How to Outsource App Development in 2023: To Succeed, You Must Follow These Four Points

All businesses planning to outsource app development need to consider different options to pave the best path to their goal. As a product owner, you need to ask
relevant questions. The more precise the questions, the more precise the answers
you get and the greater your chances to launch your app on time and on budget.

Most risks can be eliminated before development starts.

This post analyses how to outsource app development and achieve a win-win
working relationship.

Escape most common mobile app
development pitfalls. Use the points
below to
figure out realistic answers about mobile development outsourcing.

Why (and when) to opt for outsourcing app development

When a company plans outsourcing app development, it is crucial to articulate
expectations. What are yours? Do you want to cut long-term costs? Add missing
expertise in a specified area? Expand rapidly to a new platform?

As a product owner, when you plan carefully, your chances of finding the best
team increase greatly.

It is equally important to figure out the beginning and end points of
application outsourcing (launch? app updates? migration?).

The following questions are essential because they directly affect
outsourcing
app development scope and timeline:

• Are you starting from scratch or expanding an existing software solution?
• Are you integrating it with your company’s existing solutions?
• Will your app use smartphone hardware (accelerometer, Bluetooth, etc.)?
• Do you already have some source code? Do you want to use it?
• Are there any industry-specific regulations the development team must keep
  in mind?
• How many users do you expect?
• Do you want an app for internal use? Or do you plan to sell it?
• Do you want to hire an outsourcing development team to complete app
  development?
• Do you also want ongoing maintenance?

Some answers might reveal obscure but essential information for the future
development team.

At the initial stage, the product owner needs to determine the right
strategy.
He needs to consult a person with a strong technical background.

• Example 1 A company has a Web app and an Android app. They now need
  a team to develop an iOS app. When building an iOS app, the development
  team must keep the architecture of existing apps in mind. They should
  avoid starting from scratch and designing their own. They must remember
  app synchronization and other important features.
• Example 2 Initially, a company needs to decide whether they plan on
  developing an internal app or an app for sale. The apps have different
  app architecture. A sudden pivot in the middle of the development
  process means major code base redevelopment. Avoid this costly and
  avoidable work on the project.

Choosing among many outsourcing app development options

The market of application development outsourcing encompasses the entire world.
There is a variety of offers in the market. Companies have flexible terms of
pricing, technologies, and cooperation models. You can choose a cooperation
model
best suited to project needs.

The choice of outsourcing app model depends on:

• desired budget
• planned timeline
• scope of work

– app only development – app development and maintenance – app development, maintenance, and regular updates

Make a list of priorities. Think what fits in with your priorities.

In-house development vs. mobile development outsourcing

The first thing that comes to every project owner’s mind is choosing between
the in-house team or application development outsourcing. Both can be great when
specifics and limitations are understood.

With an in-house team, you build the processes and adjust them flexibly. An
in-house team is available within the same business hours. Business keeps
critical
project knowledge internally. Fewer people have access to sensitive information.

On the downside, an in-house team is expensive. Apart from high salaries and
benefits, it takes a lot of time to find, hire, and retain a missing specialist
in
this overheated market. Business needs to keep an HR department, think about
perks
and bonuses for its employees, safety measures, and more.

In its turn, an outsourcing team is a faster and cheaper option. As a
business, you
do not pay for recruitment and onboarding. Also, a team from a cost-effective
region
can be 2 – 3 times cheaper due to lower hourly rates. Usually, a team can start
a
project fast. No need to wait until vacant positions are filled. Team size can
vary
based on your needs: fast upscale, fast downscale.

However, outsourcing, too, has its downside. You will need to spend time on
communication and alignment. Expect delays if the team is located in a distant
region and the overlap in business hours is short. Clarifications and approvals
might take more time than expected.

You can get the best from both approaches by mixing them. Try team
augmentation.

Team
augmentation means you can have two or more teams
simultaneously working
on
your project. One team focuses solely on its part of the work (e.g., outsourcing
app
development) and coordinates its activities with another team (e.g., with the
other
team focusing on API development.)

A hybrid team takes the best from both application development outsourcing
and
in-house development. You retain control over your software. You can upscale and
downscale fast and for reasonable costs.

Team engagement

When you outsource app development, you can choose the cooperation model that
fits
in with your further plans.

Do you have no IT department right now but are working on establishing one?
Or do
you plan to continue mobile app development outsourcing?

Based on scope of post-launch activities, there are two main outsourcing app
development models:

Delivery team – team launches the app and
switches to the next project.

