Software development costs detailed in new Boyd report – App Developer Magazine

The new Boyd Report details software development costs in 2022, the top 25 U.S. and Canadian cities named for the software industry, an annual operating cost ranking of the 25 surveyed software center locations, and the highs and lows of operating a software development center.
A new 2022 North American site selection study compares the cost of operating a software development center in a series of 25 top U.S. and Canadian hubs of the software industry. Operating costs are scaled to a representative 50,000 sq. ft. software development office employing 150 workers. The analysis includes all major geographically-variable cost factors critical to the corporate site selection process for new high-tech, digital development centers.
The Boyd Report shows total annual operating costs ranging from a high of $23.8
million in San Rafael, California, to a low of $12.9 million in Longueuil, Quebec,
Canada. Among the U.S. software hubs, annual costs range from a high of $23.8
million in San Rafael to a low of $17.8 million in Minden, Nevada. Operating
cost differentials are based on the latest 2022 BizCosts data. Canadian costs are
expressed in U.S. dollars at an exchange rate of .79.
Major geographically-variable operating costs were projected by Boyd for a
series of 25 North American locations housing current and emerging
concentrations of software, gaming, and digital multimedia industry operations.
Locations included in the Boyd analysis demonstrate a diverse range of site
selection strengths, including precedent software development activity, available
skillsets in software and digital multimedia design, strong information technology academic linkages, lifestyle amenities attractive to millennial tech workers and
The 25 comparative locations included in the Boyd analysis are detailed below
alphabetically by state and province.
Taken from summary Exhibit I is a cost ranking of the 25 surveyed U.S. and
Canadian software center locations.
Growing pressures for corporate tax hikes heightened costs associated with
reshoring jobs back to the U.S., and historic levels of inflation are all causing a
greater focus on comparative operating cost structures within all sectors of the
tech industry, including software. Many tech companies are concluding that
improving the bottom line on the cost side of the ledger will be far easier than on
the revenue side coming out of the pandemic in 2022. Site selection planning on
where to locate new software development facilities, likewise, is focusing heavily
on comparative economics.
Cost differentials between an acceptable development site and an optimum
location can be substantial even within a given region. Itemized annual operating
costs are detailed in the following table for several high and low-cost software
hubs included in the new Boyd Report.
Total Annual GeographicallyVariable Operating Costs
Includes all major geographically-variable operating costs for a 50,000 sq. ft. software development center employing 150 workers.
Source: The Boyd Company, Inc., of Princeton, NJ
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