Have you thought of developing a mobile app for your business? But you don’t have the right idea of how to incorporate the whole plan. Well, a great option for you can be to outsource app development. It is a more efficient way for many businesses.
Many businesses have started to lean towards outsourcing app development for their projects. In 2023, Statista projected that the revenue in the segment IT Outsourcing by $396.30 billion. It is also expected to show an annual growth rate (CAGR 2023-2028) of 11.07%, which can result in a market volume of $777.70 billion by 2028.
In essence, your company stands to acquire a competitive edge in today’s increasingly saturated market. Considering following the footsteps of tech giants like Google and Bing, outsourcing app development can be a smart move.
In the current stage, you don’t have to curate your mobile app development team. Instead, businesses are outsourcing the whole team for a smooth process.
If you are keen to learn the ins and outs of a successful mobile app development outsourcing, we’ve put together a guide that will give the itinerary of the process.
So first let’s learn what exactly meant by the term outsourcing in mobile app development.
What is Outsource App Development?
Outsourcing app development is a business practice where a company hires an external service provider or a third-party firm to handle the entire mobile app development. From design to development to testing, in the end, the maintenance of the mobile app is on them.
This entire entity could be a specialized app development company, freelance developers, or even offshore development teams.
The primary goal of outsourcing application development is to leverage external expertise, resources, and cost efficiencies. It allows the company to focus on its core competencies while ensuring the timely and effective delivery of high-quality mobile applications.
Key Models of Outsource App Development
When you are thinking of choosing location-based app development outsourcing, think about the cost, which can be different in various places. For instance, developing a mobile app in the USA is much pricier than in Central Europe. So, before you decide on a location, think about what you need and want.
When it comes to outsourcing in the IT world based on location, there are three main models. Each has its advantages and disadvantages, so it’s important to figure out which one fits best for your business.
The onshore model of mobile app development outsourcing is when you hire a company from your country to do a project for you. This way, it will be easy to connect because of the same time zone and language.
However, it’s often more costly compared to outsourcing application development from other countries. Many go for this option only for small projects or ones that won’t take too long because it helps them stay competitive and offer reasonable prices to customers.
The nearshore outsourcing model is when you hire a team from a neighboring country to work on your project. This has some perks like you get a bigger pool of talented people, and it’s usually cheaper than hiring in your own country.
The time difference is small (usually just 1 hour), so it does not cause much trouble, and the team is relatively close. This way outsourcing gives you a good balance between saving money and having your outsourcing team nearby. It’s a smart choice if being able to directly communicate with the outsourcing app development company is important for your project.
You should choose the offshore model, when the team you hire is in a different country, often on a different continent. This outsourcing is quite common, especially for things like mobile app development because it usually comes with better prices.
However, there are challenges, like dealing with different time zones and language differences. Still, a good project manager can handle these issues well by setting clear rules and making sure everything runs smoothly from the start.
There are three types of outsourcing models based on relationships. However before you will pick any of the mentioned methods, it’s important to think about what you need and expect.
You need to consider your preferences for how you want the project to be done. Especially when it comes to how much control you want. Some folks are okay with having less say in the details, while others want to be involved in every step.
- Staff Augmentation Model
The staff augmentation model is like adding extra players to your existing team of experts. It could be just one person or a group of specialists in an area your team isn’t familiar with.
This model saves you time because you don’t have to go through the lengthy process of hiring someone. It’s great when you need a specific expert or if you suddenly lose someone from your team unexpectedly.
This approach works well for short projects. However, it can be a good fit for longer partnerships as well. The external specialists join your team temporarily, and you still have full control over how the project and tasks are managed. You only expand the team where it’s really necessary.
Dedicated Team Model
In this IT outsourcing model, an external company will provide you with a dedicated development team. They will comprehensively take care of your project. Such a dedicated team includes specialists necessary for the given project.
For example, you want to create a mobile application. In that case, the dedicated development team will consist of developers, business analysts, UX/UI designers, quality assurance engineers, and project managers.
