In the evolving landscape of eLearning software development, understanding how Learning Management System (LMS) development is perceived and ranked by those on the frontline is crucial. 

The perspectives of a development team offer invaluable insights into the intricacies and challenges of how to create an LMS platform. In this article, we’ll delve into the nuances of LMS software development from the eyes of those who craft these sophisticated tools.

1 What Is a Learning Management System?

In today’s digital age, whether in academia or corporate settings, a robust Learning Management System (LMS) is indispensable.

The worldwide learning management systems market is expected to surge to $81,223.80 million by 2030, experiencing a robust compound annual growth rate (CAGR) of 20.5% from 2021 to 2030.

Today’s LMS platforms offer intuitive interfaces and rich features, elevating distance learning. They centralize content, making learning accessible globally and tailoring easy. Ready to craft or enhance your LMS journey? Let’s explore its essence and the functionalities it offers.

Understanding two main LMS Vendor Types:

  • On-Premise LMS

Deployed on the owner’s server, this system restricts access to those affiliated with the host. Originating in universities, it remains prevalent, especially among large corporations, to maintain system control and ensure data security.

  • SaaS/Cloud LMS

The content resides on the LMS provider’s server, making it accessible online. As a favorite for distance learning due to its simplicity, private online school proprietors and corporate leaders prefer it to enhance their educational offerings.

2 Types of learning management systems

Before embarking on the journey of creating a tailor-made learning management system, it’s imperative to have a comprehensive understanding of the diverse types of LMS available:

  • Open-source LMS

Available to everyone, this type of system is a blank canvas that allows for unparalleled customization, catering precisely to specific needs. However, while its adaptability is its strength, it’s essential to note that harnessing its full potential requires a specialist’s touch. 

Navigating and developing from its open code can be intricate, and there might be instances where one could feel the absence of dedicated support

  • Commercial LMS

As the name suggests, acquiring this system involves a financial outlay. The customization capabilities often rest with the owning company, which can sometimes be limiting. But what it might occasionally lack in flexibility, it compensates for in the form of consistent and professional support, ensuring a smoother user experience.

  • Installed LMS

Operating directly from your premises, it leverages your server infrastructure to store all its data. This direct control means heightened security and virtually limitless customization potential. Yet, such power comes with responsibility—you’d need an in-house team or infrastructure to handle its regular maintenance and updates.

  • SaaS LMS

The digital age’s gift to the LMS world is the SaaS LMS. Rooted in the cloud, this business model offers the convenience of being maintained by the vendors. As a client, this translates to paying a periodic subscription fee and channeling all your energy towards training and content delivery. 

However, while it offers convenience, there might be boundaries regarding how much you can modify or adapt the system to specific needs.

  • Integrated LMS

The integrated LMS stands out for its ability to seamlessly blend with many external applications. Whether it’s a social media platform for broader engagement, calendars for scheduling, HR-centric systems for holistic talent management, or even straightforward email services, this LMS type ensures a cohesive and interconnected experience.

  • Non-integrated LMS

Simplicity is the hallmark of the non-integrated LMS. Rather than overwhelming with a multitude of features, it focuses intently on delivering core functionalities. The primary goal is to equip users with a singular, streamlined source of pivotal information, ensuring clarity and efficiency.

custom learning management system

3 Core Features of Learning Management Systems in 2023

Before delving into the technical aspects of custom learning management system development in 2023, let’s explore the business features that define these learning management systems.

The business side of custom LMS development

In custom learning management system development, meticulous financial planning and strategic resource allocation play pivotal roles in ensuring the success and sustainability of your tailored learning solution.

  • Course Builder

An LMS’s heart lies in its ability to develop varied courses. This feature should offer customizable templates, intuitive design tools, and diverse formatting options to accommodate learning materials.

Whether onboarding, continuous training, or skill-specific modules, a versatile course builder can cater to various training objectives, aligning with a company’s evolving needs.

  • Content Management

Content is the backbone of any educational platform. Just as a website relies on quality content to engage visitors, a custom learning management system requires well-curated, up-to-date, and relevant training materials.

This feature should enable seamless uploading, updating, and organizing of diverse content types – text, video, audio, or interactive simulations. Integration with content creation tools or third-party content providers can enhance its utility.

  • Skills Assessment & Testing

Beyond merely offering information, an effective LMS should gauge the learners’ absorption and application of knowledge. This involves creating quizzes, simulations, real-world tasks, and peer reviews.

Automated grading, feedback loops, and adaptability (adjusting subsequent content based on assessment results) can make the learning process more dynamic and tailored to individual needs.

  • Progress Tracking & Incentives

A bird’s-eye view of the learners’ journey is pivotal for trainers and trainees. Real-time dashboards, detailed reports, and analytics can help monitor progress, identify bottlenecks, and adapt training strategies.

