Outsourcing App Development: Key Advantages, Technologies And The Best Countries For It

According to the research data presented by Statista, almost 3 million apps were available to download in 2021. Every day, an idea starts growing into an app and enters the market lately. One of the reasons for the rising number of new apps released is affordability. The mobile app development cost decreased over the past years because of outsourcing. 

Outsourcing App Development: What Is It? 

The bunch of fresh, highly trained, and relatively cheap for growing business and startups programmers has led to massive outsourcing. Let’s begin with the definition of this concept. Outsourcing is the process of hiring third-party companies or specialists to produce goods or perform services that were initially performed by the company’s in-house staff. Thus, outsourcing app development is the process of hiring third-party app developers who’d build a cross-platform mobile app for your business. 

Benefits Of Outsourcing App Development

Outsourcing app development is a popular strategy adopted by many businesses and startups. Let’s see what are the main reasons to outsource mobile app development.

Options For Outsourcing App Development: Team Vs Freelancer

If you cherish an idea of a new mobile or web app, a puzzling question may arouse: “Should I hire a freelance developer or turn to a development company?” The decision you’ll make will influence the entire development process and define the quality and success of the final app. Let’s consider all the pros and cons of freelance programmers and development agencies to help you make the right choice.

App Development Company

Hiring an app development company means hiring a separate company to complete the task using its own staff. Such agencies employ highly skilled app development specialists including designers, analysts, testers offering a complete package of services. Hence, when you outsource mobile app development to an app development agency is a win-win strategy if you need full-cycle development services.

Pros

Stability

Many development companies have already established a good name on the market. They are legal entities and you verify that by checking out various documents. This minimizes (if not eliminates) the risk of disappearing resources.

Wider Range of Expertise

Development companies are able to provide clients with a team that would possess a broad range of skills based on the requirements of your project. All specialists you need to develop a full-fledged app for iPhone or Android are gathered in one place.

Easier Management

You communicate with a third-party agency to make sure the project is going the right way. Such companies willingly report and comment on every stage of the development process. Development agencies guarantee the in-time and high-quality delivery of an app. 

 Cons

Higher Cost

Сompared to freelancers, development agencies have higher payroll costs, administrative costs, and other expenses. Generally, they work from an office and thus need more to maintain a workflow. Thus, hiring an agency would be more expensive.

Where To Look For An App Development Company

Probably the best place to reach for an app development company is in your network or search in its majesty Google. In the first case, you may rely on recommendations from companies that have already dealt with outsourcing app development agencies. In the second case, be careful and thoroughly vet the companies you find there.

Freelance App Developers

A freelance developer is a self-employed professional offering a set of services on a pay-per-project basis. As a rule, freelancers work on multiple projects for different companies. Hiring a freelancer is the best solution if your project is simple or you only need to enrich your team with one or two specialists. Here are the main merits and disadvantages of hiring freelancers.

Pros

Affordability

Most freelancers work from their homes, they also lower overheads and lower administrative expenses, and outsourcing app development cost reduction. Thus, cooperation with freelancers is a cost-saving decision especially if you outsource mobile app development to overseas developers.

Focused Expertise

Every freelancer has a certain set of skills and expertise in a narrow area. Thus, if you exactly know what kind of skills your team is lacking, hiring a freelancer is would be a better option.

Temporary Contracts

Freelancers are the go-to for temporary projects. Businesses hire freelance developers to complete a particular project and rehire them in case of a favorable experience of cooperation.

Cons

Quality

Some freelancers only seek to complete the project with minimum effort. They may skip some important aspects negatively impacting the quality of the final app. 

Lack of Reliability

Very often, freelance developers reside in different cities and even continents. There’s no guarantee that a freelance won’t just disappear in the midst of your cooperation.

Slower Time To Market

As mentioned above, freelancers often work with multiple clients simultaneously. Hence, if an unexpected issue that needs immediate resolution comes up, a freelancer may not be available to solve it.

 Where To Look For Freelance Developers

If you’re taking a freelance route, the best way to find reliable and professional freelancers is to surf specialized platforms like UpWork, Freelancer.com, Guru, and PeoplePerHour. Tech blogs like TechCrunch, Wired, or creative communities like Dribble or Behance are rich with talented developers either.

Outsourcing App Development Cost Examples

Of course, the cost of application development is a purely individual matter and is affected by factors such as the scale of the project, the number of features, the number of platforms, etc. However, the main factor influencing the cost is the developer's rate per hour and the programming language.

