How to Outsource Mobile App Development in 2024

Mobile apps form the crux of the digital landscape these days. More and more mobile users in the world demand the release of improved apps with enhanced services to make their lives much easier. Due to high demand and low capital to fund mobile app development, budding startups outsource it since it is much more affordable and resourceful. 

However, hiring talent to enjoy a seamless user experience on mobile is not as easy as it sounds. There needs to be premeditated strategies that lead to effective hiring and the desired results. As a result, implementing effective strategies to boost your development process to enhance efficiency is the only way to attain the goal you originally set out for. However, before answering the ‘how’ we need to understand the ‘why’ for outsourcing mobile app development in 2024.

Why Outsource Mobile App Development in 2024?

In the contemporary business landscape, characterized by the imperative need for swift adaptation to dynamic changes, numerous enterprises opt to delegate critical business functions through outsourcing. As of 2023, the international outsourcing market reached an estimated valuation of $430.53 trillion, showcasing promising prospects for sustained future expansion.

The rising trend of outsourcing is undeniable, backed by compelling statistics:

• In 2022, IT outsourcing generated a staggering $66.5 billion in sales.
  

• IT software development outsourcing is projected to increase its market share from 22% in 2022 to 27% by 2025.
  

• By 2025, the software development outsourcing industry is forecasted to soar to a value of $98 billion.
  

• Projections indicate that the revenue within the IT Outsourcing segment is anticipated to climb to US $512.50 billion in the year 2024.
  

• Furthermore, the expected average expenditure per employee in the IT Outsourcing sector is poised to reach US $146.10 in the same year.
  

• In a global context, the majority of revenue is foreseen to be generated in the United States, with an estimated figure of US $185.50 billion in the year 2024.

5 Convincing Reasons to Outsource Mobile App Development in 2024

1. Reduced Cost Price

The primary inducement for business owners to get into outsourcing is its reasonable pricing. It can be quite exorbitant and time-consuming to hire talent individually. An in-house app development team can make their lives easier by cutting the cost and time of recruiting and paying off additional overhead expenses affiliated with workstations, sick days, holidays, and infrastructure. 

Additionally, it can also be quite beneficial to their firms since they can hire global talent and are not limited to their geographical location. Talents from Eastern Europe and Asia make the hallmark of outsourcing mobile app development services since it is easier to hire developers from those countries without sabotaging the quality of the product. 

2. Work Offload

Outsourcing a mobile app development company reduces your workload on multiple things that you otherwise would have to analyze yourself. This provides you with much time and money to invest in other pressing matters that require your attention. Leaving the complete app development to an outsourced company is one of the best perks to have as a business owner. 

A professional mobile app development company includes a project manager who will be dedicated to handling all the tasks on your behalf. He/she will provide you with the necessary updates on the project and ask for important feedback regarding the product. As a result, there is much work offloading which incentivizes you to prioritize your more important assets such as making partnerships, raising investments, etc. 

3. Hire Top Talent

Outsourcing opens the gates for business owners to hire the best talent around the world. For specific esoteric projects such as AI development, special developers need to oversee to ensure that the project is a success. Since outsourcing is global and not limited to a particular location, it becomes much easier and more convenient to find experts who have years of experience. 

4. Speedy Development

If you have an eye for a dedicated task force that has been providing app development skills for years, the in-house experts will not just deliver you a seamless product but also under the preferred deadline. Outsourcing an experienced mobile app development company brings to the table, experienced developers who have worked on multiple projects and delivered them under tight schedules. This earmarks them as experienced professionals who can deliver when required. 

5. Risk-Averse Management

It is always risky to develop a mobile app however, outsourcing a mobile app development company will reduce this risk many-fold in the case of things not going as planned. Regardless of how efficiently you have set up your mobile app, there will always be unforeseeable issues. Besides delivering a bug-free product, an outsourced app development company will also aid in anticipating foreseeable issues and provide solutions to prevent them. 

Common Worries in Mobile App Development Outsourcing

Outsourcing mobile app development can be a strategic move for many businesses, but it often comes with common worries and concerns. Understanding and addressing these apprehensions is crucial for a successful outsourcing experience. Here are some typical worries and effective solutions:

Quality Control Concerns:

• Worry: Fears about a lack of control over the development process leading to compromised app quality.
  
