Offshore outsourcing definition
10 min read

How Much Does it Cost to Outsource App Development in 2020?

The benefits of outsourcing app development are undeniable. Having an offshore team in Eastern Europe is a great way to reduce the time and cost of the project. A seasoned software development company can offer a pool of specialists, diverse expertise and much more. Find out why you should outsource mobile app development in 2020.

Table of contents

  1. Offshore outsourcing definition
  2. Offshore outsourcing pros and cons
  3. How much does it cost to outsource app development in 2020?
  4. How much does it cost to make an app in 2020?
  5. How to pick a team for offshore mobile app development?
  6. How does the process of mobile app development outsourcing look like?
    Finding the right agency
    Building the app
  7. Should I outsource my app development?

Do you ever wonder how high is app development cost in 2020? Well, it is possible to reduce the cost of development without losing quality. The solution is simple – software outsourcing companies. For both big enterprises and newborn startups, this type of solution is often highly beneficial.

Offshore outsourcing definition

There can be different types of software development outsourcing. One of the divisions is nearshore and offshore. So what offshore outsourcing actually means?

It is very simple. The offshore development team consists of skilled developers that are based in another country or even continent (that’s often called overseas outsourcing).

Offshore outsourcing pros and cons

Let’s start with the pros. What are the benefits of mobile app development outsourcing?

  • An experienced team with different skills and knowledge

Building an in-house team can take a lot of resources, especially if you are planning to develop a complex app or other product. But if you outsource, you get a flexible group of developers, designers and specialists who are there to work for you. If there is a need to change or expand – a development company can easily make additions to the team without hiring new employees.

Except for developers, you also get project managers and/or account managers that will make sure that everything is right on track.

  • Stack of various technology

App development companies usually hire specialists in different programming languages, frameworks and systems. There are Android and iOS developers, hybrid developers and more. Each of them has their own set of skills and when they collaborate – great results occur.

  • Cost and time effective

Outsourcing to Eastern Europe, where costs of living are lower, means you can save a lot of your budget. And time efficiency is connected to the mentioned pool of specialists. When you have a big team working on your project, you can expect faster progress.

  • Time zones can work to your advantage

But that only applies if you outsource from west to east. Also, there shouldn’t be too big time gap because then you won’t be able to communicate – unless you outsource to a company that works 24/7.

But if you live in the United States and you outsource to Poland – your problems can get fixed overnight and you can still catch these developers and PMs during their 8-hour long shift.

Now, there are also some cons of development outsourcing. 

  • Delays might happen

Outsourcing companies usually work on many projects for many clients at once. This means sometimes they need to prioritize their tasks and if there’s too many of them – your product can be delayed. A fix to that is to hire app developers with strong communication and organization skills. Working according to methodologies such as Agile and Scrum can help to prepare the project for any eventuality.

  • The cost is still high

Hiring freelance developers or using off-the-shelf solutions can be much cheaper. But you have to remember that with a development company you pay for the plethora of specialists – so that decision is definitely worth the additional cost.

  • Flexibility might not be an option

Although, it depends on what you expect. Of course, freelancers can work for you at night but will they bring so much to the table? Outsourcing to a company means they work only during certain hours, but that’s nothing when you keep in mind that you have the whole team to create your product. And even if sometimes they can’t be that flexible, usually they actually are.

How much does it cost to outsource app development in 2020?

So you probably know already that outsourcing mobile app development has many advantages and only a few, fixable drawbacks. Now, let’s talk about the budget.

Is offshore mobile development outsourcing viable cost-wise? The hourly rate can, of course, depend on many factors, including the type of app, app features that we want to include, the complexity of the project, etc.

Outsourcing app development costs can vary also depending on the country we pick to hire the team. As mentioned in the article, European developers can charge from 20$ to 170$ per hour (depending on the seniority level), while in America these prices range from 50$ to 200$. No matter what type of app you are going to develop – there will be many hours to pay for. So even a small difference in hourly rates can matter for your budget.

How much does it cost to make an app in 2020?

Everything depends, of course. But keep in mind that mobile app development isn’t cheap. Mobile apps can have many functionalities. Depending on the amount of them, there might be many stages of production and deployment, including testing. App development requires a team of skilled people, so that is also a part of the cost.

