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These days, most businesses with low development costs and fewer resources are heading to outsource app development. Still being a doubtful matter, some businesses consider it very efficient and beneficial, while some are scared to hand over their project to another team.

However, reports by Grand View Research stated another story: the global outsourcing market size was valued at US$ 280.64 billion in 2023. It is estimated to increase at a 9.6% CAGR from 2024 to 2030.

Businesses contemplating whether to go for outsourcing app development can go through its escalating market statistics, proving it an ideal choice.

Market giants like Google, Skype, Slack, etc., have embraced this development strategy and have used outsourcing for years.

Moreover, hiring an outsourcing team will require your attention and ability to manage an entire project.

So, before going to outsourcing app development services, ask yourself if you are ready to invest a significant portion of your time in the development process.

In this write-up, we will discuss significant aspects right, from why you should go for outsourcing to how much it costs to outsource app development. Let’s jump into details:

Overview of Outsource App Development

Outsourcing app development involves hiring a third-party firm or developers to build a solution. Before you hire an outsourcing app development company or experts, you must know about the different models you can adopt. These include Offshore, Onshore, and Nearshore.

The outsourcing development process is similar to in-house development; you just need to pay extra attention to see if the outsourcing team is working well.

The process includes six steps: project requirement & market analysis, UI UX Design Solutions, front-end & back-end development, quality assurance, app deployment, and support & maintenance services.

Furthermore, outsourcing involves various benefits such as cost efficiency, access to global talent, higher technical expertise, and faster development. Some common outsourcing locations with competitive pricing are Asia, Eastern Europe, and Latin America.

Additionally, some challenges businesses might face include communication barriers, cultural & time zone differences, and quality control.

To avoid these challenges, businesses must define project requirements clearly, vet outsourcing app developers or firms thoroughly, and maintain consistent communication with the outsourcing development team.

Diverse Types of Outsourcing Models

Determining to outsource app development is not enough, as you also have to decide which location-based outsourcing model to choose. Here are the top three outsourcing models we have defined below:

Diverse Types of Outsourcing Models

1. Onshore Outsourcing

Onshore outsourcing development includes hiring experts within the same region or country. This model offers better communication and alignment with the development team due to similar local regulations and privacy standards.

Also, you might have limited skill sets and knowledge and higher development costs than the offshore model.

Pros: Easy communication, cultural alliance, and no time zone issues.
Cons: Higher costs compared to the offshore model.

2. Offshore Outsourcing

Offshore outsourcing development is the most popular model among businesses. It refers to hiring developers from distant countries with excellent skills and lower labor costs. Majorly, businesses prefer countries in Eastern Europe, Asia, and Latin America for outsourcing their project.

The reasons behind the popularity of the offshore model are cost efficiency, skilled developers, less project time, etc. There are some challenges attached to offshore development: cultural gaps, different time zones, and communication challenges.

Pros: Great cost saving and access to a large talent pool.
Cons: Time zone differences are potential communication barriers.

3. Nearshore Outsourcing

Nearshore outsourcing includes hiring mobile app development companies or developers from neighboring countries. Here, businesses can hire according to their preferences as there are various options with similar time zones and cultures, leading to smoother collaboration than the offshore model.

They can save a lot of development costs, but they must choose from the available resources or skill sets.

Pros: Similar time zones, adequate cost savings, and cultural similarities.
Cons: Limited skill set compared to offshore model.

Also Read: Which is the best model for outsourcing?

Why Should Businesses Go for Outsource App Development?

Businesses need to know about the benefits why they should go for outsourcing app development. Hence, we have enlisted a few below:

Why Should Businesses Go for Outsource App Development

Cost Efficiency

Undoubtedly, outsourcing a development team costs less than employing an in-house development team. It is one of the main reasons why businesses obtain outsourcing app development services, especially start-ups and mid-level ventures.

Depending on your preferences, like budget, location, time zone, culture, skill set, etc., you can look for outsourcing the project.