• Solution: Implement robust project management and communication channels. Regular updates, milestones, and quality checks can ensure transparency and maintain high standards.

Security and Confidentiality Worries:

• Worry: Apprehensions regarding the security of sensitive data and intellectual property.
  
• Solution: Establish a comprehensive non-disclosure agreement (NDA) and choose outsourcing partners with a proven track record of stringent security measures. Regular audits and compliance checks add an extra layer of assurance.

Communication Challenges:

• Worry: Concerns about language barriers and time zone differences impacting effective communication.
  
• Solution: Choose outsourcing partners with proficient English communication skills and overlapping working hours. Utilize collaboration tools and establish clear communication protocols to bridge any gaps.

Budget Overruns and Hidden Costs:

• Worry: Apprehensions regarding unexpected expenses and budget deviations.
  
• Solution: Clearly define the project scope, milestones, and associated costs in the initial agreement. Regular financial reviews and open communication can help manage and prevent budgetary concerns.

Lack of Flexibility and Adaptability:

• Worry: Worries that outsourcing may lead to a rigid development process with limited room for adjustments.
  
• Solution: Choose an outsourcing partner with a flexible approach, fostering iterative development. Regular feedback loops and agile methodologies can ensure adaptability to changing requirements.

Dependency on Outsourced Team:

• Worry: Concerns about being too dependent on the outsourcing team for critical app development.
  
• Solution: Maintain a balance by keeping essential tasks in-house and fostering collaboration. Clearly defined roles, responsibilities, and escalation procedures contribute to a healthy partnership.

Addressing these common worries with proactive solutions is essential for a successful and fruitful mobile app development outsourcing engagement. Choosing the right outsourcing partner and establishing robust communication and project management practices can significantly mitigate these concerns, leading to a positive and productive collaboration.

How to Outsource Mobile App Development?

Decide on an outline for your app

Picking a capable and decent mobile app developer will help you take care of most of your problems, however, business owners also need to have a vision of their own. Sharing that idea with the development team makes things much simpler and easier than usual. Having a general outline and blueprint of your product not only makes things simpler but also provides clarity of ideation for the developer to work on. Below are a few things to consider before outlining your app:

• The aim of your app
• The problems it will solve for the users
• Should it be an iOS or an Android app?
• Should it be a hybrid app?
• The features you require.
• Monetization of your app

Decide on a budget

The quality of the outsourced company will depend on the kind of investment allocated for the development of the mobile app. It is incumbent for business owners to take both quality and price into consideration. Always remember that the initial development cost is dynamic and can change anytime newer features and elements are added to the app.  As a result, it is better to decide on a cost lower than your complete budget. 

Also, make sure to not endorse companies offering to work on an extremely low budget. This might sound heavenly at first but the cost would keep on adding on after each update. So it is better to make a list of reliable outsourcing companies, ask them for a quote, and then make your decision accordingly.

Filter out the mobile app development companies

Once you are through with your research about the best mobile app development companies affordable on your terms, make sure to filter the long list of companies out as it can be pretty tiresome to contact every single one of them. 

The first criterion for sorting out is the portfolio or some kind of certification. This gives you some confirmation if the company has some experience in handling projects like these. You can also check through reviews and feedback from the company’s past clients and customers. This will give you an honest breakdown of the experience and skills of the developers in the company. 

Provide feedback to make desirable changes

It is always exceptional if you not only stay updated about the development process but also keep on providing feedback occasionally. Staying in touch with the project manager of your app development team is always a wise decision to make as it eliminates any miscommunication on a certain step. So discuss with your project manager how often you should stay posted about the progress of your mobile app. 

Post-Release Maintenance

Once your app has been developed and is ready to go out into the market, ensure the post-launch support is formidable, tracking the performance optimization, user experience, as well as the app’s longevity. Before releasing the app, consider the following things:

• Maintenance and updates- Ensure that your app development team is committed to providing post-launch support and update releases of the app. Any bugs and fixes that arise in the future must be resolved.

• Performance Monitoring and Optimization- Track app performance along with user feedback to research rooms for improvement and convene with your outsourcing partner to discuss optimization.

