Cost of Outsourcing App Development: Onshore vs. Offshore

Get expert help from a reputable software company. Our team can help to define the cost of outsourcing app development sharing the expertise we gained for the time we are engaged in IT services.

What Is Outsourcing

Outsourcing IT services is a common practice used by different companies to transfer portions of work to outside vendors rather than accomplishing it internally. Software development outsourcing is an effective cost-saving strategy due to deficiency to sustain the in-house workforce that performs the required task. Companies can outsource mobile and web agencies to get a particular IT service or establish the entire information management from the planning of software strategy to business analysis, coding, installation and management. However, there are two major types of the outsourcing:
  • Onshore
  • Offshore
  • The Cost of Outsourcing App Development
  • Onshore Development Costs
  • Offshore Rates
Onshore outsourcing refers to the practice of looking for IT services outside a company but within the same country. The advantage of this practice is a shared culture and language which ensure better understanding between you and the service provider. It also provides better conditions for communication due to the same time zone. And when it comes to the investment connected to the app development, it is important to translate your ideas to the developers and ensure that they understand your requirements and needs.
Offshore outsourcing implies collaboration with an agency from another country and sometimes a continent. As for IT-related work, outsourcing usually conducted in the countries with lower labour costs and tax saving and with a stable political situation. Today this practice is quite common thanks to high-speed Internet connections and the processes of globalisation. But a search of a lower cost of the app development isn’t the only reason for outsourcing. Some entrepreneurs take their projects abroad to compete with businesses in other countries.
The cost of outsourcing app development varies from different factors starting with the app functionality, design requirements, the size of the app design team, and up to the place where the developers are located. Mobile design may account for from 10% up to 30% of an allocated project budget. Design skills are critical to the overall success of the application, and if you are going to entrust the design to the established markets in Europe, get ready to be charged about £100-200 per hour. Comparing different development studios rates across the world, you can see the tendency that European countries are more expensive than Asian. But at the same time, the size of the company doesn’t always equate its rates. Smaller firms don’t have the overheads of larger IT agencies and they usually present a more agile and innovative development model, that is why they feel that can charge more. When global vendor with thousands of employees charges £40 per hour for the development of the application, smaller firms’ prices may reach £70. Location of the developer’s office also matters. Developers who work in cities where the cost of living is high, for instance in London, will ask three times more for the development.
The cost of the development in highly-respected software companies in the UK can be too high for startup projects. With the average cost of £30,000- £40,000 to build the first version of the product, an MVP, some reputable companies may charge up to £100,000 for the minimum viable product creation. Depending on the integrated functionality, the number of platforms you want to embrace, and the design requirements, the price varies from £20,000 to as much as £400,000. But paying this money, you get full access to the app creation process and quality guarantees.
The amount of money to be spent on the app development depends on the type of software is needed to be created. But such factor as human capital also influences the cost a lot. If you are hiring Indian developers, the charge per hour may be as low as £20, due to the lower labour cost. With such rates, a simple app may cost from £5,000 to £8,000, while the cost for a complex solution may rise to a £40,000. Of course, making regular updates and handling user problems will increase the development cost. But it is only something you can see on the surface. The pitfalls of the offshore outsourcing include cultural gap and language barrier which causes misunderstanding of the basic concept of the application requirements. In the end, outsourcing oversea you risk to get a poor quality or completely not working program which requires code audit, debugging, and even redevelopment. Keep in mind that you get what you pay for, and estimate the risks you run approaching offshore IT service provider.

How to Outsource Developers

Whether you prefer to work with onshore developers or take the project oversea, you will face the similar situation starting the collaboration based on monetary commitment. It is the search of a perfect IT partner. We would give you a few tips which will assist in this pre-development stage:
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Set App Requirements

Before hiring outsourcing software developers, get a precise understanding of your requirements to the desired IT solution and identify what do you want from the app. A lack of clear definition of what the app is like and what it is supposed to do will result in the wrong concept of the application and hence the end product that won’t meet the expectations and desired goals. Moreover, any uncertainty may cause aggravate the communication with the development team and drag on the development process increasing the cost of the software due to larger expenses. Working with a reputable company, like ours, you can rely on our business analytic department which will research similar applications and will help you to create a successful IT strategy. The cost can be significantly lessened if the list of requirements are specified during the planning stage.

Find an IT Company

Knowing the type of the program you want to develop enables you to find a development team that specialises in this IT domain. It is good to find developers who are skilled in creating the kind of software you need. If you need an enterprise-level software, then apply to enterprise software developers, but if you need to built a game that runs on iOS devices, check top mobile game developers. One of the best ways, to find a reputable firm is to check reviewing websites such as Clutch or Top Developers where you can find company description, rating and customers’ testimonials. Visit the website of the developers and have a look at their portfolio, the company may have experience in your industry vertical which will be useful to apply working on your project. Besides, the way the site look, may tell you a lot about company capabilities and aesthetic sense. Is it the same as yours?

Talk with the Bidders

Don’t hesitate to talk with the companies before hiring any of them. It is imperative to know the team of IT partners because app creation can take months and all this time you need to communicate with them and work collaboratively. You can use messaging programs, such as Skype to discuss the app idea with a candidate in real time. Other programs and sites that can assist you with the first acquaintance are Google Hangout, Viber, Facebook, or you can fill in the feedback form which are usually provided on sites of software companies. Nevertheless, a messaging platform is a way to get in touch immediately. Talking with the developers, estimate their readiness to answer your questions and help you to get a clear picture of their services. Discussing the app, make sure you are explicit about your demands, tell about the required platform, features, and design requirements.

Establish Milestones

Once you have chosen the agency that meets your outsourcing developing needs, discuss project milestones. Milestones are the points where a specific part of the work is completed. This milestones help you to navigate the development process getting the understanding of where the project stands. If you outsource our software firm we will allot a committed project manager who establish a connect calendar ensuring that he get in touch with you on a specific dates throughout the project progress providing the update on the project status.

Why Outsourcing App Development
If you are interested in developing a bespoke software solution for the business purposes, outsourcing app development can become the most appropriate option for you. It provides with myriad advantages, from expert assistance in app idea conception and verification to quick time to market. One more thing that makes sense about outsourcing is a continuous and regular interaction with project manager dedicated to the project, who save your time, presenting your interests in the company and letting focus on the core aspects of business. Outsourcing noncore activities improved efficiency because these tasks that need to be explored and performed are taken by another entity. At the same time, project manager keeps you informed about the project progress regularly delivering the results of the programmers work. Bespoke software development requires a lot of efforts, time and money investment. Outsourcing the existing development agency instead of creating an in-house team, there is a high chance to cut the cost of the app creation and streamline its launch. According to Investopedia, companies that outsource particular services save around 15 percent due to the cost reductions.

Get in Touch with Our Team

Our company provides a competitive IT services cost thanks to implementation of the most innovative technologies and well-established development model. Being outsourced by hundreds of companies worldwide, we have gained the reputation of a trusted software developers with a full spectrum of IT services. Whether you are looking for mobile app developers or web programmers, we can offer you a dream team of skilled and talented IT specialist. Talk to us to know us better, and tell us about your app idea. We will be happy to answer any of your questions related to bespoke development.