The short answer is that it depends heavily on the type of system being built.
As a general order of magnitude, a relatively simple custom software project may require an investment of several tens of millions of Colombian pesos, while an enterprise platform with multiple business processes, integrations, high data volumes, or real-time operational requirements can easily exceed COP 180 million.
A practical budgeting reference can look like this:
| Project type | Indicative investment |
|---|---|
| Low complexity | COP 40–70 million |
| Medium complexity | COP 80–160 million |
| High complexity | From COP 180 million |
These figures are indicative investment ranges for custom software projects. They are not Kubo price lists or fixed commercial rates. Final cost depends on scope, business rules, integrations, data migration, architecture, and operational requirements.
Kubo has been developing custom software since 2008 and has participated in more than 180 projects. That experience has shown us that two platforms that look similar from the outside can have completely different levels of complexity, timelines, and costs.
Why is it so difficult to give a fixed price for custom software?
Asking how much it costs to build an application without defining the project is similar to asking how much it costs to build a building without knowing how many floors it will have, what it will be used for, or what infrastructure it requires.
Before estimating a software project, it is necessary to understand at least:
- What problem the software must solve
- The business rules behind the process
- The different types of users
- What each user is allowed to do
- How many interfaces are required
- Which external systems must be integrated
- What information must be stored and processed
- How many operations the system must handle
- How many users will use the platform
- What level of availability is required
- What security, infrastructure, or compliance requirements apply.
For this reason, a serious estimate should not begin by asking how many screens the application will have.
It should begin by understanding how the business operation works and what the software needs to support.
What type of software fits within each budget range?
The ranges above become more useful when viewed through the level of complexity typically found in each project.
Low-complexity software
This may include systems mainly focused on:
- Data entry
- Record management
- Queries
- Information visualization
- Basic reporting
- Relatively straightforward internal processes.
These systems usually involve limited transactional logic and few external dependencies. Depending on scope, a project of this type may take approximately two months to develop.
Medium-complexity software
At this level, projects usually begin to include:
- Different types of users
- Multiple roles
- Approval workflows
- Business rules
- Transactional processes
- Multiple interfaces
- Integrations with third-party services
- Automation
- Greater volumes of information.
A project of this type may require around four months, although the actual timeline can vary significantly depending on scope and integrations.
High-complexity software
This category typically includes platforms where software is an important part of the company's core operation.
They may involve:
- Complex business logic
- Multiple connected processes
- Real-time operation
- High concurrency
- Large volumes of data
- Multiple integrations
- Several applications or interfaces
- Complex administrative workflows
- High availability requirements.
Projects in this category often require six months or more.
The factors that have the greatest impact on software development cost
Many variables can affect the final budget, but in our experience three factors frequently have a major impact.
1. Business rules
Software complexity is not always visible from the interface. A screen may contain only ten fields while dozens of rules operate behind it. For example, creating an order sounds simple. But the system may need to validate:
- Inventory
- Availability
- Customer type
- Discounts
- Taxes
- Location
- Payment method
- Commercial conditions
- Logistics
- Order status
- Returns
- Permissions
- Exceptions.
The interface may still show a single order. The system behind it is completely different. This is why the number of screens is not a reliable way to estimate an enterprise software project.
2. Integrations
Integrations are another factor that can be difficult to predict. A platform may need to connect with:
- ERP systems
- CRM systems
- Accounting platforms
- Logistics providers
- Payment gateways
- Identity services
- Government platforms
- Internal corporate systems
- Third-party APIs.
When an integration is well documented, the effort can be relatively predictable. The situation changes when working with legacy systems, incomplete APIs, outdated documentation, inconsistent data structures, or processes that were never designed to communicate with other platforms. In those cases, the job is not simply to “connect an API.” The development team needs to understand how the external system actually behaves, manage errors, normalize data, and define what should happen when one of the connected systems fails.
3. Data migration
Data migration is another area that is often underestimated. Moving information from one system to another is not always just a matter of copying database records. It may require:
- Identifying which information is still valid
- Correcting inconsistencies
- Transforming structures
- Removing duplicates
- Linking information from different sources
- Validating data integrity
- Testing the migration before production deployment.
The older the source system, the greater the uncertainty may be.
One of the biggest risks: scope growth during development
It is common for a company to begin a project with what appears to be a clear idea. Development starts. The first working versions are delivered.
Then new needs begin to appear:
- “We also need the system to do this.”
- “This user needs another permission.”
- “We need to integrate another platform.”
- “We should add this report.”
- “This workflow should behave differently.”