Of course, the outsourcing company wants the team to include people who work well together and can successfully implement your project. A dedicated team is assigned exclusively to your project but is not part of your company.
This app development outsourcing model is perfect for complex and long-term projects.
In this setup model, you hand over the entire project to an external company. The outsourcing company takes care of everything from the beginning to the end. With the following specifications, you provided at the start of the project.
The project-based model is a very common way to outsource app development because, as the client, all you need to do is give detailed requirements for the project. The outsourcing company handles everything else.
This method saves you time, but keep in mind that you have the least control over the project. Because whole development tasks are handled by the outsourcing company. How often you get updates on the progress and how involved you want to be in the project is up to your internal arrangements.
- Fixed Price Model
The fixed price model means that the cost of the whole project has already been decided in the beginning. Usually, you pay a set amount every month or after the entire project is done.
To give you this fixed cost, the outsourcing company needs to know all the details and requirements upfront. This model can be pricier because the outsourcing company adds a bit extra to cover any unexpected costs.
This approach is good for simple and short projects where everything is clear from the start and won’t change. Keep in mind that once you agree on a fixed price, it’s tough to make changes. Even if changes are possible, they can be costly and not very cost-effective. If you keep changing the points during the project, the price might end up way higher than your budget.
- Time & Materials Model (T&M)
The time and material pricing model means you pay for the actual work done in a project. The final cost is based on the hourly or day-wise rate of the specialist working on it. The whole cost will depend upon the time they have spent on the project.
This model is flexible and allows for changes and improvements as the project progresses. You get regular reports and analyses showing how the work is going.
Starting a project with this model is simpler because you don’t need super detailed plans. You can begin with just the basic ideas for the project, like starting with a simple website, and then add more features as the project moves forward.
Steps to Outsource App Development in the Right Way
Before outsourcing app development for your project, it’s super important to do your homework and make sure they’re trustworthy and skilled. Here are the steps you should follow while hiring an app development company.
Step 1: Decide on the Project Type
When you’re outsourcing app development, a major hurdle is making sure that the companies you’re in connection with, really know about your project needs. It is crucial to clearly explain your project requirements, like
- Technology to be used
- Budget, and
- Specific skills or experience you’re looking for
This will help you in selecting the potential partner for your specific needs. Collaborating with the outsourcing app development company to figure out the scope also lets you see how skilled they are in handling such projects.
Step 2: Choose Between Platforms
Choosing a platform for your mobile app depends on your budget, you want to develop a Native or Hybrid mobile app. Making the right choice for this can be not easy. However, you should know the target audience, and for that, you can select the platforms.
Step 3: Design Project Requirements
At this stage, you have decided on what platforms your app will be live. The next step will be, what features you would like to have in your application. Besides the usual features like sign-in and user accounts, think about some special features. It will make your app stand out in the crowd.
Step 4: Outsource App Development Company
After all the requirements you have bundled up, you can reach out to an outsourced app development company. After that, it will be easier to identify the best fit for your requirements.
You can start your research through platforms like Manifest, Clutch, GoodFirms, and so on. Keep an eye on the top 10 mobile app development companies, also keep an eye on other companies as well.
Create a complex approach with multiple factors for the analysis. After that, you can bifurcate the list for the specifications, like years of experience, portfolio, customer reviews, pricing, etc. Curate a list of a few selected companies for further discussion.
Step 5: Organize Project Management
Communication plays a huge role in any development project. You need to make sure to have proper communication with the developers. For that, you can create an email chain with the respective team members in it or use any kind of project management tools like JIRA, Trello, etc.
On a project management tool, you can have a better view of the work status as well it can be easy to share any files and ideas.
Step 6: Enjoy the Benefits of Outsource Mobile App Development
Once you follow all the above steps for your mobile app development outsourcing, it will make the process successful. It will give you the privilege to work with highly experienced developers. The best thing about this is you can focus on the business growth and only oversee the process of development.
Why Follow Outsourcing Best Practices?
Outsourcing has rapidly appeared as a prevalent solution for implementing corporate projects.
