Want to Postpone the Start of your Software Project? Think Twice!
In a world where so few companies fit the traditional Product Development criteria & market windows are tight, the decision to postpone a software project might cause you financial losses in the long run. The growing demand for enterprise mobile and IoT solutions will certainly impact software development costs – and that’s already happening. Have a great idea for an app? Here’s why you should address a reliable vendor ASAP.
The impact of inflation on software business & dev costs
I have an idea for a mobile app; what should I do next? Perhaps I’ll wait a little – you know, I’ve heard about cloud-based app development platforms and things like that. Soon everyone will be able to build apps, so dev costs are set for a dramatic fall.
That's a common way of thinking these days, but we’ve got stats to prove it wrong.
Although IT corporations massively support the “citizen developer” initiative and release user-friendly cloud-based development tools, the demand for qualified software vendors will soon exceed the supply.
- In 2016 the global spendings on information technology will reach $ 3.8 trillion (up 2.7% from last year);
- 43% of US, South American and EAME companies do use the Internet of Things technology or have plans to adopt IoT solutions throughout 2016;
- The demand for enterprise mobile applications will soon outstrip development capacities by 500%;
- By 2019, smartphones will ship 2.1 billion units worldwide!
As a result, IT jobs will grow 22% within four years. What we see is a perfect example of inflation. Companies realize they can no longer do without enterprise apps & partner with software vendors. The vendors realize they’ve got no personnel to complete all the projects – and hire more staff. There’s not enough skilled developers in the local markets, and those who possess the desired level of expertise raise prices for their services.
Between 2009 and 2014, the average salary of a US-based software engineer increased from $ 82.14 thousand to $ 90.83 thousand (almost 10% up). Even if you outsource software development to Eastern Europe, do not expect charity. A skilled iOS developer from Belarus or Ukraine charges at least $ 35 per man hour. And software development costs will rise there as well: after all, it is Europe that will drive the Internet of Things industrial revolution.
You cannot afford being tech-ignorant
You run an enterprise, and things haven’t gone well for a little while. Your tech-savvy employees keep talking about some “workflow automation”. You don’t know how to start a software project – and doubt it makes sense in the first place? You’re not the first entrepreneur to underestimate the impact of technology on business.
Back in 2013, one in four US small businesses didn’t spent a cent on marketing. 52% of companies operated without a website. 90% of those who created a simple landing page never bothered to optimize it for mobile.
After three years we witness dramatic changes. Today 37% of small businesses have fully adopted cloud technologies (the number will reach 78% by 2020) and consider social media presence, cloud computing and mobility as their top tech priorities.
Companies use technology to:
- Boost sales. Last year US e-commerce sales exceeded $ 340 billion, and that’s 7% of the total retail sales in the country (compared to 5.3% in 2012). Macy’s, one of the largest American department stores, uses beacons to deliver relevant content to its customers; as a result, half of Macy’s online transactions are now made on mobile. IKEA developed an augmented reality mobile app that allows users to virtually furnish their homes and share the pictures on social media. In 2015, IKEA’s total sales grew by 8.9%. These companies embrace technology and outperform their rivals; what about you?
- Retain employees. Millennials are now the largest workforce in the USA. These guys were born with technology at their fingertips, and they won’t tolerate your outdated software. As of now, 66% of Gen Ys would like to give their employers a few lessons on technology – and that’s one of the reasons why an average millennial typically stays with a company for less than three years. Do you know how much it costs you to replace a millennial job hopper? Up to $ 25 k! Isn’t it cheaper to spare a few thousands on a high-quality enterprise app and follow the Bring Your Own Device trend?
- Streamline business processes. Technology impacts every industry out there. Real estate agents, for example, used to rely on trusty Excel files for decades, spending long hours on data collection and analysis. In 2015 Zillow, the largest US online real estate company, purchased DotLoop and took a great share of its paperwork online. Transportation companies use GPS trackers to optimize routes and monitor fuel consumption. By 2017 the Customer Relationship Management software market will be worth $ 37 billion (48% of current CRM users access cloud-based enterprise software from a smartphone). Enterprise apps enable companies to use business data to the fullest – and gain a competitive advantage, of course.
IT has changed the world we live & work in. You can either look up to your forward-thinking manager who says “I want to start a project – you know, we could close 30% of our stores and build an e-commerce website instead” or…accept defeat.
Have a great idea for a mobile app? Make hay while the sun shines
I have an amazing idea for an app, so… What’s next?
Before you decide to wait for better times (lack of funding, expertise, motivation – we’ve heard it all before), you should read a few lines on multiple discovery (aka simultaneous invention).
According to the multiple discovery theory, the majority of scientific discoveries are made independently by several inventors in different parts of the world. Robert K. Merton, the father of modern sociology, said such discoveries were often made simultaneously, although an individual might also develop a concept invented by someone else years before.
The Boyle-Mariotte law which outlines the relationship between gas volume and pressure within a closed system was first published by Robert Boyle in 1662 – only to be reinvented by Edme Mariotte 14 years later. Oxygen was actually discovered by three scientists, although it was Antoine Lavoisier who coined the term in 1777. More recent examples of simultaneous inventions include the mass-equivalence concept (developed by Einstein, Langevin, De Pretto and Poincaré), the Big Bang theory (Einstein, Hubble, Friedman and Poe) and distributed hash table (published by four authors).
Market windows are usually very tight.
Even if you know how to start a project & take the mobile app idea off the ground, someone else might copy it and generate more revenues due to clever marketing. Although creative work (the code or layouts in our case) is usually protected by copyright, the intellectual property law only prevents someone from using the entire work or parts of it (that’s how Zynga sued Vostu).
Considering the impact of inflation on business – and the high risk that someone’s working on an application similar to yours! – the decision to postpone a project is definitely not a wise one. If you’re on a limited budget, you can always address a reliable vendor, build an MVP and raise money through Kickstarter. Anything is possible – provided you know what you want & fight procrastination.