How Much Does It Cost to Outsource Mobile App Development in 2023?

Outsourcing app development is one of the common ways for startups to build a mobile app. You can have the best idea but without a team that is ready to transform your idea into a mobile app, you can't think of success.

If you want to launch your mobile app, you must have also thought about offshore mobile app development. As a startup owner or an entrepreneur, you must be stuck with questions like:

  • Where to outsource app development projects?
  • How to outsource app development to India?
  • What are the best places to outsource app development?
  • What will be the cost of outsourcing app development efforts?
  • What are the steps involved in outsourcing app development?

Outsourcing is not something new. It has been there for decades. But the recent app revolution has ignited a startup revolution and more startups are launching their own mobile apps in different segments. The increase in the number of startups has also grown the demand for outsourcing app development.

In 2019, the outsourcing industry crossed $90 billion in revenues.

Clearly, when it comes to outsourcing, startups and companies are not in the mood to stop. But what about the costs of outsourcing app development?

Well, in this blog, we will cover several aspects related to outsourcing app development to India. So, let's begin.

Why Outsource App Development?

Do you know why everyone prefers outsourcing their app development efforts to countries like India?

It addresses three major pain points for any startup. This is the reason why startups and even Fortune 500 companies prefer outsourcing software and app development to offshore teams.

A. Skilled Team

Outsourcing your app development initiatives allows you to benefit from a highly-skilled talent pool, which might not be available to you internally.

Offshore app development companies have developers with varied skillsets that you can readily use for app development without hiring and on-boarding new talent on full-time payroll.

B. Affordability

Cost-efficiency is the most tangible benefit of outsourcing app development. When development goes offshore, the costs also go down significantly.

C. Better TTM

As you have access to a large talent pool with the option to engage more developers/talent, you can quickly plan, design, develop and test an app, promising a better time-to-market.

Factors Affecting the Cost of Outsourcing App Development

Cost is one of the prime reasons for outsourcing mobile app development. Just like any other business decision, the decision to outsource comes with a lot of questions:

  • How will we manage the outsourced team?
  • How to convey the app requirements to a remote team taking care of outsourced app development?
  • How big the team should be to make an app development project success without increasing the cost of outsourcing app development?

You should always remember that in the end, you outsource to save costs. Here are some of the factors that will help you keep an eye on the cost of outsourcing app development:

The Complexity of the App Features

Well, the first and foremost factor is the complexity of the app idea.

The kind of app you want to build, the number of features, and how difficult it is to build will directly affect the cost.

Complex features require more time for development. As the time required increases, so is the cost.

Also, the more features you need in an app, the more will be the cost of outsourcing app development. Hence, it is always better to finalize your app idea along with the features you require before outsourcing app development.

It is better to have an idea beforehand than to beat around the bush and spend more time updating the app.

Size of the App Development Team

You might know, development is not a ‘one-man job'. Almost, all the app development happens with a full-fledged team of business analysts, UI/UX designers, project managers, programmers, and testers.

So, naturally, the cost of app development would be affected by the size of the team you choose. The bigger your team, the greater the cost would be.

Every professional, from a business analyst to QA engineers charges different rates per hour for the work done. So, the more time a professional spends on your idea or app development, the more will be your overall investment.

Though it is beneficial to have a lean team, but don't fall into the lure of not having appropriate resources on board. Failing to have an experienced team can make your entire investment go waste.

Hourly Rates of the App Developer

App developers mostly charge by the hour. Any app developer you choose in a region would have a standard hourly rate.

Your cost of app development would depend on the hourly rates of the developers you choose.

An easy way to calculate the cost of outsourcing app development is to multiply the hourly rate by the total number of hours your app would be developed in.

As said before, the hourly rates differ from region to region, which is our next point.

Geographical Region

The region where you outsource your app development effort would define your cost strategy completely. It basically is because every region has a different cost of living and thus, the hourly rates of development differ too.

In the next segment, let's see the different regions and the cost of app development, thereof.

Outsourcing App Development: What Will it Cost you to Outsource to Different Countries?

A. Cost of Outsourcing App Development to the Americas

North America and Oceania are preferred by many startups when it comes to app development. Outsourcing in the Americas is a costly proposition though.

The average hourly rates can be around $100-150 per hour.

An app can take thousands of hours to develop, to begin with so the app development cost would come minimum at $300,000-$500,000 if you are thinking of outsourcing in the Americas.

B. Cost of Outsourcing App Development to Eastern Europe

Eastern Europe is the hub for outsourcing especially when it comes to app development. The biggest reason is because of the availability of cheap talent.

You can find developers in Ukraine or other East European countries for an hourly rate of $25-$50 per hour.

So, a complex app like Uber or Netflix would cost you anywhere between $150,000-$300,000, almost half of what you would be paying in the Americas.

C. Cost of Outsourcing App Development to India

The Southeast Asian subcontinent and particularly India is one of the most exciting outsourcing regions in the world. Availability of high-skilled talent, English-speaking developers, and commitment to work are some of the factors that attract startups to Indian developers.

On top of the benefits, Indian outsourcing agencies and app development companies have lower rates compared to their western peers- starting at $20-40 per hour.

So, you can think of developing an app for anywhere between $60,000-$150,000. The price you pay is way cheaper than something you would be paying in for developers in other regions.

It is recommended that you always research about the outsourcing partner and choose someone with prior experience of bringing an app idea like yours to life.

Best App Development Outsourcing Practices for Maximum Return on Investment

Let's say you are planning to hire someone for outsourcing app development. Here are some steps you must take for getting the best output.

A. Prior Market Research

It is always advisable to perform a feasibility analysis, perform in-depth market research and clear out your requirements in terms of the features before outsourcing.

Many app development companies offer consultation with business analysts to guide you through the process.

B. Clear Documentation

Before handing over an app development project, it is better to outline clear requirements in the form of SMART goals.

You can even create standard documentation enlisting your requirements to hand over to the remote developers. That would set the right expectations on both ends and ensure you and the remote team are on the same page.

C. Agreement

Don't fall into the desire to hand over your startup idea or app concept without entering a formal agreement.

The agreement should enlist roles and responsibilities, NDA clauses, goals, timelines, availability, and other elements. Failing to do so can lead to miscommunication and potentially loss of money in the long run.

D. Security Measures

Well, make sure to check the remote team for security preparedness. You won't like your app idea to fall just because potential hackers managed to creep in their systems. Moreover, make sure whatever you share with the team is via secure servers.

If you have a dedicated server for the app database, also set up systems for secure remote access. This is important for the long-term success of your mobile app.

Let's Kickstart Your Outsourcing Dreams

Outsourcing can get quite confusing even after you have sorted out everything including the cost. In such a case, having an expert by your side can be quite a relief.

At Websoptimization, we have been the preferred app development partner of leading startups and app companies in the world. Our professional business analysts understand your requirements and give shape to your idea in the form of a feasible MVP.

What's more, we support you from the concept stage to the launch of your app. We've been doing this for years and we are ready to assist you in making your dream mobile app.

So, get started by scheduling an appointment with our app development consultants, today!

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