The 10 Most In-demand Programming Languages in 2021

The popularity of different programming languages ​​changes every year. New technologies are replacing some older languages, while some older ones are gaining more attention and adoption. Therefore, if you ask an IT specialist which programming language will be the same in demand in 5 years, you won’t get a definite answer. But what we can do is follow the current trends and determine the main directions for the coming year. IdeaSoft specialists studied the IT market to compile a list of the most in-demand programming languages ​​for 2021.

Table of contents

  1. Most popular programming languages of 2020
  2. Python in 2021
  3. Java in 2021
  4. C in 2021
  5. JavaScript in 2021
  6. C# in 2021
  7. PHP in 2021
  8. R in 2021
  9. Swift in 2021
  10. Go in 2021
  11. Ruby in 2021
  12. Conclusions

Most popular programming languages of 2020

We can assume that the more often a programming language is mentioned, the more in-demand it is. The popular world rankings TIOBE and PYPL are based on this statement. TIOBE measures the number of searches related to programming languages ​​on popular portals such as Google, Bing, Yahoo!, Amazon, YouTube, and Baidu. PYPL measures how many times language tutorials are searched on Google, using Google Trends. Usually, the results of the ratings have slight differences due to the different ways in which the ratings are constructed. 

According to TIOBE, in November 2020, the highest position in the ranking of programming languages ​​was held by C with a rating of 16.21%. It was followed by Phyton with the highest mentions growth, + 2.27%. And Java ranks third. It’s very interesting that since the creation of the TIOBE index almost 20 years ago, Java and C have always been in the top 2 positions for more. In 2020, unexpectedly for many, Python replaced Java and took second place. The creators of the rating suggested that the popularity of Python grew because of the rapid development of fields such as data mining, artificial intelligence, and numerical computing. However, Python returned to third place in December.

TIOBE Programming Languages Chart
TIOBE Popularity of Programming Language (November 2020)

The PYPL ranking over the same period gives us a slightly different picture, where Python is the highest-ranking, with a 30.8% share. Java comes second with 16.79%, and JavaScript comes in third. In this rating, C only ranked sixth.

PYPL Best Programming Languages
PYPL Popularity of Programming Language (November 2020)

We decided to add to our list of the 10 most in-demand programming languages ​​in 2021 those languages ​​that entered the top 20 of both ratings. So let’s start looking at the strengths and weaknesses of the most popular programming languages ​​for 2021.

Python in 2021

It’s safe to say that Python will be one of the strongest players on the market in 2021. Both world rankings of programming languages ​​place Python in the top two. This programming language first appeared back in 1991 and is gaining popularity year after year thanks to its open community. Python syntax is quite simple, so a developer takes fewer steps when developing a software product. Software development companies prefer Python because of its versatile features such as flexibility, object-orientation, cross-platform, and less code. 

Python has a ton of frameworks and libraries that simplify the process of coding and reduce development time, and its excellent data processing performance makes it the #1 programming language for creating AI/ML-based solutions. Well-known platforms such as YouTube, Google Search, Facebook, and Instagram are built with Python.

AdvantagesWeak Points
+ Easy to learn and use
+ Productive language
+ Open-source
+ Cross-platform
+ Rich libraries
+ Easily integrates with other programming languages ​​including Java, C, and C ++
– Low speed
– Memory consumption
– Weak in mobile computing
– Limitations with database access
Advantages and disadvantages of Python

Java in 2021

Java is the most widespread programming language, which has confidently taken first positions in the ratings for many years. Due to its platform independence and high adaptability, this programming language is used in both desktop and mobile development. Even though Google announced in 2019 that Kotlin is now the language of choice for Android app developers, Java is still widely used for mobile app development. Also, Java supports billions of electronic devices in real-time, and according to Oracle, there are over 3 billion applications, websites, and devices that run Java.

According to Statista, the number of Java developers worldwide will reach 28.7 million in 2024. Twitter, LinkedIn, Amazon, Netflix, eBay are all built with this programming language. 

AdvantagesWeak Points
+ Open-source
+ Platform independent
+ Provides memory allocation
+ High-quality code compilation
+ Stable
+ Allows distributed computing
– Low speed
– Memory consumption
– Verbose and сomplex code
– Far from a native look and feel on the desktop
Advantages and disadvantages of Java

C in 2021

C is one of the oldest programming languages. Even more, languages ​​such as C++, C#, Java, and Objective-C were based on the C syntax. But even with a huge number of younger analogs, C is still widely used today, since it’s a low-level programming language that supports direct control of the hardware. The C language is used for programming microcontrollers and developing embedded software. Also, programs written in C are easily portable to another language with few modifications. 

According to TIOBE, at the end of 2020, C became the #1 programming language, supplanting Java. This growth in popularity is associated with the fact that C is a cross-platform language that is used in embedded devices and software for medical devices, which is very important in the context of the coronavirus pandemic.

AdvantagesWeak Points
+ Portable language
+ Many built-in functions for developers
+ Structure-based
+ Allows system programming
+ Efficient and powerful
+ High speed of compilation
– No run-time type checking
– Lack of exception handling
– Low level of abstraction
– Doesn’t have the concept of constructor or destructor
Advantages and disadvantages of С

JavaScript in 2021

Of course, JavaScript is the #1 language for front-end development, but recently it has also been used for back-end development. JavaScript is widely applied in game development, web, desktop, and mobile applications. This language is quite easy to learn, which contributes to its popularity among novice developers. According to a StackOverflow survey, JavaScript became the most used programming language in early 2020. Nearly 70% of professional developers responded to the survey code in JavaScript.

JavaScript has a powerful ecosystem that simplifies the development process. Plus, the JavaScript user community is actively improving the language, addressing many of the shortcomings.

AdvantagesWeak Points
+ Works instantly in a web browser
+ No compilation requirements
+ Multipurpose language
+ High speed and productivity
+ Easy to learn and use
– No ability to read and download files
– No early detection of errors
– No remote access support
– Low security
Advantages and disadvantages of JavaScript

C# in 2021

C# is a fast, secure, and full of rich libraries programming language developed by Microsoft as the main language for working with the .Net Framework. C# is used for a wide range of tasks from developing server apps to mobile games. Also, since C# is a multi-platform language, it’s used for machine learning. With Xamarin, you can also build programs and apps in C# for operating systems such as iOS, Android, macOS, and Linux. Developers prefer this programming language because it simplifies the development process minimizing time and resources.

C# is easy to learn, there is a lot of documentation for developers on the Internet. Also, Microsoft is actively investing in the development of this programming language to keep it popular in the market. Therefore, in the coming years, C# will continue to improve and will be an important player in the market.

AdvantagesWeak Points
+ Component-oriented programming language
+ Supports Microsoft products
+ Supports type safety
+ Simplifies the programming process
+ Provides automatic garbage collection
+ Can work with common codebases
+ Fast compilation
– Paid licensed version
– Priority focus on the Windows platform
– Low execution speed
Advantages and disadvantages of C#

PHP in 2021

According to W3Techs, PHP is used by 78.9% of all websites with a well-known server-side programming language. This programming language is used to create dynamic and static websites. PHP is so popular in the world of the web since it’s an open-source that has a large set of built-in tools and additional modules for developing web apps. Plus it automatically supports HTTP Cookies. This programming language is the basis for such giants as Facebook, Wikipedia, Tumblr, Yahoo!, Baidu, Badoo, Mailchimp, Flickr.

PHP is also easy to learn. It provides solutions to a wide range of web tasks. This programming language allows you to create high-quality web apps in a very short time with products that are easy to modify and maintain in the future.

AdvantagesWeak Points
+ Cross-platform
+ Open-source
+ Simplifies the web development process
+ Have a vast ecosystem
+ Provides various automation tools for deploying and testing apps
+ Web server support
– The main focus on the web
– Security issues
– Bad error management
– Some syntax inconsistencies

Advantages and disadvantages of PHP

R in 2021

R is an open-source language for statistical data processing. This programming language is applied in the fields of data science, statistical computing, and machine learning. R combines well with other programming languages ​​such as C++, Java, SQL. A large number of financial and computing companies use R in their research and development. One of the reasons for its popularity is the free open source packages for statistics, analytics, and charts. 