This is normal. Seeing software in operation often reveals needs that were difficult to identify during the initial planning stage. The problem appears when the final product becomes significantly larger than the product originally estimated, while the expectation is that the initial budget and timeline will remain unchanged.
This is why it is important to clearly differentiate between:
- The originally agreed scope
- Adjustments required to complete that scope
- New functionality discovered during development.
Managing this distinction is an important part of software project management.
An MVP does not mean building the full platform for less money
The term MVP — Minimum Viable Product — is widely used, especially among startups. It is also frequently misunderstood. An MVP should answer a simple question: What is the minimum set of functionality required to validate the solution? That does not mean developing low-quality software. It means reducing scope. For example, some automation, advanced reporting, administrative tools, or secondary functionality can be postponed until later versions. In practice, however, we often see another scenario. A project is initially described as an MVP, but once the required functionality is defined, it ends up including almost the entire planned platform. At that point, there is no longer a meaningful reduction in scope. There is also an important difference between a startup validating a product and an established company introducing a new system into an existing operation.
An enterprise may require from the first version:
- Security controls
- Multiple permission levels
- Auditability
- Data migration
- Integrations
- Administrative processes
- Infrastructure
- Operational continuity mechanisms.
This is why MVP does not automatically mean inexpensive.
What team is needed to build custom software?
A software project is not simply a matter of assigning one or two developers. At Kubo, an average project may involve around five core roles:
- Project Manager or project lead
- UI/UX design
- Backend developer
- Frontend developer
- QA.
This does not necessarily mean that all five people are dedicated full-time throughout the entire project. Participation changes according to the phase of development. For more complex projects, the team can scale to 8 or 10 people, particularly when several interfaces need to be developed or additional backend and frontend capacity is required. For example, a project may include:
- A web application
- A mobile application
- An administrative portal
- APIs
- Integration processes
- Backend services.
As the number of components grows, more work can also be carried out in parallel.
The cost of software does not end when the system goes live
When budgeting a software project, it is important to distinguish between development cost and operational cost. A platform may depend on additional services that are not part of the software development itself.
Infrastructure
Depending on the solution, operating costs may include:
- Servers
- Databases
- Storage
- CDN services
- Backups
- Monitoring
- Processing
- Data transfer.
The infrastructure required for an internal application used by 30 employees can be very different from what is needed for a platform handling thousands of concurrent users.
External APIs and services
There may also be recurring costs associated with:
- Maps
- Geolocation
- SMS
- Artificial intelligence services
- Payment processing
- Identity verification
- Logistics services
- Storage
- Electronic signatures
- Analytics
- Other specialized services.
Many of these providers charge based on usage. For that reason, costs can increase as platform usage grows.
Licenses
Some projects require commercial tools, components, or third-party platforms with separate licensing fees. These costs should be identified and separated from the development budget.
How much does it cost to maintain software after launch?
There is no universal formula stating that every software system should allocate the same percentage of its development budget to maintenance. Support requirements can vary significantly. An internal administrative tool used occasionally by a small team has very different needs from a transactional platform that supports daily business operations. After launch, three types of work commonly appear.
Corrective support
Fixing issues identified during normal operation.
Operational support
Monitoring systems where availability or ongoing performance requires active supervision.
Product evolution
Adding new functionality as the business changes. In our experience, this last category is particularly important. Enterprise software rarely remains unchanged for years. Processes evolve, new integrations are added, business rules change, and new requirements appear. For that reason, at Kubo we prefer to define the support model based on the real characteristics of the project instead of automatically applying the same formula to every client.
Why can a software development company cost more than a freelancer?
The difference can be substantial. An independent professional and a software development company have different cost structures. A formal company must account for labor, administrative, legal, technological, and operational costs that an independent professional may not have. But there is another important difference. An enterprise project may require several capabilities at the same time:
- Software development
- Design
- QA
- Architecture
- Project management
- Documentation
- Team continuity
- Support.
For this reason, comparing providers only by hourly rate can give an incomplete picture. This does not mean a freelancer is always the wrong choice. For some small projects, proofs of concept, or highly specific needs, an independent professional may be perfectly suitable. The better question is: What level of structure and support does this project require? And especially: What would be the impact on the business if the system failed?
Example: a ticketing platform
A ticketing platform can look, from the outside, like a relatively simple e-commerce system. A user chooses a ticket, pays, and receives access. But behind that experience, the platform may need to manage:
- Events
- Inventory
- Availability
- Sales channels
- Payment methods
- Users
- Access control
- Operators
- Administrative processes
- Reconciliations
- Very high peaks in concurrent demand.