To make it clearer let's look at developer rates for React Native, Node js, Flutter as top 3 development languages in 2022. We will compare the United States, Eastern Europe as one of the best regions in terms of price/quality ratio, and Ukraine as the most promising country in Eastern Europe in this context.

React Native average developers' rates per hour

• USA: $80
• Eastern Europe: $56.31
• Ukraine: $45.41

Flutter average developers' rates per hour

• USA: $60.97
• Eastern Europe: $50
• Ukraine: $44.80

Node.js average developers' rates per hour

• USA: $80
• Eastern Europe: $55
• Ukraine: $42.30

As you can see, it is twice as profitable to hire a Ukrainian developer than to have one in the USA. Let's have a look at Uber and Doordash in terms of price to make it more evident.

Uber

Hardly anyone hasn't heard of Uber. Especially if you live in major cities. At one time, this app changed the world of transportation forever. The main functions of the application are ordering a cab from a mobile device, the ability to pay with your phone, and GPS tracking.

The development time for such an application is about 3-4 months. The minimum team of specialists is 6 people.

• PM - 80 hours
• IT-architect - 50 hours
• Designer - 150 hours
• Front-end development - 360 hours
• Back-end development - 800 hours
• QA - 80 hours

Thus, in the U.S. the development of such an application would cost about $100,000, in Eastern Europe about $60,000, in Ukraine, the development of an application like Uber would require $40,000.

Doordash 

An app for ordering food. Its main functions are admin panel, menu management and work with couriers.

The development time of such an application will also take about 3-4 months. The minimum number of specialists is also 6.

• PM - 80 hours
• IT-architect - 40 hours
• Designer - 160 hours
• Front-end development - 410 hours
• Back-end development - 720 hours
• QA - 70 hours

As in the previous example, in the US the development of such an application would take around $100,000, in Eastern Europe it would be around $60,000, in Ukraine, it would cost only $40,000.

The Best Countries For Outsourcing App Development

Outsourcing to development companies overseas is a common practice. The most common things to consider while thinking of the best countries to outsource mobile app development are the ability to communicate in the preferred language, the quality of the IT market, cost-effectiveness, time zones, and educational infrastructure. These factors create a large talent pool of developers to choose from. Here are the top 3 destinations for outsourcing app development. 

India

Pros

Proficiency in English

According to the survey, India is ranked #5 Asian country with the highest English proficiency. Many locals speak decent to fluent English which eliminates the language barrier. You’ll have no trouble communicating work requirements with Indian employees. 

Cost Effectiveness

One of the major reasons for outsourcing mobile application development is cost reduction. If this is the aim your company pursues, you will appreciate the outsourcing app development cost of outsourcing to India. The country has a low cost of living compared to the USA and thus you’ll have to pay just a fraction of what you’d pay to an American employee.

Large Talent Pool

The vast pool of high-skilled gems is another motive to outsource mobile app development to India. India churns out thousands of talented programmers annually from its multiple schools and universities. Most of them are well aware of the most innovative technologies for the effective completion of the tasks given, especially for high-quality app development.

Cons

Time Zones Difference

Yet Indians are generally good at English, you still may face some difficulties in communication. This is due to different time zones. While messengers and other virtual communication tools can help you cross the distance, there’s nothing they can do with time distance. Between Washington and New Delhi, there’s a 9h.30 min difference. The chances your team may be simply resting while you’re full of inspiration for work are pretty high.

You Need To Be VERY Specific In Your Needs

When working with Indian partners, you MUST be very specific about what you’re expecting from your cooperation. If you missed something or your instruction was not detailed enough, this is your problem

China

Pros

The Growing Market Of China

Outsourcing to China is an easy way to access one of the world’s largest economies. In China, more people live than anywhere other in the world. Their economy has been growing rapidly over the past 30 years. Assessing China’s market can be challenging but the outsourcing agreement can break the ice. Relationships with Chinese partners can become for a lifetime.

Fastly Developing IT Market

Сhina is home to many of the fastest-growing IT markets. In fact, China produces as many as 4.7 million STEM graduators annually. Outsourcing mobile application development to China gives businesses instant access to competitive and sophisticated research and technology. 

Affordability

Yet the outsourcing app development cost to China is higher than that to many other countries ( hourly rate $50-$100 compared to $15-$25 in India), this is still much lower than the rate U.S developers charge. 

Cons

Poor Knowledge of English

In 2017, the survey found only 10 million of China’s 1.3 billion population speak English. The low English proficiency among Chinese residents is one of the most severe drawbacks of outsourcing to China. 

