How To Outsource Mobile App Development Projects

Published On: July 15, 2020
Last Updated: August 15, 2023
How To Outsource Mobile App Development Projects

Welcome to our guide on outsourcing app development. In this blog, we’ll explore the advantages and process of outsourcing your app project. Whether you’re a business owner or an entrepreneur with an app idea, this guide will empower you to efficiently leverage outsourcing for a successful app development journey.

Discover the benefits of outsourcing, learn how to find the right development partner, manage projects effectively, and overcome common challenges. By the end, you’ll be equipped to transform your app concept into a captivating reality.

Moreover, some of the leading companies across the globe have previously outsourced their primary or secondary application development. This includes Slack, Skype, Alibaba, Google, WhatsApp, etc.

Now let’s have a look at the latest outsource app development statistics:

  • As per Statista, the global IT Outsourcing revenue will grow at a CAGR of 8.07% between (2023-2027) and reach US$587.30bn in 2027.
  • According to TimeDoctor, large organizations with more than 50 employees (66%) like to outsource their work compared to smaller businesses with less than 50 employees (29%).

Based on the above statistics, application development outsourcing is highly beneficial from startups to enterprises.

Let’s get started with the benefits it offers.

Advantages of Outsourcing Mobile App Development

We have outlined the advantages that come with outsourcing the development of mobile apps. It includes:

Cost Efficiency

Outsourcing allows you to hire external development teams and save costs ensuring high-quality delivery of apps. You don’t need to spend money related to recruitment, training, infrastructure, and ongoing operational costs that come with an in-house team. It mainly benefits startups and small businesses looking to create innovative apps without straining their resources.

Expertise and Specialization

When you outsource with an experienced mobile app development company, you get access to specialized team expertise in a wide range of technologies, programming languages, and platforms. These skilled professionals can deliver high-quality, scalable, and secure apps tailored to your business needs.

Saves Time-to-Market

Releasing new products to the market as quickly as possible is essential to stay ahead of the competition. Leveraging an external team allows you to manage the development process effectively. With their dedicated focus, you can expect a shorter time to market for your app’s delivery.

Focus on Core Activities

The in-house team can focus on the company’s growth and core operations by delegating the app development process to an external team. This streamlined approach enhances overall productivity and helps you achieve high-quality mobile applications.

Reduced Risk

Reputable outsourcing providers have a track record of handling complex projects effectively. Their expertise helps businesses to mitigate the risks associated with project delays, technical glitches, and quality issues. This risk reduction ensures a smooth journey from conception to launch.

We have written a very detailed article on IT Outsourcing Pros and Cons. You must go through it once to take maximum output. lso Read:

Process for Outsource Mobile App Development Projects

Here are six essential steps to follow when you choose to outsource mobile app development.

1. Know Your Requirements

Before you start the development of the mobile app, you should be clear about two things: What real-world problem are you solving, and what is the end goal of making your app?

By knowing & defining these things in advance, makes the process of finding outsourced app development efficient.

On the other hand, if you are unclear about the project aim and requirements, it results in an incomplete or faulty application.

To know your project requirements & goals in detail, you can consider the following questions.

  • Who is your potential audience?
  • What is the main aim of building the app?
  • What are the essential features and functionalities of your app?
  • What is the unique selling proposition of your app?
  • Decide which platform you want to build your app: Android, iOS, or both.
  • What is the best monetization model for the app?

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2. Estimate Your Budget

Before stepping into outsourcing mobile app development, it’s crucial to establish a clear budget range. It provides potential partners with a realistic framework to work within.

This step involves evaluating the financial resources available for the project and considering all aspects, including development, design, testing, and potential post-launch support.

A well-defined budget helps you narrow down your options and ensures that the development process aligns with your financial capabilities. It’s important to maintain a balance between your app’s desired features and functionalities and the financial investment you are willing to make.

This step sets the base for a successful collaboration with your chosen outsourcing team, fostering transparency and effective project management.

3. Search For The App Development Team

From thousands of app development companies, you need to look for a team that matches your requirements. But the question hindering you is, where can I find an app development team?

There are a few different options available to look for based on your requirements:

Google Search: By simply typing a query, you will discover a wide number of outsourcing companies. However, relying alone on Google search is difficult when looking for experienced and expert professionals.

B2B Directories: If you have decided to look for agencies, Clutch is the best option. You can filter the search and find those who specialize in the platform you are interested in. Look at Guru TechnoLabs profile on Clutch.

Freelance Networks: If you are searching for one or two developers specialized in certain skills, freelance networks like Upwork, Guru, Freelancer, etc can be helpful.

Besides expertise, you should evaluate the team in terms of geography and communication. It is divided into three types, onshore, offshore and nearshore.

  • Onshore team: Share the same country.
  • Nearshore team: Located in a country within the same continent.
  • Offshore team: Far from your location with different time zones.

Working with an onshore team is the perfect choice as it makes communication and management easier. But they are too expensive and especially for startups and small businesses.

However, on the contrary, outsourcing your mobile app development to an offshore team is affordable and gives you best quality. It requires some additional efforts to find an experienced mobile app outsourcing company, adjusting the time of virtual meetings and more.