Faster Time-to-Market

When you outsource a project in a different time zone, you can get the solution developed quickly. Discuss the project timeline and tasks with your outsourcing partner and carefully divide them into small sprints so your ideas can reach the market rapidly.

You can also hire a dedicated team to work solely on your project.

Access to Skilled Experts

Outsourcing provides access to skilled experts worldwide, ensuring that they hire those who have exceptional capabilities and rich experience within a limited budget. Outsourced app developers also have unique skills and an understanding of modern-edge technologies that businesses can leverage to get a proficient solution.

Higher Flexibility

Outsourcing offers higher flexibility to businesses when scaling up or down their mobile app development team. According to their project requirements, they can add specific experts or remove the unnecessary ones.

Businesses can start with a small team and expand it later according to the progress of development. They can be adaptable to evolving requirements using the diverse skill set of outsource developers.

Better Focus on Core Activities

Obtaining outsourcing app development services enables businesses to give particular tasks to experts and free up in-house resources to focus on the core activities of the firm.

It alleviates the burden on the internal team and encourages them to make strategic moves like improving customer services, marketing, and product management.

Read More: Outsource Mobile App Development in Easy Steps

What is the Outsource App Development Cost?

The cost of outsourcing app development will be impacted by many factors, including the app’s complexity, list of features, number of experts, chosen platforms, location, and team experience.

To provide an estimation, the outsourced app development cost will range between $20,000 and $200,000.

If you hire outsourced app developers, they will charge per hour, which can go from $5 to $250 per hour.

Furthermore, the cost can fluctuate depending on the above aspects. Hence, you must consider them while estimating the overall cost.

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Outsource App Development Costs by Different Regions

After estimating the cost, let’s have in-depth knowledge about outsourcing app development costs in different regions. You can hire outsourced developers from any region as per your budget, time zone, culture, and required skills.

Here are some different regions with per hour cost of developers:

Latin America (Argentina, Brazil, etc.)

Cost: $350 – $60/hour
Overall Project Cost: $30,000 – $100,000
Pros: Inexpensive, Time zone alliance with the USA.
Cons: Differs in expertise, evolving market.

United States & Canada

Cost: $120 – $250/hour
Overall Project Cost: $60,000 – $200,000+
Pros: High-quality development, closeness, and strong communication.
Cons: Expensive for small-scale projects.

Eastern Europe (Poland, Ukraine, Romania)

Cost: $30 – $70/hour
Overall Project Cost: $35,000 – $150,000+
Pros: High-quality, excellent, affordable tech experts.
Cons: Time zone inconsistencies, but controllable

Western Europe (UK, Germany, France)

Cost: $100 – $200/hour
Overall Project Cost: $40,000 – $180,000+
Pros: Trustworthy infrastructure, skilled developers
Cons: Exclusive, though lower than the USA

Southeast Asia (Vietnam, Philippines)

Cost: $25 – $40/hour
Overall Project Cost: $25,000 – $70,000+
Pros: Rising tech market, cost-effective
Cons: Less developed infrastructure in some areas.

India

Cost: $10 – $50/hour
Overall Project Cost: $15,000 – $60,000+
Pros: Low cost, immense developer pool.
Cons: Possible communication issues, difference in quality

Additionally, here is the outsourcing app development cost of some of the most popular domains:

1. Outsource Dating App Development

Dating apps comprise features like user profiles, matching algorithms, in-app messaging, and privacy features. Additional cost depends on features like video chats, geo locations, and AI-enabled matchmaking.

The overall outsourced dating app development cost will range from $40,000 to $100,000.

2. Outsource Stock Trading App Development

Stock trading apps are used by people to sell, buy, or trade stocks using real-time data insights and secure transactions. The estimated outsourced stock trading app development cost will vary from $50,000 to $150,000. Additional features will be live stock updates, multi-platform support, etc.

3. Outsource Grocery App Development

The grocery app enables users to buy groceries by sitting at home, searching for products, and getting instant deliveries. The outsourced grocery app development cost will be $25,000 to $70,000, and it can differ based on adding features such as real-time inventory updates, order tracking, multiple payment gateways, etc.

