How to Outsource App Development in 2023: Make It Advantageous For Your Business

Statista predicts that business process outsourcing revenue will reach $350,000,000 in 2023. Why is application development outsourcing so popular? When companies outsource app development, they may receive many advantages. Among them are:

• project costs reduction;
• time-saving;
• access to a global talent pool;
• no micromanagement;
• high-quality product.

Our era demonstrates the importance of adaptation to global changes. Outsourcing helps you to focus on core goals and operations and to delegate other functions to specialists. Also, it opens up access to a wide pool of experts all over the globe with services such as staff augmentation: https://doit.software/blog/staff-augmentation.

In this article, we will figure out the benefits of outsourcing app development, find out the tips for using this model efficiently, and learn how to cope with any risks that may arise.

What Is Mobile App Development Outsourcing?

Application development outsourcing is the delegation of IT processes to a third-party company. This methodology helps businesses quickly cover their lack of internal resources and also reduces their app development costs. Outsourcing app development can be applicable to almost every industry, but the following domains benefit from it the most:

• Healthcare.
• Hospitality. 
• Energy.
• Finance.
• Retail.

For example, healthcare companies may outsource to build applications for health tracking, calorie counting, or giving medical advice. The financial sector may seek to create a banking system, secure payment methods, or a dashboard to track all of its operations. For any industry, it is much more important to focus on their lead operations, such as their business process improvement, and leave their app development to trusted suppliers.

Benefits of Outsourcing Mobile App Development

Vast talent pool and scalability

Thanks to the outsourcing model, you do not need to look for talent in the same location as your company. Finding a specific specialist can take a long time. New opportunities and access to specialists around the world open up for you when you utilize outsourcing. You can easily find a team of developers for your budget, specific requests, and your essential requirements.

Cost-effectiveness

First, you save money on searching for and onboarding specialists. Administrative and HR costs are also reduced to zero. Secondly, thanks to the absence of geographical constraints, you can find developers at a much lower price than in your own country. For example, the rates of Ukrainian developers are three times lower than North American specialists. Thirdly,  in comparison to having an in-house team, you don’t have to pay to outsource app development companies if there are no tasks to be completed. For your internal employees, regardless of whether there are projects or not, you need to pay a salary every month.

Extensive expertise

You will get developers who have worked with the same or similar technologies and have expertise in your niche. You don’t have to invest your time and money in teaching them. Moreover, by outsourcing one specialist, you are getting the experience of their entire company. Taking care of their reputation, outsourcing companies always monitor the quality of their developer’s work, coordinate with him or her, and help them to handle difficult tasks.

App Development Outsourcing Tips 

Define your app requirements for the desired result

Having a clear vision of your final product will help to speed up all the processes and achieve the desired outcome. What are the steps that can turn your idea into a real solution?

• Define your business goals and the main concept of your app. These questions will help you: What is the idea of your application? How can your app solve users’ problems?
• Prioritize the functions. Imagine yourself as an end user to understand which features are most important to you and which ones you can postpone to the second release.
• Write precise app requirements. Describe how the product should work from the first interaction with the user all the way to the last one. Include information about software, device type, and other properties.

Estimate your budget

Depending on your budget, various cooperation options to outsource app development open up to you. Take time to assess how much money you can spend on each project stage. How can businesses benefit from a correctly calculated app development budget?

• Having a limited budget, you immediately decline to cooperate with those companies whose offer will exceed it. This saves you time on unnecessary negotiations.
• If you have included all the potential risks of developing your app in the budget, then there is nothing to worry about as far as having to invest more money.
• You clearly understand if you have enough money to begin now or if you should wait for a little while to attract more investments first.

Choose a payment model 

Payment conditions between you and your IT vendor will depend on the model you use. Experienced outsourcing companies review each project individually and offer a model that meets your requirements. What are the main cooperation models that exist?

• Time and Material. This model implies paying hourly rates for service delivery. You pay for only the particular hours spent on a task.
• Fixed Price. This entails an agreement to pay a fixed price for pre-agreed-upon services and to get the project completed within a specified amount of time. 
• Monthly/weekly rate card. You can rent a developer and pay a specified salary for an agreed period of time.

Research and evaluate app developers

To be sure you achieve the desired result, you have to find the most suitable developers for your project. Create a list of requirements to facilitate the search. Include details about the level of seniority, desired skills, experience in particular technologies, etc. In addition to hard skills, consider the developers’ locations:

• Onshore companies come from your country.
• Nearshore developers are close to your company’s country and have a 1-2 hour time difference.
• Offshore developers are located in a completely different time zone. 

Suppose that you have found node js developers for hire that fit all of your requirements. The next step should be an assessment of their professionalism. Check out their portfolios and find some reviews to prove that this team is able to successfully handle your tasks.

Communication and tracking the progress of the outsourced team

The project manager position is a must for tracking your app development progress. With the updates provided at each stage, you will have a better understanding of what pace the project is building at, how quickly it will finish, and what problems, if any, you are facing. 

To build a reliable relationship with the outsourcing company, you can ask for daily or weekly reports, and jump on the calls with the team. Regular communication leads to fewer problems in the future, and a faster adjustment of all business operations.

Outsourcing Risks and How to Mitigate Them

When you outsource app development you have to be ready to deal with the risks that may arise. Here are some particular challenges you might possibly meet and tips on how to prevent these risks from happening:

• Communication issues. Due to different mentalities and time zones, misunderstandings can occur. How to deal with them? Involve your developers in activities that will help them to get to know each other better within the team. Turn time inconsistencies into opportunities. Give the tasks to the team when your shift is over and check their work the next day.
• Skill mismatch. To avoid such a problem, ask the developers to complete a test task at the interview. Another way to find out if this team is right for you is to review their portfolios and also ask for testimonials from their previous clients.
• Going beyond the budget. At each stage of development, you can face new challenges. In order to be ready for them both mentally and financially, it is necessary to discuss any possible risks with all of the developers in advance. Define the activities you will perform to prevent spending more than your budget allows. Arrange weekly meetings and/or ask for reports to track their progress and the money spent.

No one is immune from risks. It’s important to know how to mitigate them and outsource app development effectively.

Conclusion

Choosing outsourcing as a company strategy may bring a lot of benefits to your business. If you outsource app development you enjoy a wide pool of talent, reduce project costs, and get extensive expertise. To get effective results from outsourcing, you have to define the company’s goals, work on the budget estimation, select a cooperation model, evaluate the developers, and conduct regular communication with them.

FAQs

How much does it cost to outsource mobile app development?

The costs to outsource app development may start from $10,000 and exceed $200,000. It depends on the size and complexity of the project.

How to outsource app development?

To outsource app development, determine the company’s concept, find reliable partners, check their reviews, give the test task, and see if they fit the requirements.

How much does it cost to outsource app development in Eastern Europe?

The average rates for developers from Eastern Europe are $40-$50/hour. To compare, the specialists from North America cost about $100/hour.

This article has been published in accordance with Socialnomics’ disclosure policy.