Mobile App Development Outsourcing: Solution To Your Project

There are many reasons to outsource mobile app development: companies can focus on their core operations while still achieving their mobile app goals, gaining access to global talent, speeding up the development process, and reducing overall project expenses. However, hiring an in-house team also has its benefits, and in this blog, we'll go through the advantages and disadvantages of both options to help you make a decision.

Why choose mobile app development?

According to the analysis, in-app purchases made through app stores are expected to increase 267% between 2021 and 2030 when compared to the previous ten years, with $288 billion expected to be spent in 2030 alone. As a result, downloads will also increase. Between 2021 and 2030, users are expected to download over 2.9 trillion new apps and games. Compared to a decade ago, that is a 123% increase.

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What is mobile app development outsourcing?

Mobile app development outsourcing is the practice of hiring an external team or company to handle the development and maintenance of a mobile app. With this strategy, companies can access cutting-edge technologies and specialized expertise that might not be available internally.

Since businesses frequently hire developers from areas with lower labor costs, outsourcing can significantly lower development costs. Additionally, it provides scalability, allowing companies to modify the development team's size following project requirements.

Companies can accelerate their time to market and the development process via outsourcing. It frees them from having to worry about the technical side of app creation so they can concentrate on their main business operations, like marketing and sales.

Additionally, outsourcing might lower development-related risks because working with developers who are proficient in a variety of platforms and technologies also offers flexibility. All things considered, outsourcing is a wise choice for businesses trying to create excellent mobile apps quickly and affordably.

Types of app development outsourcing

There are three primary forms of mobile app development outsourcing to select from: offshore, nearshore, and onshore. Depending on the particular requirements and preferences of a company, each type offers a unique set of benefits and possible drawbacks.

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Onshore outsourcing

Hiring a development team or company based in the same country as the hiring organization is known as "onshore" outsourcing.

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Benefits:

• Cultural Alignment: When teams are in the same language, time zone, and adhere to similar cultural standards, communication and cooperation can flow more easily.
• Simpler Management: Being close together facilitates face-to-face meetings, easier project management, and more alignment of all stakeholders with project objectives and schedules.
• Legal and Regulatory Compliance: Staying within the borders of the same nation makes navigating legal and regulatory obligations much simpler.‍
  

Challenges:

• Higher Costs: In nations with high labor costs, offshore or nearshore outsourcing may be less affordable than onshore outsourcing.

Offshore outsourcing

Offshore app development outsourcing is hiring a development team in a distant country and different continents with significant time zone differences.

Benefits:

• Significant Cost Savings: Because offshore outsourcing often gives the biggest cost savings due to reduced labor prices in many nations, it is a preferred option for businesses on a tight budget.
• Access to a Global Talent Pool: It enables businesses to make use of a sizable talent pool that has specialized capabilities that might not be found locally.
• Around-the-Clock Development: Organisations may be able to accomplish a 24-hour development cycle, which would expedite project schedules, by assembling teams that operate in multiple time zones.

Challenges:

• Barriers to Communication: Time zones and language barriers can make communication more difficult and need more work to ensure understanding.
• ‍Cultural Disparities: How projects are handled and carried out can be impacted by different business practices and cultural norms.
• ‍Quality Control: When working with a remote workforce in different locations, it can be more challenging to ensure quality and maintain standards.

Nearshore outsourcing

To outsource mobile app development team in a neighboring or close country, usually in the same or a comparable time zone, is known as "nearshore outsourcing.

Benefits:

• Time Zone Similarity: When two time zones are similar, it is easier to collaborate and communicate in real time, which simplifies project management and coordination.
• ‍Cost-Effectiveness: By combining some of the advantages of closeness with labour costs that may be cheaper than onshore, nearshore outsourcing can strike a compromise between cost and convenience.
• ‍Cultural and Linguistic parallels: Some parallels in language and culture may still exist, which might improve cooperation.

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Challenges

• Slight Communication Barriers: Although not as problematic as when working abroad, there could still be some language barriers or variations in corporate procedures that make communication difficult.

In-house team or app development outsourcing?

For mobile app development, selecting between hiring an internal team and outsourcing is an important choice that can have a big impact on the outcome of a project. Internal teams have complete control over the development process, which facilitates improved communication, alignment with business values, and direct project quality control. For companies that need to work closely together and have long-term development requirements, this model is perfect. But because of the wages, benefits, and overhead that come with keeping a full-time staff, it frequently has greater costs. Furthermore, hiring qualified developers can be difficult and time-consuming, particularly in sectors with high competition.

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However, outsourcing app development offers both cost-effectiveness and flexibility. Through outsourcing, businesses can access a worldwide talent pool frequently at a lesser cost than if they were to hire developers internally. This option helps firms to scale resources up or down as needed, which is especially useful for projects that call for specialized expertise or have varying workloads. Outsourcing, however, can come with difficulties including time zone differences, cultural hurdles, and communication challenges, which, if not handled well, can affect project timelines and quality. Ultimately, a company's unique needs, financial constraints, and project scale will determine whether to use an internal team or outsource. To choose the optimal strategy for their mobile app development projects, businesses should carefully assess their priorities, available resources, and long-term objectives.

Benefits of outsourcing mobile app development

1. Cost Efficiency: Reduces the cost of developing a mobile app by taking advantage of competitive pricing offered by external agencies.
2. Access to Specialized Talent: Gain entry to a broader talent pool, including experts in niche areas like AI or AR, who might be difficult to find locally.
3. Accelerated Development: Faster development process, allowing you to launch new products more quickly and stay ahead of the competition.
4. Flexibility and Scalability: You can adapt and scale your development plans with ease, making it simpler to implement changes and adjust to evolving needs.
5. Risk Mitigation: Reduces risks by quickly sourcing new specialists and ensuring robust data protection and security measures.

