Software maintenance: How to handle your budget

Cost trap Software maintenance: How to keep your budget under control

Short: The development of a new software is often only the tip of the iceberg.

The development of a new software is often only the tip of the iceberg. The real, long-term costs are often in the Software maintenance.

Many companies underestimate this item, which can lead to unexpected budget loads. But what does software maintenance really cost and how can you effectively control the costs?

In this article we highlight the typical cost factors and give you practical tips on budget control.

The hidden costs of software maintenance

The true, long-term costs of a software are often in maintenance.

For Software maintenance: How to handle your budget, Cost Calculator: AI Development, Discover solutions, Software Maintenance sowie Cost Calculator: Software Maintenance help you align rollout, scope and budget before you commit.

The cost of [maintenance](/services/software maintenance and maintenance) of a software often exceeds its original development costs by a multiple.

Studies show that up to 80% of the total life cycle cost of a software is lost in the maintenance phase [1].

These costs are made up of different factors that go far beyond the pure error elimination.

"The annual cost of software maintenance is usually from 15% to 25% of the initial development costs." [2]

The main cost drivers in software maintenance

To understand and control the cost of software maintenance, it is important to know the essential cost drivers. These can be divided into different categories.

Cost drivers Description

**Personnel resources * * The largest cost block is the salaries for qualified developers, testers and [Support](/services/software maintenance and care) staff needed for maintenance.

Complexity of software The more complex and bigger a software, the more complicated and expensive its maintenance is.

Badly structured code ("spaghetti code") and lack of documentation also raises costs.

*Old technology * Outdated technologies and programming languages make maintenance expensive. It becomes more often difficult and expensive to find developers with the needed know-how.

Number of users Systems The more users and different systems use software, the higher the support and adaptation effort.

**Faturity of changes * * Continuous adjustments to new legal regulations, market needs or operating system updates require continuous maintenance.

5 strategies to reduce your maintenance costs

Luckily, you are not provided with helpless costs.

With the right strategies, you can significantly reduce the cost of software maintenance without jeopardizing the quality and stability of your application.

• Investing in quality from the beginning: The foundation for a maintenance-friendly software is already laid in development. Put on clean, well recorded code, sophisticated architecture and automated tests. This reduces the later effort for error b.

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Sources: Unless cited inline, market figures and percentages are for orientation. See public sources such as Bitkom (2025) and Destatis.

Project budgets and examples: Groenewold IT Solutions, internal reporting 2026.

References and further reading

The following separate references complement the topics in this article:

• Bitkom – German digital industry association.
• German Federal Office for Information Security (BSI).
• European Commission – Digital strategy.
• MDN Web Docs (Mozilla)
• W3C – World Wide Web Consortium.

> "ERP programmes rarely fail on software selection; they fail on unclear process ownership."

— Björn Groenewold, Managing Director, Groenewold IT Solutions

Frequently Asked Questions (FAQ)

What is this article about: “Software maintenance: How to handle your budget”?

This article sums up practical aspects of Software maintenance. How to handle your budget for leaders and delivery teams.

In short: The true, long-term costs of a software are often in maintenance. We illuminate the typical cost factors and give you practical tips on budget control.

Who benefits most from the content described here?

It is especially relevant for firms in Software maintenance that need reliable systems, clear interfaces, and predictable delivery — from mid-market teams to expert departments.

How does this topic fit into an IT or digital strategy?

You can map the topic to service building blocks such as custom software and delivery support. Architecture reviews and stepwise rollout reduce risk and rework.

For multi-system landscapes, IT consulting and architecture helps align vendors and internal teams.

What are sensible next steps if we need support?

For architecture, rollout, or a second expert opinion, book a free initial consultation — including timeline and interface alignment.