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API Development in New Zealand

An API is a promise to somebody else's software that you will not change your mind. That promise, not the code, is what makes it expensive.

$35k+

Typical project value

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What people usually mean by api development

An API development brief is usually about letting something outside your business talk to something inside it — a partner's system, your own mobile app, a customer's integration. Building the endpoints is quick. Deciding what you are willing to guarantee, to whom, and for how long is the project.

An API for your own app

The backend a mobile or web application talks to. Only your code consumes it, so you can change it whenever you like — which makes it much the cheapest kind.

A partner API

A handful of named customers or suppliers integrate with you. Fewer users than a public API and far more email, because each one has expectations.

A public API

Anyone can sign up and build against it. Now you need documentation, keys, rate limits, versioning and a support path, and you can no longer change anything quietly.

What it costs

Indicative ranges from projects posted here. Use them to sense-check a quote, not to budget precisely.

Internal or single-app API

Endpoints, authentication and tests for software you also control.

$20k – $50k

Partner API

Documented, versioned, with keys, rate limits, sandbox access and error handling a third party can act on.

$50k – $120k

Public API as a product

Self-service signup, usage metering, developer documentation and a support commitment.

$120k+

Questions worth asking a provider

·Who consumes this API, and can we change it without asking them?

·How is it authenticated, and how does a consumer rotate a compromised key?

·What is the versioning plan? What happens the first time we need a breaking change?

·How does a consumer find out why their request failed, without ringing us?

·Who writes and maintains the documentation, and where does it live?

Common questions

How much does API development cost in New Zealand?

An API for your own application — where you control both ends — is $20,000 to $50,000. A partner API that named third parties integrate with, properly documented and versioned, is $50,000 to $120,000. A public API offered as a product, with self-service signup and usage metering, starts around $120,000 because most of that work is the parts that are not endpoints.

Why is a partner API so much more than an internal one?

Because you lose the right to change it. An internal API can be altered on a Tuesday afternoon and the app updated to match. The moment someone else depends on it you need versioning, deprecation notices, a sandbox for them to test against, documentation that is true, and error responses a stranger can act on without ringing you. None of that is visible in a demo and all of it is the reason the second project costs three times the first.

REST or GraphQL?

REST unless you have a reason. It is understood by every developer who might integrate with you, cached by ordinary infrastructure, and debuggable with tools your partners already have. GraphQL earns its place when consumers need wildly different shapes of the same data — typically a rich app with many screens — and costs you more in caching, rate limiting and query-cost control. A developer who proposes GraphQL should be able to say what problem it solves for you specifically.

How should it be authenticated?

API keys for server-to-server partner access, OAuth where a person is granting access to their own data, and short-lived tokens for a mobile app. What matters more than the choice is the operational side: can a customer see their keys, rotate one that has leaked, and have more than one active during a changeover? Surprisingly many APIs are built without any of that and the first leaked key becomes an emergency.

What does it cost to run afterwards?

Budget 15 to 20 percent of build cost a year, plus hosting. A partner API also carries a support cost nobody quotes for: somebody at your end answers questions about it, and that is a real person's time. If you are building a public API, decide up front whether support is a shared inbox or a rota, because it will not be nothing.

API Development projects open right now

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Who is on the other end?

This one question sets the price, and most briefs do not answer it.

Only your own software. The API is a private arrangement between two things you control. Change it whenever you like, deploy both ends together, and skip most of what follows. This is the cheap version and there is nothing wrong with it.

A handful of named partners. Now other people's release schedules matter. You need versioning, a sandbox, and documentation, because a partner's developer will read it at 9pm in another timezone and must not need to ring you.

Anyone who signs up. The API is now a product. Self-service keys, usage limits, metering, support, and the permanent inability to change anything quietly.

Say which one you are building in your brief. Quotes that differ by a factor of four are usually quotes for three different answers to this question.

The endpoints are the small part

Any competent developer can expose your data over HTTP in a week. What takes the other eleven:

  • Authentication — issuing keys, letting a customer rotate one that leaked, supporting two live at once during a changeover.
  • Errors a stranger can act on. "500 Internal Server Error" costs you a support email every time. "Field `invoice_date` must be ISO 8601" costs you nothing.
  • Rate limiting — so one partner's runaway script does not take the API down for everybody else.
  • Pagination — decided on day one, because changing how results are paged later is a breaking change.
  • Idempotency — so a retried request does not create a second order. This is the single most common omission and it produces duplicates in your database that nobody can explain.
  • Documentation that is true, generated from the code rather than written once and left to rot.

Ask each developer which of these are in their quote. The differences will be larger than the prices.

Versioning: decide before you need it

You will eventually need to change something in a way that breaks existing consumers. The plan for that moment should exist before the API ships, because retrofitting one is much harder.

What a workable answer sounds like:

  • The version is in the URL — /v1/ — or in a header, decided and written down.
  • Additions are not breaking changes; removals and renames are.
  • When v2 arrives, v1 keeps running for a stated period. Six or twelve months is normal.
  • There is a way to tell consumers, which means you know who they are and how to reach them.

That last point catches people out. If your API has no signup and no keys, you have no list of who is using it, and no way to warn them.

REST unless you can say why not

REST is understood by every developer who might integrate with you, cached by ordinary infrastructure, and debuggable with tools your partners already have. It is the default for good reasons.

GraphQL is genuinely better when consumers need very different shapes of the same data — a rich application with many screens, each wanting a different slice. It costs you more in caching, rate limiting and controlling expensive queries, and it narrows the pool of people who can maintain it.

If a developer proposes GraphQL, ask what problem it solves in your case. A good answer is specific. A bad one is that it is modern.

Write the documentation first

The most useful thing you can do before any code exists is describe the API as though it already worked: the endpoints, the fields, an example request and an example response.

Do that and three things happen. Your developers build against an agreed shape rather than inventing one. Your partners can start work in parallel. And the arguments about what a field means happen on a document instead of after launch.

Written as an OpenAPI description, it also generates your reference docs, your sandbox and your client test tools for free. Ask whether the quote includes one.

Somebody has to answer the emails

A partner or public API creates a support obligation that never appears in a build quote. Someone at your end will be asked why a request failed, whether a field is optional, and what the rate limit is.

Decide before launch whether that is a shared inbox, a named person, or a rota, and budget the time. Good documentation and good error messages reduce it enormously, which is the practical argument for paying for both.

Comparing five quotes

Read for:

  • Who asked who the consumers are before quoting?
  • Whose quote names versioning, rate limiting and idempotency without being prompted?
  • Who includes an OpenAPI description and generated documentation?
  • Who described how a customer rotates a leaked key?
  • Who talked about the support load after launch?

Describe who will call the API, what they need from it, and whether you will be able to change it later. Developers who have shipped a partner API will start asking about deprecation before they start asking about endpoints.

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