Dedicated team – team continues working on app
maintenance
and updates after
launch.

Focus

Technological stack and focus
usually depend on company details,
including:

• general development companies
• companies specializing in a specific industry (e.g., telemedicine
  app
  development)
• companies with specialization in a certain technological domain (e.g.,
  Virtual
  Reality, data mining)

General development companies have broad experience and low hourly rates.
Specialized companies have specific experience and higher rates (and
accomplish
certain tasks more quickly). It makes sense to consider companies of both
types
depending on your requirements.

Here are the best scenarios for your project:

The company has launched a similar project
recently. They know
how to handle your project and can provide you with a precise
roadmap.

The company has experience in your industry
– They need less time to get specifics of your business and correct
their plan as soon as they dive deeply into details.

The company has worked on a variety of
projects and can provide you with a relevant project map. The
company might lack narrowly focused expertise but they are flexible
and can learn fast.

Pricing

Pricing directly affects the budget. A company’s hourly rate depends mostly on
its
location. Prices increase from East to West. Eastern-Asian companies are
cheapest;
US/Australian companies are most expensive.

Whatever destination you choose, you can negotiate on one of two main pricing
models:

• Fixed price
  – You agree upfront on project costs. Projects
  with clearly defined
  scope are better-suited for this.
• Time and
  materials – You pay based on how much time the team
  spends on your project.
  This works for projects with flexible requirements.

For example, you plan to create a
fitness app from scratch. You do
not
have an
in-house team. You have assumptions and might need to change requirements based
on
user requests. You will also need someone to make updates.

Your clear choice is completely outsourcing to a dedicated team. It is best to
choose the time and materials pricing model.

Can both approaches be mixed? Yes, as long as you keep balance between costs and
flexibility. If you do not want to keep up with costs and stay flexible, set up
a
monthly budget and ask the team to notify you in advance when they are likely to
exceed it. Any changes done are based on how much monthly budget remains.

Cost to outsource app development at a company

Costs of mobile development outsourcing for an app of average complexity could
vary between $16,000 to $80,000. Costs could easily skyrocket to $150,000 to
$200,000 for complex apps.

To help you see the big picture, let’s consider several app types. Below are
costs needed to develop a “typical” app:

Also add app maintenance. Its cost equals 15% – 20% from initial costs per year.
For example, if making a
social media app costs you between
$48,000 and
$120,000, maintenance will cost you between $7,200 and $24,000 per year.

Steps to outsource app development to the right team

When you have a list of requirements and have outlined specifics of the project,
it is much simpler to find the right team for mobile app development
outsourcing.

You can divide the entire process of finding a team into six steps:

step Search for professionals

step List your top 10

step Shortlist five

step Hold interviews

step Rank companies

step Select the best provider

What if your top choice cannot start the project when you want to start?

Where can you find a company for application development
outsourcing?

The first step is crucial: finding and booking a reliable development team.

Try searching through the following platforms:

Clutch

Again, Clutch is a great
information
resource. You can
segment search
results based on multiple criteria. Get comprehensive information about
a company from its profile, go to its website, or get in touch
immediately. For example, this is what IT Craft’s profile looks like:

Goodfirms

Upwork

Checking a company’s services and expertise

When you decide to outsource mobile app development, also check all the company
websites.

• translate a business idea into technical requirements
• design a realistic roadmap
• prepare app design and source code
• extend your presence on platforms
• help you reach missing deadline
• optimize app infrastructure

OrderPort

• Swift
• Objective-C
• WorldPay API
• ScanAPI
• GooglePlaces

eBillity

• Objective-C
• CoreData
• CocoaTouch

Risks when you outsource mobile app development

Reality can be stressful. Especially, when it becomes distant from the imagined best-case scenario of app development for startups.

Unfortunately, risks are a part of any business activity. You can bump into them
when you outsource mobile app development.

Consider the following risks when preparing your plan. Discuss risks with the
team to test their reaction and the solutions they offer.

