Probably many business owners and aspiring entrepreneurs are wondering how the COVID-19 pandemic is going to influence their domains. Indeed, the virus is going to leave a visible mark on many industries like traveling & booking, expo, airline, and everything that has to do with direct human interaction. But what about the tech sector, and how will the coronavirus change figures in your invoice for an application? Let’s try to figure out the cost of developing an app in 2020.
When Did the Crisis Start?
It seems that within the first six weeks from the beginning of the lockdown, many companies held their breath and adopted an unspoken “wait and see” policy. They carefully observed what would happen to them, other businesses, and the world in general.
Large enterprises were among the first to experience the heavy consequences of the lockdown, especially those that deal with manufacturing, retail, and travel & transportation. The last sector has taken the hardest toll.
As planes have been grounded around the world, many airlines have been taking severe measures to keep their business alive: layoffs, cutting pays, and reducing costs. Many people have canceled or postponed their vacation and business trips indefinitely, thus this has led to urgent measures that many companies have had to impose. For instance, Airbnb has recently sacked over 1,900 employees, which comprise 25% of its staff worldwide.
FMCG, automotive, and pharmaceutical companies have also faced the consequences of COVID-19 mostly because of the following reasons:
- Many factory workers can’t work from home and are required to stay at home. Others are experiencing difficulties in getting to work due to transportation restrictions.
- The supply chain was disrupted because China could not provide manufacturers with the necessary materials and products.
Coronavirus has impacted the retail industry in two ways. Due to a complete lockdown, many brick-and-mortar outlets are closed now, which makes it difficult for such companies to survive. But a few will benefit from it, especially those that were able to go online. Food, beverage, first aid, and personal care products will be in great demand.
The Tech industry is going to have its winners and underdogs during the coronavirus pandemic. For some, it’s definitely an era of the wildest boom. With many companies going online, it’s a must for businesses to keep in touch with employees without disrupting working processes. Companies that provide video conferencing and other tools that help people work comfortably remotely will get away with the catastrophic consequences of COVID-19. Zoom and a bunch of other video conferencing companies, Slack, Atlassian, Amazon, Microsoft, just to name a few big techs that benefited in the times of crisis.
How Much Does it Cost to Develop an App in 2020?
The same goes for smaller companies and startups. Many will struggle but only a handful will strive and succeed. It mostly depends on what a particular company does. Such businesses belong to the winning side if they operate online — education, delivery, e-commerce, or those that provide productivity tools, web conferencing applications, in short, anything that is currently helping others to survive these hard times.
But if you are one of those who thinks strategically and wants to create an application right now, no matter what industry you’re in, you’re probably wondering about the cost of developing an app. The encouraging news is that nothing has changed much regarding the cost of creating an app compared to 2019. All in all, the technology industry is the least susceptible sphere to the negative effects of the virus. Software development has always been and will continue to be in high demand.
Hiring Offshore Talents and Costs of Creating an App
If you’re looking to hire tech talents offshore, this is a marvelous opportunity as the coronavirus pandemic has changed the rules of the game for some software companies, especially those in the old continent. There’re a lot of companies that provide their engineers to service large enterprises like airlines and companies that work in offline business. But due to the lockdown, such companies are currently cutting costs by laying off high-quality software developers. It means that other software development agencies can choose to hire from a highly competitive and experienced pool of talents for the same level of salary. Thus, the quality of software will be enhanced.
To create an appealing application will cost you money no matter what. If a software development company offers you to build an application for a comparatively low price, have thorough research on the company and try to understand what it will survive the coronavirus crisis in the next three or four months. Pay attention to the financial health of software development agencies. Companies that do not feel the drastic effects of COVID-19 are not going to change the pricing for app development
The pricing of your application depends on the scope of work, time, and complexity of your application and may vary:
- A simple application with a couple of functions may cost from $7,000 — $10,000 to $15,000
- A more complicated app such as a social media platform may cost $25,000 — $40,000
- A complicated Uber-like application MVP will cost you approximately $70,000 +
You can also have a look at this article to check the app development costs for 2019. To conclude, even in the age of total uncertainty, many businesses are investing in creating applications that will disrupt their niche once the lockdown is over. And the good news is that nothing had changed in terms of mobile app development costs. So, if you’re looking to build your next killer application, you can contact LITSLINK, an app development company, here for assistance.