Real Cost of Outsourcing App Development Services

What is a real cost of outsourcing app development? Considering numerous companies where you can outsource development services you might be surprised how different their rates. Let us give you a full insight into outsourcing app development services and their costs.

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What impacts on the price of application?

Every development project is unique and should be discussed individually. Bespoke app is tailored to your needs and requirements. Program architecture, platform and functionality of the app are the most fundamental constituents of the final cost. At the end of the day, price range from £20,000 to millions of pounds. Of course, you can try offshoring for prices like £2,000, but do you think you will have an app that satisfies your needs?

Estimation of an approximate cost of app development?

Development of mobile and web applications is a mission-critical decision for companies that want to grow, actively engage and retain their customers, and optimise their business for higher productivity and efficiency. Bespoke app development services can’t be estimated with a fixed price; their cost depends on numerous factors, such as
  • Complexity;
  • Selected platform or platforms;
  • Integrated functionality;
  • Design interactivity;
  • Mobile-friendliness;
  • Code quality;
  • Developers’ hourly rates.
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Overall Costs of Outsourcing and In-house Team

As an entrepreneur who should guess at the future to succeed, you may believe that in long-term prospects hiring in-house developer’s team will be a better idea than outsourcing, especially if you are a huge established corporation with a prolonged project. Let’s compare these two options.

Office and management expenses

The first advantage of outsourcing in comparison with hiring in-house team is the lack of necessity to provide the development team with a working space, hardware and equipment. While finding the space and equipment isn’t the end of the problem. Team management also requires extra expenses which includes furniture cost, equipment maintenance, stationery and so much more. But what add even higher additional cost is a hiring a qualified specialist who will be in the charge of the IT department.

Training courses

Technology is a dynamically developing sphere. To keep up with all the IT trends and tendencies, learn new programming languages, and the latest technologies, developers and designers should visit different courses, meetups, conferences, webinars, read specialised literature that implies additional costs. In other words, unlike it is with outsourced company, you should constantly invest in your in-house team knowledge basement and expertise.

Salary

When you outsource, you hire an expert for a short-term commitment; you pay for the work done. You can prolong your relationships with the outsourced company paying only for a task the outsourced development team accomplish. While creating an in-house team, you start long-term relationships with full-time employees who need regular salary payment and benefits, such as health and dental insurance, sick leave, paid vacation and others whole year long. Thus in long-term prospects, hiring in-house team can be cost prohibitive.

Finally, finding the whole team versed in different technologies you might need for your development project can be a hard and time-consuming task. Outsourced companies have already done it for you.

What is a difference between outsourcing and offshoring?

Pretty often people don’t distinguish this two notions. But telling that it is one and the same thing will be a mistake; so let us clear the air. We can say that outsourcing is a general concept, while offshoring is a more narrow term. Thus, outsourcing can be divided into onshore and offshore outsourcing.
  • Onshore outsourcing means usage of the local external company for a specific internal business process or service. Such business model helps customer company reduce internal infrastructure and staff and their associated costs. The provider of IT services is present within the same country. For instance, if a UK company is outsourcing an IT company in the UK, it will be onshore outsourcing.
  • Offshore outsourcing is a process of looking for a service provider in a different country and often on the other continent. For example, if a UK company hire a Russian software company due to a lower cost, and the service provider deliver their services remotely, it is an offshore outsourcing business model. It is used to believe that North American companies are the largest offshore outsourcers to Asian IT companies, such as India and Indonesia.

