate all the numbers into a detailed cost analysis documentation with a breakdown of each cost item. This will help you communicate and justify the budget to stakeholders, management, or potential investors.