How to Outsource Mobile App Development – The Definitive Guide 2024

How about getting a hiring model offering top talents and experts at affordable half-price with rare expertise and experienced professionals? The answer is the set of realistic mobile app development outsourcing. 

With over 2 million apps on the Play Store and App Store, the mobile app development industry has progressed into a multi-million dollar business. A Statista study highlights the prevalence of the outsourcing mobile app development trend. It reveals that the revenue in the application outsourcing market is projected to reach approximately US$118.10bn in 2024 and is expected to grow by about US$124.10bn in 2029. This means that for businesses, investing in mobile app development is not just a trend but a requirement of the times.

There are various ways to develop an app, including hiring an in-house team of developers and outsourcing the app idea to a suitable development company.

Outsourcing app ideas allows you to shorten the marketing timeframe, decrease overall costs, and ensure a better-quality product. Around 52.5% of IT companies outsource their development projects.

Here, we’ll discuss how to outsource mobile app development, the benefits of outsourcing, and the total cost of outsourcing that you should expect:

What Is Outsourcing Mobile App Development?

If there is a better option than an in-house team for your app development needs, then turning to a third-party development agency is your next best choice. When you hire an outside agency to develop your app, you outsource mobile app development.

Outsourcing offers much more extensive skills and experience than an in-house team. An app development firm concentrates on developing apps for various businesses, which means they have the expertise and tools to solve issues swiftly and aptly. 

Additionally, with application development outsourcing, you have multiple choices, unlike with an in-house team:

Options For Outsourcing App Development

With an in-house team, you only get a set of individuals with expertise in specific areas of app development processes. On the other hand, with outsourcing app development, you get diversity in who builds the app:

• An offshore or onshore development company
• Freelancer developers
• An off-the-shelf app

Let’s explore the pros and cons of each option:

Pros

Development Companies

• You have a complete team at hand immediately.
• Everything is recorded on paper, from the cost to the scope of the work, to eliminate any discrepancies later.
• A diverse range of experiences within the team.
• The development process is organized with proper maintenance and post-launch services.

Freelance Developers

• More cost-effective compared to top-notch development companies
• An exceptional talent pool of developers exists among the freelancers.

Off-The-Shelf Solutions

• Cheaper than designing custom apps.
• Less time to launch.
• Feature-rich apps.

Cons

Development Companies

• More expensive option than hiring freelancers and off-the-shelf apps.
• Offer less flexibility in their mode of work than freelancers.

Freelance Developers

• Limited specializations in platforms and the latest technologies.
• No guarantee of the quality of work and no client protection measures.
• Communication and time management are issues, mainly if time zones are different.

Off-The-Shelf Solutions

• A readymade app may not fit your needs.
• Customization and transition to another platform are complicated.
• Some features may be unnecessary for your business.
• Standard UI/UX design.
• Updates in response to market change are limited.

The company that outsources app development depends on the complexity of your app, the type of app you need, and your budget. If your app idea is simple with minimal features, then an off-the-shelf solution would be sufficient for your needs, especially if you are short on time and have a limited budget.

Similarly, freelance developers can be a good option if the app is simple in design and falls into the developers’ area of expertise.

Conversely, opting to outsource app development to a full-cycle development company gives you access to a team of specialists. The deal includes Android and iOS developers, UI/UX designers, a QA testing team, project managers, and business analysts. The individual experts would work together as a team to build the app from scratch, making offshore mobile application development the best choice for custom app design.

Benefits Of Outsourcing

Outsourcing app development offers more flexibility in terms of cost and features of app design and allows leveraging advanced technologies. It has many advantages over in-house development, some of them are:

Faster Turnaround

Outsourcing app development offers a quicker turnaround than an in-house team or freelance developers. Project managers and business analysts are also part of the package with an offshore development company. It means that the company will regulate the development processes to ensure the timely delivery of the app and client satisfaction.

Additionally, with an in-house team, the developers may have to coordinate their tasks with other projects on their plate. So, app development will take longer than it will if you outsource the project.

More Extensive Talent Pool For Developers

An in-house team comprises limited individuals, minimizing expertise to a specific level. With application development outsourcing, on the other hand, you have access to a diverse developer talent pool. Outsourcing to companies or freelancers in Europe, Asia, or Africa allows you to leverage the talent in these regions.

