What actually drives the cost of custom software?
Before looking at numbers, it helps to understand what you are paying for. Most custom software projects in South Africa are priced based on a mix of the following factors:
- Scope and complexity. How many user types and screens are there? Are you just capturing data, or do you need complex workflows, reporting and automation?
- Integrations and dependencies. Do you need to integrate with payment gateways, banking APIs, CRMs or legacy systems? Integrations often add more effort than building the basic screens.
- UX/UI design depth. Simple internal tools may get by with straightforward UI, while public-facing products usually require more design work, states and edge cases.
- Security, compliance and data sensitivity. Handling healthcare data, financial information or personal information under POPIA often requires additional architecture, logging and controls.
- Team composition and experience. A small team of mid-level developers will cost less than a multi-disciplinary team with senior architects, designers and QA — but you might move slower or take more risk.
- Ongoing support and hosting. Once the system is live, you still need updates, security patches, backups and improvements. Some of this is a once-off cost; some is a monthly or quarterly retainer.
Typical price ranges for custom software in South Africa
These are not quotes, but ballpark ranges we commonly see for small to mid-sized South African businesses. The exact numbers will depend on your requirements and the partner you choose.
Smaller tools and internal systems (roughly R50,000 – R200,000+)
Examples include:
- A basic internal tool to replace spreadsheets.
- A simple workflow for approvals or task tracking.
- A lightweight portal for a small group of internal users.
These systems usually have a limited number of user roles, few complex integrations and can often be built and delivered in one or two short phases.
Customer-facing portals and line-of-business apps (roughly R200,000 – R600,000+)
Examples include:
- Customer self-service portals where clients can log in and view or update their information.
- B2B or B2C platforms where customers submit requests, track progress or collaborate with your team online.
- More complex back-office systems with workflows, approvals, notifications and reporting across departments.
These projects typically involve multiple user roles and permissions, deeper workflows and more integrations (CRM, billing, email, SMS, payment gateways and so on).
Larger platforms and products (R600,000+)
Examples include:
- A SaaS product you plan to sell to multiple clients.
- Complex, multi-tenant platforms with strict uptime and compliance requirements.
- Systems that need advanced analytics, reporting and automation from day one.
These initiatives are usually delivered over several phases across many months, with dedicated time for architecture, performance and security. Instead of a once-off project, they are treated as a long-term roadmap.
Most SMEs do not need to jump straight into the "large platform" category. A lean first release that proves value is usually a better place to start.
Once-off vs ongoing costs
When planning your budget, it helps to separate once-off project costs from ongoing operational costs.
Once-off costs typically include discovery and scoping, UX/UI design, initial development, testing and go-live. These are concentrated around the initial project phases.
Ongoing costs cover hosting and infrastructure (cloud, databases, storage), monitoring, security updates, backups and new feature development. Many South African businesses budget for the build but forget to plan for ongoing care, which can lead to systems aging quickly or becoming insecure.
How to scope your first release (and avoid budget creep)
A lot of budget issues come from trying to build "version three" as your first release. A better pattern is to tighten your first scope and ship value early.
1. Start with a narrow but meaningful goal
For example:
- "Replace the spreadsheet we use to track X so the team stops duplicating data."
- "Allow customers to submit and track one specific type of request online."
If you can link the software to a clear business outcome — saving time, reducing errors, improving cash flow — it becomes easier to decide which features belong in version one.
2. Map must-haves vs nice-to-haves
For the first release, identify the workflows that must work end-to-end and the data that must be captured correctly. Everything else can be moved into later phases once the core is live and delivering value.
3. Choose a delivery approach that allows iteration
When evaluating partners, ask how they break projects into phases, how often you will see working software and what happens if priorities change. You want a process where the team can ship value in small, low-risk chunks, not disappear for six months and return with something that is already out of date.
Ways to keep your software project within budget
- Be specific with examples. Screenshots of spreadsheets, emails and existing tools are more useful than abstract requirements documents.
- Reuse where it makes sense. Using established UI libraries, components and cloud services is usually cheaper and more robust than reinventing everything from scratch.
- Accept a simple first version of the UI. Especially for internal tools, function and clarity matter more than elaborate visuals.
- Limit edge cases at first. If only one or two teams will use the system initially, design for them and add broader roles and exceptions later.
- Agree up-front on change management. Small changes are normal; large changes should go through a clear process so everyone understands the impact on budget and timeline.
When does custom software make sense vs off-the-shelf?
Custom software is not always the right choice. It tends to make sense when you have outgrown basic tools like spreadsheets and generic SaaS, your process is unique enough that templates always feel like a compromise, or you want to own your data and workflows instead of being locked into a single vendor.
A good off-the-shelf tool is often better when your requirements are common and well-served by existing platforms, your budget is extremely tight or you are still experimenting and do not yet know what you need long term.
Frequently asked questions
How do you quote for custom software projects?
At OWD Solutions we usually start with a short discovery engagement to understand your processes and goals, then propose a phased roadmap with ballpark budgets per phase. As we learn more and refine the design, we update estimates so there are no surprises.
Can we start small and expand later?
Yes — and this is often the best approach. We aim to launch a lean first version that solves a clear problem and then iterate based on real usage instead of assumptions.
Do you only work with clients in Johannesburg?
We are based in Johannesburg, Gauteng, but we work with clients across South Africa using remote collaboration. For certain projects we combine this with on-site workshops where it makes sense.
Can you help us budget and phase our project?
Absolutely. A big part of our work is helping teams shape realistic first releases, choose where to invest and decide which features can wait for later phases.