What is a Web Development Shop?

What is a web development shop?

A web development shop or web development agency is a company, the key services of which include building web applications or improving existing applications for external customers. A development shop can also offer additional services, such as marketing, sales, support, SEO, copywriting, branding, etc.

Being more popular among the US customers, development shops differ from software product companies and non-software corporations in the following way:

  1. A traditional company does not have web projects to deliver to the clients; it typically has only one or two key products.
  2. In a traditional company, software developers can work with their clients face to face, whereas the developers at dev shops may work remotely and never see their clients.
  3. In a traditional company, software developers are provided with already built software and need some time to understand it, whereas in a web shop the software is typically built from scratch.
  4. In a traditional company, the working process is less agile and less technologically challenging than in an app development shop. For example, if you work for a web dev shop, you can choose any programming language and framework and then even switch to other languages and frameworks in the course of work. Traditional companies though prefer to focus on a single technology stack.
  5. In a traditional company, software engineers are focused on a single industry. In a dev shop, they are exposed to all kinds of projects and work with companies at different stages and in different industries.
  6. Developers in a traditional company have less time to elaborate on a project than in a dev shop. Therefore, quality of the software that is developed for a traditional company may be lower than that of a dev shop, just because of this time pressure.

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Web Development Shop: How It Works

Basically, there are both on-site and remote dev shops, but remote ones are more popular, with team members spread all around the world. A dev shop typically consists of an owner and a team of software engineers, each of which works on one or several projects at a time, depending on qualifications of the engineer. It can happen that during a day, an engineer can write code for one project, fix bugs for another project, and deploy the third project. In most cases, dev shop teams work according to agile methodology. As for funding, dev shops normally do not raise outside capital, so the shop is funded from the owner’s savings and possible future orders.

Web Development Shop: How Much It Costs

The price depends on the project and the software that the client wants to create. The costs basically include design and development, and most dev shops already have in-house design teams. Approximate prices can be as follows:

  • A simple web app, such as a simple web page with a templated layout, would cost $5,000 – $15,000.
  • A professional web app, such as an interactive website with multiple pages or an e-commerce shop for a small business, would cost $15,000 – $60,000.
  • Enterprise app, such as software add-ons or complete websites for big corporations, would cost $50,000 – $200,000.

Cost estimation can be based on one of the following methods:

  1. The waterfall approach, which is based on a functional specification that is created after discussion with the client. This method allows for accurate budget calculation, but it does not involve any changes that are possible throughout the project.
  2. The agile approach, which is based on user stories that outline what the end user should receive from the project. This method allows more flexibility during the budget discussion.

As long as the web development shops tend to be more flexible and align their incentives with the startup’s vision, not only the eventual product is of high quality in technological regard, but it’s also developed with an understanding of business and market, what is equally important nowadays.

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YouTeam Editorial Team

YouTeam Editorial Team

We love featuring verified solutions to outsourcing problems and coverage of remote work trends. We want our blog to be a source of inspiration for tech entrepreneurs and product people who are looking to build distributed development teams across continents.

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