To boost motivation and engagement, integrate achievement badges, leaderboards, or certification pathways, turning learning into a rewarding experience.

  • Social Interactions

Collaborative learning often enhances comprehension and retention. Integrating forums, chat rooms, or group projects allows an LMS to foster a sense of community among learners.

These interactive spaces can serve as platforms for doubt clarification, experience sharing, and collaborative problem-solving, making the learning process more holistic and engaging.

The technical side of custom LMS development

As we delve into the technical aspects of custom learning management system development, it’s essential to understand how architecture, data management, and user interface design collectively contribute to creating a seamless and effective learning platform.

  • Mobile Compatibility

In today’s fast-paced world, learning isn’t confined to desktops. Your custom learning management system should boast a responsive design, ensuring a seamless experience irrespective of the device – tablets, smartphones, or laptops. The focus should be on maintaining consistent functionality and visual appeal.

Considering the increasing mobile usage, optimizing for touch interfaces, ensuring faster loading times, and even developing dedicated mobile apps can elevate the user experience, enabling learners to engage with content wherever and whenever.

  • Real-time Notifications

An effective LMS stays proactive, not just reactive. Implementing a robust notification system means users are constantly in the loop. Whether it’s a reminder for an upcoming test, feedback on a submitted assignment, or announcements about new content, real-time alerts can significantly boost engagement rates.

Leveraging different mediums – from simple text pop-ups to more interactive push notifications – ensures the message reaches the user most effectively.

  • Tight Security

The integrity and confidentiality of data are paramount. Your LMS should be fortified against potential breaches with multi-layered security protocols. This includes SSL encryption, regular security audits, and secure hosting environments. Role-based access controls can ensure that sensitive course materials, user data, and administrative tools remain in trusted hands.

Furthermore, incorporating features like two-factor authentication, regular backup routines, and data recovery solutions ensures not just the safety but also the longevity and reliability of the platform.

4 How to Create LMS from Scratch: 10 Steps

Are you hesitant about constructing a custom learning management system? Dissecting and understanding the journey ahead is essential before engaging an external team of web development experts or utilizing in-house specialists.

Step 1: Idea Validation

A misstep many businesses face is investing heavily in misaligned products. To circumvent potential pitfalls and have a clearer projection of your ROI, immerse yourself in understanding your target audience and industry landscape.

Before diving into learning management system development, ascertain its market viability. Consider these guiding questions:

learning management system development

Step 2: Product Discovery

A successful LMS stems from a foundational discovery phase, laying the groundwork for product design and evolution. This iterative approach emphasizes collaborative brainstorming to pinpoint genuine user needs, ensuring a solution that resonates and adds value.

The discovery phase also entails market and competitive analysis. This helps align business objectives, monetization avenues, and a realistic project timeline.

Step 3: LMS Project Blueprint

Mapping out the LMS’s functionality and meticulously scrutinizing its requirements are pivotal for the project’s trajectory.

Your blueprint should be articulate, leaning on proven methodologies. Proper documentation, task planning, and constant monitoring are key. Drawing insights from past project experiences can smoothen the development process, preemptively addressing potential pitfalls and bolstering the chances of your LMS’s success.

Step 4. Choosing the Right LMS Design & Web Development Partner 

As you embark on finding the perfect team for your LMS project, keep these pivotal considerations in mind:

  • Communication

Clear, consistent communication is paramount. Ensure the web development team you partner with values transparency, allowing you to be in the loop at every development stage. It’s essential that the team grasps your vision, discusses each feature in-depth, and only then proceeds with the development.

  • Expertise

Opt for a team that’s seasoned in the LMS domain. Their prior knowledge means they’re acquainted with potential challenges, offering solutions that can save time and costs. An experienced team might also have pre-built functionalities that can be seamlessly integrated into your LMS, further streamlining the development process.

  • Ongoing Support

Post-launch, having a dependable team by your side for continued technical assistance is reassuring. Consider drafting a contract that outlines the support structure, be it ongoing annual support or addressing specific issues upon request. This ensures smooth sailing even after your LMS goes live.

Step 5: Begin with an MVP for Your LMS

Launching an LMS effectively means kickstarting with a Minimum Viable Product (MVP). An MVP focuses on essential features that address immediate user needs, allowing you to gauge market response and curtail risks. Our MVP services for startups shed light on the nuances and advantages of MVP in custom software creation.

An MVP’s beauty lies in its tangible nature, providing an actual product for users. Post-MVP feedback becomes the blueprint for further product development, ensuring you’re building an LMS from scratch and users genuinely desire it, streamlining the journey to a successful final product.

Step 6: Designing an LMS with Optimal UI/UX

Your LMS’s design should be vibrant yet straightforward, driving learners’ engagement without distractions like ads or pop-ups. Engaging a specialized agency for innovation can be beneficial.

