Cost of Outsourcing App Development

For years our IT team has been offering bespoke software solutions. As an accredited IT company, our members constantly strive to exceed the expectations of customers and offer first class apps. Since the most frequently asked questions are related to the cost of outsourcing app development, we want to lift the veil and provide a professional view on this topic.

Compounds of App Development Cost

  • Your requirements. Сost of a development IT service depends on the type of target software product, its complexity, functionality and design requirements. Depending on its simplicity, it can vary from $ 1,000 to hundreds of thousands of dollars.
  • Human resources. However, one of the key factors that affect costs is human capital. Our group is always looking for ways to reduce expenses without compromising quality. The cost of developing apps for outsourcing, particularly in the case of external outsourcing, can be significantly different from the creation of internal software. The app of external subcontracting in countries with low labor and production costs helps reduce the costs associated with the creation of commercial apps. But in this case, business owners should carefully select software partners. This is because it is difficult to control the development processes that occur in different parts of the world.

Related costs. Software development also includes costs related to the hardware and fees of developers who can publish apps in the app store. For iOS developers, the membership for the Apple developer program is $ 99 / year, and for Android programmers it is $ 25.

Understanding of needs. Finally, it places a heavy burden on the costs of app development, but the need to clearly understand needs is often underestimated. As a result of the uncertainty, continuous improvement and redevelopment will prolong the development period, which in turn will generate an increase in costs. By approaching developers, you can understand the corporate needs and clear ideas of the app, discuss with IT consultants and estimate relevant costs appropriately. Otherwise, prepare for excessive spending.

Internal Staff and Outsourcing

Hiring an outside contractor to work is always dangerous compared to creating an internal development team that is always ambitious and totally dominated. You can listen to dozens of stories praising the benefits of outsourcing app development, while you can find many examples of terrible experiences in this area. So, what should we do?

Internal Staff and Outsourcing

The main advantage of your own IT department and full-time programmer is that it is always available in the office and can only handle the company's problems. The internal developers that work for you will be immersed in your ideas and will concentrate solely on solving corporate problems. Because they are part of the company, they have a visible interest in the result. The remaining risk for unfinished projects will be significantly lower than if you subcontract app development services. It is easy for a team sitting next to you to know what is happening when you need it. This option gives you full control over the situation so you can easily change your direction and strategy. When paying regular salaries, you do not have to fear additional fees for each function just presented. In addition, employees are constantly aware of the real situation of the company and, for a time, can better understand the business challenges that the business faces on a daily basis. This knowledge plays an important role in the search for potential solutions.

Disadvantages of the internal team

The creation of a new IT department implies certain responsibilities, efforts and expenses.

  • First of all, the total cost of a full-time programmer can be much higher than expected. In addition to the normal salary, at this cost, the allocation of work space, purchase of equipment, payment of the allocation to developers and regular training courses, which will include health insurance and other benefits. If you are a cofounder of technology and take most of the compensation in the form of capital, these costs can be reduced. If you do not have enough experience or time to lead the IT department in your company, you must hire an IT staff. In general, the cost of hiring an internal development team can be very high.
  • The second thing to keep in mind about creating a new development department from scratch is the time required for that organization. First, forget the market strategy, meet the requirements of the company, in the area that needs software development, please pick up a reliable specialist with sufficient experience. The production team should consist at least of app developers, user interface designers, quality control experts, business analysts who have work experience in the IT industry. Unlike outsourcing developers that can be modified with new projects, full-time programmers must adapt to the company from the perspective of skills and culture.

If you hire full-time developers, you must observe labor and social obligations. This option depends on long-term commitment and is reasonable only if periodic and continuous IT support is required.

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Outsourcing App Developer

What is outsourcing?

Outsourcing is the practice when a client company delivers a specific task specialized in this activity or service to a company. Outsourcing has two types - offshore and onshore. The first one, which means that to find the organization to carry out the task for which in another country or continent, the second type refers to the search for the same country.

Reasons for Outsourcing


Cost of outsourcing of app development services, can vary greatly depending on the company to adopt, if compared to the home team in the long-term perspective, it would be better to invite that they are already working with an experienced team of developers that is cheap without problems You can guarantee the delivery. The cost of outsourcing is more affordable when outsourcing is done in countries such as India, Russia, Belarus and Vietnam. Of course, choosing developers abroad will not maximize the risk of getting low quality apps, waste time and money and get results. Because outsourcing developers are the perfect solution for short-term engagement, it's a common practice for UK businesses. In outsourcing, entrepreneurs can hire project-based professionals without long-term obligations. This option, if the specialist with a different skill set in a few months has been found to be necessary, specific skill set of this period is appropriate especially in the case of one. Finally, it is much faster to develop apps with a group of experienced programmers who have worked together for a while and have offered similar projects. It is not necessary to recruit all the members of the development department, you can have a team ready.

How to Minimize the Risk of Outsourcing


Quality. One disadvantage of outsourcing is that quality control is inadequate. Only if you have a programming background, look at the code, which is, but it can also be said to be of high quality, but it still does not guarantee that the app is running. To mitigate the risk, you can hire local talent for queries and code tests. Another way is to hire a company that provides quality control services and tests during the entire development process. Start collaborating with a small test project before working on a serious development case. Alternatively, you can do a technical interview with the candidate according to Eric Ries's recommendation.

Communication. In terms of outsourcing, communication is a serious challenge, especially when it comes to a country where culture is very different from yours. Fortunately, the process of modern technology and globalization softens borders and provides the conditions for better communication. Another thing that helps deepen mutual understanding is a list of very specific requirements. The advantage of the outsourced company is to practice the Scrum law and other agile methods. Scrum allows a self-organized and transparent process that emphasizes the interaction between developers and their clients. Without an agile method, the project owner must know the result until the program is completed, but the client can see the result periodically and change the needs constantly.

Find the Cost to Outsource your Company's App Development

One third of all app development projects are delivered to the external team of companies that focuses on the development of customized software. This decision is always made according to the skills and experience that outsourced developers can offer. The cost of creating apps with outsourced companies is constantly sought by companies that pave the way for mobile markets. If you want to identify the actual cost of a particular project, you must inform the developer. The costs vary according to the requirements, the needs and what you want to achieve with the software solution. A factor that also affects the price of outsourced development is the location of the development agency. Therefore, app designers in North America and Europe can charge a fee of $ 300 per hour, but some developers in Indonesia cost only $ 20 per hour. However, if you choose a low-cost development company, there is a danger that nothing will be left. In addition to losing revenue due to poor performance and user experience, low-quality apps will not only lose conversions, but also the reputation of the brand.

Get a Free Quote!

Among our clients, there are magnificent startups and 500 Fortune companies, our services are outsourced from all around the world. if you want to estimate the project and define the budget with the creative idea of ​​the app in mind, our IT consultant will help you. Please, tell us about the goals and functional requirements of the app and we’ll create for your the detailedcost of outsourcing app development estimation. Do not hesitate to contact us today and you get a free quote from the leading UK development team.