R has become the global standard in statistics, and the world’s top universities teach their students this language. Also, the growing interest in machine learning encourages developers to use it. Thus, R is consistently among the top ten ratings of the most popular programming languages.

AdvantagesWeak Points
+ Open-source and free
+ Cross-platform
+ Inclusive statistical analysis
+ Wide possibilities of integration with other languages
+ Large selection of free libraries
– Poor memory management
– Security issues
– Poor performance

Advantages and disadvantages of R

Swift in 2021

Swift remains in the top ten most demanded programming languages, while iOS apps are popular. According to Statista, in 2019, 1.84 million mobile apps were available for download on the App Store. And the number of iOS applications is growing every year. Swift, developed by Apple in 2014, has largely supplanted Objective-C because it’s easier to read and more reliable. This programming language allows you to create rich applications backed by robust and secure code.

Swift is very easy to learn. Swift code is simplified and more like English which makes it easier to read. We used Swift to create Famer and Versara projects.

AdvantagesWeak Points
+ Automatic memory management
+ Open-source and free
+ Good code readability
+ Good scalability
+ It’s fast
+ Secure
– Slow when interacting with other languages
– Unstable
– Doesn’t support earlier iOS versions

Advantages and disadvantages of Swift

Go in 2021

Golang was created by Google, but it has long gone beyond a single company. Facebook, Intel, BBC, Yahoo, Adobe are already adopting this programming language. Today Go is used to build microservices, web applications, and solving systems programming tasks. Go is a language with simple syntax and detailed technical documentation. It’s most commonly used on Linux and macOS systems, and slightly less commonly on Windows. According to the Go Blog, Go’s engagement rate increased to 34% in 2019, with 3 out of 4 respondents preferring the language. Both TIOBE and PYPL ranked Go as the thirteenth most popular programming language.

AdvantagesWeak Points
+ Open-source
+ Fast language
+ Simple syntax
+ Well-scaled
+ Large selection of tools
+ Good code readability
– Lack of flexibility
– No generics
– Complex dependency management
– Complicated error handling

Advantages and disadvantages of Go

Ruby in 2021

And the last promising programming language on our list is Ruby. This language is dynamic, which means it speeds up the development process. It’s used to solve a wide range of problems in different fields, but it occupies a special niche in web development thanks to the Ruby on Rails framework. According to Hotframeworks, Ruby on Rails is one of the most popular web frameworks in the world. Ruby is used by Twitter, Soundcloud, Goodreads, and Kickstarter.

AdvantagesWeak Points
+ Open-source
+ Has a large set of developer tools
+ Speeds up the development process
+ Simple syntax
+ Easy maintenance & updates
+ Active community
– Slow processing
– Poor Windows support
– High memory consumption

Advantages and disadvantages of Ruby


So, the most in-demand programming languages ​​in 2021 are Python, C, Java, JavaScript, Go, Ruby, C#, Swift, PHP, R. Of course, the list goes on because there is no universal programming language that suits everyone. However, the listed technologies will play an important role in the near future, and these languages ​​are worth paying special attention to, whether you choose a tech stack for a project or a career path. 

IdeaSoft engineers know well which programming language is better to choose to implement your tech idea and are ready to help you with this. Contact us to start your project.

How to Build a P2P Payment App: The Complete Guide (2020)

P2P payment apps are powerful tools for transferring funds between people nowadays. We can pay for purchases and services without leaving our homes just using our smartphones. Merchants can receive payment directly to a card or account by integrating a payment app into their websites. More importantly, you have a choice of which application to use or you can even create a custom peer-to-peer payment app. According to eMarketer, the value of P2P mobile transactions will reach $612.23 billion by 2023, so this market continues to evolve and if your business idea is related to P2P payments, you have a good chance of success. To help you, we have compiled a P2P payment app tutorial in which you will find answers to questions of how to build a powerful and legally compliant peer-to-peer payment app. 

Table of contents:

  1. What is a P2P payment app and how does it work
  2. Advantages of peer-to-peer payment apps
  3. Must-have features for a peer-to-peer payment app
  4. Steps to build a P2P payment app
    4.1 Choose P2P app type
    4.2 Draw up a list of features for your app
    4.3 Choose the right technology
    4.4 Provide sufficient security of your app
    4.5 Regulatory compliance
    4.6 Create an effective design
    4.7 Find a software development team
    4.8 Test your app
  5. Where to start developing a P2P payment app

What is a P2P payment app and how does it work?

First, let’s figure out what are peer-to-peer payments from the technical part. Peer-to-peer transactions are electronic money transfers that are made directly from one account to another using a payment application. Probably everyone has used PayPal at least once, one of the first and the most popular P2P payment apps. So how does it work? 

How PayPal works

You create your account and link it to your credit card or bank account. Further, using an email address, phone number, or account of another person, you can send him or her money. Usually, the legitimacy of a transaction is verified using passwords or additional data about a sender and a recipient. P2P systems allow transferring funds between banking card owners without resorting to intermediaries, which means you save on commissions. These apps are often free, but small fees may apply depending on the source of your funds. To make payments, users need an app available via a smartphone or computer and Internet access. No cash confusion or bank lines. Everything is extremely simple. 

Typically, such apps allow you to transfer money between users of different banks, which makes transactions convenient. Payment processing times can vary from a few minutes to several hours depending on the payment type. P2P systems have a wide range of applications. You can pay for services using such apps, buy things on the Internet, send and receive borrowing requests, make cross-border payments, and more. 

Advantages of peer-to-peer payment apps

P2P payment apps are widely used not only by individuals but also by businesses. For example, it is much easier for merchants to receive payment for goods directly to their cards, so they integrate payment apps into their online stores. Moreover, by creating a payment app on blockchain, you can conduct direct transactions in cryptocurrency. Here are some more benefits of peer-to-peer payment apps.

Advantages for individualsAdvantages for business
+ You don’t need to withdraw cash to pay.
+ You can easily track your finances in your app.
+ Many applications support automatic conversion between different currencies.
+ You can pay from anywhere in the world where there is an Internet connection.
+ You save on fees due to no need for intermediaries.
+ You will ensure affordable cross-border transactions and be able to reach a larger pool of customers.
+ No intermediaries to charge expensive services.
+ You can monetize your app and earn extra money on it.
+ You can receive instant payment for your services directly to your card or account.
+ You will increase the level of trust and user engagement.

Must-have features for a peer-to-peer payment app 

When creating a custom P2P payment app, you have many options regarding functionality and capabilities. It’s up to you. However, there are some must-have features that users expect by default when downloading a payment app. Therefore, when making a list of features for your future product, first of all, include the following there.

Digital wallet. A digital wallet is the main feature of any payment application. With the help of a wallet, a user stores his electronic currency and makes payments. Usually, digital wallets are integrated with payment card tokenization services from VISA and Mastercard and with external systems/services, so they can have wide functionality. Creating a digital wallet is a separate issue that should be given special attention before starting your app development.

Send and request money. The user should be able not only to send the desired amount of money but also to request money from another user.

Send bills/invoices. For the convenience of a user, your app should have a function for generating a transaction invoice/bill that can be received by both a sender and a recipient. 

Currency conversion. Automatic currency conversion is a great feature that makes P2P payment apps so popular, so you shouldn’t give it up. By implementing this function, you will allow your users to make cross-border transactions, pay for services and goods using your application while traveling, and not think about converting. The best way to implement this feature is to synchronize your payment app with the exchange rate with the bank at the time of the transaction.

Unique one-time passwords or IDs. Security is crucial for payment apps. To avoid unwanted or accidental transactions, frauds, a user must confirm the unique ID and OTP (one-time-password). If you want to provide an even higher level of security, you can configure the need to enter an OTP every time a user logs in.

Transfer to a bank account. Users may need to transfer money not only from card to card but also from card to bank account. Give them that opportunity.

History of previous transactions. The transaction history will enable your users to keep track of their spending and money transfers. Try to keep the information as long as possible. Also, the function of generating statements, downloading, and printing transaction history will be a great solution.

Push notifications. Push notifications will be useful for both you and your users. You will be able to send notifications with new offers, promotions, or updates. And users will be able to quickly see messages if a card has been credited, for example. However, keep in mind that push notifications can be useful as well as annoying, so let users choose which notifications they want to receive on their phones.

