Companies looking to develop an application often face a crucial decision: outsource the app development or build an in-house development team.
In-house app development allows companies to maintain full control over the development process, ensuring closer alignment with their goals and greater oversight of the project's progress.
An in-house team offers the advantage of close collaboration and immediate access to resources, enabling more tailored solutions and quicker adjustments throughout the development process.
However, Outsourcing app development can be cost-effective, saving on salaries, benefits, and infrastructure. It allows access to global talent and offers flexibility to scale the team based on project needs.
Outsourcing lets businesses focus on their core operations while experts handle the technical work.
As we look ahead to 2024, the application outsourcing market is set to grow significantly, with revenue expected to reach $118.10 billion. This market is anticipated to continue expanding at a steady pace, reaching $124.10 billion by 2029.
The average spend per employee on outsourcing services is projected to be $33.18 in 2024, with the United States leading globally with an estimated revenue of $42.86 billion.
In this blog, we will delve into various aspects of outsourcing app development services. Let's get started.
Why Outsource App Development?
Outsourcing app development has become an increasingly popular strategy for businesses of all sizes. Here are some key reasons why companies choose to outsource their app development:
Cost Efficiency: Outsourcing can significantly reduce development costs, especially with countries offering competitive pricing for high-quality services. This allows businesses to allocate their budget more effectively.
Access to Global Talent: Companies gain access to a vast global talent pool by outsourcing. This includes skilled developers with specialized expertise who might need help finding locally.
Focus on Core Competencies: Outsourcing development tasks allows businesses to focus on their core functions and strategic goals, improving overall efficiency and productivity.
Scalability and Flexibility: Outsourcing allows the development team to be scaled up or down based on project requirements. This adaptability helps manage resources more effectively and respond to changing project needs.
Faster Time-to-Market: Experienced outsourcing partners can expedite the development process, leveraging their expertise and established processes to bring products to market quickly.
Access to Advanced Technologies: Outsourcing partners often have access to the latest technologies and tools, ensuring that the app development process utilizes cutting-edge solutions and practices.
Risk Mitigation: A key advantage of working with experienced outsourcing partners is the risk mitigation they provide. From technical challenges to project delays and budget overruns, these partners can help businesses navigate the potential pitfalls of app development, ensuring a smoother and more successful project.
Quality Assurance: Reputable outsourcing firms have robust quality assurance processes in place to ensure that the final product meets high standards of performance and reliability.
Factors Affecting the Cost of Outsourcing App Development
Cost is one of the prime reasons for outsourcing mobile app development. Just like any other business decision, the decision to outsource comes with a lot of questions:
- How will we manage the outsourced team?
- How to convey the app requirements to a remote team taking care of outsourced app development?
- How big the team should be to make an app development project success without increasing the expense of outsourcing app development?
You should always remember that in the end, you outsource to save costs. Here are some of the factors that will help you keep an eye on the cost of outsourcing app development:
1. The Complexity of the App Features
Well, the first and foremost factor is the complexity of the app idea.
The kind of app you want to build, the number of features, and how difficult it is to build will directly affect the cost.
Deciding whether to develop your application for iOS, Android, or both can significantly impact the total cost of mobile app development.
Complex features require more time for development. As the development time increases, so is the cost.
Also, the more features you need in an app, the more will be the expense of outsourcing app development. Hence, it is always better to finalize your app idea along with the features you require before outsourcing app development.
It is better to have an idea beforehand than to beat around the bush and spend more time updating the app.
2. Size of the App Development Team
You might know, development is not a ‘one-man job'. Almost, all the app development happens with a full-fledged team of business analysts, UI/UX designers, project managers, programmers, and testers.
So, naturally, the cost of app development would be affected by the size of the team you choose. The bigger your team, the greater the cost would be.
Every professional, from a business analyst to QA engineers charges different rates per hour for the work done. So, the more time a professional spends on your idea or app development, the more will be your overall investment.
Though it is beneficial to have a lean team, but don't fall into the lure of not having appropriate resources on board. Failing to have an experienced team can make your entire investment go waste.
3. Hourly Rates of the App Developer
App developers mostly charge by the hour. Any app developer you choose in a region would have a standard hourly rate.
Your cost of app development would depend on the hourly rates of the developers you choose.
An easy way to calculate the cost of outsourcing app development is to multiply the hourly rate by the total number of hours your app would be developed in.
As said before, the hourly rates differ from region to region, which is our next point.
4. Geographical Region
The region where you outsource your app development effort would define your cost strategy completely. It basically is because every region has a different cost of living and thus, the hourly rates of development differ too.
In the next segment, let's see the different regions and the cost of app development, thereof.
Outsourcing App Development: What Will it Cost you to Outsource to Different Countries?
1. Expense of Outsourcing App Development to the Americas
North America and Oceania are preferred by many startups when it comes to app development. Outsourcing in the Americas is a costly proposition though.
