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

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

• number of required features
• amount of time product owner can spend on team management
• team’s expertise in specific business domain and knowledge of specific
  regulations
  in this domain
• readiness to take on a partial project and coordinate efforts with another
  team (if
  needed)

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:

• stepSearch for professionals

  Use Google search. You can also consult online field guides such as
  Clutch,
  the standard for “data-driven field guides for
  B2B buying and
  hiring decisions”. Set up search parameters based on your preferences
  (location, hourly rate, average review rate, etc.). Read reviews about
  company projects. This gives you a bigger picture on mobile app
  development outsourcing provided by companies.

• stepList your top 10

  Select the companies that best suit your criteria. When you have a list,
  it is easier to do a thorough evaluation. Go through each company
  profile. Visit each website and learn more about them. Find out what
  businesses outsource app development projects to each company. If there
  are similar projects in the portfolio, the company could probably handle
  yours.

• stepShortlist five

  Now reduce the list to five. These are your candidates. You are going to
  outsource mobile app development to one of these companies. Your next
  step is to communicate with each of them personally and learn more about
  the companies and people who work there. Send your requirements and
  request a call with a project manager.

• stepHold interviews

  Prepare a list of questions. Ensure the list and format are the same for
  all companies. You need to have the same format and questions to help
  your decision-making process. Set up a call with each company. Discuss
  project details. Listen to the company’s suggestions on project
  implementation. Ask questions and observe the company representative’s
  reaction to them.

• stepRank companies

  After you have met with the companies, give them points from 1 – 5 for
  each criteria that matters to you (price, response time, level of
  interest, competence level, etc.). Give each interviewed company points
  for every category indicating both strong and weak sides.

• stepSelect the best provider

  Now you have your top choice that suits your project requirements. You
  can start refining estimates and discuss details on cooperation.

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:

  

  Still, the biggest platform value is verified reviews. Company managers
  conduct interviews with software development company clients ensuring
  trusted, accurate information is published.

  Companies receive badges and rankings based on their performance in the
  system. Try different sorting criteria to refine your list.

• Goodfirms

  This company is similar to Clutch. It also provides various rankings and
  does a comprehensive search through the platform. When accessing a
  certain category, users can look through the overview ranking or switch
  to the research section which is more illustrative.

  Goodfirms
  provides more options.
  Apart from written
  interviews, video
  reviews are available. Users benefit from buyer’s guides.

  Still, Clutch’s evaluation system seems to be more encompassing and
  transparent.

• Upwork

  This is a renown platform for freelancers.
  You can hire almost any specialization here from all over the world.

  Use job success rating to select top performers. Owners of “Top
  Rated”
  badges care about their reputation to keep receiving contracts. You
  ensure professionals provide you with results on time.

  Companies are also present on Upwork that has their own profiles.
  This
  is why Upwork can
  be a place where
  you find a provider
  for reasonable
  costs.

Checking a company’s services and expertise

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

• Go through the services section.

  See what service range a company can offer to you (e.g., in on-demand
  app
  development).

  A great company can pick up your project right at the point you need
  them.
  It can:

  • 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

  …and more.

  Make sure it provides services you need.

• Look at the company’s portfolio.

  A company’s list of accomplished projects speaks best about its level.
  See what software solutions make the company feel proud. Go through
  challenges and wins on projects.

  For example, IT Craft has handled projects of different complexity,
  different life-cycle stages.

  Here are two projects for illustration.

  • 
    
    

    OrderPort

     

    Native
    iOS app

    OrderPort is a mobile Point-of-Sale
    (POS) for wine businesses. This
    app makes it easy to manage
    different types of wine sales. It also supports
    inventory
    tracking, analytics on sales rates, and
    more.
    The client wanted an iPad app. He had source code for part
    of the app. The IT Craft team started with an in-depth code
    review to ensure it could handle requirements. The team
    fixed errors and worked on preparing a detailed project
    specification for missing functionality. Then the
    development stage started. The app was launched and the team
    continued working on its updates and optimization.

    OrderPort is a mobile Point-of-Sale (POS)
    for wine businesses.
    The client had source code for part of the app. The IT Craft
    team started with an in-depth code review. The team fixed
    errors and worked on preparing a detailed project
    specification for missing functionality. Then the
    development stage started. The app was launched and the team
    continued working on its updates and optimization.

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

    eBillity

     

    Native iOS app

    eBillity apps make it possible to
    manage and approve employee’s timesheets. Employees can
    enter the time they spend on a task from any place, any
    device. eBillity app transfers information automatically to
    accounting or payroll software.
    The client already had a Web app, an Android app, and an API
    developed by another team. He needed to expand to the iOS
    platform. IT Craft’s task was to build a native iOS app
    using the client’s UI design and ensure the app synchronized
    smoothly with other parts of the system. After the iOS app
    was launched, the team eliminated bugs in the Android app
    and API helping improve the entire system.

    eBillity apps make it possible to manage
    and approve employee’s timesheets transfering information
    automatically to accounting or payroll software.
    The client already had a Web app, an Android app, and an API
    developed by another team. He needed to expand to the iOS
    platform. IT Craft built a native iOS app using the client’s
    UI design. After the iOS app was launched, the team
    eliminated bugs in the Android app and API helping improve
    the entire system.

    • Objective-C
    • CoreData
    • CocoaTouch

• Check testimonials.

  Satisfied clients are willing to leave their feedback sharing their
  cooperation experience.

  For example, this is what Martin Berg thinks about working with IT
  Craft’s cross-platform development team:

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.

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:

• Determine aims and specifics of the future app
  development project.

• Make it clear about the scope of work. Ask for help if
  you are not sure.

• Find a team capable of providing you with these options.

• Take an active part in the development process or assign
  a product owner to the project.

• Ensure developers have time to improve code base and
  write documentation.

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!