Copyright Respect May Be Lacking

China is known to have lax enforcement of Intellectual Property laws. When you outsource mobile app development to China it increases the risk of plagiarism of your app. You can avoid that by hiring a reputable agency and signing an agreement with clear rules regarding plagiarism. 

Ukraine

Pros

Strong Emphasis On IT Sector

Ukraine’s main asset is its number of educated and well-trained professionals. Each major city has tech Universities and more and more school graduators choose IT-sphere for their future professional growth. Specialists from Ukraine are well aware of the world’s latest trends and innovative technologies of app development. This is also followed by affordable app development rates ($25-$50 per hour). 

Readiness For Troubleshooting

Another important advantage of Ukraine as the outsourcing mobile application development destination is the local troubleshooters in action. Let’s face the truth, problems occur and very often unpredictably. Ukrainian developers act not only as coders but also as the creators of quick and effective solutions. 

Client-Oriented Approach Of Ukrainian Companies

Ukrainian outsourcing companies can offer a wide spectrum of services “under one roof”. Ukrainian developers offer clients as much as possible to cover all the requirements of the app development process This customer focus overlapped with the European mentality makes Ukraine an excellent place to do business in. 

Decent Level Of English

The language barrier is a minimal issue in cooperation with Ukrainian companies. It’s estimated that 85% of Ukrainian developers in outsourcing speak English. Negotiating work requirements and communicating with Ukrainian techies is a hassle-free process.

The Example Of World’s Most Reputable Companies

Ukraine is a well-tested country to outsource mobile app development which is proven by the example of global companies. Ebay, Apple, Deutsche Bank, Dell, Microsoft, Huawei, and many other companies have already opened their R&D centers in this country. 

Cons

Unstable Political Situation

This is the major drawback of outsourcing mobile application development to Ukraine you may think of. The war on the East is in progress and covers about 10% of the entire territory. On the one hand, the rest of the country is stable. On the other hand, the tension and risk of the war breaking out on the entire area still exist.

Problems With Paperwork and Bureaucracy

Business and trade barriers and more severe than with the EU. It means you’ll have to face tons of paperwork and bureaucracy to establish business relations with Ukraine.

Top Tips For Successful Outsourcing App Development

Strategies on cost reduction, high-class features, keeping the deadlines, effective post-release support, and ultimately a good app. Let’s get all these done with the help of these 3 tips.

Know Your Requirements

Setting your expectations and app requirements is the very first step to make towards a successful outsourcing development. Creating a clear understanding of what you want to get in the end and delivering these needs to a development company will set the right vector. So before you outsource the development of your app to the third-party agency, decide on the following questions: 

• What is the purpose of my app?
• Who is my target audience?
• Should it be an iOS or Android app?
• What additional features do I need?
• What would be the right monetization strategy?

And always remember to communicate and collaborate. Never underestimate the value of communication, clarifying misunderstandings, and answering questions promptly.

Pick The Right Option

Make sure you choose the company that can fulfill your requirements. Of course, there’s no one-size-fits-all solution. It all depends on your needs and of course, your budget. Generally, there are three types of outsourcing companies.

• Onshore Company. Such a company is located in your country. It offers a few relevant benefits like fast delivery, facilitated communication, and the ability to sign up a contract according to your country’s law. Nevertheless, if the budget is a concern, an onshore company may not be the best option for app development.
• Offshore Company. Offshore companies are located overseas. Communication may be impeded due to the difference in time zones. Cooperation with offshore companies is generally a cheaper option.
• Hybrid Company. Such companies have both offshore and onshore workforces. This is a good choice in terms of cost reduction as most of the work is usually performed by overseas developers.

Discuss The Costs

Any app development is associated with expenses. Some companies charge fixed fees while others charge fees depending on the complexity and scope of their services. The major aspect in defying the final outsourcing app development cost is determining your scope. 

Cross-platform app development (e.g applications for iOS, Android, and Windows devices) puts extra cost. There may be additional charges for some special functions. Always discuss the matter of hidden costs at the early development stages. It will let you prepare your pockets and your mind to see an agency add a few zeros to the final price. 

Some companies, however, may cover insufficient extra costs to increase their financial value.

 Wrapping Up

Outsourcing is a popular business model adopted by companies and start-ups around the world. Outsourcing app development to a third-party agency can significantly advantage your business by bringing more financial profit, accelerating the time-to-market period, and adding to the product’s quality. India, China, and Ukraine were admitted to be the best destinations to outsource whereas the choice of freelance developers vs development agencies depends on the complexity and scope of your app. Making sure outsourcing will bring satisfying results is another issue. By following the simple tips presented above, you can make sure to receive a successful outsourcing experience.