With the ubiquity of technology in our lives, users anticipate online training platforms to be responsive across diverse devices, from desktops to mobiles. A subpar UX can deter a learner, making them disinterested, regardless of the quality of content.

The design phase amalgamates key components: brainstorming visuals, determining color schemes and fonts, and charting user flow. This meticulous process births a product tailored to user needs.

Step 7: Initiate User Testing

User testing, an invaluable research method, provides real-time insights as your target audience interacts with your product, highlighting strengths and areas of improvement. This step is non-negotiable given the complexity of LMS systems, which host myriad functionalities and cater to a vast audience.

It’s wise to integrate user testing early in the LMS development journey. The merits of user testing include:

  • Gauging the average time user segments spend on pivotal tasks.
  • As reconfiguring an LMS post-development, financial and time savings can be arduous.
  • Ensuring an intuitive user interface catering to diverse user demographics.
  • Eliciting direct feedback on user satisfaction levels with the LMS.

Step 8: Embark on LMS Development

A meticulous approach that leaves no stone unturned is essential to construct an LMS from the ground up. After addressing the preceding stages, it’s time to actualize your vision, focusing on every critical facet of the LMS discussed earlier. The primary objective is to translate your conceptual framework into a functional prototype.

The LMS development sequence typically involves:

  • Tech Stack & Documentation

Here, the development ensemble identifies suitable technologies for the project, creating technical documentation that delineates functionalities, features, and user role interactions.

  • Software Architecture Blueprint

Developers lay out the product’s foundational structure. Backend decisions include opting for a monolithic or microservices approach and frontend choices regarding user interface implementation.

  • Sprints Layout

The team sets a roadmap, prioritizing and sequencing feature development. This stage is the cornerstone of the overarching development strategy.

  • Test Infrastructure & Continuous Integration/Deployment

DevOps crafts a simulated production environment on the cloud, granting the client access for testing. This environment is primed to reflect product updates automatically.

  • Client-Server Development & Quality Assurance

The client and server facets of the product undergo simultaneous development and testing.

  • Regression Testing

Comprehensive product testing is undertaken to identify and rectify potential bugs introduced during development.

  • Production Infrastructure & Continuous Integration/Deployment

A scalable, flexible cloud-based environment is established, with configurations to auto-update based on product revisions.

Choosing the right technical stack is pivotal for building a successful learning management system. For informed decisions, consider consulting specialists. Teams like Northell, for instance, offer guidance on product development, including assisting with appropriate tech stack selections.

Step 9: Thoroughly Test and Roll Out Your LMS

Before launching, it’s imperative to rigorously test your LMS to ensure each feature and functionality operates seamlessly. Quality Assurance (QA) experts play a pivotal role in safeguarding the LMS’s quality and consistency. Essential QA considerations include:

  • Adhering to an exhaustive QA checklist that evaluates the integrity of designs, content, and assessment tools.
  • Confirming the LMS's compatibility across different platforms and devices.
  • Exhaustively examining each unique functionality.
  • Undertaking regression testing after each development sprint.

Step 10: Collect and Assess Outcomes

Before commencing LMS development, there’s a need to evaluate the amassed data. This assessment guides refinements in the eventual product—helping discard redundant elements, fine-tuning your future strategy, and laying the groundwork for a full-fledged LMS platform.

An LMS implementation roadmap is crucial. Adhering to these steps equips you with a valuable, sought-after LMS product.

5 Cost of learning management system development

Estimating the exact cost of a custom learning management system is tricky due to numerous variables. As a ballpark, MVP development for a standard web-based LMS can take around four months. In Eastern Europe (countries like the Czech Republic, Hungary, and Poland), the typical hourly rate ranges from $25 to $75.

Assuming a team consisting of a business analyst, project manager, team lead, two or three developers, a designer, and a QA, the estimated cost for an LMS MVP lies between $150K-300K.

In contrast, Western European developers (from countries like Germany and France) might charge $60-90 per hour. US contractors typically ask for $50-100 per hour. Accordingly, the MVP’s cost will increase based on these rates.

In the USA, local expertise and demand influence the development of a custom learning management system. Developers typically charge between $100-200 per hour. Given the country’s advanced tech landscape and the need for high-quality solutions, costs tend to be higher.

Indian software developers generally charge between $20-40 per hour. However, challenges like potential language barriers and significant time zone differences (GMT +5:30) can make collaboration more complex.

lms development cost

6 IT Craft’s expertise in the development of LMS software

IT Craft emerges as a distinguished name known for its prowess in developing Learning Management Systems (LMS). With an in-depth understanding of the eLearning landscape and years of hands-on experience, IT Craft ensures tailored LMS solutions catering to educators and learners.

VentureLab: A Revolutionary Educational Platform by IT Craft

IT Craft was instrumental in catapulting VentureLab, an educational startup, into the spotlight. With just a four-member team, IT Craft masterfully crafted a user-friendly, robust WordPress portal, revolutionizing how young learners engage with entrepreneurial education.