Additional  features can include:

  • Chatbot. A chatbot in your P2P payment app can improve user experience. While interacting with the app, a user may have questions or problems. A chatbot will help to quickly resolve issues that may arise when transferring funds, incorrect debits from the wallet, and so on.
  • Fingerprint security lock. To minimize the risks associated with the security of your application, you can configure the fingerprint security lock. This way, only the owner of the account can access it.
  • Cryptocurrency payments. The value of cryptocurrencies is growing every day. According to Reportlinker, the cryptocurrency market is predicted to grow with a CAGR of 56.4% from 2019 to 2025. Many companies allow paying for their products and services using cryptocurrency. If you want to create a modern app that provides additional opportunities for users, think about the feature of making payments in cryptocurrency.

Steps to build a P2P payment app

Steps to build P2P payment app

Having dealt with the features of a P2P payment app, let’s move on to the main steps of developing your application. Before you start looking for a development team, you have to work on creating a concept for your project and drawing up clear requirements. So here’s what to look out for.

Choose P2P app type 

There are several types of peer-to-peer payment apps. The most popular are banking and standalone solutions. Depending on the business model you choose, you can stop at one of them, but you should be aware of all types of payment apps. So, we will give a brief description of each one.

  • Bank-based solutions. Bank-based apps involve a bank as one of the parties to transactions. Many banks are developing their own P2P payment systems to make services more accessible and convenient. These apps receive money and make deposits directly to bank accounts rather than a saved foreign currency account. Sellers, in turn, must have POS terminals to accept such payments. Banking apps make transactions easier for both banks and users. 
  • Standalone services. These are independent providers that offer their own payment systems such as Venmo and PayPal. Such applications allow users to create a digital wallet and use it to store electronic money and make payments. Typically, these apps support MasterCard and Visa cards. You should choose this type of application if you are going to build a business around it.
  • Social media platforms. Social media and messengers are also developing built-in payment features as Facebook did. This way social media users can send money to their friends without leaving the app. However, if you are not going to build your own social network, this type of P2P payment app will not be for you.
  • Mobile OS systems. Here, payment options are more of a built-in feature than a full-fledged application. Examples of mobile OS payment systems are Apple Pay, Samsung Pay, Android Pay.

Draw up a list of features for your P2P app

Next, get back to the features. You need to make a list of the necessary features, which a development team can then estimate. Start with the basic ones and then add the additional features that you want to see in your app. In order not to miss anything, you need to study your target audience, create a portrait of your user and the user flow, path that users will go through interacting with your app. 

Don’t try to develop all the features at once, as this may be unreasonable and too expensive. Prioritize features, focusing on core ones, you can add new features later when you are sure that they are needed. 

Choose the right technology

The next step is the technology selection. The right technology will help you make a P2P payment app more functional and more interesting for users. And this is an important factor to survive the competition, right? FinTech gave us such innovations as NFC and biometrics ID, but we shouldn’t be limited to them. The financial sector continues to undergo digital transformation and new technologies are coming to the fore. For example real-time payments (RTP), unified platforms, Artificial intelligence (AI), blockchain. Don’t hesitate to use trending technologies and tools to create your app, because the faster, more convenient, and more profitable your product is, the more chances you have to succeed.

One of the most promising technologies listed is blockchain. According to MarketsandMarkets, the global blockchain market will go up to $23.3 billion by 2023. Blockchain-based solutions are secure and they provide a high level of transparency that users can accurately assess. Thanks to a distributed storage system, information about all transactions are stored in blocks linked to each other. No block can be deleted or changed without destroying the entire system. Also, blockchain was originally created to build peer-to-peer systems without the involvement of intermediaries. Read our recent article Where to start implementing blockchain to find out more about adopting this technology.

Provide sufficient security of your app

We have already mentioned security, but when creating a peer-to-peer payment app it is better to think twice about it. All information about your users’ accounts and the history of their transactions must be reliably protected, as well as the process of transferring funds. The total cost for cybercrime committed globally will reach $6 trillion by 2021, according to the Cybersecurity Ventures Official Annual Cybercrime Report. I don’t think that you want your users to become victims of hacker attacks. How do you ensure the proper level of security for your application?

Ways to secure mobile application
Ways to secure your application

We have already talked about the need for sending unique ID/OTP when confirming operations and logging in. This will help avoid accidental payments or fraudulent actions. Try to use all the security features built into devices, such as fingerprint scanner, face recognition, or at least activate two-factor authentication. You also need to ensure the security of your digital wallet and prevent any chances of a personal data leak. Be sure to discuss with a development team what security features you can put in your payment application.

Regulatory compliance

Regulatory compliance is as important an issue as security. Your payment app must comply with payment standards. Experts say there is a lack of regulation of the FinTech industry, but different regions already have documents that need to be taken into account. Unfortunately, it is very difficult to think about the payment requirements of all regions and create a universal app that will meet all standards. Therefore, you should choose a target region for yourself and create a P2P payment app following its laws and recommendations.

Here are some examples of authorities with which you need to resolve legal issues by region:

ChinaFinTech Committee under the People’s Bank of China (PBOC)
KoreaFinTech Center under the Financial Services Commission (FSC)
AustraliaInnovation Hub by the Australian Securities and Investments Commission (ASIC)
European UnionDirective (EU) 2015/2366 + GDPR
UKFinancial Conduct Authority.
USDepends on the state

Create effective design

In the pursuit of functionality and legitimacy, you shouldn’t forget about the design of your app. The correct structure of the user interface and an attractive look determine the convenience and user-friendliness of an app for users. Also, a memorable design will help you build great awareness and engagement. UX/UI design development consists of several stages. Let me remind you that the UI part is responsible for the look and feel of an app (colors, layouts, typography), and the UX is responsible for the process of user interaction with the interface, his overall impression. At IdeaSoft, our design team sticks to the following workflow.

UX/UI application design workflow
UX/UI application design workflow

Find a software development team

With the preparatory stages complete, it’s time to find an experienced development team to help you bring your ideas to life. Take the time to find and select skilled developers. You can use the ratings from Clutch, GoodFirms, TopDevelopers, Techreviewer, and others. Here’s what to look for when choosing a development partner.

  • Appropriate expertise. The experience and technology used by a company must meet your requirements. For example, does a company work with blockchain? Does it have experience in developing projects for FinTech?
  • Successful projects. First of all, you should be interested in FinTech projects as similar to your project as possible, so you can see how the team is coping with the tasks.
  • Customer reviews. You should read customer reviews. This will help you learn about the strengths and weaknesses of a company. Honestly, people don’t really like to spend time writing reviews, so it takes some effort to motivate them to do so. If a company doesn’t have reviews, then most likely it doesn’t care about its reputation, and it’s a bad sign.

2 more quick tips. First, if you want to reduce the cost of software development, turn to outsourcing and choose companies from Eastern Europe (the best match between price and quality). Second, choose companies that provide a full development cycle, so you won’t have to look for other partners for design or support.

Read our recent article How to reduce software development costs

Test your app

At the end of the project, don’t forget to ask about the testing results, but rather test the application yourself. It is better to find bugs early and fix them than release to the market a defective product. Testing helps to determine whether your app is working as it was intended, whether it bears the necessary load, whether it is convenient to use it. Test again and again until you are satisfied with the result. Here’s a quick checklist for testing your application. 

  • Make sure your app installs and runs correctly.
  • Ensure a user can perform typical operations.
  • Check if the app works the same on different devices and OS versions.
  • Check how the app behaves in case of special events (incoming call, low battery, airplane mode, etc.).
  • Test hardware connectivity – Bluetooth, WiFi, NFC, USB.
  • Test the app with real users to ensure there are no bugs and get feedback.
  • Decide who will be responsible for supporting and maintaining the application (dedicated team, outsourcing services).

Remember that a few clicks and swipes are enough for a user to draw a conclusion about your app and decide to use it further or not. According to Compuware, 48% of users are less likely to use an app again if they experience performance issues. Plus, users won’t forgive you for bugs in security, usability, functionality, etc. There are always alternatives. Testing can help you avoid dozens of risks, so never underestimate this step.

