One of the first questions we get when starting a conversation with a potential client is this: how much does it cost? It is a completely valid question. Hiring software development is a significant business decision, and no one wants to walk into a meeting without at least a ballpark figure.
The problem is that most agencies avoid giving concrete numbers. We are going to do the opposite.
Why there is no single price
Software development does not have a fixed price like buying furniture. The cost depends on multiple variables:
- Functional complexity: how many things the system needs to do
- Number of integrations: does it connect to your ERP? A payment gateway? WhatsApp Business?
- User type: internal use only or also used by your external customers
- Technology stack: some technologies have more talent supply in LATAM than others
- Team experience level: senior vs. junior has a real impact on speed and quality
- Timeline: compressing a project into less time usually costs more
That said, there are ranges that apply with reasonable consistency in the Latin American market.
Investment ranges by project type
Integrations and automations: USD 5,000 – 25,000
If you have two systems that do not communicate (for example, your CRM with your inventory system) or repetitive manual processes you want to automate, this is the most common range.
What is included:
- Mapping and analysis of existing systems
- Development of connectors or middleware
- Automation setup with tools like n8n or Make
- Integration testing
- Basic documentation
When it applies: a company with existing systems that need to talk to each other; processes currently done manually that consume team time.
Typical timeline: 4 to 10 weeks.
Web applications and internal portals: USD 15,000 – 60,000
A custom system to manage your internal operations: approvals, project tracking, reporting, a proprietary CRM, a supplier portal. This range applies when off-the-shelf tools do not fit your process.
What is included:
- UX design and prototype
- Frontend and backend development
- Database and business logic
- Roles and permissions
- Up to 3–5 functional modules
When it applies: you have a process managed today in spreadsheets or a tool that never quite fits. You want full control over how it works.
Typical timeline: 2 to 5 months.
Platforms with external users: USD 40,000 – 150,000+
When the system is also used by your clients, distributors, or suppliers, complexity increases significantly: authentication, multitenancy, performance under load, support, ongoing maintenance.
What is included:
- Product design and UX focused on the external user
- Scalable architecture
- Admin panel separate from the public portal
- Onboarding flows, notifications, per-user reporting
- Load testing and basic security review
When it applies: you want to digitize the relationship with your customers — a portal where they can track orders, generate their own reports, or interact with your team.
Typical timeline: 4 to 8 months.
Legacy system modernization: USD 30,000 – 200,000
One of the most common projects in mid-sized LATAM companies: a system that has been running for 10–15 years, nobody fully understands how it works, and it can no longer evolve.
The cost varies enormously depending on the state of the existing code, availability of documentation, and whether the modernization is done progressively or as a full replacement.
Recommendation: progressive modernization is almost always better. Replacing everything at once is the kind of project that destroys budgets and timelines.
Why LATAM prices differ from the US or Europe
A development company in the United States charges between USD 150 and 250 per hour. In Latin America, a serious company with a senior team charges between USD 50 and 100 per hour.
That does not mean lower quality. It means differences in cost of living and cost structure. Many companies in Europe and North America outsource to LATAM teams precisely for that reason.
What can vary is expertise in certain domains (local regulation, payment methods, electronic invoicing) — and there, local teams have an advantage.
What is not included (and should be budgeted)
The development price is not the total cost. In addition to the project, you need to budget for:
- Cloud infrastructure: AWS, GCP, or Azure. For mid-sized applications, expect USD 100 to 800/month depending on traffic.
- Maintenance and support: typically 15–20% of the project cost per year, for security updates, bug fixes, and small improvements.
- Licenses: if the project uses third-party APIs (Twilio, SendGrid, Google Maps), those costs are separate.
- Your internal time: clients always need to invest time in the project. Underestimating this is one of the most common mistakes.
Warning signs in a quote
Some things should raise flags when you receive a proposal:
Price too low: If someone offers you a complete platform for USD 3,000 or USD 5,000, it is not a bargain. It is a signal that the team lacks sufficient experience, the scope is poorly defined, or the project will be left unfinished. The low initial price usually generates much higher rescue costs later.
No prior discovery: Any serious vendor needs to understand your problem before quoting. If you receive a price without anyone having explored your needs in depth, the quote has no real basis.
Time-and-materials contract with no ceiling: The hourly model can be valid, but without a clear scope ceiling, the budget can spiral. Require a defined scope or an investment cap, at least for the first phase.
How to arrive at a real number
The process we follow at Alternetica:
- Diagnostic call (no cost): 45–60 minutes where we explore the business problem, existing systems, and time and budget constraints.
- Proposal with investment range: not an exact number (because it does not exist at this stage), but an honest range based on what we learned.
- Discovery phase (optional, USD 3,000 – 8,000): for complex projects, we run a paid analysis and design phase before committing the full budget. At the end of this phase, you have detailed specifications and a firm price.
If you want to know what range your project falls into, start with a no-commitment call. No sales pitch — just an honest conversation.