• Delivery delaysThere are three possible sources of delayed delivery: inaccurate
  estimates, sudden changes of scope, and long approval times.Even the best development team might occasionally provide a wrong
  estimate. Still, a good, dependable team will also provide an
  explanation and a plan B.Regular deadline violations are a sign of a team’s incompetence. When
  interviewing a team, ask them about their routine in case of discovering
  the wrong estimate.Also, appoint a product owner—a person who responds quickly to team
  requests to ensure the team does not stay idle.Or you could be that person.
• Higher costs than expectedYou can expect costs fluctuations in case of flexible requirements or
  change of scope throughout project completion. Developers might spend
  more time than anticipated but provide improved source code.However, huge cultural differences must be factored e.g., in attitude
  towards deadlines, transparency, or promises.Insincere companies might include hidden costs to the contract terms.Rule of thumb: avoid the team with the cheapest estimate, who
  promises
  to deliver everything but struggles to show how they will keep their
  promises.
• Irrelevant technologyChoosing the technological stack can be tricky. On one hand, the team can
  be experts in a certain technology providing a solution faster and for
  less. You launch software on time now. On the other, app updates and
  maintenance become clumsy costing you money in the future.For instance, we have completely redeveloped hybrid apps using native
  approach.The only advice here: share the bigger picture with your team where
  your
  solution will be in 3 – 5 years. They may offer a more expensive but
  also a more sustainable path.
• Inappropriate management / pricing
  modelA fixed-price contract makes it clear how much you pay when you outsource
  mobile app development. However, it works best on simple projects with
  clear scope. If you want changes, this will change the scope. The team
  will adapt and draw up an extra agreement extending timeline and
  increasing development costs.Prepare for flexible budgeting with time and material. In return, you
  can introduce changes to app requirements. But time and material may be
  redundant for simple projects where no increased scope is expected.
• Vendor dependencyOnce a business has little knowledge about how its software works, the
  development team who knows project details could well become
  irreplaceable. They might lose motivation for technical excellence and
  lower the quality of their deliveries.Make sure you retain ownership over your system. Look for a team who
  provides you with a guarantee period, well-commented source code, and
  comprehensive project documentation.

How to outsource mobile app development: dos and don’ts

Outsourcing means less control over a team’s activities. This can be
uncomfortable.

Transparency is crucial. Regular, two-sided communication is the key to success.
It helps outsource mobile app development with minimum risks.

Below is advice on building workflow.

DOS

• Always start small – Provide the team with
  a small pilot project and
  see how they manage it. This can be Software Requirements
  Specification (SRS), code inspection, or launching a minor feature.
  The goal is to test drive the team’s skills.
• Maintain transparency – Ensure the team
  speaks openly on project
  issues. Issues can happen during an outsourcing app development
  project at any time. If the mobile app development team is not
  afraid to immediately log issues, solutions are done at the lowest
  possible cost. A cultural discrepancy can magnify issues. Ensure you
  are on the same page as your chosen team regarding transparency.
• Share essential information – When working
  on a project, the
  development team must keep end users in mind—their preferences, and
  their habits. This increases the likelihood of designing an app
  users want and need.
• Ensure knowledge transfer – Besides
  well-commented code, the team
  usually prepares project documentation and a wiki. This way, every
  new developer or new team can start working with minimal
  preparation.

Don’ts:

• DO NOT leave the team
  without a
  product owner – Every project needs
  a person who can make a timely, final decision on an issue. If not,
  app development loses its momentum. The risk of missed deadlines
  becomes reality.
• DO NOT force the team
  to finish a Sprint scope at any cost – unless
  this is critical for survival of the business. When part of the
  functionality cannot be completed within a given timeline, it makes
  sense to extend its development time. The result of not following
  this rule will be technical debt and a crashing app (= high
  redevelopment costs.)
• DO NOT ask for
  requirement changes on a fixed-price project – New
  requirements take more time. If you try to include a new scope into
  an existing agreement, the team will try to reach it within the same
  timeline. As a result, compromises are made. You might end up with a
  disappointing result. Hence, new requirements are only possible with
  a separate agreement and a separate estimate.
• DO NOT make a serious
  mistake by not allocating time/money for code
  refactoring – Every app accumulates technical debt with time.
  Programmers need time to improve any source code they develop. When
  no time is allocated for this, app maintenance might become
  challenging.

When outsourcing app development, the fewer unknowns, the greater the
possibility for on time and on budget delivery.

Follow these DOs and DON’Ts.

Effective mobile app development outsourcing: A summary

Your success depends on choosing a team that meets your expectations. Think in
advance what is and what is not important for you.

Choose a company most comfortable to you based on pricing or cultural
similarity. By the way, Eastern Europe maintains a pleasant balance between
development costs and cultural similarity.

Make sure you go along this five-step path to outsourcing app development:

Thoroughly check a company’s background. Test a company’s skills with a pilot
task
before starting a big project.

Wishing you a successful launch!