Where to start developing a P2P payment app

Now you know how the P2P payment app development process goes. You have to do a lot of analytical work, as well as decide what features your app should have, what technologies are better to use, and what requirements your product should meet. So where do you begin? Start by researching users and defining the functionality of your app. Your main task here is to describe your idea in detail and then discuss it with a development team, which will help improve it and implement it. Choose a skilled development team with a proven track record in developing fintech solutions. The quality of your application depends on the expertise of the software developers, so take your time to choose. 

Experts predict a great future for peer-to-peer payment apps, so catch the wave. Our team is always ready to advise you on the technical implementation of your idea. Feel free to contact us. Good luck with your project!

7 Reasons Why Outsourcing Software Development

According to the Technavio report, the total contract value of the IT outsourcing market is expected to rise to over $409 billion by 2022. But despite the impressive numbers, many still have concerns about outsourcing. In this article, we have collected 7 reasons why you should outsource your software project, what benefits you will get, and what to look for when choosing a development partner. Let’s get started!

Table of contents:

  1. Why do companies outsource
  2. Cost-effectiveness of outsourcing
  3. Moving forward focusing on core business
  4. Access to world-class developers
  5. Rely on proven expertise
  6. Improved flexibility and scalability
  7. Better risk management
  8. Why Ukraine is the best option for software development
  9. Key takeaways

Why companies outsource

The emergence of outsourcing software development companies was driven by market demand. Since 2000, the world has taken the direction of digitalization, and the introduction of technology has become a necessity. In whatever domain a company works, it needs tech solutions to be interesting for its customers, competitive and profitable. Now, during the lockdown due to the pandemic, technology has become even more crucial and has finally convinced business owners that ignoring tech progress only slows down business development. However, not every company can afford to maintain a staff of developers. That’s where outsourcing comes in.

Outsourcing software development allows you to transfer the tasks of creating software solutions to a third-party company that has relevant experience and takes over the entire process. Before considering all the benefits of outsourcing, I can say that it is effective both in terms of costs and in terms of the quality of the result. According to research conducted by Deloitte back in 2016, among the most common reasons why companies outsource software development are the following.

Why companies outsource software development

These reasons have hardly changed over the years. Outsourcing development services continue to close the issue of reducing the cost of developing a software product, allowing you to focus on the main business goals, entrusting the technical tasks to another company without hiring your own specialists. And that’s not all that software development outsourcing companies do for business.

Cost-effectiveness of outsourcing

The main reason why companies outsource software development is the cost-effectiveness of this option. Reducing development costs opens up additional investment opportunities for other areas of business (marketing, human resources, office expansions, etc.). Plus, software development isn’t cheap. According to last year’s GoodFirms study, a majority of tech companies offer software projects of general utility at a price range of $20,000 to $40,000. So, how outsourcing helps to reduce costs? Here are several ways. 

First, salary differences across the globe. It is well known that developer rates in Eastern Europe and Asia are lower than in the US and Western Europe. With the opportunity to work with developers around the world, you can choose the best partner for yourself regarding price and quality, while reducing the budgets for creating software. Let’s estimate, if the development of your application takes 4 months, working with US rates, you will pay a developer at least $50 per hour of his work, and for example, a developer from Ukraine will receive 2 times less. I think you see where the cost efficiency lies.

RegionAverage region rate/hr
North America$50-175
Western Europe$50-200
Eastern Europe$25-50
Central America and South America$30-50
Average developer rates by region Source: SharpMinds

Second, working with an outsourced development team, you pay only for the services of specialists, avoiding operating expenses for an office, providing workplaces, vacations, sick leaves, and so on. Plus, you save time and money on recruiting new employees. When hiring your own staff, you need to find developers with the necessary expertise, conduct interviews, instead of starting work right now by transferring the project requirements to an outsourcing company. 

Moving forward focusing on core business

You know that the business of a company implementing a software solution or a startup that is working on creating a new product is not limited to the software development process. You also need to work on promotion, sales, business development, partnerships, in other words, do everything to make the company’s main activities profitable. Outsourcing software development frees up time. By entrusting the technical part to another team, you can follow the process, focusing on the main goals of your company. I don’t think you want to go out of business for six months or more while you are busy developing software. By outsourcing a project you don’t burden yourself with additional responsibility, as well as don’t overwhelm your in-house team with tasks that don’t match its expertise.

Access to world-class developers

Another great outsourcing benefit is access to an infinite talent pool. You can choose developers from all over the globe without being limited by geographic boundaries. A large selection of professionals will allow you to build a development team with the experience most relevant to your project at competitive prices. Whichever technology you are looking to work with, outsourcing will give you access to more profitable solutions. For example, blockchain is one of the most trending technologies in recent years. Read about how to get started with blockchain implementation in our article. How much will a blockchain developer cost you? According to real-time calculator Arc, freelance blockchain developer hourly rate in North America is $81-100, while the average rate of blockchain developers from Eastern Europe is $61-80.

The more competitive the market, the more likely it is to find a great deal. Turning to outsourcing, you yourself choose which region to work with. According to SharpMinds, an approximate number of IT professionals in outsourcing locations in 2019 looked like this:

Approximate number of IT specialists by region 2020

There are many different annual rankings designed to determine where the best developers live. You can be guided by them when choosing a software development partner or follow recommendations of your partners. Anyway, using outsourcing services, you expand your capabilities. Also, by working with an outsourcing team, you free yourself from unnecessary legal work. You don’t need to draw up employment contracts, think about taxes, your outsourcing partner will take care of everything.

Rely on proven expertise

Outsourcing software development companies work with different industries and projects, therefore they have a multifaceted experience that may be useful to you. Experts can help you choose the best features for your product, advise a tech stack that suits your requirements, and find insights you might not have guessed. It will take years and investment in training to nurture such expertise within a company. When you turn to outsourcing, you get this and you can be sure that your project is in the hands of experienced professionals.
Some projects require special knowledge and skills that you cannot get in one specialist, but that a trained team can provide. For example, not all IT companies have specialists who work with technologies such as blockchain, AI/ML, cloud computing. If a company doesn’t implement these technologies on an ongoing basis, you can’t expect to be provided with the best solution. The global marketplace gives you the opportunity to find a team with exactly the expertise you need, no matter how many miles between you.

Improved flexibility and scalability

One of the best things about outsourcing software development is flexibility. Once again, you don’t need to hire developers on a full-time basis. You can build a team depending on the workload and current tasks, paying for the time of those specialists that you need at each separate stage of the development process. Also, you can choose a cooperation model that meets your requirements. Outsourcing companies usually offer three options for cooperation, which differ in the degree of flexibility and control:

  • Fixed Price is a model that is based on a predetermined list of requirements, budget, and delivery time for a software product. Working according to this model, you outsource your project, agreeing in advance on all aspects of cooperation, and see the result at the end.
  • Time-and-Materials provides you with more flexible terms. According to this model, you discuss approximate deadlines and maximum budget and pay for development services in a “pay as you go” format. Also, you can make changes to requirements and take part in the control of the development process.
  • Dedicated Teams is a great option if you want to lead the development process yourself or need to expand your internal team with specific specialists. The services of dedicated development teams are used by companies around the world, as it is more cost-effective than maintaining their own staff permanently.
CriterionFixed PriceTime-and-MaterialsDedicated Team
Project SizeSmall to MediumMedium to LargeLarge
Time&Budget FlexibilityFixedFlexibleFlexible
Control Over the ProcessLittleSignificantFull
When to ChooseYou have clear requirements and determined deadlines. You have a limited or fixed budget. For developing MVPs. For small projects with a limited scope of work.If workflow may change. You don’t know your market well enough. You want to have control over the development process. Your requirements may change.You have a complex and long-term project. You want to have complete control over the development process. You need to expand your team and your business.

As you can see from the table, depending on the type of your project, you can choose a model that will allow you to get the most beneficial outcomes. If you want to expand your project through outsourcing, you can do it in the shortest possible time, saving money on hiring the right specialists. You don’t have to worry about finding a developer with the expertise you want, an outsourcing company takes over this task while you can focus on other business issues. This gives you the flexibility to design your product, keeping your efforts to a minimum and freeing up time for other tasks.

