How to Outsource Mobile App Development? [Steps + Cost]

outsource app development
  • Ankit Patel Ankit Patel
  • April 18, 2024
  • 7 min read

In today’s digital world, having a mobile app can be a game-changer for startups and businesses. But, building an app in-house can be expensive and time-consuming. This is where app development outsourcing comes in.

Whether you are a startup with a brilliant app idea or a big company looking to boost your digital game, you may outsource mobile app development.

Outsourcing can be exciting, but it can also be a bit scary. There’s a lot to think about, like finding the perfect partner and making sure you work well together.

In this guide, we’ll explore the world of app development outsourcing that will help you make smart choices for your project.

What is App Development Outsourcing?

Imagine you have a killer app idea, but you can’t build it yourself. That’s where IT outsourcing comes in!

App development outsourcing is like hiring a team of experts or a company to design and develop an application for you. This is common for companies that don’t have the in-house expertise or need a specialized team for a specific project.

Basically, you find an app development agency that can handle your project and then hand over the reins. But before you dive in, it’s important to understand the whole outsourcing process and figure out if it’s the right move for your business.

Key Trends in App Development Outsourcing

  • The application outsourcing market is forecasted to achieve a revenue of $121.60 billion by 2024.
  • The outsourced software development is forecasted to reach a value of $98 billion by 2025.
  • On average, nearly 60% of organizations across various sectors outsource app development.
  • The projected average spend per employee in the application outsourcing market is estimated to reach $34.65 in 2024.
  • In a global context, the United States is poised to generate the highest revenue, amounting to $44,040.00 million in 2024.

Why Outsource Mobile Application Development?

Imagine you have great app ideas for your business! You’re hyped, but then…ugh…building an app means finding a whole crew of expert mobile app developers. And those guys aren’t exactly hanging out at the coffee shop next door.

That’s where outsourcing steps in, like magic! Instead of spending lots of money, try to hire a team from a reliable mobile app development company. They have a bunch of super-skilled developers who can turn your idea into reality.

Think of it like calling a plumber to fix a leak. You wouldn’t try to do it yourself, right? Outsourcing lets you hire experts who’ve built hundreds of applications before. This saves you time and money as well.

Plus, with outsourcing, you don’t need to worry about office space or paying benefits. They handle that, so you can focus on what you do best – running your awesome business!

How Outsourcing Mobile App Development is Beneficial For Businesses?

Bringing your mobile app idea to life requires expertise and often, building an in-house team from scratch isn’t the most feasible option. Let’s explore how mobile development outsourcing can empower your business:

• Cost-Effectiveness

Building an in-house mobile app development team can be expensive. You will need to factor in salaries, benefits, recruitment costs, and infrastructure. Outsourcing allows you to tap into a global talent pool at competitive rates. According to a report by Deloitte, around 70% of businesses opt for outsourcing as a way to cut costs. This can help you save on overhead expenses and avoid investing in costly software development tools.

• Access to Top Talent

Finding skilled mobile app developers can be challenging, especially for niche skills like AR/VR development or expertise in a particular platform like iOS or Android. By outsourcing, you gain access to a wider range of talent, allowing you to find the perfect fit for your project.

• Faster Time-to-Market

Outsourcing offers the advantage of tapping into an established team’s proficiency and experience, potentially expediting the development process. This proves particularly advantageous for startups or enterprises operating with limited resources, enabling them to swiftly introduce their app to the market.

• Focus on Core Business

The development of an app can often divert attention from core business operations. Outsourcing alleviates this burden by allowing your internal team to concentrate on their primary responsibilities while a specialized development team manages the technical intricacies of app creation. This division of labor enhances overall efficiency and productivity within your organization.

Cost of Outsourcing Mobile App Development

When outsourcing mobile app development services, the costs can vary significantly based on factors such as the complexity of the app and the geographical location of the development company. Here’s a breakdown of approximate costs for outsourcing app development:

  • Complexity of the app: If you want to develop a taxi app or a food delivery app then the cost would be around $10,000 to $15,000 but if you have a different concept or want to include advanced features, then the cost might go up to $40,000 or more.
  • Developer location: Hourly rates for developers vary depending on their location. North American developers are typically the most expensive, with rates ranging from $80 to $150 per hour. Eastern European developers are often more affordable, with rates around $35 to $90 per hour, and developers in Asia (like India) can be even more cost-effective, with rates as low as $20 to $40 per hour.
develop mobile app

App Development Outsourcing Models

So, you have decided to outsource mobile app development for your business – great choice! Now, let’s explore the different models available to find the perfect fit for your project.

1. Fixed Price Model

This model is ideal for companies with a clear vision of their desired app and a well-defined scope. You agree on a fixed price upfront, covering the entire development process and final product. This model offers predictability in terms of cost but requires thorough planning and upfront investment. Changes mid-development may incur additional fees.

2. Time & Material Model

This model provides flexibility for evolving projects. Development is broken down into smaller stages with defined deliverables. You pay based on the time and resources used by the development team. This model allows for adjustments and course corrections as the project progresses, but the overall cost can be less predictable.

3. Dedicated Development Team

This model offers a dedicated team of developers who work exclusively for you to build an app. It provides greater control over the development process, increased flexibility for changes, and improved communication. However, it typically requires a larger upfront investment compared to other models.

You May Also Like: Web App vs Mobile App Development: Where You Should Invest?

Steps to Outsource Mobile App Development

Mobile apps are a powerful tool for businesses to reach new customers and streamline operations. However, the process of app development can be daunting. Here are the key steps to ensure a successful outsourced app development project:

Step 1: Define Project Requirements and Budget Allocation

Before venturing into outsourcing mobile app development, it’s crucial to clearly outline your project requirements and establish a realistic budget. Begin by identifying the core functionalities, features, and design elements essential for your app’s success. Assessing the scope of work and budgetary constraints will provide a solid foundation for the outsourcing process.