• Better features and enhancements- Decide on the future roadmap to introduce improved features and elements to keep you updated with the recent market trends and evolutions.
  
   
  

Locations Reliable for Outsourcing Application Development

The cost of an outsourced app development company depends on multiple factors. One of them is the geography of their establishment. Based on the location, business owners can filter the ones that suit their budget and the ones that do not. Regardless of the price, the options for all kinds of companies are available. Below is a classification of the cost hierarchy in outsourcing mobile application development companies:

Onshore App Development

Outsourcing a development team established in the same region as the business owner is called onshore app development. If a startup is based in the US, onshore mobile app development outsourcing would mean hiring from the same country. The upside to this is being present face-to-face for meetings and feedback.

On the contrary, it is not the picture-perfect vision for smaller companies when it comes to the cost of hiring. This is because the hourly cost of hiring a junior developer in the UK and USA is $15-$45, while for a senior developer is $50-$100.

Nearshore App Development

Outsourcing a development team from a different country but nearby to yours with a time difference of not more than 3-4 hours.

Offshore App Development

Outsourcing an app development company from a different country crossing 4 time zones from anywhere around the world is offshore app development. Due to varying pricing options, you can find all kinds of deals in this type of outsourcing. As a result, there is a massive demand for offshore app development due to the range of prices.

Additional tricks to outsource mobile app development companies

Sign an NDA

An NDA or a Non-Disclosure Agreement safeguards your creative concepts and ideas from external agencies. Make sure to sign one with your outsourcing company. 

Build a Prototype Project

Try to run a small-scale project before committing to a big one. With this, it will be easier to see the development team’s methodology, responsiveness, capabilities, experience, skill, and other elements. You will understand how your long-term project will be in progress.

Cultural Responsibility

Make sure that your outsourcing partner is respectful and considerate of your corporate culture and values. Understanding cultural differences and values emboldens the efficiency and dedication towards your project. This results in better productivity and a higher rate of success.

Categorize metrics for success

Make sure to mention the Key Performance Indicators (KPIs) and analyze the measurement criteria once you have begun with the app development. This allows the business owner to track the team’s performance, permit data-driven decisions to be made, and track the progress of your development team.

Update Stakeholders on the Progress

Make sure to fill in the stakeholders of your business with the progress of your project. These are people working in the IT department, business analysts, and end-users. Sharing your insights about the progress of your app will make them feel included. This results in much fluid and convenient engagement of your stakeholders with the company, pitching ideas and cautioning you of the risks involved.

Respond consistently

It is your product and company. Make sure to provide consistent feedback and respond to any queries put forward by the outsourced app development company. Constructive criticism increases employee engagement, managing project momentum, and tackling any issues.

Important Models for Outsourcing

Now that you are well acquainted with the ins and outs of how to outsource mobile app development, it is time you know the different models that outsourcing is structured upon.  Below are a few kinds of outsourced app-developing models that you need to consider before developing your app:

💵 Fixed price model

This is the kind of model best suitable for when big companies want to know the sort of app they want to develop. It is completely against the vision of startups since they require a lot more flexibility at the beginning. There needs to be enough research and investigation. The final price and product result are decided before the development process.

This implies that once the development begins, you cannot make any further changes during its creation. However, if you still want the changes to happen, there will be additional charges applied. This is why it is better to discuss every last detail with your project manager beforehand.

⌚Time And Material Model

Unlike the one above, this one allows a lot more room for changes and improvements throughout the development process. The majority of companies prefer this model since it is divided into multiple steps with a premeditated final result. Once the result is achieved, the next stage is commenced and changes can be made. The cost for this model is on an hourly basis for the developer. You still have to take into account the price estimation and final product before the development process.

👨🏻‍💼Dedicated Development Team

This model provides you with flexibility in changes, better track of your team, and improved dedication of your team. This team is similar to a remote IT department which has a better communication process along with control over the company. 

How much does it cost to outsource mobile app development?

Absolutely! Imagine you’re holding a magnifying glass to the world of mobile app development outsourcing costs. Let’s dive deeper and dissect the factors that impact your budget, equipping you with the knowledge to make informed decisions:

Complexity is King (or Queen):

• Simple apps: Think single-function utilities or basic informational tools. These budget-friendly projects might range from $20,000 to $40,000. Think of them as your app store snacks, quick and delightful, but not gourmet experiences.
  