Better risk management

Launching a new product is always risky. Will potential users like your app? Or can this software solution provide your company with the results you expected? Outsourcing helps reduce these risks for several reasons. Firstly, you don’t hire your own employees, which means you don’t bear additional expenses. If the product does fail, you will lose less by using outsourced development services. Secondly, by developing a product on your own, you take full responsibility for yourself and the quality of the product depends only on you, while an outsourcing company takes on the quality risks. By choosing an experienced software development partner who has sufficient experience and examples of successfully implemented projects, you can be sure that your software will work as intended. Also, experts say that the distribution of tasks among different companies reduces the risks associated with the launch of a software product.

Why Ukraine is the best option for software development

Now that you know the main advantages of outsourcing software development, it’s time to talk about one of the most popular outsourcing destinations. Ukraine is in the top ten countries for outsourcing software development according to various ratings. SkillValue recognized Ukrainian engineers as one of the best in the world in terms of price and quality (Ukraine ranks fifth with a score of 93.17%). Talented developers, reasonable prices, convenient time zone, and geographic location make Ukraine an attractive partner for companies around the globe. 

There are more than 20 higher education institutions that teach programming in Ukraine, that annually graduate thousands of beginner IT specialists. Here you can find a developer of any senior level, as well as a master of any technology. According to Entrepreneur, in 2018, there were around 165,000 developers in Ukraine, and their number is expected to increase by up to 125% by 2025. Ukrainian engineers are well versed in most popular technologies, including AI/ML, blockchain, big data, and others. So, you can be sure that you will find here a team that will meet your expectations regarding expertise, price, and desired tech stack. Such world-known startups as Grammarly, Jooble, GitLab, Depositphotos were developed by Ukrainian engineers. 

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Here are more reasons why outsource to Ukraine:

  • There are 1600+ tech companies in Ukraine offering various services related to software development (According to the IT industry in Ukraine. 2019 Market Report)
  • The time difference between Ukraine and the United States is 7 hours and between Ukraine and the UK is 2 hours, which makes the country a convenient location for working with various markets.
  • The culture of Ukrainians is similar to the business culture of the West, so you will not have any misunderstandings or other cultural barriers.
  • Ukraine has a favorable business climate, where the development of the IT industry is supported at the state level. This is one of the reasons why global giants like Microsoft and Oracle open their R&D centers in Ukraine.

Key takeaways

  1. Among the most common reasons why companies outsource software development are reducing development costs, freeing up time for core business goals, and solving capacity issues.
  2. Outsourcing can help reduce development costs in half because there’s no need to maintain your own staff and because of the difference in developer rates in different countries.
  3. Outsourcing allows you to select the best developers from all over the world, with the best expertise and competitive prices.
  4. You get additional flexibility in scaling your project depending on the development stage and you can choose a cooperation model that meets your requirements, such as a fixed price, time-and-materials, dedicated team.
  5. Ukraine is one of the most popular outsourcing destinations thanks to its favorable rates, talented developers, and viable IT market.

How to Reduce Software Development Сosts

The issue of reducing the cost of developing a software product is of interest to everyone who has a software project. We all see that the modern digital world makes the rules and if a company wants to be successful it cannot refuse software solutions. Hence, businesses have to spend huge amounts of money to maintain an innovative environment. In this article, we have collected the most effective ways to cut the cost of software development, which will let you save money while maintaining the quality of your product.

Table of contents:

  1. Outsource your software product development
  2. Choose Agile software development approaches
  3. Develop only essential features
  4. Hire a complete development team
  5. Involve QA specialist in the development process
  6. Work with expert developers
  7. Additional ways to reduce the cost of software development
  8. Don’t prefer price over quality

Outsource your software product development

We should start with this advice, even if it seems obvious. According to Statista, the worldwide outsourcing market reached $92.5 billion in 2019. Outsourcing has long been considered a proven way to lower costs for a company, especially when it comes to software product development. If you are not going to deploy a large long-term project, then there is no point in building a development team within the company. The difficulty lies in the selection of developers, as well as in ensuring workspaces and constant workload. By outsourcing your project, you pay for the work done and focus on business tasks, leaving technical issues to an outside team. 

Another bonus of outsourcing is the possibility to choose a software development partner from companies around the world and win a good price. It’s no secret that developer rates vary widely. This is a feature of the global IT market. So why not take advantage of this? According to Clutch’s research, among the main reasons why small companies outsource their projects, increasing business efficiency is in the first place. It is well known that the services of engineers in the US and Western Europe are more expensive than those of developers in Eastern Europe. By reducing the cost of developing your software product, you can invest this money in business development and get more. According to the SkillValue study which determined the best developers in terms of price and quality, it is most profitable to outsource projects to Slovakia, Poland, Hungary, and Ukraine. Now you know where to search for an outsourcing software development company. 


Choose Agile software development approaches

Agile combines flexible approaches to software development. This means that changes to a project can be made directly during the development process. Communication between a development team and a customer is ongoing, so the client can see at what stage of the development cycle his product is and whether it meets his expectations. According to the Harvard Business Review, 60% of companies experience profit growth after adopting Agile.

Getting back to cost savings, why is flexibility important? If you are developing a product from scratch, it is almost impossible to plan everything in advance. You may miss some features or suddenly realize that you want to change the structure of your app. Waterfall approaches won’t give you this opportunity. Using the fixed price services, which assumes a fixed scope of work, you will see the result at the end of development and who knows if it will be exactly what you wanted. Of course, a development team can refine your product afterward, but you will have to pay extra for this. By using agile development models, you can adjust the work of engineers without accumulating issues.

Develop only essential features

Project requirements often become a stumbling block in software product development. The fact is that the result directly depends on how clear your requirements are. In order to compile a list of necessary product features, you need to carry out a lot of analytical work, including determining business goals, studying the market, identifying and analyzing your target audience, and studying competitors. Next, you need to prioritize features and separate essential features from the so-called “nice-to-have” ones. Always start development with core product features, it is much cheaper and more efficient. According to statistics, usually, users don’t use even half of an application’s functions. If you don’t want to throw money away, don’t try to develop everything at once.

How to prioritize features and find the essential ones:

  1. Create user flow, the path users take when interacting with your product.
  2. Make a list of features that your product should have at each stage of interaction.
  3. Give priority to each feature, where High priority is fundamental functions without which your app or platform can’t work; the medium priority is the functions that you’d like to have, and that make your product special; low priority is features that require additional elaboration or complex implementation.
  4. Visualize functions using a user flow matrix, where you have a horizontal line showing the main stages of your user flow, and below each stage are functions dedicated to that stage. Then, draw a vertical arrow pointing down from high priority to low priority at the bottom.

Now you can see which features need to be developed first. The rest of the attributes should be considered and can be added later if you deem necessary. Don’t forget about some viable features that are specific to your market. For example, if you are developing a financial platform, there may be additional legal requirements for the product. Or if you are developing a mobile application that you are going to promote using app stores, remember that it must meet the requirements of a particular store.

Hire a complete development team

Many people believe that in order to reduce the cost of software development, it is enough to reduce the number of participants in the process. Why doesn’t it work? First, the development process involves different specialists who work in different subject areas. Of course, you can hire a couple of developers and shift all the tasks of writing requirements, coding, and testing to them, but let’s be honest, what result can you expect in such a situation? 

Second, things can get even worse if your project is big enough and you are trying to implement it with not enough people. Before abandoning an extra specialist, weigh all the risks, evaluate the scope of work. Having saved on hiring an extra specialist, you can lose the quality of the product and, as a result, you will have to redo everything. It doesn’t seem like savings. Extra specialists should not be underestimated, especially when it comes to QA engineers and testers.

Involve QA specialist in the development process

Another important point is that testing is crucial at all stages of product development. By postponing tests until the very last stage, you can accumulate a large number of bugs, which will be much more laborious to fix. Even if you work with some of the most talented developers in the world, you still need testers to make sure that your product is functioning correctly, not only from the code side but also from the user side. Here is a brief description of what a tester does at each stage of software product development:

  • The stage of collecting requirements – studying a product, identifying poorly defined elements, helping to compose user stories.
  • Design stage – identifying any logical conflicts in design.
  • Development phase – identifying any deviations from the user’s path, instant testing of new features.
  • Testing stage – testing a product as a single system, cross-browser/cross-operating system testing.