Additionally, you can outsource iPhone app development or Android development to a single development firm. With access to a broader talent pool, offshore companies have developers for native apps or hybrids for iOS, Android, and Windows development.

Access To Different Technologies Under One Roof

Another benefit of outsourcing is that you can find all the latest technologies for app development under one roof.

App and web development are the bread and butter for full-cycle development companies. Thus, they have experts with ample knowledge of the best software development techniques and the tools to use their skills. Additionally, companies have access to the latest technologies.

Cost-Effective

While outsourcing gives you less control over the development processes, it is much more cost-effective than an in-house team. Outsourcing to agencies based in the US will cost less, and offshore mobile application development for companies in Europe, India, and Africa will be even more affordable.

Additionally, with in-house hiring, you must invest in a team of developers and the technology to develop an app. The overall cost of hiring new employees and making arrangements for their workspace and the equipment for development is more than hiring an offshore agency.

Development agencies charge an hourly rate that includes the cost of developers, equipment, maintenance, and post-launch services.

How To Outsource App Development?

With the benefits of outsourcing done, let’s see how to outsource app development to offshore or onshore agencies. As with hiring any development company, you must be sure of what you want for your business before reaching out to software companies. Here are the steps you need to take to outsource your app idea:

Solid Outline

A top-notch development company will offer insight and analysis of your business needs. Still, it’s better to have an initial idea of your aim with the product and the company’s future. Knowing what you want will help you find a development agency that fits your needs.

Furthermore, if you outsource app development to freelancers instead of a company, your research is even more invaluable. Miscommunication will lead to creating an app completely different from your expectations.

So, when outlining your app idea, keep the following questions in mind:

• How will the app help the company progress?
• What is the purpose of the app? What problem does it resolve for the target users?
• Do you want a native app for iOS and Android or a hybrid app?
• What features do you want in the app?

Highlighting your requirements with the app design and function will help narrow down the list of offshore app development companies or freelancers that you can hire. It will also ensure the product delivered is as you expected.

Estimate Your Budget

Your initial business analysis should include estimating the budget for mobile app development. The amount you allocate for the app will determine your options, including in-house development, offshore companies, or off-the-shelf solutions.

Readymade mobile apps are the cheapest option, offering minimal features and standard UI/UX.  On the other hand, the cost of custom apps depends on various factors, including the app’s complexity, platform, features, and more. For example, a simple app can cost up to $50,000+, whereas complex apps can rate as high as $300,000+.

Mobile app development can be costly, but there are end-to-end software development companies or freelancers who build apps from the ground up at a budget-friendly price.

Research Developers

Before you can outsource app development, you need to research app developers who match your requirements. Check their experience with the iOS or Android platforms, skills with the technologies you want in your app, and more. The geography and mode of communication are other factors you need to consider when choosing an outsourcing app development firm.

The outsourcing agencies are divided into three categories based on their location relative to your company: onshore, nearshore, and offshore. Onshore developers are those in the same country as yours, whereas nearshore companies are in the bordering nations. On the other hand, offshore developers are the developers based furthest away.

When you want to outsource web application development, determine the development company’s location early in your research. With onshore app developers, you can expect smooth communication. But if you are US-based, onshore companies will be more expensive than offshore app developers.

Therefore, when considering outsourcing app development, research the developers as well. Besides their location, consider the following factors:

Portfolio: Check their collection to analyze their experience in app development. Do they have attractive, user-oriented applications in their portfolio?

Tech Stack: Ensure the team has the expertise to leverage the technologies your app idea requires.

Industry: Does the agency have experience working with a client in your industry?

Client References: What do their past clients say about their quality of service?

Partners: Is the company partnering with leading tech companies like Google?

Analyzing these factors will help you shortlist potential agencies that fit your requirements, making it easier to contact them for their services.

Service Model

You have multiple options for outsourcing app development, and you can also choose the service model that fits your needs. There are three types of service models in app development:

Project-Based

Project-based service models imply that the team has predetermined requirements it must meet within a defined timeframe. The client outlines everything the team is responsible for, making them accountable for the product quality instead of the technologies used in development.

A project-based model includes limited team members, a defined timeline, and a fixed budget. The project outcome also depends on the outsourcing company’s backlog.