Initially, engaging the services of the right outsourcing provider enables you to bypass the entire costly and time-consuming process of recruiting, interviewing, onboarding, training, and managing an in-house mobile app development team for your project. Instead, your company can swiftly transition to the execution phase with a team of established professionals.
Furthermore, opting for an outsourcing app development company can be a better option for your business. They have access to extensive talented technical expertise and the latest technologies.
A proficient outsourcing service provider affords your team the time and freedom to concentrate on the core competencies of the business. This allows the in-house team to invest more in value-driven operations and relationships.
Lastly, the accelerated time to market is a significant advantage. The sooner your app is launched, the quicker it generates revenue. The success of a project also enhances the likelihood of securing a larger market share for your business.
Best Practices for Outsourcing App Development Project
There is no denying that opting for outsourcing mobile app development services is a strategic move that can significantly streamline and expedite your tasks. It facilitates efficient completion of work and often proves to be a more cost-effective option.
Many business owners have recognized the merits of this approach, deeming it a valuable practice. If you’re contemplating outsourcing your IT-related services, particularly mobile app development.
- List Down Requirements
The initial step is to formulate a comprehensive checklist of requirements and ensure that each criterion is met. Before embarking on the quest for an outsourcing app development solution, it is beneficial to have a clear understanding of what you envision for your application.
Having a grasp of your requirements facilitates effective communication with the developer. It enables you to articulate your needs and convey how you want the final result to look and feel. After all, your app is poised to become a vital collaborator in your business endeavors.
Few points that you should consider while figuring out your requirements:
- What is your targeted market?
- The purpose of your app
- What should be the standout feature of your app?
- Should it be paid or free?
- What security measures do you need to implement
- What language should be used?
- The total budget of your app
- Right Development Option
Keep in mind that there is always an app for every business. The right choice depends on your needs and, of course, your budget.
Before you hire a mobile app development company, weigh the pros and cons. Outsourcing app development companies have a team of experts. They offer efficient results and a strategy-focused approach. This route may look pricey, but it can be a more suitable option. As with your idea, their expertise will create the best mobile application.
For smaller budgets, hiring mobile app developers is a more economical option.
- Relevant Experience
The most important and obvious points while outsourcing app development are experience and portfolio. However, just looking at general experience is not enough. You should look for relevant experience for your mobile app development project.
If the developers do not have relevant experience working in a similar industry as yours. Then it can be a huge issue. However, you need to make sure that whoever will be developing your app should know the whole process.
Don’t overlook the power of communication, especially when dealing with outsourcing app development. While selecting the right developer, ensure they have excellent communication skills and are quick to respond. Guaranteeing that you and your developer feel comfortable asking questions, resolving any confusion, and responding to each other promptly are the keys to a smooth development process.
If you don’t keep the communication lines open, you might find yourselves not quite on the same page. This can lead to more mistakes, revisions, costs, and conflicts.
For instance, if you and your developer’s team use both emails and a team collaboration app. You need to be clear on when to use each. On which platform questions should be asked and where should be the finished work sent?
Another common communication process is that you should get daily updates about your project. This will save you time, otherwise spent waiting for the questions and then answering them so the other party can get going. Remember that talking back and forth is way more effective than just sending orders.
- Create a Fixed Budget
You should set a price for your project and usually stick to that amount. This method is one of the more traditional ways of outsourcing app development.
With everything being fixed, there’s a need for thorough planning before diving into the app development process. You and your team need to map out every tiny detail. All the people involved work according to this detailed plan before the project starts.
Benefits of Outsourcing Mobile App Development Project
- Expertise and Experience
Outsourcing mobile app development is great because you get to work with a team or company that’s good at making applications. These experts know all about the latest technologies and trends in the market. This can guarantee you a top-notch and modern mobile app.
All those mobile app companies have specialized developers. You can trust them because they’re the real pros in those areas.