It is well known that it is impossible to create software without bugs, the key is to fix them as quickly as possible. So, if you really want to reduce development costs take the role of testing seriously. And here’s an extra tip. If you need to hire a tester, you can still reduce the number of hours spent testing with automated tools. Ask your development team to use automated testing where it is possible to minimize the chance of human error and speed up the entire process.

Work with expert developers

Once again, one of the most effective ways to reduce software development costs is to make the fewest mistakes and create the highest quality product the first time around. If you get a poor implementation of your idea, then you will spend more money and a lot of time on revision. An even worse scenario is if you release a product that doesn’t meet users’ expectations and they reject it. This makes it very difficult for you to re-earn the trust of your target audience. Hence it is very important to work with an expert development team that has a proven experience and a portfolio of successful projects.

If you want to get an excellent result, the main factors in choosing a software development partner for you should be the ratio of the company’s expertise and developer rates. By focusing only on price, you can lose the quality of your software product. So, having chosen a region that suits you in terms of the price range (find average hourly rates of developers by region in the table below), start evaluating companies’ expertise. Look for companies with projects similar to yours, study customer reviews, technologies that companies work with, and make sure that a company has in-house developers, the experience of which the provider can guarantee. 

Average developer rates by region Source: SharpMinds

Additional ways to reduce the cost of software development

In addition to the above methods, you can find other ways to reduce development costs, based on the characteristics of your project. An experienced technical specialist can help you with this. Here are some other ways that can suit your project. 

  • Use open-source software.  This option is not suitable for everyone, some projects require technologies with paid tools or certificates. But if the issue of price is dramatically important to you, you can opt for open source solutions, which are often free and effective. 
  • Involve DevOps. If you are going to create a product in one go or have multiple products, it is critical to get it right. I this case you need to implement DevOps methods. The integrated work of specialists from different departments will allow you to build a more efficient and high-quality development process. By automating some operations, you can create a unified development environment, speeding up each step of the process.
  • Develop an MVP. MVP is a product with basic functions, ready to market. Then you win the first users and collect feedback to find out which additional features should be developed and which should not. MVP lets you reduce the time-to-market, cut the cost of development, and choose the further direction of development based on the real needs of your customers. Companies such as Uber, Snapchat, Foursquare, and Spotify have started with MVPs.

Don’t prefer price over quality

As a final point, we can say that there are different ways to reduce software development costs. The key is not to lose quality in the race of a lower price. You should understand that there is always a certain minimum of how much a quality product can cost. If some company offers you a price below this minimum, then you need to be prepared for the fact that the result will be far from ideal. An experienced development team will always find ways to cut costs while maintaining the quality of development, and such a team knows where the limit of these reductions is. Feel free to contact us for a project estimation or technical consultation. IdeaSoft experts are always happy to be a part of new interesting projects.

Angular vs React vs Vue.js: What is the Best JavaScript Framework for Web Development

A technology stack is the cornerstone of any project. Only by choosing the right tools, you can build a product that meets all your needs and goals. And it’s not just about programming languages. Frameworks help developers create features easier and faster, as well as determine the future structure of the system. So, before starting a project, as a customer, you should ask what technology a development team will use and how this will affect your future product. When it comes to front-end development most often the choice of framework falls on Angular, React, or Vue.js. So, we asked three IdeaSoft experts to study these three popular JavaScript frameworks and tell us about their advantages and weak points. In this article, you will find the top things about Angular, React, Vue.js to find out which one is the most reliable option for web development.

Table of contents:

  1. The overview of Angular as a JavaScript framework
  2. The overview of React
  3. The overview of Vue.js as a JavaScript framework
  4. Comparison of JavaScript platforms
  5. Our experience

The overview of Angular as a JavaScript framework


Reviewed by Dmitry Gulyaev, Front End Developer at IdeaSoft


Let’s start with the market leader. According to the statistics, Angular is the most common requirement among employers, which means this framework is used to create web products most often. Angular’s universality is one of the main reasons for its popularity. Created by Google in 2016, it has gained fame among JavaScript developers as a framework that can be used for building web, desktop, and mobile applications. Angular is good for projects of any complexity level, although it’s more commonly used for large feature-rich applications. 

One of the benefits of Angular is that it builds highly testable websites and applications. It allows end-to-end testing and unit testing (used for checking an app performance and verifying whether it works according to the client requirements) which makes debugging and testing easier. You can create high-performance, complex animation timelines with very little code through Angular’s intuitive API.


Angular is written in TypeScript and is open source. The framework provides many built-in tools for creating applications. It’s a really large and complex web development platform that handles everything from project creation to code optimization. Some see this as a huge advantage for Angular, while others believe that it makes the framework unnecessarily complex. 

AdvantagesWeak points
+ Component-based architecture providing good scalability for a project.

+ Universal framework with a wide range of tools.

+ Provides good performance.

+ Uses TypeScript, which gives improved toolset and cleaner code.

+ It’s actively improving and has a large community, which makes the framework reliable
– The complexity of working with the framework.

– Not flexible enough.

– Frequent updates.

Advantages and weaknesses of Angular

When you should choose Angular:

  • For applications with dynamic content, where content should change based on user behavior and preferences.
  • For large-scale and feature-rich applications.
  • For real-time applications like chat or messaging apps.
  • For progressive web apps (PWAs).

The main idea is that Angular is best used for large-scale projects with sufficient resources since the architecture of the framework can be difficult for small teams and short-term projects. Also, you should avoid Angular if your goal is to create a website with further SEO promotion since this framework is limited in SEO functions.

The apps built with Angular: YouTube TV, Google Cloud, Crunchbase, Securitize.

The overview of React 


Reviewed by Dmitry Ponizov, Lead Front End Developer at IdeaSoft


React is not actually a framework, it’s a JavaScript library that is used for developing web and mobile applications. It was created by Facebook. This tool is more flexible than Angular, it can be used with many other libraries. React was made to improve application speed and scalability. It’s simple and allows us to reduce project development time while maintaining quality. React has virtual DOM which is responsible for the UI part and server-side rendering that provide fast and efficient changes. Therefore, it’s a great solution for apps that need regular content updates. Also, React is better optimized for search engines, so you can choose it if you need a website with good SEO performance. 


Like Angular, React is an open-source, so it also has a large community and popularity in the market. According to SimilarTech, most of all React is used in the USA and China, but its distribution is constantly growing. The developers prefer React because it’s less complex than Angular and easier to maintain. Another feature of React is that this library is used to build Micro Frontend architecture. Using this architecture allows you to view a web application as a set of functions belonging to different independent teams, which makes the development process more flexible and faster.

AdvantagesWeak points
+ Has a streamlined update process.

+ SEO friendly.

+ Flexible technology with good performance.

+ Has a virtual DOM that improves user experience.

+ With React Native, you can create mobile apps for different platforms using React architecture.
– Lack of ready-made solutions, you need to use additional tools.

– Poor documentation for developers.

– Frequent updates.

Advantages and weaknesses of React

When you should choose React:

  • For lightweight modern applications that need to be developed in a short time.
  • For enterprise solutions. 
  • For developing web sites with a flexible structure.
  • For developing cross-platform applications.
  • For expanding the functionality of an existing application.
  • For the development of content-oriented applications.

So React is more suitable for dynamic applications than static ones. This technology is flexible enough, but it has its limitations, for example, it won’t be able to provide all the necessary development tools, since this is a library and not a full-fledged framework. So you will need additional technology.

The apps built with React: Instagram, Netflix, Reddit, Facebook, Twitter, WhatsApp, Nexar.

The overview of Vue.js as a JavaScript framework


Reviewed by Anton Chernenko, Front End Developer at IdeaSoft


Vue.js is a young framework created by Evan Yu after his work at Google using AngularJS on a number of projects. The first commit of the project’s source code was dated July 2013, and Vue was first released in February 2014. Vue is based on experience with Angular and React, so it combines the best of both technologies. Vue’s pre-coding framework allows you to quickly deploy an application without degrading its performance. Since Vue has a similar architecture to Angular and React, it doesn’t pose any problem to quickly switch from other frameworks to Vue. This framework is small in size, which allows for much better performance compared to other platforms.

