As the market for mobile apps grows, so does the demand for efficient and timely app development. To meet this demand, many companies are outsourcing their mobile app development to specialists in regions with lower costs of labor.
In this guide, we’ll provide a comprehensive overview of application development outsourcing, covering how it works, the benefits of outsourcing your app development, and key tips to ensure your project’s success.
Key Takeaways
- In-house app development can be costly, whereas mobile app development outsourcing is often more cost-effective.
- To outsource your app development, you should outline your objectives and requirements, define the features you need, and establish a budget that aligns with your project’s scope.
- Outsourcing mobile app development provides access to expert knowledge and specialized skills.
- When choosing an outsourcing provider, ensure they are proficient in basic programming languages (Java, C++, Python, SQL, etc.), familiar with the platform you’re targeting, and have relevant industry experience.
- Cost estimates for outsourced app development vary based on complexity: simple apps may cost around $10,000 to $50,000, while more complex and feature-rich apps can range from $50,000 to $250,000+.
Table of Contents
- What Is Application Development Outsourcing?
- Outsourcing vs. In-House App Development
- How To Outsource App Development in 6 Steps
- Evaluating Application Development Outsourcing Providers
- Why You Should Outsource App Development
- How To Reduce Risks in Mobile App Development Outsourcing
- Outsourcing Mobile App Development Costs
- Application Development Outsourcing Takeaways
What Is Application Development Outsourcing?
Mobile application development outsourcing is a business practice where a company hires an external firm to manage all technical aspects of building an app. This is often used when a company requires specialized development skills that are not available in-house.
But before outsourcing your mobile app development, you need to evaluate whether it’s right for your business. Consider whether outsourcing will provide more benefits compared to hiring in-house talent for the long term.
Outsourcing vs. In-House App Development
When you’re looking to build an app, you have two main options: hiring in-house developers or outsourcing app development to an agency or freelancer. Here are the main considerations between the two:
- Outsourcing: This can be a better option if you have a tight budget or your team is small. Additionally, it provides you access to specialized skills without having to hire and train a large internal team. This saves you time and money while you focus more on improving the overall user experience of your product.
- In-house development: If you have plenty of resources and capital, hiring an in-house team may be preferable. This also provides more control over the development process and allows you to seamlessly integrate it with your company’s operations.
Choosing between outsourcing and in-house development depends on your timeline, budget constraints, and how much control you require.
How To Outsource App Development in 6 Steps
Here are six essential steps when outsourcing app development:
- Consider what to do in-house
- Create a plan
- Research app developers
- Compare portfolios
- Choose a pricing model and payment method
- Sign a contract
1. Consider What To Do In-House
The first thing to keep in mind when you’re outsourcing mobile app development is to think strategically about what to outsource and what to keep in-house.
For example, you may want to consider offloading non-essential development tasks such as creating an icon or marketing assets if you don’t have in-house resources who can make those things happen. On the other hand, deploying a big component of your app could result in higher costs and poor results since a company will be working on it instead of focusing on its strengths.
Make a list of the things you can do in-house and of the things you can’t. Then, compare them and see which points are crucial for your app development and must be outsourced.
2. Create a Plan
The second step comes after you determine what you need to outsource. However, you can’t just give the app development company the green light without any instructions. So, before you start your search, you must have a plan and vision for the end product.
Define your goals and expectations for the project, so you know exactly what you want to achieve. You should also consider and include:
- Your target audience
- Overall business goals
- Marketing trends
- Operating system for the application
- App features (user stories, user journeys, data flows, payment gateways, etc.)
- Budget needed for the app development
A clear plan with a detailed outline will tell the outsourcing company everything they need, so they produce the app you require. It clears up any misunderstandings and doesn’t leave room for errors which can hinder or slow down the application development process.
3. Research App Developers
For the third step, start researching app development companies to which you can outsource the task. You have the blueprint; they just need to follow it and create the app. However, not every company will suit your needs.
First, think about the type of application development outsourcing you want. Do you want them to be freelancers or full-on development companies? Both have their pros and cons, and the choice highly depends on what you need. Freelancers are more flexible and usually cheaper, while companies have the expertise, flexibility, and security to do the job.
Next, consider the location of the outsourcing company:
- Onshore: Located within the same country, they are already familiar with local rules and regulations and are generally easier to communicate with. However, these can be pricey.
- Nearshore: Located in neighboring countries, offering a balance between cost and accessibility. The prices are moderate, and you can reach out to them quickly as well.
- Offshore: These are located in distant countries, often on different continents. While they are less expensive, time zone differences can complicate communication and coordination.
To find the app development outsourcing business you need, search both online and offline. Check forums, word-of-mouth, social media, and even online newspaper ads.
4. Compare Portfolios
Once you make a list of the top developers you want to outsource your app creation to, it’s time to dive deeper into what they offer.
To determine whether a developer is the right fit for your business, check out the following:
- Their previous portfolios
- Client feedback
- Projects they’ve worked on
- Knowledge of their employees
- Awards
- Customer communication
These will help you make an informed decision. You can also contact the outsourcing app development company yourself for a quote or more details.
5. Choose a Pricing Model and Payment Method
Different companies have different pricing models and payment methods. So, for your next step, it’s best you understand the payment structure and methods before signing a contract.
The most common payment methods are credit/debit cards and e-wallets. You can use Visa, Mastercard, Apple Pay, Google Pay, etc. — it all depends on the outsourcing company.
As for the pricing models, here are the top three app development companies use:
- Per project: You pay a one-time predetermined sum for the whole project based on the services you receive.
- Per hour: You pay for every hour the app developers create your app. This can go from $10 to $1,000 and more — depending on the company and its expertise.
- Monthly payments: Some companies charge you per month, like the subscription model. Just like the other two, these are predetermined sums you pay on the same date every month.