- Cost and Time Savings
Outsourcing app development can save you money compared to hiring and managing your in-house team. You can avoid costs on recruitment, onboarding, training, setting up infrastructures, and ongoing expenses.
Additionally, it speeds up the development process by skipping the time it takes to find and train new people. This means your mobile app gets to the market faster.
- Focus on Core Competencies
Hiring an outsourced team will allow your in-house team or project-handling team to focus on the core competencies of the project. They can focus on marketing strategy, product management, and product growth. While the outsourcing team will focus on the expertise to develop an efficient mobile app.
App development projects can be a bit overwhelming for your in-house team, so it makes sense to let the experts handle the technical side. This way, your team can handle the work that matters most, and everyone can collaborate more efficiently.
- Scalability and Flexibility
Outsourcing app development gives your business the power to adjust and adapt as things change. You can easily increase or decrease the number of people working on a project. To make sure that everything is working smoothly and managing costs well.
This approach helps you to outsource developers with specific skills for your project. A solid development team knows how to be flexible and prioritize what’s most important for your business.
- Risk Mitigation
If you pick the right mobile app development company, they’ll have an established plan, quality checks, and strategies to handle problems in place. This is like having a safety net for your project. It helps avoid things like spending too much, technical issues, and delays.
Additionally, if you need to make changes to the development process. They use their expertise and experience to guide your project smoothly.
Starting with an outsourced app development partner early in the design phase is smart because it ensures everyone understands what your business wants from the very beginning. This is crucial for avoiding problems in the project because all the development tasks should match the goals your company set.
- Ongoing Support and Maintenance
When you outsource app development, a good outsourcing partner can maintain it even after it is developed. Issues like bug fixes, feature enhancements, updates, and technical support from the developers who are working on your projects.
This means your app stays successful and reliable in the long run. Your project manager and the team can then concentrate on their big goals, knowing that the app is working well and can’t cause any problems for your company’s reputation.
How Much Does Outsource App Development Cost?
Well, the answer to the question of how much it will cost to outsource your mobile app development, will be, it depends. Multiple factors can affect your app development outsourcing, like, as
- Geographic Location
- Type and Complexity
- Supported Platforms
- Development Approach
For all these factors, the cost of your outsourced mobile application can vary. It is a simple app that carries common features, it can range from $25,000 to $50,000. However, if you are thinking of creating a complex one then it can range from $100,000 to $200,000 and it can cost more, depending on the requirements.
Finding the absolute best might not be doable. It’s smarter to understand that you’ll likely need to adjust these outsourcing best practices. It helps to fit the actual constraints of your project in the real world.
While thinking about outsourcing app development, you need to adhere to these tips. It will be a great help to your business.
Q1. Where can you outsource your mobile app development?
When deciding where to outsource mobile app development, consider factors such as budget, project complexity, desired level of control, and your comfort with potential communication challenges.
- Freelance Developers:
Advantages: Flexibility, potential cost-effective for small projects
Considerations: Quality and reliability can vary, and may lack comprehensive team capabilities.
- App Development Companies:
Advantages: Diverse expertise, comprehensive services, project management, and quality assurance.
Considerations: Costs may be higher for freelancers, but more reliable.
Q2. Is it better to outsource app development?
Indeed it is a better option to outsource app development rather than create an in-house team. There can be multiple factors that will make you believe so. Mobile app development outsourcing can be a time and cost-effective idea. For an in-house team, you hire and train them, which can be a time as well as costly process.
Q3. How much does it cost to outsource app development?
The average cost if you outsource your mobile application,
- Hourly Basis: $20 to $150 per hour
- Project Basis: $5,000 to $100,000 or more
The whole cost will depend upon the type of project you will select. Also, it will depend on the complexity of your mobile application, and what features you would like to add.
Q4. Are there downsides to mobile app development outsourcing?
There can be two disadvantages if you outsource mobile app development. That is loss of direct control and confidentiality risks.
Q5. Is outsourcing app development a good idea?
If you outsource a mobile app development company, it can be a good idea because you can concentrate on the other tasks related to the business growth rather than looking at the development process.