According to SimilarTech

Vue.js is supported by the open-source community, not by a specific company. This framework aims to solve the problems of previous platforms and provides a flexible and efficient tool for web development. Due to its similarity to React and Angular, it’s not difficult for developers to learn Vue in a short time and use its benefits for projects.

AdvantagesWeak points
+ Small size for increased productivity.

+ Flexibility to suit different business needs.

+ Easy to integrate with other platforms.

+ Easy to customize.

+ Easy to integrate into an existing project.

+ Good documentation.
– Lack of support due to the closed community.

– Limitations of built-in tools as it’s a young framework.

– Lack of stability in components.

– A lot of packages have only Chinese documentation.

Advantages and weaknesses of Vue.js

When you should choose Vue:

  • For developing smart applications with high performance.
  • For small and lightweight applications.
  • To switch from an existing project to a modern framework with limited resources.
  • For scalable projects in “grow as you go” format.
  • For fast MVP development.

Many experts point out the advantages of Vue.js, but this framework is the most effective for simple and small projects so far. This, probably, will change in the near future, as the demand for Vue is constantly growing, which means the number of successful cases is increasing.

The apps built with Vue.js: Spendesk, Grammarly, Specify, Gitlab, Global Ledger.

Comparison of JavaScript platforms

Yes, there is a lot of information here. We should admit that Angular, React and Vue.js have their own strengths and weaknesses that can affect the success of a project. Now let’s try to collect data on all three technologies and compare them to see the big picture and find out when to use one or the other tool. 


So, to summarize:

  • Angular is a complex and complete framework with many built-in functions that is ideal for large-scale projects with many features. Flexibility is not Angular’s strong suit, but it does provide a robust and reliable application architecture.
  • React is a more flexible tool that helps you build effective apps with dynamic content. However, since React is a library and not a complete framework, you may need to integrate it with additional tools to create your app.
  • Vue provides the most flexibility and is a fast and highly scalable framework. You can use it both to create small, simple applications and to optimize existing ones.

Our experience

The IdeaSoft team has developers who work with all three technologies. We select the best tech stack for a client based on the goals of a project. The experience, proven by the successful implementation of more than 200 projects, allows our front-end developers to use this or that framework with maximum return for the final result. This article presents the most common scenarios, but the reality is not limited to them. To choose the most suitable framework for your project, we need to carefully study the requirements and compare them with the capabilities of the technology.

Feel free to contact us in case you need help with choosing the right technology stack for your project. We are always open for communication. 

How to Build a Custom CRM and Succeed

Today it’s difficult to imagine an effective process of interactions with clients without a CRM system, which has long become the main tool for automating sales, marketing, and customer support processes. According to Grand View Research, the revenue of the CRM market is expected to exceed $80 billion by 2025. Many different CRM systems on the market offer different features, integration with other software, and even the ability to customize modules according to your requirements. This is true, but even so, often companies cannot find a product that would fully meet their needs. Each company has its own business processes, features of working with clients, and sales funnels, so it’s much more profitable to create your own CRM system that would meet all the needs of your business. In this article, we will figure out how to prepare for the development of a custom CRM system to achieve success.

Table of contents:

  1. When you need a CRM system
  2. Why custom CRM
  3. 5 steps to consider before building your CRM system
    1. Define your business goals
    2. Analyze your workflow
    3. Choose the right type of CRM
    4. Create a list of features
    5. Find a development team
  4. The process of building CRM
  5. How much does it cost to build a custom CRM system
  6. Wrapping up

When you need a CRM system

Let’s start with the question of how to find out if you really need a CRM system. Any software is created to improve the efficiency of the company’s business processes, so you need to start with a strategy for interacting with customers. CRM is a business philosophy that assumes that for a business to be successful, all internal business processes of a company, such as marketing, sales, and customer service, should be customer-focused. All information about clients is stored in a single database, where managers can find a detailed history of interaction with each client. Based on this data, you can offer each customer the most individualized products and services, taking into account his or her interests, habits, and intentions. 

You need a CRM systemYou don’t need a CRM system
You want to increase conversions without increasing the cost of additional marketing activitiesYou have no competitors, so customers come to you anyway
You have a huge number of customers and you need a single base for managing relationships with themYou don’t have a sales team or a sales process
You want to increase your brand recognition through quality service deliveryYou strive for one-time sales, not repeat sales
You want to effectively track the sales departmentYou are not interested in scaling your business

Such an approach allows companies to build long-term relationships with customers, stimulate repeat sales, and not lose a single lead. This is necessary if you have many clients and want to work with them effectively. If these are exactly the goals that you are pursuing and you are ready to set up your business processes with a focus on the client, then you need a CRM system to automate these tasks.

Why custom CRM

Once you’re sure that you need a CRM system, you need to decide whether it will be an out-of-the-box solution or a product specially designed for you. Why, despite the abundance of software on the market, do companies invest in the development of their own CRM systems? For the most part, there are 2 reasons: the complexity of implementation and the overestimated costs. Standard CRM systems can have many different features, but you may not need all of them. 


Setting up the program is also fraught with difficulties since each company has its own peculiarities of working with clients and business processes that the software product must comply with. Thus, you overpay for functions that you don’t need and spend money on adapting CRM to your requirements. Also, most providers offer a pay-per-user model, which means you either have to pay a lot of money to provide managers from different departments with a CRM system or limit the number of users, which is unlikely to lead to the desired efficiency gain. Developing a personalized customer relationship management system can be cheaper and, most importantly, you get a product designed to meet your business needs. 

Here are some more advantages of a custom CRM system:

  • You get software tailored to your workflow. As I mentioned before, a software product should be adapted to your workflow, and not vice versa. This is the only way you can benefit from using a CRM system since your team doesn’t have to change their work process and spend time on additional training in using the tool. Unfortunately, ready-made CRM systems are created without taking into account the specifics of a particular business; it’s more profitable for providers to make them universal. Developing a custom CRM system, you get a product that fully matches your workflow and that your team can start using effectively immediately after release.
  • High performance. Any CRM system is designed to automate processes within the company. This product helps a marketing department to nurture leads, provide an effective content strategy, and track the most effective customer acquisition channels. CRM enables a sales department to perform a larger volume of tasks, to build effective cooperation with each client, from processing a request to issuing an invoice. Also, CRM software allows a customer support department to quickly respond to requests and provide personalized support services. Finally, as a manager, you can easily track the performance of all departments. For everything to really work so efficiently, you need a custom product that will automate these processes, and therefore streamline them.
  • Full control and data security. With your own product, you don’t have to trust your data to third party software. You yourself control what happens inside your company, ensure the safety and performance of the system. You can work with databases in a way that is most convenient for your team. You decide when and what updates to release. You work with a flexible CRM system that is specially designed for your business. Also, in a custom product, you can include all the necessary CRM system integrations with other software products to create an internal automated ecosystem for the company.

I think the above benefits convincingly prove that you get a lot more power with a custom CRM system than with an out-of-the-box solution.

5 steps to consider before building your CRM system

So, where to start building your CRM system? There are actually several steps you need to go through before you start working with the development team to get started on the product that is truly the best solution for your organization. When developing your own CRM system, you can take into account all the features of your workflow and create the perfect product. Take this chance with all responsibility. 

Define your business goals

As with any business, it all starts with a goal. A CRM system can simplify the work for many departments, this tool has great potential and wide functionality, but you should know why you need it. What business problems do you want to solve with this tool? Who will use it? Maybe you need a CRM system to improve the efficiency of your sales department and close more deals. Or you want to establish effective interaction between a sales department and a marketing team to know which leads are converted into customers and which acquisition channels are the most effective. Then you need a software product that includes both modules for sales and marketing activities. Or you want to see clear analytics of work with clients, to find out the efficiency of each manager and department as a whole. In this case, you will be implementing various analytical functions in your CRM.

Traditional CRM modules

The traditional CRM system includes 4 modules: sales, marketing, order management, and customer support. Based on your business goals, you can determine which modules your company needs. Later, this will help you choose the right type of CRM system and write a list of all the necessary features.