Dedicated Teams

The outsourcing company allocates resources to your project through the ‘dedicated team’ service model, ensuring personal management and process quality. The dedicated resources include a full-cycle development team with Project Managers and Business Analysts who outline the project pipeline or offer complete services.

The outsourcing company is responsible for assigning tasks, dedicating team leaders, ensuring proper project management, scheduling tasks, and following up on the project status. The client holds the decision-making power in project management but at varying degrees.

Out-Staff Working Model

Outstaffing or an extended team means allocating some of the tasks to resources outside the company and providing them with space to work. Since the client hires individuals for specific tasks, they will regulate the development process, working time, vacations, and salaries. They would also manage the project, promote within the team, and ensure the members are motivated.

Between the three options, startups and small-scale businesses prefer project-based working models. Mid-sized companies opt for a dedicated team, while enterprises hire specialists for specific tasks within the project’s budget.

Mode Of Payment

With an extended team or out-staff hiring, you pay the individual monthly salary like any other company employee. However, if you pick a dedicated team or a project-based working model, you can also choose the payment model.

A fixed price is applicable if the project is relatively small-scale, has a limited budget, has a defined scope of work, and has an estimated timeline. It is ideal for startups who also need to develop an MVP.

Time and Material, on the other hand, is called Pay as You Go by companies that use an Agile development process. During the initial project meetings, the client and the development company decide on each developer’s hourly rate, and then the client pays the dues based on the actual development time.

Software development companies choose the Time and Material payment model when the scope of work is difficult to predetermine. It is also the best option when clients must adjust the project requirements without changing the agreement.

Where To Find Outsource Agencies?

With the mobile app development industry progressing, there are various sources on the internet where you can search for outsourcing development companies. From freelancers to industry-leading agencies, there are sites dedicated to all:

B2B Directories – Clutch and Good Firm are two top B2B platforms listing software development companies for outsourcing app development. They group agencies based on their location, rating, and expertise.

Freelance Websites – Sites like Upwork, Fiverr, PeoplePerHour are top platforms for freelancers and employers to connect. Here, you can hire expert individuals or outsourcing teams for a fixed-price or hourly rate.

Blogs – Development teams also run tech blogs where they post tips and case studies showcasing their expertise. Sites like the Manifest also post blogs listing top development companies in the world.

Design Networks – Full-cycle development companies offer both coding and designing services. Design networks like Behance or Dribble are platforms where freelancers or development teams showcase their skills. Here, you can analyze their portfolio before outsourcing app development.

How Much Does Outsourcing App Development Cost?

App development costs depend on many factors, including the complexity of the app, its features, the platform, the tools used, and more. Even the location of the outsourcing company influences the total cost of the app. US-based development agencies and freelancers generally charge higher than offshore companies in Europe or India.

Additionally, freelancers’ hourly rates also differ by location. For example, a developer based in the US will charge up to $61 per hour, whereas a developer in India will cost $18 per hour. Similarly, a project manager in the US and Western Europe will charge $40-$84 per hour, but the rates in India or Eastern Europe will drop to $21-$37 per hour.

App development costs for a full-cycle development company will be $10,000 on average. Most project sizes range from $5000 to $10,000, including $10,000 maintenance costs per annum.

Based on the features or type of the app, here is a cost breakdown:

• A photo-sharing social platform app like Instagram costs between $70,000 to $100,000.
• A ride-sharing app like Uber costs between $100,000 to $1,500,000.
• Marketplace apps like nTrust or Etsy can range from $90,000 to $2,00,000.
• Booking apps for rentals like Airbnb cost between $1,40,000 to $2,00,000.
• Apps like WhatsApp or QuizUp charge between $61,000 to $69,000.
• Business apps like Starbucks can cost from $70,000 to $1,00,000.
• Matchmaking platforms like Tinder costs between $40,000 to $60,000.

Is Outsourcing Mobile App Development Right For You?

Outsourcing mobile app development is a risky feat, especially if you venture ahead unprepared. The choice of company or freelancer you hire will determine how smooth your app development experience is. With some research, you can easily find efficient Android app developers or iOS experts for your project.

I hope the blog helps you understand the ins and outs of outsourcing app development. Share your idea with our experts, and we’ll help you design the app to suit your business needs.