The average hourly rates can be around $100-150 per hour.
An app can take thousands of hours to develop, to begin with so the app development cost would come minimum at $300,000-$500,000 if you are thinking of outsourcing in the Americas.
2. Expense of Outsourcing App Development to Eastern Europe
Eastern Europe is the hub for outsourcing especially when it comes to app development. The biggest reason is because of the availability of cheap talent.
You can find developers in Ukraine or other East European countries for an hourly rate of $25-$50 per hour.
So, a complex app like Uber or Netflix would cost you anywhere between $150,000-$300,000, almost half of what you would be paying in the Americas.
3. Cost to Outsourcing App Development to India
The Southeast Asian subcontinent and particularly India is one of the most exciting outsourcing regions in the world. Availability of high-skilled talent, English-speaking developers, and commitment to work are some of the factors that attract startups to Indian developers.
On top of the benefits, Indian outsourcing agencies and app development companies have lower rates compared to their western peers- starting at $20-40 per hour.
So, you can think of developing an app for anywhere between $60,000-$150,000. The price you pay is way cheaper than something you would be paying in for developers in other regions.
It is recommended that you always research about the outsourcing partner and choose someone with prior experience of bringing an app idea like yours to life.
Best App Development Outsourcing Practices for Maximum Return on Investment
Let's say you are planning to hire someone for outsourcing app development. Here are some steps you must take for getting the best output.
1. Prior Market Research
It is always advisable to perform a feasibility analysis, perform in-depth market research and clear out your requirements in terms of the features before outsourcing.
Many app development companies offer consultation with business analysts to guide you through the process.
2. Clear Documentation
Before handing over an app development project, it is better to outline clear requirements in the form of SMART goals.
You can even create standard documentation enlisting your requirements to hand over to the remote developers. That would set the right expectations on both ends and ensure you and the remote team are on the same page.
3. Agreement
Don't fall into the desire to hand over your startup idea or app concept without entering a formal agreement.
The agreement should enlist roles and responsibilities, NDA clauses, goals, timelines, availability, and other elements. Failing to do so can lead to miscommunication and potentially loss of money in the long run.
4. Security Measures
Well, make sure to check the remote team for security preparedness. You won't like your app idea to fall just because potential hackers managed to creep in their systems. Moreover, make sure whatever you share with the team is via secure servers.
If you have a dedicated server for the app database, also set up systems for secure remote access. This is important for the long-term success of your mobile app.
Let's Kickstart Your Outsourcing Dreams
An outsourcing company acts as a strategic partner, offering tailored expertise and scalable resources to handle app development projects, allowing businesses to innovate and grow without the constraints of in-house limitations.
Outsourcing software development can get quite confusing even after you have sorted out everything including the cost. In such a case, having an expert by your side can be quite a relief.
At Websoptimization, we have been the preferred mobile app development company of leading startups and app companies in the world. Our professional business analysts understand your requirements and give shape to your idea in the form of a feasible MVP.
What's more, we support you from the concept stage to the launch of your app. We've been doing this for years and we are ready to assist you in making your dream mobile app.
So, get started by scheduling an appointment with our app development consultants, today!
FAQs
Q: What factors should be considered when comparing outsource app development costs?
A: When comparing outsource app development costs, factors such as the complexity of your app, development and maintenance services required, the size of the development team, and the location of the outsourcing provider should be taken into account.
Q: How does the cost of outsourcing app development compare to in-house development?
A: The cost of outsourcing app development can be more cost-effective than in-house development, as you can leverage the expertise of a specialized team without the overhead costs of hiring and training in-house developers.
Q: What are the benefits of outsourcing mobile app development in 2024?
A: Outsourcing mobile app development in 2024 can offer benefits such as access to a global talent pool, faster time-to-market, reduced development costs, and scalability to meet changing business needs.
Q: How much does it typically cost to outsource mobile app development in 2024?
A: The cost of outsourcing mobile app development in 2024 can vary depending on the complexity of the app, the features required, the development time, and the location of the outsourcing provider. On average, outsourcing app development costs can range from $10,000 to $250,000 or more.
Q: What are the key steps involved in the app development process?
A: The key steps in the app development process include planning and analysis, design and prototyping, development, testing, deployment, and maintenance. Each phase is essential for ensuring a successful mobile app launch.
Q: How can I find a reliable outsourcing provider for app development?
A: To find a reliable outsourcing provider for app development, you can research online reviews, ask for recommendations from colleagues, conduct interviews with potential providers, and review their portfolio to assess their expertise and experience.
Q: Is there a cost-effective way to build an app without coding skills?
A: Yes, you can use a no-code app builder platform to create an app without coding skills. These platforms offer intuitive drag-and-drop interfaces and pre-built templates to help you design and launch your app quickly and affordably.