Analyze your workflow

Once you know what company processes you want to automate with CRM, you need to analyze your workflow to determine what exactly you expect from the software. A detailed analysis will let you compile a list of necessary components and not spend money on developing those that you don’t need. Review each step of the customer engagement process to figure out what actions need to be automated to optimize the workflow.

In the process, you will also need to select roles and permissions for your employees, which will allow you to give or block access to certain data. For example, junior managers may have access to viewing contacts, while experienced managers have more functionality using contacts, adding new ones, and issuing invoices. Or you want deep analytics of the department’s work to be available only to you. It’s better to think out these questions in advance to provide the development team with a complete list of requirements.

Choose the right type of CRM

There are several types of CRM systems, depending on the purpose they serve. Once you know your business goals, you can choose which type suits you best to move in the right direction. There are 4 types of CRM systems: strategic, operational, analytical, and collaborative.

  • Strategic CRM systems are designed to collect information about customers and further predict their behavior based on this data. Companies use this software to build a production and promotion strategy based on what their customers really like. You should choose this type of CRM if you want to increase your market share and provide the most relevant services for your clients.
  • Operational CRM systems help streamline daily tasks of the marketing, sales, or support department. The main goal of such a software product is to increase the efficiency of departments: process leads faster, send follow-ups quickly, interact with the client using various channels to boost repeat sales, and increase loyalty. This is exactly the type of CRM system that will allow you to automate internal processes.
  • Analytical CRM systems are created to manage customer-related data. You get insights into the effectiveness of different channels, which let you draw conclusions about the best ways of attracting and retaining customers. This type of CRM system helps you get deep analytics at the marketing and sales levels.
  • Collaborative CRM systems are an excellent solution to the issue of interaction for large companies that have many different departments influencing the process of interaction with customers. It can be both internal and external teams, like partners. Collaborative CRM opens up a more convenient way for these types of businesses to communicate in a single system. So, instead of email, phone, and various instant messengers, your teams can use chat rooms, web forums, Electronic Data Interchange, and others that become an alternative to traditional communication channels.

Another plus of custom CRM system development is that you can combine different types and create a unique product for your business that will contain all the necessary modules.

Create a list of features

After you have made a list of what operations you need to optimize and what goals you want to achieve using CRM, as well as selected the type of software you need, you can start describing the functionality of your future product. To be aware of what is happening on the market, study the presented ready-made CRM systems of the type you need. This way you can find some additional features that you would like to implement in your CRM system or understand what functionality is unnecessary for you.

List the features of your future product in a tree of functions or user flow format. Below you will find some most common features for a CRM system, add your own to get a detailed project plan.

  • Contact and lead management
  • Task management
  • Dashboard and reports
  • Pipeline view
  • Invoicing
  • Sales forecasting
  • File storage or file exchanger
  • Custom reports etc.

Find a development team

The best way to create a custom CRM system is to enlist the support of a development company that already has experience in designing similar software. You need to be sure that you get a product that will meet all your requirements and will work properly. When choosing a software provider, pay attention to the following factors:

  • Expertise. Take the time to study the expertise of the team you intend to work with. Talk to technical specialists, ask them to tell you about the company’s achievements. Even if you are not good at technology, you can easily understand whether you are communicating with professionals or not.
  • Delivered projects. Study the projects of the company, especially evaluate the development of CRM systems. Perhaps a company has its own product that you can test. Check how well the team did product development.
  • Reputation. Find out what is said about the company, find customer reviews on Clutch or GoodFirms, mentions in the media. A good company cares about its reputation, and you can be sure of the quality of the services provided.
  • Business process. Ask a company representative about the development process to understand if it will be comfortable for you to work like this. Specify how many meetings per week you need to discuss the project and how deeply you want to participate in the development of the CRM system.
  • Legal part. Pay attention also to the legal part of the cooperation. First, whether you want to sign an NDA. Second, make sure that you contractually own all rights to the product.

Choose a development partner based on the factors most important to you. At IdeaSoft we have flexible processes that allow us to build effective interaction for each of the parties.

The process of building CRM

To realize what you will face during the development of a CRM system, I have prepared a brief overview of the stages of the development process. Having studied them, you will know what actions will be required from you and what the development cost is.

The process of CRM development
  • Drawing up requirements

Like someone said, “Without requirements or design, programming is the art of adding bugs to an empty text file.”. At the very first stage, a business analyst or project manager can work with you to help you draw up clear requirements for the development of a software product if you haven’t already had them. This process is very important, because the more clearly you describe what functions your CRM system should have, the faster and easier a development team can create it. We advise you to involve a business analyst at this stage, who will help to identify and translate your wishes into specifications for developers.

  • Design part

The design part can include both technical design and UI/UX. At the technical design stage, specialists create the logic of user interaction with a product so you can get a prototype of your CRM system and make adjustments. The development of the UI/UX part is especially important for your CRM system because the tool should be intuitive for your managers to work with it really efficiently. Your CRM system should have good visualization, if we are talking about the analytical part, so you could perceive information easily in the form of charts and diagrams. Pay attention to choosing an experienced designer who can think over the interface to the smallest detail.

  • Software development process

Once a development team receives the requirements and design, they can begin to combine the interaction logic with design and build the back end by choosing the right technology stack. Talking about CRM development, this process can look different depending on the methodology that a team applies. For example, in Scrum, product development takes place in stages, each stage has a fixed length and is called a sprint. If the development methodology is an important factor to you and you are comfortable working according to a certain scenario, discuss it with your team in advance to create a process in which everyone will feel comfortable.

  • Testing and support

Testing is a crucial stage in the development of any software product that should not be ignored. Agree, it’s better to identify errors right away and fix them than to find that something is not working correctly when you have already launched CRM into work. CRM systems can have several modules designed for different types of employees. They are connected to a single database and have a functional binding, so each module needs to be tested and this is quite a big job.

Why test software products:

  • Saving resources – identifying problems in the early stages is easier and cheaper for you to fix them
  • Improving the quality of the code, and therefore increasing the efficiency of the product
  • Make sure that a product works as stated in the requirements and all functions are designed correctly
  • Quality control of the created product, for which a development team is responsible
  • Verifying that the software can be installed and run in the intended environment, and achieves the desired result

After the launch of the CRM system, it’s important to study the user experience to optimize the product in the future. You can’t foresee everything and starting to work with the system, you may find that some functions are missing, while others you really don’t need. It’s also important to keep CRM up to date. Then you really get your perfect customer relationship management tool.

How much does it cost to build a custom CRM system

Of course, you are wondering how much it costs to develop a custom CRM system. There is no definite answer, as you probably guessed. The development cost depends on many factors, including the complexity of a project, the number of features, and developer rates. Also, the final price is influenced by additional services, such as design, support. Below you will find approximate prices for the development of different CRM modules for 2020. If you have a list of requirements for your future product, contact our manager through the form below to get a free project estimate.

Approximate cost
Sales– Contacts, Tasks, Accounts, Opportunities, Pipelines, Dashboard
– Analytics
– Planning and Forecasting
$30,000 – 40,000
$6,000 – 10,000
$8,000 – 15,000
Marketing– Customer Analysis
– Marketing Campaign Management
-Marketing Analytics
$8,000 – 10,000
$8,000 – 15,000
$7,000 – 10,000
Customer support– Support & Agent Console
– Knowledge Base
– Service Analytics
$20,000 – 30,000
$5,000 – 6,000
$8,000 – 10,000

Read our new article How to reduce software development costs

Wrapping up

The development of a custom CRM system requires preparation and an in-depth analysis of the company’s business processes to create a tool that can really increase the efficiency of these processes. However, this work is worth the results. By creating a custom product that meets your business goals and requirements, you will get a CRM system that will help you streamline your operations and gain insights about your customers. No out-of-the-box product can do this for you.

IdeaSoft team has extensive experience in developing CRM systems. We create custom products that help to improve the efficiency of a company by combining the latest technologies and progressive ideas. Data security is key to the CRM development process, so you can be confident in the reliability of your product. If you want to discuss a project or get an estimate, don’t hesitate to contact us using the form below. Together we will find the best software solution for your needs.