The team seamlessly blended technologies like WordPress, MailChimp, YouTube, and Salesforce, creating an interactive, comprehensive platform. This ingenious integration supports student learning and educator facilitation, making education dynamic and accessible.

Achievements & Highlights:

  • Customized Learning Experience: IT Craft transcended typical educational platform boundaries, offering an engaging, effective tool for entrepreneurial education.
  • Technology Excellence: At the core of VentureLab is a solid, scalable technological framework, ensuring a seamless, efficient user journey.

Project Excellence:

  • Strategic Planning & Execution: Navigating tight deadlines and complex requirements, IT Craft expertly balanced planning and execution, delivering a solution that redefines educational platforms.
  • Significant Milestones: The launch of VentureLab wasn't just a project completion; it was a considerable leap in educational technology, marked by seamless service integration, robust backend management, and continuous enhancement support.

VentureLab, powered by IT Craft, isn’t just a platform; it’s a gateway to future-forward education.


JAK STAT: A Breakthrough Platform for Pre-Med Students by IT Craft

IT Craft has significantly elevated the medical school preparation process with JAK STAT, a resume enhancement platform tailored for pre-med students in the USA. This six-member team has brilliantly developed a web platform that enhances resumes and offers comprehensive resources for aspiring medical students.

IT Craft has created a dynamic, user-centric online platform by merging technologies like PHP, AWS, React, and MySQL. This fusion of technology provides a seamless and effective tool for students to manage their profiles, search for schools, and engage in forums, making the platform both efficient and indispensable for pre-medical preparation.

Achievements & Technological Prowess:

  • Empowering User Experience: IT Craft has redefined the standard for educational platforms, creating an engaging and practical environment for pre-med students.
  • Robust Technological Framework: At the heart of JAK STAT lies a strong, scalable tech architecture, ensuring reliability and a smooth user experience.

Project Highlights:

  • Strategic Development & Deployment: Facing the challenges of precise calculations and CI/CD for AWS ECS, IT Craft skillfully navigated complex project demands, executing them with precision and flair.
  • Landmark Achievements: The 2019 launch of JAK STAT marked a significant milestone in educational technology, characterized by its precise feature implementation, robust backend, and ability to provide continual updates and improvements.

JAK STAT, a creation of IT Craft, is more than just a platform; it’s a catalyst in the journey of every pre-med student aspiring to make their mark in the medical field.


! Final words

As technology evolves, so does the education sector. Startups and companies aiming to remain contemporary and secure their market position must stay abreast of the latest LMS practices and developmental methodologies.

Creating eLearning platforms requires collaboration with a proficient web development partner who offers guidance not just in initial development but also in ongoing maintenance and support. We’re always at your service if you require assistance or a cost estimate for bespoke LMS development.


What are learning management systems?

Learning Management Systems (LMS) are digital platforms designed to deliver, track, and manage educational content and training programs. They enable educators to create online courses, administer quizzes, and monitor student progress while learners can access content, participate in discussions, and evaluate their performance.

How to create your LMS?

Creating your own LMS involves several steps:

  1. Define your objectives and target audience.
  2. Decide on the features you need.
  3. Design the user interface.
  4. Choose the right technology stack.
  5. Develop the software, ensuring scalability and security.
  6. Test the platform for user experience and bugs.
  7. Launch and continuously update based on user feedback.
What are the three major types of learning management systems?

The three major types of LMS are:

  1. Open-source LMS: Free platforms that can be customized based on individual requirements.
  2. Cloud-based LMS: Hosted on the cloud and maintained by the vendor, typically accessed via a subscription model.
  3. Installed LMS: Deployed on the organization’s servers, offering greater control over data and customization.
How do you develop a learning management system?

Developing an LMS involves:

  1. Requirement analysis and feature listing.
  2. Designing a user-friendly interface.
  3. Selecting the right technology and tools.
  4. Integrating essential features such as course creation, analytics, and user management.
  5. Ensuring compatibility across devices.
  6. Testing for functionality and security.
  7. Launching and maintaining the platform for optimum performance.
Why use LMS?

Using an LMS offers numerous benefits:

  1. Centralized and organized content storage.
  2. Easy access to learning materials anytime, anywhere.
  3. Tracking and reporting of learner progress and performance.
  4. Scalable and consistent training across large audiences.
  5. Cost-effective, eliminating the need for physical resources.
  6. Enhanced collaboration and interaction among learners.
How long does it take to build an LMS?

The time required to build an LMS can vary widely based on its complexity, features, and design intricacies. A basic LMS might take a few weeks to a couple of months, while a comprehensive, feature-rich LMS can take several months to over a year. It’s essential to consult with an experienced LMS development team for a precise timeline.