To throw some examples:

  • A simple app can cost from 5000$ to 10 000$
  • A social media app price can go up to 100 000$
  • And a ride-sharing app or other complex apps can cost even 1 000 000$!

As you can see, the prices can differ but they are pretty high. That’s why outsourcing mobile app development to offshore countries, where digital agencies and development companies charge much less is a good decision.

How to pick a team for offshore mobile app development?

You know what app development cost you can expect. But picking the right team can also be problematic. You need a software house that has everything you need under their roof. Start your research by checking the website and social media of a potential company you want to hire. That will say a lot about their work culture, past projects and approach.

The portfolio should be the main focus for you. Check out what kind of industries did projects with the agency you are considering. Are they doing UI and UX design, too? Which technologies do they specialize in? Can they build native apps for Android and iOS or do they just code hybrids? Answering these questions will help you to determine if this development team is right for you.

After seeing what’s on the outside, it’s time to reach out to the company and talk to them directly. Before you contact them, prepare yourself. Know what information do you need from them, but also be ready to describe your project so everything will be clear.

Here’s a list of potential topics you should discuss with a development company. You can, of course, expand it however you please:

  • Experience with similar projects or within the industry
  • The possibility of preparing a prototype before coding starts
  • What methodologies are used for everyday work? (Agile, Scrum?)
  • What tools are used for communication and how often does the project team communicate with the client?
  • What is their technology stack and possibilities?
  • Do they have any testimonials from previous clients?
  • Are they supported by any business partner like Google or Microsoft?
  • Work culture and what are the principles you should know about

Also, ask about the model of service and type of outsourcing. When it comes to service models, there are three options to choose from: project-based, dedicated teams and extended teams. The first one means that the team is primarily responsible for the quality of the product, while the client gives the tasks, the deadline and the budget. The second one puts that responsibility on the outsourcing company. And the third one implies that only some tasks are outsourced to the external developers.

Outsourcing app development can come in different forms. These are:

  • Staff augmentation – the vendor’s employee are involved as a part of the in-house team
  • Specialist outsourcing – a part of the project or the whole project is dedicated to the service provider
  • Full custom software development – many outsourcing options, leaving the project to the outsourcing company

How does the process of mobile app development outsourcing look like?

To build your app, many processes need to happen. Project management, development process, testing, deployment and afterwards – the maintenance. But what are the actual steps of building the app with the offshore outsourcing team? Let’s take a look.

1. Finding the right agency

And then researching them. As we mentioned, there are many things to be considered when looking for the perfect outsourcing company. Do they provide a project manager? How much will it cost to build your app? Do they provide app maintenance? These and many more questions need to be asked.

After you pick the best option, it is time to establish how will your communication go, what are the goals and requirements, set the deadlines and discuss all the details.

2. Preparations

The next step is to determine everything that needs to be done in order to release the product that you envisioned. Should this be an Android app, an iOS app or maybe a hybrid app? Or maybe a native solution for both iOS and Android?

Another thing to talk through is development time. Setting the approximate timeline is always a good idea. And that can be influenced by the number of functionalities and their complexity. For example – if your app is supposed to have push notifications, it will definitely need more time to be coded. 

3. Building the app

Now the actual development can begin. Depending on the project, that includes frontend and backend programming, UI and UX design, and quality assurance. This stage can be divided into smaller steps, so all parts of the code are bugless and working properly. 

4. Implementation

When the app is finally ready to release – that’s exactly what happens.

5. Maintenance

There’s always something to change or fix. Some issues can be found by the users, even when our testing showed no signs of them. The human factor is always the final trial. Also, many projects require further growth so after implementing version number 1, there might be an immediate need to start working on the second one.

Usually, development companies offer post-project support, so you can ask about your options.

Should I outsource my app development?

If you need a seasoned app development team, you can significantly lower the total cost of the project by outsourcing. Picking the right company with a pool of talented specialists that will meet your business needs and goals can be challenging, but we recommend trying it anyway. Offshore outsourcing to Eastern European countries like Poland will be highly beneficial if you are looking for lower mobile app development cost without losing the great quality of the product.

At itCraft, we always search for the most viable solutions to lower the cost of app development. We offer complex services because we believe that every brand is unique and has different needs and expectations. Contact us and tell us about your project – get in touch with a reliable IT partner today! Also, subscribe to our newsletter so you can always be up to date with our operations.

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