Risks and challenges of mobile app development outsourcing

As with every approach, there are potential risks and here we'll give you a way how to deal with them.

• Communication Barriers: Time zones and language differences can be managed with effective communication tools and clear guidelines.
• Quality Control: Ensure high standards by setting detailed requirements, conducting regular check-ins, and performing thorough testing.
• Security Concerns: Choose reputable partners and use secure data-sharing practices to protect sensitive information.
• Hidden Costs: Prevent unexpected expenses by clearly defining the scope of work and maintaining open communication throughout the project.
• Intellectual Property Risks: Protect your proprietary technology with confidentiality agreements and non-disclosure clauses in your contracts.

Cost of Outsourcing Mobile App Development

The cost of outsourcing mobile app development varies depending on factors such as the scope of the project, technology stack, and design.

5 main factors that affect mobile app development cost

It's challenging to know in advance how to choose the right company for mobile app development and how much it costs to hire developers. However, many other factors impact the mobile app development price. We'll shortly list them to help you understand why some services are more expensive and what's included in the offers you receive from mobile app development companies.

*Prices are based on industry knowledge and trends observed in the app development market

App complexity and functionality

• Simple Apps: Typically include basic functionality like a calculator, photo editing, or simple utility. Costs can range from $5,000 to $20,000. An example of an app like this is Shazam.
• Medium Complexity Apps: Apps with more features such as user authentication, basic backend, and integration with APIs or third-party services. Costs generally range from $20,000 to $100,000. A famous example of an app with medium complexity is Uber.
• Complex Apps: Feature-rich apps with advanced functionalities such as real-time updates, complex backend systems, and integration with multiple third-party services. Costs can vary significantly and typically range from $100,000 to $500,000 or more. Instagram is an app that launched as a simple photo-sharing platform and evolved into a social media app with a wide range of complex features.

Platform choice

• Single Platform: Developing for either iOS or Android can cost between $20,000 to $150,000, depending on complexity.
• Cross-Platform: Using frameworks like Flutter or Kotlin Multiplatform for cross-platform development can range from $50,000 to $250,000. If you choose this option, you can have your MVP ready in a very short time, sometimes even in 2 weeks!

Size and location of the development team

North America and Western Europe: This is the region where developers typically charge between $100 to $250 per hour. Developing a medium-complexity app can range from $100,000 to $500,000 or more.‍

Eastern Europe, Asia, and South America: Some average prices you can expect for building a mobile app in this region are usually between $30 to $100 per hour. Developing a similar app as in the previous region can cost between $40,000 to $200,000.

Aetherius Solutions from Serbia has proved to be one of the best mobile app development companies in Serbia in July 2024.

Team Size:

• Small team (1-3 developers) is suitable for simpler apps, costing from $20,000 to $100,000.
• Medium Team (4-8 developers) costs ranging from $80,000 to $400,000.
• Large Team (8+ developers): High hourly rates but capable of faster development and handling complex projects, costing $150,000 to $500,000 or more.
• Depending on the team size, you can get your MVP within a month, or you can gradually build your mobile app if not in a hurry. You can check here the pricing packages tailored precisely to the needs of startups and adapted to their budget.

UI/UX Design

• Basic UI Design: Simple designs for straightforward apps can range from $5,000 to $15,000.
• Advanced UI/UX Design: Customized designs with user interactions may cost between $15,000 to $50,000 or more.
• Broad UI/UX Services: Including user research, wireframing, prototyping, and usability testing can add $5,000 to $20,000 depending on the scope and complexity.
• Maintenance and updates

Post-launch maintenance is crucial for keeping your app relevant

• Maintenance: Regular updates, bug fixes, and new feature additions generally cost 15-20% of the initial development cost per year.
• Server and Hosting: Depending on your app's data requirements, server costs can range from $2,000 to $15,000 per year.

How to Outsource App Development in 6 Steps

Step 1: Define Your App Project

Clearly outline your app’s objectives, target audience, features, and functionality. Create detailed documentation to communicate your vision and requirements.

Step 2: Identify Potential Outsourcing Partners

Research and compile a list of reputable outsourcing agencies or freelance developers. Consider their expertise, portfolio, and client reviews to find potential partners.

Step 3: Evaluate and Select a Development Partner

Assess the candidates based on their technical skills, experience, and cultural fit. Conduct interviews or consultations to ensure they align with your project goals and values.

Step 4: Establish a Communication and Collaboration Framework

Set up effective communication channels and collaboration tools. Define roles, responsibilities, and reporting structures to ensure smooth interaction between your team and the outsourcing partner.

Step 5: Monitor Project Progress and Maintain Flexibility

Regularly review project milestones and provide feedback to ensure alignment with your requirements. Be prepared to adapt to changes and address any issues promptly.

Step 6: Plan for Post-Launch Support and Maintenance

Develop a plan for ongoing support and maintenance to address any issues that arise after the app’s launch. Ensure the outsourcing partner is available for updates and troubleshooting as needed.

Conclusion

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Outsourcing mobile app development can be a game-changer for your project, offering numerous advantages such as cost efficiency, access to specialized talent, faster development timelines, and enhanced flexibility. By carefully defining your project, selecting the right development partner, and establishing a robust communication framework, you can effectively mitigate risks and achieve your development goals.

Whether you're looking to bring innovative ideas to life or simply need a reliable team to extend your current capabilities, outsourcing provides a practical solution. Embrace the opportunities it offers and position your project for success with the right strategy and partnership with right mobile app development agencies.

Ready to explore how outsourcing can transform your mobile app development journey? Start by defining your needs and reaching out to us today!

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