When ticket sales open for a highly anticipated event, thousands of users may attempt to perform the same operation at the same time. In this type of system, much of the complexity is not visible in the purchasing interface. It exists in the platform required to keep the entire operation working correctly.
Another example: when an e-commerce platform becomes enterprise software
The same happens with e-commerce. From the buyer's point of view, the platform may include:
- A catalog
- Shopping cart
- Checkout
- Payment.
But the business may also require:
- Inventory management
- Administration
- Order management
- Logistics
- Commercial rules
- Integrations
- Operational statuses
- Internal tools
- Customer service processes.
Kubo has worked on e-commerce platforms for the pet industry where the sales layer is only one part of a broader system supporting the company's operation. At that point, the project is no longer simply about “building an online store.” It is enterprise software.
How do you know whether your budget is realistic?
It is common for clients to approach a software company with two things: an idea and a budget. Before determining whether they are compatible, the project needs to be defined more clearly. At Kubo, we focus particularly on four areas.
Business logic
What should the platform do, and under what rules?
Users
Who will use the system?
Roles
What can each type of user view, create, edit, approve, or execute?
Interfaces
What applications or interaction points need to be built? For example:
- Web application
- Mobile application
- Administration portal
- APIs
- Specialized portals
- Interfaces with third-party systems.
With this information, it becomes possible to determine whether there is a reasonable match between available budget and expected scope. When there is not, there are usually three alternatives:
- Reduce the initial scope
- Divide the project into phases
- Increase the investment.
Discovering this mismatch before development begins is significantly less expensive than discovering it halfway through the project.
How can companies reduce software development costs?
Reducing cost does not necessarily mean looking for the lowest development rate. There are often much more effective ways to control the budget.
Define the scope clearly
The more decisions that can be made before development begins, the less uncertainty there will be during implementation.
Build in phases
Not every feature needs to exist in the first release.
Prioritize business processes
Identifying which features create the most value allows secondary functionality to be postponed.
Identify integrations early
Integrations can become a major source of technical uncertainty.
Analyze data migration
It is better to understand the quality and structure of existing data before assuming that it can be migrated automatically.
Define users and permissions
A complex role and permission structure can have a significant impact on the entire system.
In many projects, the best opportunity to optimize the budget happens before the first line of code is written.
Frequently asked questions
How much does custom software development cost in Colombia?
As a general order of magnitude, a relatively simple project may fall between COP 40 million and COP 70 million, a medium-complexity project may range from approximately COP 80 million to COP 160 million, and complex enterprise systems may start at around COP 180 million and increase from there. These figures are indicative references, not fixed price lists. Every project should be estimated according to its specific scope and requirements.
How much does an enterprise application cost?
The cost depends mainly on business rules, number of interfaces, integrations, data migration, users, data volume, and operational requirements. An enterprise application should not be estimated simply by counting screens.
How long does custom software development take?
As a general reference, a relatively simple project may take around two months, a medium-complexity project approximately four months, and a complex platform six months or more. Timelines may increase when projects involve complex integrations, migrations, or major changes in scope.
What makes software development more expensive?
In our experience, some of the factors with the greatest impact include:
- Complex business rules
- Data migration
- Poorly documented integrations
- Multiple interfaces
- High data volumes
- Concurrency
- Specialized operational requirements.
Is an MVP always cheaper?
It can be less expensive when there is a real reduction in scope. If the supposed MVP already includes nearly every feature planned for the final product, the cost reduction will be limited.
Are infrastructure and API costs included in software development?
Not necessarily. Cloud infrastructure, maps, communication services, licenses, and external APIs may have separate costs that should be identified during estimation.
How much should a company budget for software maintenance?
It depends on the characteristics of the system. We do not recommend automatically applying a fixed percentage to every project. Support level, criticality, number of users, and pace of product evolution determine the actual requirement.
Before asking how much it costs, understand what you are building
A COP 50 million system and a COP 500 million platform may use similar technologies. The main difference is usually not the programming language. It is:
- The number and complexity of business processes
- Business rules
- Integrations
- Data volume
- Concurrency
- Interfaces
- The level of operation the software must support.
That is why a good estimate does not begin by calculating programming hours. It begins by understanding the business. At Kubo S.A.S., we have been developing custom software since 2008 and have participated in more than 180 projects for companies and organizations in Colombia and international markets. Our experience has shown us that properly defining the problem, scope, and technical approach before development begins is one of the decisions with the greatest impact on project cost, timeline, and final outcome.