4. Outsource Real Estate App Development

Real estate apps are used to browse, view, and manage properties. Also, users can buy, sell, or trade them with other users. The average outsourced real estate app development cost ranges from $35,000 to $200,000.

The cost will vary if you include advanced features like AR/VR for property tours, mortgage calculators, and communication tools.

5. Outsource Fantasy App Development

The fantasy sports app encourages users to make their own virtual teams based on real players and compete in matches or leagues to win. The outsource fantasy app development cost will start from $50,000 to $180,000.

Advanced features to add to a fantasy sports app are player statistics, in-app chat, live scoring, etc.

6. Outsource Travel App Development

Travel apps allow users to book buses, trains, flights, hotels, etc., to make their journey smoother. The outsourced travel app development cost starts from $40,000 to $100,000. This cost can differ depending on advanced features like real-time tracking, integrations with airlines or hotels, trip planning, etc.

Factors Affecting Outsource App Development Cost

When a business outsources a project, it must break down the overall cost so that it won’t create any confusion later. Moreover, there are various factors that can increase or decrease estimated outsourced app development costs.

Get to know about them below:

App Complexity

There is a chance of complexities occurring during the outsourcing of app development. The more features you include, the more complex the app will be. Hence, to keep the cost in control, you need not add unnecessary features and resources.

Features & Functionalities

When it comes to app features and functionality, you need to choose carefully. Try to keep them limited but also add necessary features to make the journey easy for users and develop the app within the decided budget.

Advanced features like in-app chat, geo-location, etc., highly impact the cost.

App UI/UX Design

If you ask your outsourced app developers to customize the design and provide a high-end user experience, it will cost you more than an app with simple UI UX design solutions.

Chosen App Platforms

Developing a cross-platform or hybrid app will surely cost you more than creating an app for a single platform, either for Android or iOS. You can go for a cross-platform application if you have a high budget.

Developer Location and Experience

The cost of outsourcing app development can fluctuate depending on the developer’s location and experience. When you hire outsourced developers in India, it will cost you less than hiring outsourced developers in the USA.

Also, to keep costs under control, you can hire developers with mid-level experience in Asian countries.

Maintenance and Updates

Obtaining maintenance and update services from outsourced developers for a long time adds to the cost. It will be good to avail of these services for a short time; otherwise, you will have to increase your budget.

Pricing Model

The outsourced app development cost will be highly dependent on the number of experts and the pricing model you choose.

These models are:

  • Fixed Price: Number of experts not defined but fixed project price
  • Cost per Hour: Dedicated Expert and Prices according to their working hours
  • Time and Material: Involved in the cost of resources and tools according to the project requirements.
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In a Nutshell,

The above guide has covered all the necessary aspects you can go through to get in-depth details on outsourcing app development costs. However, there is no concept of fixed cost as it varies according to the project requirements.

To have an estimation, you can define your requirements clearly and talk openly with your outsourcing partner.

Also, you must research the regions that provide outsourced app development services and choose the one that matches your budget and project essentials.

You can contact Octal IT Solution when searching for a reliable outsourcing app development company. We are a leading firm with a specialized team that creates high-performing applications from scratch.

You can connect with us to learn more about us!

FAQs

What are some essential factors to consider for outsourcing app development?

You must consider factors like the experience and location of the developers, their skills and expertise, competitive rates, portfolios, and others for outsourcing app development.

What are the benefits of outsourcing app development?

The benefits of outsourcing app development services are cost efficiency, vast access to talented experts, faster development time, scalable teams, better focus on core functions, etc.

How do you Communicate with your outsourced app development team?

Businesses can use project management tools like Slack, Jira, or Trello to maintain smooth communication and track development progress. They can also connect with the outsourcing team via Skype, Discord, or audio/video calls.

THE AUTHOR
Managing Director
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Arun G Goyal is a tech enthusiast and experienced writer. He's known for his insightful blog posts, where he shares his expertise gained from years in the tech industry. Arun shares his knowledge and insights through engaging blog posts, making him a respected figure in the field.

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