How to Outsource App Development?

Application development outsourcing is one of the best ways to ensure that you have a budget-friendly yet high-quality software development service. Many companies around the world turn to nearshore or offshore add development outsourcing, hiring teams or specialists to deliver solutions that would enable their business to thrive.

For example, in 2023, the global outsourcing spending rate hit USD 731 billion annually, with 92% of GT2000 companies getting IT outsourcing services. This method is not foreign to smaller or bigger companies, as it brings financial comfort from not having to hire an in-house team.

If your business is not focused on constant pampering of your software solution and you utilize digitalization to benefit the end customer, perhaps outsourcing would be more profitable for you as well. Compared to in-house development, outsourcing still provides the same quality of service with additional cost-effectiveness and risk mitigation benefits. In this article, I aim to explain how to outsource after you have made this choice and are looking for an outsourcing company.

What is Software Outsourcing

Application development outsourcing is the process of hiring an external team of employees to develop or complete a software product.

The way outsourcing works is outstandingly simple; you hire a team that’s officially employed by the technical partner company. They would complete a task or a series of tasks for your business, functioning as the extension of your own team. In the image below, you can see the schema of the classic outsourcing process.

In such an agreement, the software and all rights to it belong to the customer, whereas an outsourcing partner manages the product development process as outlined in the scope. Outsourced tasks are usually those traditionally performed by an in-house team, which makes outsourcing even more attractive to businesses as it is fully handled by a third-party team.

In outsourcing, the team most often collaborates with a client through a project coordinator or manager. They handle all the external processes, allowing the customer to control the development without being directly involved in it.

Benefits of Mobile App Development Outsourcing

Outsourcing to a qualified, reputable team has several benefits. Some of them can enhance your business value or drastically help you grow your profits.

1. Cost efficiency. Software development companies can offer the same quality of development process for a much more budget-friendly price. Outsourcing allows you to hire experts specifically for the project or a certain set of tasks without expanding the in-house team, which is already significantly more budget-friendly. More so, outsourcing is more flexible, so you can change your team gradually as the project progresses.
2. Niche expertise. Outsourcing provides access to a range of skills and knowledge. App development businesses offer access to competent experts with industry expertise. This might help you achieve better decision-making or pumper up your own expert knowledge with information from other industries and experts. If you’re launching a product in a specific domain, a company that specializes in it might give you more insight and information. For example, DashDevs specializes in fintech, and therefore we can provide our clients with insights on KYC, compliance, and other specific elements of the industry.
3. Country-specific expertise. Development teams that specialize in delivering software to specific countries have more information on compliance issues. For example, DashDevs extensively works with the US, UK, Europe and MENA development, so we know how to ensure security regulations compliance there.
4. Time efficiency. Outsourcing mobile app development to a cohesive team may save time and money on HR chores like recruiting, onboarding, training, and keeping workers. Software developers can bring in specific expertise, as we mentioned above, resulting in faster time to market, better risk management, and process improvement. This would be especially beneficial for startups.
5. Improved focus. This cooperation model allows businesses to concentrate on their core tasks and outsource what would typically take a lot of time and effort. This enables higher business efficiency and helps achieve better results with the product’s core aim.
6. Flexibility. With outsourcing, you would get an opportunity to change your team content according to business needs. You could involve experts, such as business analysts or UI designers, and cooperate with them for a specific part of the project.

The advantages of outsourcing are clear and can bring you numerous business benefits, upscaling your value. Thus, if you decide to outsource, you would not just achieve greater flexibility and profitability but generally improve the quality of the business’ operations.

Disadvantages of Mobile App Development Outsourcing

1. Scope creep. Efficiency is key for high-quality outsourcing application development. Before the start of the development, the outsourcing provider should present an app strategy. A skilled business can anticipate a project’s complete scope. Complex projects may make it difficult to guarantee the final scope.
2. Lack of control. Outsourcing may cut app development time, but you may lose control over the process and timeline instead. Strive to work with companies that enable transparent processes and always keep your hand on the pulse.
3. Knowledge transfer. Outsourcing application development allows you to be flexible and change your team according to arising or changing business needs. However, frequent team turnover in the outsourcing company can lead to knowledge gaps and inconsistencies in the development process. New team members may not have the same level of familiarity with the project, potentially leading to inconsistencies in implementation.

Are you interested in outsourcing application development? With over 25 fintech products delivered, DashDevs can help you execute your idea.

Outsourcing can be a meaningful endeavor to help your business grow, however, it’s important to take into consideration any possible strife. So, to mitigate the risks associated with app development outsourcing, you best get acquainted with them. And, to always know what to expect, you might want to research how expensive is to outsource app development.

How Much Does it Cost to Outsource App Development?

The cost of outsourcing app development depends on several factors. These include the app’s features and tech stack, developer location, and organization type. Complexity increases app development time and expense. Businesses and independent contractors in the US charge extra due to the high cost of living.

The median for software development outsourcing worldwide is around 50 to 110 USD. The time it would take to outsource application development starts from 100 hours; therefore, your minimum price can be around 50,000 USD.

Are you looking for an accurate cost breakdown for your project? Contact DashDevs experts to let them compute expenses and estimate a timeline.