Pitfalls of offshore outsourcing

Usually, smaller businesses reduce cost by sending the development overseas. A lower cost of outsourced app development is caused by the smaller cost of labour. So why pay a local developer dozens or hundreds of pounds for the work that can be done in some other country thrice cheaper? Well, the answer is easy: you get what you paid for. If you expect a high-performing effective app, you should think twice before hiring a developer for £20 an hour. Offshore outsourcing app development has certain risks you should know about before starting a collaboration with offshore outsourced software development company.
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Cultural barriers
At first glance, this may seem to be not a big deal, but it is. Besides, that foreign way to run business is different, their cultural standards for aesthetics is different, too. You will need time to understand each other, to explain your project, to make clear what do you want in the end. And the time you use for these explanations will cost you a lot in spite of the low hourly rate. If you want to give it a shot, choose the company that use Scrum, this will ensure transparency of app development and let you better control over the process even when it is offshore outsourcing.
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Misunderstanding in combination with long distance
The other risk you run is a chance that in the end, you won’t get desirable results. It is hard to explain your idea to a person sitting in front of you, especially, if you even don’t know exactly what do you want. That is why developers pretty often use agile methods which require your regular participation and feedback. In the offshore outsourcing case, you relay your ideas to a person you hardly know thousands of miles away without the opportunity to meet this person every time you want or need. In such situation you have a high risk that the cost won’t pay off. The way out may be to hire a company with a local representative.
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Cost & Quality
£20 an hour is an attractive price, but is it effective? The average cost of app development that ensures good quality is as minimal as £40-£70 an hour. Lower cost will guarantee a lower quality. When it comes to app development, such saving will hit you in the pocket in the long run. It is better to have higher initial expenses for good quality rather than have an app with numerous bugs which are much easier to eliminate starting app development from the very beginning again. Choosing an outsourcing app development, make sure that they have QA department or hire a local expert IT consultant who will help you identify whether the product is well-designed or not.
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Outsource app development services
Whether we are an onshore or offshore outsourced IT company for you we can ensure that collaboration with our development company will be a cost-effective one and bring you a high-quality app tailored to your business needs. Powerful data processing for mobile or web app will help you to increase your productivity and improve your relationships with customers. Our software development agency expertly tailors you projects matching your exact needs.
We have a complete team of professional developers and designers who can deliver you sophisticated and high-functioning mobile app.
  • Mobile app development

    We talk to you in plain English describing our opportunities. Whatever is your idea, no matter how challenging it is, we can bring it to life at relatively low cot. We build native apps on all major platforms including iOS, Android, Windows, and Blackberry using all the advantages of operating systems and devices. Our app designers consider operating systems’ individual specifications and features to create an intuitive and attractive design to ensure retention of your customers. And we pay special attention to the app security as one of the characteristics of a qualitative product.
  • Web app development

    Both startups and enterprises need efficient tools to manage their business. We offer you high-performing web apps that can optimise and automate time-consuming internal processes, improve data storage and processing, or establish better internal and external communication between your staff and between your company and your customers. Our in-house team members have expertise in both frontend and backend, being well-versed in all web technologies including PHP, ASP.NET, HTML5, CSS3, JavaScript and others.
  • Agile process of development

    Our outsourcing app development company has an established agile process of development based on Scrum methods. This methodology implies iterative cycles of results deliverance called Sprints. Every sprint we ask for your feedback making the development as transparent as possible and striving to make your costs lower. We don’t make you imagine you app; we deliver you a working program with core functionality, which is called an MVP (minimum viable product), so you can see how it works and decide what you want to improve, what features add, and what direction developers should keep to. The project manager dedicated to your development case will accompany throughout the whole process helping you with expert advice and ensuring that you always know what is going on.
  • Quality Assurance department

    Not every outsourced development company has a QA expert, while we have a whole QA department with experts in different IT areas who ensure high quality of your product. From the concept stage, these people try to predict what problems and bugs may occur during your app development. That is why our software products stand out from other apps. We don’t try to remove bugs with extra coding making your app clumsy but avoid them from very beginning for stunning results that exceed your expectations. QA initial costs considerably reduce further expenses on app improvement. When it comes to the quality, we are unrivalled.
  • How much does your app cost?

    Every project unlike the others, and there is no one fixed price for every app. The average cost of the apps we build is about £30 000 - £40 000, but it always depends on your requirements. You can easily find a real cost of outsourcing app development for your business calling us and telling about your project.