Why Companies Offering Custom Software Development Services

Suffer without Specialization

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Features of Custom Software Development Market

Role of geolocation (country economy influences service prices)

Intense competition

Wide range of hourly rates

Diversity in proficiency levels

! Imagine that only in ONE city of Delhi, India, there are 1,555 registered custom software development companies.

Intense Competition

200%500%

In the world of IT less developed countries tend to embrace dumping the

most.

Price Level Difference$$

The price level depends much on the proficiency of the company in the given specialization => price per hour significantly differs from company to company.

Proficiency

In each country the standards of living and prices for the services significantly vary. Young IT companies from countries with unstable economies have to play on lowering their service prices in order to attract potential customers.

Geolocation

Reasons to Choose

Specialization

Specialization is focusing on one task rather than multiple

tasks toward productive output. Many outsourced

software development

companies forget about this important

point.

Reason 1: To Cut Off Competitors

Reason 2: To Be More Effective

When an IT firm is focused on a particular segment, it is easier to come up with more effective marketing

campaigns.

86%

68%$$

Being enough experienced and having a rich portfolio, a custom software development company can set higher prices for its service, thereby getting higher revenue.

Reason 3: To Maintain a Decent Hourly Rate

How to Choose Specialization for Custom

Software Development Company?

#1. Evaluate Market Reach

Good Ideas Education

Market reach is the estimated number of potential customers it is possible to address through advertising or other promotional activities.

A small number of search queries can

negatively affect market entry. It means that the

number of potential customers is limited.

17342Pages views

56789Pages Visit

45%Bounce Rate

00:03:32AVG Visit Duration

It’s a tool showing an average volume index of every keyword matching potential IT specialization.www.google.com/trends

Google Trends

With the help of this tool you can evaluate your potential market using different combinations of industries and employment size.scienceofmarketing.org

B2B Market Sizing Tool

Tools To Use For Market Reach Evaluation

43

1

The choice of specialization depends on skills and the competitive environment.

! Sometimes IT companies make mistakes in focusing too hard on their knowledge of specific technologies (like Java or Symfony2) while overlooking customer’s requirements.

Customers are interested in final results and care less about how the results are achieved.

#2. Think of Company’s Experience

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CMIICMII focuses on improvement of

the quality processes at

your company.

Day 1Day 2 Day 3

Certificates Can Support Niche Skills

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ISO 9001:2008The quality standard

economizes production and

time of your company due to minimum or no

rework.

#3. Analyze Competitive Environment and Entry Barrier

CREATIVE

SUCCESSANALYSIS

?

If you are developing trading automation software, the competition level is quite low because there is a limited number of brokerage firms all over the globe. Thereafter, market volume is lower.

If the competition level is too high like in WordPress custom development, you will be drowned in even bloodier competition than you probably have now. However, market volume is much bigger here.

It is dangerous when your potential niche is free of

competitors.

If you have no competitors at all, you have no one to

analyze and make sure you can succeed in the chosen

industry.

17342Pages views

56789Pages Visit

45%Bounce Rate

00:03:32AVG Visit Duration

Google Keyword Planner is a free tool that provides keyword ideas.

Google Keyword Planner

SimilarWeb is an analytics tool that shows traffic insights by source.

SimilarWeb

Semrush helps spying on competitors’ keywords and backlinks.

Semrush

Tools To Use For Competitor Research

Proper specialization can be selected based on • past experience in specific

projects• market reach• entry barrier • economy state of a

chosen location

02

A custom software development company can benefit from sticking to specialization as it helps survive and stimulates growth by exiting intense rivalry and justifying higher hourly rates.

03

There is a wide variety of potential niches for a custom software development provider. 01

Takeaway Ideas

irina@kraftblick.com www.kraftblick.com

KraftblickOnline Marketing

for Software Development Companies

Thank You!