The pricing of outsourcing app development is usually calculated based on hourly developers’ rates but will be estimated as a whole project cost. If you know the most critical features of your future program, you may estimate its cost by estimating the development hours. Location affects the cost of a company’s products and services. In the image below, you can see the price attraction ratio in the best locations for software development outsourcing.

So, taking all into careful consideration, you can review the best countries for software development outsourcing with precision. Regardless, however, of where you decide to outsource mobile app development, you still need to learn when you should consider outsourcing as an option.

Key Scenarios for Outsource Your App Development

Outsourcing is a strategy. You should think about application development outsourcing as a model of creating your software, so this would be naturally your first thought when approaching software creation. However, if you want to learn whether software outsourcing would be especially beneficial for your business, specifically, here are a few scenarios when you should consider outsourcing:

1. Outsource to accelerate time-to-market. Hiring an external team for offshore app development would help you achieve faster results as you might either upscale your own team or hire a fully functional team from a partner. Either way, you will be in control of who is present in the team and could change its contents depending on your needs without facing any fees from lay-offs. Outsourcing can become your competitive advantage if you’re looking for an opportunity to be one step ahead of the competition time-wise in industries such as e-commerce or marketplace development.
2. Outsourcing is ideal for cost-efficient development. If you’re a startup owner or your business is an SME, outsourcing can bring you a significant monetary advantage. Hiring an outsourced team is much more beneficial in terms of budgeting than employing a full in-house operation. It would allow you to hand over the development to your technical partner, and with the right cooperation model, you would know precisely what the paycheck will be.
3. If your business needs niche expertise, outsourcing might be a solution. Development outsourcing would give you access to specialized, narrow expertise that might be otherwise unavailable or too expensive. You could hire developers who know everything about the specific process or feature you need to outsource without having to change your in-house team. This would prove beneficial to those companies that require expertise in specific areas, such as fintech, healthcare, or AI-focused companies.
4. For the big enterprises in need of optimizing their staff. Outsourcing allows enterprises to quickly scale up or down their workforce to meet fluctuating demands without incurring costs. You can optimize the development during peak seasons or when a company’s updating its software or creating new functionality without expanding the in-house team.

How to Get Started With Outsourcing App Development

Outsourcing an application is a decision that requires a conscious and careful approach. When you take this step, you should consider this step-by-step guide that we created to ease your entry into outsourcing.

1. Define the goals. Clearly articulate your app’s purpose and determine what problem it seeks to solve for the target audience. I advise you to gain an understanding of its key features and functionalities before you consult your technical partner.
2. Evaluate potential partners. Access the expertise of the companies you would want to connect with. Look at the case studies they demonstrate to gauge their capabilities and assess your general compatibility with the style and way of working.
3. Create a brief. When getting ready for a consultation, pay as much attention to the brief as you normally would for the investor. Specify your UI/UX preferences, outline the preferred methodology, and brief the technical partner on your expectations from the scope of work.
4. Compose a contract. For the contract, discuss the abovementioned project scope and property rights, along with other important details. Ensure that your information is protected, you have determined milestones, and, finally, determine the payment terms.
5. Monitor the progress. As a customer, you should actively participate in the development process. Be sure to deliver honest and timely feedback to achieve the best results from your cooperation.

These steps are easy to memorize, and following them might drastically change the outcomes of the outsourcing process. There are some more tips and tricks I would like to share with you, however, to possibly improve your future development.

Best Outsourcing App Development Tips

Finding your partner among the best outsourcing companies for mobile app development outsourcing may be tough, but it can be done. I’ve gathered tips to help you make educated decisions and achieve your goals.

1. Check the company’s past work. If you aren’t familiar with any software development companies, do your homework first. Check over the team’s prior work, the company’s case studies to see how they addressed comparable circumstances, their references, and any apps they’ve produced. Also, pay attention to what niche the company occupies or which domains they are working in. This expertise might prove to be drastic when cooperating with them in critical moments that require a deep understanding of your field. Finally, if you’re getting to a stage of consulting with this company, consider your own level of comfort when talking to them.
2. Start with a discovery phase. Some companies offer the discovery phase as a separate service, and this might help you achieve your business goals in a few ways. First, you could better understand your future software partner. A so-called trial period of consulting and brainstorming. By the end of the phase, you should have thorough documentation for the product, and it will help you avoid scope creep and make the development more seamless even if you decide not to work with the same partner in the future.
3. Ensure transparent communication. Before signing contracts with an outsourced team, especially with offshore app development, you should understand the procedure. Talk through all the documentation to decide what goes into the contract and how the reporting will happen, whether it’s about online meeting frequency, length, start and finish hours, etc. Discuss the work scope, KPIs, and expectations you have for the product implementation. It’s important that you and the development team are on the same page and striving for the same results.

When you find your development partner and finally have the opportunity to implement your idea into life, remember to be flexible with the approach. The development team can change and mold to your specific requirements, so don’t forget to track your progress and consider feedback at all stages.

Final Thoughts

Outsourcing can be inherently helpful for many businesses, including those seeking specialized expertise or requiring faster time to market. Despite risks and concerns, a proficient consultant and technical partner can always help battle them.

DashDevs outsourcing team has over 14 years of experience and a proved track record of 700 delivered projects. As a team of software developers and tech experts, we’ve created software solutions for different industries, from fintech to ride-sharing. If you’re interested in outsourcing application development, chat with us, and let’s discover how we can enhance your business value.

Let’s talk!