6. Sign a Contract
The final step is to formalize the arrangement and legally bind it. Ensure the application development outsourcing company provides a contract to maintain confidentiality. Aside from a contract, make sure to sign the following:
- Non-disclosure agreement (NDA): This protects the confidentiality of your project.
- Data processing agreement (DPA): This dictates how data will be handled and protected.
- Statement of work (SOW): This details the specific work to be performed and the expected deliverables.
- Master service agreement (MSA): This outlines the general terms and conditions of the service.
- Payment terms: This defines the payment structure and schedule.
For legal validity and to ensure all the documents you need are in place, consider consulting with legal professionals. By signing these agreements, you finalize your partnership with the outsourcing company and are ready to move forward with your project.
Evaluating Application Development Outsourcing Providers
When evaluating potential outsourcing providers, consider their level of expertise in the following areas:
- Programming language experience: Make sure that they have experience using your preferred programming language(s).
- Platform-specific experience: Are they familiar with the platforms you're working on? If so, which ones?
- Industry-specific knowledge: Do they have any experience working in your industry? If so, do they know how to handle all aspects of application development for that industry? For instance, if you’re in healthcare, confirm they know industry-specific requirements and regulations.
Additionally, evaluate the cultural fit between your team and the provider; this is one area where many clients get tripped up and end up dealing with issues like misaligned expectations or poor communication later down the road.
For example, one developer might interpret "beta testing" as internal testing conducted solely by employees within an organization, while another might understand it as running a limited number of tests among end users before a public release — both interpretations can be correct depending on their experience.
Such misunderstandings can lead either party to make incorrect assumptions about what's happening during the development process.
Why You Should Outsource App Development
Now, let’s delve deeper into the benefits of outsourcing application development:
1. Cost-Efficiency
Deploying your mobile application development allows you to create quality mobile apps without the need to invest time and resources into hiring and training an in-house team. With specialists handling the technical aspects of your project, you can focus on improving your core business and strategy.
2. Access to a Larger Pool of Talent
Many companies choose to outsource their mobile application development projects to tap into a broader pool of technological resources. This approach helps them find skilled professionals with the right expertise at affordable rates.
Working with specialists provides you access to diverse skill sets and knowledge that might not be available with an in-house team alone or could be out of reach for most small businesses or individuals. This well-rounded knowledge base can lead to a superior end result for your project.
As of 2023, the top countries offering outsourced services include India, Ukraine, China, Poland, Philippines, Brazil, Romania, Taiwan, Czech Republic, and Argentina.
3. Faster Time-to-Market
Outsourced service providers often deliver quality solutions more quickly than in-house teams. They can also offer innovative and fresh perspectives, which can help identify user needs and improve details that in-house developers, who may have been working on the same app or product over and over, might overlook.
4. Scalability
If your internal team of developers suddenly requires more resources to meet a deadline, you might find it challenging to find extra people on your staff, or if existing staff are already committed to other projects within the same time frame as yours.
Outsourcing allows you to scale up or down as needed. The bottom line? Your app gets built quickly and affordably, so you can move on to other priorities.
How To Reduce Risks in Mobile App Development Outsourcing
Having a systematic strategy can help you mitigate the risks of outsourcing mobile app development. To avoid potential pitfalls:
- Choose a trustworthy partner: Select an outsourcing firm with a solid reputation and proven expertise in mobile app development.
- Define project objectives: Clearly outline the project’s scope, including needs, goals, and expectations to avoid misunderstandings.
- Ensure legal and security compliance: Ensure that the provider follows legal and security requirements, including addressing intellectual property rights and confidentiality in a strong contract.
- Maintain open communication: Maintain regular and transparent communication with the outsourced team to quickly address concerns and stay aligned with project goals.
- Implement quality assurance (QA): Set clear quality standards and perform regular quality checks, including code reviews and testing.
- Establish performance metrics: Establish key performance indicators (KPIs) to monitor the partner's performance, track progress, and ensure accountability.
- Include post-launch support: Include in the agreement post-launch support and maintenance to handle bug fixes and updates.
- Prepare disaster recovery and contingency plans: Prepare for unforeseen disasters and potential risks by developing risk-mitigation strategies.
Outsourcing Mobile App Development Costs
The cost of outsourcing app development varies depending on a range of factors. Simple apps with basic features may cost as low as $10,000 to $50,000, while more complex and feature-rich applications can range from $50,000 to $250,000 or even more.
Here are the primary factors influencing the cost:
- Complexity: The complexity of your app significantly impacts the cost. Basic apps with limited features are cheaper, while complex apps with advanced functionality or integrations are more expensive.
- Platform: Developing apps for multiple platforms (iOS, Android) can increase costs. Cross-platform development tools offer a cost-effective alternative.
- Location: The geographic location of your outsourcing partner may play a crucial role. Developers in countries with lower labor costs typically offer more competitive rates.
- Experience: Highly experienced and skilled development teams may charge higher rates but often deliver higher-quality results efficiently.
- Design and UI/UX: Quality user interface (UI) and user experience (UX) design can add to expenses but are vital for user satisfaction.
- Testing and QA: Testing and quality assurance processes are necessary for reliability but contribute to the overall cost.
- Additional Features: Features like in-app purchases, geolocation, real-time chat, or complex databases increase the cost.
- Maintenance: Ongoing maintenance and support for updates, bug fixes, and improvements post-launch should be budgeted for separately.
Application Development Outsourcing Takeaways
App development outsourcing is a viable business strategy that can help you generate revenue, gain access to professional expertise at lower costs, and reduce the time to market your products.
The best way to succeed in this endeavor is by hiring an experienced company that has worked on similar projects before, or one that specializes in specific niches like iOS app development or general UX design.