4. Evaluate the Team’s Expertise and Experience

By following the points given in the step above, you will be able to list a wide number of outsource app development companies from all around the globe initially. Reaching out to all of them will require a lot of time & effort.

Therefore, we suggest you to consider some essential aspects given below to narrow down your list & finalize the best agency:

Portfolio: For this, you need to check the portfolio of the development company. From this you will get an idea about which kind of project they have completed previously.

Tech Stack: Verify if the outsourcing app development company has experience in technologies that you need for project development.

Industry: Now, you need to check whether the outsource team has experience building apps in your field. If they don’t have one, you should check whether they have experience building similar kinds of mobile apps in another industry.

Client References: You can reach out to outsourcing company’s previous clients to check what kind of work they are doing and their experience with them.

5. Select the Service Model

When outsourcing an app development team, you must decide on the most suitable working model. There are several options to consider:

Project-Based Outsourcing
This rigid model involves defining the project scope, requirements and timeline upfront. It cannot be altered during the project. The outsourcing team will work on your app with the defined parameters, fixed budget and deadline.

Dedicated Teams
In this service model, you hire a dedicated team of developers with a project manager and business analyst. The team ensures to work exclusively on your project, fulfill the assigned task and be responsible for the quality. This model provides flexibility, collaboration, and the ability to scale the team’s resources as needed.

Outstaffing
In this model, you hire specialists for specific tasks to supplement your in-house team. It can be useful when you require specific skills for a certain period of time.

Each model has its benefits, so choosing the one that aligns with your requirements is important.

6. Choose a Payment Model

Selecting the right payment model is crucial when you outsource app development. However, different payment models should be considered based on your project’s scope, budget and financial flexibility. There are two widely-used payment models:

Fixed Price
In this model, payment is fixed based on the predetermined technical specification for the entire project. It can be used for small app developments such as MVP for a startup.

Time and Materials
This model is used when it’s difficult to define the work or app that needs modification during the development without modifying the contract. In this approach, you pay as the process goes on, and payment is based on the developer’s agreed-upon hourly rates. This model provides flexibility for evolving projects.

However, other models, such as milestone-based, retainer etc, are available. You can choose the right ones that provide a productive partnership between you and your outsourcing app development team.

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How to Reduce the Risks of Mobile App Development Outsourcing?

Outsourcing to a mobile app development company is quite a challenging task and comes with significant risks. However with a few effective tips you can make informed decisions and reduce the risks. Here are several effective tips to consider:

Evaluate Company’s Experience

Begin by thoroughly examining the experience and track of the mobile app development company. Look for their portfolio, testimonials, and case studies. A solid history of successful app deliveries indicates reliability, so download the app they have developed and analyze it.

If you cannot find similar projects on a website, contact the company directly and ask for additional information, as few projects may be under a confidentiality agreement.

Include a Money-back Guarantee Clause

Even if you have done the initial research, you cannot ensure whether you and the outsourced team share the same page work-wise. It takes time to check whether your collaboration will succeed, especially if you have never worked together before.

Start with the small tasks such as prototype, logo or including a money-back guarantee clause. It will help you establish trust and eliminate the risk of negligence or poor work ethic.

Sign an NDA

Working with an outsourcing team includes entrusting them with sensitive data. By signing a non-disclosure agreement (NDA) ensures that your information will remain confidential. Also it legally protects your app idea from being stolen or used unauthorizedly without your consent.

Define Communication Guidelines

When you outsource the team, ensure to agree on the specific workflows. It includes proper communication channels, reporting mechanisms, frequency of meetings, and more. To avoid gaps, build clear guidelines for business communications. It reduces the chances of misunderstanding and keeps you informed.

Avoid Paying Large Payments

Advanced payment is common practice, but you must make substantial upfront payments transparently. Opt for structured payments based on project milestones and deliverables, at least for a few months. This approach ensures that the outsourcing company maintains accountability throughout the development journey.

Also Read: IT Outsourcing Best Practices To Follow

Conclusion

We hope in this article; you get your answer on how to outsource app development. With the help of these valuable insights and pointers, you can look for an outsourcing company with a well-informed and risk-mitigated perspective.

If you are looking for an outsourcing mobile app development company, contact us.

Guru TechnoLabs is one such outsource app development company that fulfills all the points that we have mentioned above. They have been providing outsourcing app development services to clients for the last 9+ years. Moreover, they have hired the best team of designers and developers.

Frequently Asked Questions

The cost of mobile app development outsourcing will be around $3,000 to $30,000 or more. Numerous variables affect the cost calculations such as geographical difference, experience of the team and more.

When you work with an in-house team, you need to consider the hiring process, taxes, legal issues all by yourself. On the contrary, when you work with an outsourcing company, they take care of all the things and you still have full control over the remote team.

Ravi Makhija
Ravi Makhija

Ravi Makhija is an entrepreneur, an IT professional, tech geek, founder & CEO at Guru TechnoLabs - Globally Trusted Web & Mobile App Development Company. He loves writing about new technologies and the latest trends in the IT field.