• Medium-complexity apps: Stepping up the game with more features and integrations, expect these to cost between $40,000 and $120,000. Picture them as delicious appetizers, offering a taste of what your app can do.
  
• Complex apps: The main course arrives! Feature-rich, packed with functionality, and potentially involving cutting-edge tech, these behemoths can cost $120,000 and soar beyond $300,000. Think of them as elaborate multi-course feasts, demanding more resources and expertise.

Time is Money (But Not Always):

• Development hours: This is the core metric, with hourly rates varying based on the developer’s location, experience, and skillset. Imagine developers as chefs – a seasoned Michelin-starred maestro will command a higher price compared to a budding sous-chef.
  
• Project duration: The longer it takes, the more it costs. Think of it like simmering a stew – slow and steady cooking requires more fuel (resources) than a quick stir-fry.

Location, Location, Location (But with Nuances):

• North America, Western Europe: Think premium ingredients, experienced developers, and higher costs. Imagine sourcing organic, locally-grown vegetables for your dish – delicious but pricier.
  
• Eastern Europe, Asia: Competitive rates, access to a wider talent pool, but potential communication and cultural differences to navigate. Think of using spices and ingredients from diverse regions – exciting flavors, but requires careful blending.

Tech Stack: The Tools of the Trade:

• Basic tools: Standard development frameworks and technologies keep costs manageable. Think of using tried-and-true kitchen appliances like ovens and blenders.
  
• Cutting-edge tech: Fancy AI features, AR/VR integration, or blockchain? You’ll pay a premium for these specialized skills and tools, like using a high-tech molecular gastronomy kit for your dish – impressive but comes with a cost.

Features and Integrations: The Finishing Touches:

• Simple features: Think single screens and basic functionalities. Like garnishing your dish with fresh herbs – inexpensive but adds a nice touch.
  
• Complex features: Advanced functionalities, multiple integrations. Imagine using rare imported ingredients or intricate plating techniques – these elevate the experience but raise the cost.

Beyond the Price Tag:

Remember, cost is just one piece of the puzzle. Consider these extra ingredients for a successful outsourcing experience:

• Clearly defined requirements: Outline your app’s vision, features, and timeline to avoid misunderstandings and scope creep. Think of having a detailed recipe that everyone follows.
  
• Detailed quotes: Compare various providers, understand their pricing structures, and ask questions. Don’t just go for the cheapest option – quality matters too!
  
• Fixed-price contracts: Lock in costs to avoid surprises. Think of pre-ordering your groceries to stick to your budget.
  
• Incremental payments: Break down development into milestones and pay as you go. Like paying installments on a car, it eases the financial burden.
  
• Clear communication: Stay connected with your outsourcing partner, address concerns promptly, and foster a collaborative relationship. Think of it as working alongside your sous-chef, ensuring everyone’s on the same page.

Remember, the perfect cost depends on your unique recipe, so choose wisely and savor the delicious outcome!

Conclusion

This is how you can effectively plan on outsourcing mobile app development in 2024. The outsourcing market is already on a rising curve as of this year, but the next one will be even more explosive.

Make sure that you consider the aforementioned things since they are the guidelines for not only finding a good outsourced mobile app development company but also making your dream of having a cost-effective and efficient mobile app come true. This provides a decent user experience and everything else a consumer wants from a mobile app.

Frequently Asked Questions (FAQ)

1. What are the advantages of mobile application development outsourcing?

One of the biggest reasons to outsource mobile app development is cost effectiveness which is a necessity for small-budget startups which is why it is so much in demand in the startup industry.

2. Will the outsourcing partner manage post-development maintenance?

Absolutely! Once the production is finished and the app is released in the market, there needs to be sufficient improvements to fix the bugs and issues users face after using the app for the first time. This is where the outsourcing app development team comes into action.

3. How can I protect my intellectual property while outsourcing mobile app development?

Besides the NDA agreement, consider implementing IP protection clauses in your agreement as well. Make sure you get a legal advisor on board to go through the clauses or laws protecting your rights as the owner of the app.