Step 2: Select the Optimal Development Option

Next, choose the development option that aligns with your project’s needs and objectives. Options may include hiring a freelance developer, engaging with an app development agency, or leveraging offshore development teams. Consider factors such as project complexity, timeline, and budget when making this decision.

Step 3: Conduct a Thorough Search for Developers

Once you have determined the development option, initiate a comprehensive search for potential developers or agencies. Utilize online platforms, professional networks, and referrals to identify reputable candidates with relevant experience in mobile app development. Pay close attention to their portfolios, client reviews, and previous projects to gauge their capabilities.

Step 4: Evaluate Developer Expertise and Experience

During the selection process, prioritize evaluating developers’ expertise and experience in your specific industry and technology stack. Request detailed information about their skills, certifications, and past projects related to mobile app development. Conduct interviews or technical assessments to assess their proficiency and suitability for your project.

Step 5: Choose an Appropriate Service Model

Selecting an appropriate service model is pivotal for successful outsourcing. Determine whether you require full-cycle development services, partial assistance, or specialized expertise for certain project phases. Discuss project management, communication protocols, and reporting mechanisms to ensure alignment between your expectations and the service model offered.

Step 6: Determine the Payment Model

Finally, establish a mutually beneficial payment model that accommodates both parties’ financial preferences and risk mitigation strategies. Payment models may include fixed-price contracts, time and materials agreements, or milestone-based payments. Clearly define payment terms, milestones, and deliverables in the contract to foster transparency and accountability throughout the project lifecycle.

app development outsourcing

Challenges Faced in Mobile App Development Outsourcing

Outsourcing mobile app development has become a popular strategy for businesses in 2024. While it offers significant advantages, there are also important considerations to address.

• Vendor Selection

One of the primary concerns revolves around choosing the right mobile app development company. Companies often make the mistake of basing their decision solely on price, which can lead to subpar results. The solution lies in evaluating vendors based on various factors such as their portfolio, experience, and client testimonials.

xongolab clutch

• Data Security

Security concerns regarding the protection of sensitive data during outsourcing are prevalent. By working with reputable outsourcing firms and establishing clear rules through non-disclosure agreements (NDAs), businesses can mitigate risks associated with data breaches and ensure confidentiality.

• Communication Efficiency

Effective communication is crucial for the success of outsourced projects. Establishing a clear communication process from the outset, with a designated project manager facilitating direct communication, helps minimize misunderstandings and ensure transparency.

Mobile App Outsourcing Success: Key Mistakes to Avoid

Here are some key mistakes to avoid for mobile app outsourcing success:

• Failing to Consider Time Zones

  • Problem: A significant time zone difference can lead to communication delays, missed deadlines, and frustration.
  • Solution: Choose a company that operates in a similar time zone or one with overlapping working hours. This allows for smoother communication and quicker response times.

• Not Checking the Company’s Experience

  • Problem: An inexperienced company might lack the skills or knowledge to create a high-quality app, leading to bugs, performance issues, and a poor user experience.
  • Solution: Research the company’s portfolio. Look for experience in your app’s category and positive client testimonials. Ask for specific examples of their work and their development process.

• Skipping the Non-Disclosure Agreement (NDA)

  • Problem: Without an NDA, your app idea could be stolen or used by the company for other projects.
  • Solution: Insist on a signed NDA before sharing any confidential information about your app. This protects your intellectual property.

• Paying Large Sums Upfront

  • Problem: Paying a significant amount upfront puts you at financial risk if the company fails to deliver or the project goes sideways.
  • Solution: Structure your payment plan with milestones. Pay a smaller deposit upfront and then tie subsequent payments to the completion of specific development stages. This ensures you see progress before releasing larger sums.

Wrapping up

By now, you have unlocked everything about outsourcing mobile app development and explored the different partnership models. But here’s the real question: who will be your trusted partner in bringing your app vision to life?

At XongoLab, we are more than just mobile app developers – we are your innovation engine. We combine cutting-edge technology with a collaborative approach to transform your ideas into groundbreaking apps. Contact us today for a free consultation and let’s turn your dream into a reality.

About: Ankit Patel

Ankit Patel is a Director of Sales & Marketing at XongoLab Technologies LLP and PeppyOcean, A leading mobile app development companies. In his free time, He likes to write articles about technology, marketing, business, web, and mobile. His articles featured on YourStory, E27, Datafloq, JaxEnter, TechTarget, eLearningAdobe, DesignWebKit, InstantShift, Business Magazine, SimpleProgrammer, and many more.

You may also like

web app vs mobile app development

Web App vs Mobile App Development: Where You Should Invest?

  • Jignesh Nakrani Jignesh Nakrani

In today’s digital age, startups, businesses, and entrepreneurs are constantly looking for ways to engage customers and enhance their online presence. One key decision they face is whether to invest… Read More

cost to build ott app like netflix

A Detailed Guide to Netflix-like OTT App Development [+Cost]

  • Ankit Patel Ankit Patel

When it’s time to unwind and relax, many of us turn to the familiar phrase “Netflix and Chill.” It’s a cozy way to spend our weekends, escaping into the exciting… Read More

spothero like parking app development

Unveiling The Cost of Developing a Parking App Like SpotHero

  • Jignesh Nakrani Jignesh Nakrani

For years, city dwellers have struggled with the age-old problem of finding parking. It’s a headache we all want a solution for. That solution? Smart parking software solutions. Imagine a… Read More

Request A Quote