Cost of Outsourcing App Development: What options do I have?

Get expert help from well-known software company. Our team helps define the cost of outsourced app development and share the experience gained in IT services.

What is Outsourcing?

Outsourcing IT development is the practice which implies that organisation transfers part of the duties to outside suppliers or provider rather than completing it in-house. Outsourcing software services is an effective and cost-saving way to build bespoke solutions due to the lack of necessity to maintain staff and equipment within the company. Companies outsource mobile and web agencies to get bespoke IT services, or strategic software planning, coding, integration, and build tailored information tools. However, outsourcing has two sectors:

  • Onshore outsourcing

Outsourcing refers to hiring company within the same state. The benefit of such approach is mostly communicative: shared culture, language and better understanding between client and service provider. Seamless communication ensure better conditions for collaboration especially when it comes to translation of your ideas to developers. Working with onshore company you reduce the risk related to app project investments.

  • Offshore outsourcing

Offshoring means working with agencies from another country, sometimes from a different continent. In IT-related work, outsourcing is usually done in countries with lower labor costs, taxes, and political stability. Today, this approach is quite common because of the high-speed Internet connection and the globalization process. However, the lower-cost app development is not the only reason why outsourcing is in demand.

Cost of Outsourced app Development

The cost of application development differs depending on the functionality of the app, the requirements in design, the number of project participants and location of developers. Mobile design represents 10% to 30% of the allocated budget.

Thus, design skills play crucial role in the overall success of the program, and if the project is entrusted to a mature design agency in Europe, you are should get ready to pay about £ 100-200 per hour. If you compare design studios around the globe, you will see that Asian countries are less expensive than the European ones. But at the same time, the size of the company is not always the same as its interest rate. Smaller firms do not have the overhead of large IT organizations, and generally offer more flexible and innovative development models, that is why they feel they may charge more. When thousands of global employee vendors charge £ 40 an hour, smaller companies may cost £ 70. The location of the developer's office is also important. Developers located in the city where living expenses are higher, such as in London, will require three times more for the development services.

  • Onshore costs

The development costs of highly respected software agencies in the UK is very high. The average cost is £ 30,000 to £ 40,000 to build the first version of the product, an MVP. Some reputable companies may charge up to £ 100,000. Based on the integrated functionality, the required number of platforms and design requirements, the price may vary from 20,000 of pounds up to 400,000 pounds. But at the same time, you can fully access the process of application creation and control it.

  • Offshore pricing

The cost of app development depends on the type of software you need to create. But the human capital is also one of the factors which affects the budget. If you are recruiting Indian developers, the cost per hour may be as low as £ 20 due to lower living expenses in India. At this price, a simple app may cost between £ 5,000 to £ 8,000 and the cost of a complex solution can be equal to £ 40,000. Of course, regular updates and processing of user issues will increase development costs. But it's just the surface you can see. Defects in relocation include cultural disparities and language barriers that lead to a misunderstanding of the basic app requirements. Finally, overseas outsourcing is risky, as it is often poor quality or not working at all, requiring code review, debugging and sometimes re-development. Keep in mind that you get what you pay for and estimate the risk of approaching offshore IT service provider.

How to outsource programmers

If you outsource developers or projects abroad, you will face similar situations and initiate cooperation based on monetary commitments. Let's give you some skills that will help this pre-development phase:

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Define the app requirements

Before hiring outsourced software programmers, have an accurate understanding of your needs for the required IT solution and determine what you want from the app. The lack of a clear definition of the app and what should be done leads to the wrong concept of the app, resulting in an end product that does not meet the desired and desired goals. In addition, any uncertainty leads to increased communication with the development team and slow down the development process because of the high cost, which increases the cost of the software. Working with reputable company like ours, you can rely on our business analytics department to study similar applications and help you create a successful IT strategy. If the requirements list is specified in the planning stage, the cost may be greatly reduced.

Find IT Company

Know the type of program you want to develop. You may find a development team dedicated to this field of IT. It's good to find programmers who are familiar with the software they need. If you need enterprise-class software, apply for enterprise software developers, but if you need to create a game running on iOS devices, check out the top mobile game coders. One of the best ways to find a reputable agency is to check the inspection site, such as a clutch or top developer, you should find company descriptions, ratings and customer recommendations. Visit the developer's website and see your portfolio, the agency may have vertical experience of your industry, it will be useful to work on your project. In addition, the appearance of the website can tell you a lot about the company's ability and aesthetic awareness. Is it the same for you?

Talk to bidders

Do not hesitate to talk to the company before recruiting them. Knowing the IT partner team is critical because building applications takes months, and all this time you need to communicate with them and work together. You can use Skype and other messaging programs to discuss the idea of ​​the real-time app with the candidate. Other programs and websites that can help you get to know the first are Google Hangouts, Viber, Facebook, or you can fill out the feedback form that is generally available on the agency's website. However, the messaging platform is an immediate contact. Talk to the developers and consider that they are willing to answer your questions and help you understand their services clearly. Discusses the app to make sure it understands your needs and understands the required platform, functionality, and design requirements.

Build timeframes

Once you have chosen an agency that meets your outsourcing needs, you will discuss the milestones of the project. The milestone is the key to completing the specific part of the work. This milestone can help you navigate the development process and understand where the project is. If you outsource our software company, we will assign a commitment to the project manager to establish a connection schedule to ensure that the specific date of the project advances in contact with it to provide project status updates.


Why Outsource Development

If you are interested in developing customized software solutions for commercial purposes, developing third-party applications may be your most appropriate choice. It offers numerous advantages from app concept concepts and proven expert assistance to a fast time to market. One thing that makes sense for outsourcing is the ongoing interaction with the project leader, saving time, expressing your interest to the firm, and focusing on key aspects of the business. Outsourcing non-essential activities improves efficiency because those tasks that need to be explored and implemented will be supported by another entity. At the same time, the project manager can keep track of project progress and regularly deliver the results of the developer's work. Custom software development takes a lot of effort, investment in time and money. Outsourcing the existing development organization, rather than building an internal team, will likely reduce the cost of building applications and simplify startup. According to Investopedia, companies that outsource specific services save about 15% due to lower costs.

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As a result of implementation of the most innovative technology and improvement of the development model based on experience, our agency offers competitive IT service costs. Among hundreds of outsourced companies worldwide, we have received the reputation of a reliable software developer with a full range of IT services. Whether you are interested in mobile app developers or web programmers, we can provide a team of experienced and talented IT professionals. Contact us about your project and share your app idea with us. We are happy to answer any questions you may have regarding custom development.