How to Outsource Mobile App Development in 2024

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Apps have become crucial for businesses today, and more and more companies invest in app development services every year. If you just take the size of the mobile app market, it’s a staggering 5.7 million apps for Android and iOS. Mobile applications have become indispensable in our daily lives in today’s fast-paced digital world.

There’s an app for everything, whether ordering food, booking a ride or managing your finances. However, developing a high-quality mobile application requires special knowledge, time, and resources. This is where mobile app development outsourcing comes into play. Many may find app development outsourcing rewarding, while others may be skeptical. Those skeptical about outsourcing have yet to understand the actual benefits of outsourcing. It’s a faster, cheaper, and easier way to develop different types of apps.

This guide will highlight the benefits and understanding of outsourcing mobile app development, explain how to minimize the risks involved, and give you some essential points to consider if you decide to outsource mobile app development services.

Understanding Mobile Application Development Outsourcing

Outsourcing, by definition, is hiring someone else to complete a specific task or project. Similarly, app development outsourcing hands your project over to a company that specializes in app development. This offers many advantages, such as expert guidance, expertise, and a faster time to market.

A mobile or web development company can be ideal for such projects. Finding the best company for your outsourcing project could be hectic. Some relevant factors are industry experience, insights, technical expertise, and communication skills.

As a business practice, mobile app outsourcing creates new revenue and opportunities. Companies use this approach widely, which helps them avoid the excessive costs of hiring and managing their on-site teams. Various global IT outsourcing statistics show promising trends in this area.

Mobile App Outsourcing – Key Statistics

According to the reports, the mobile app development outsourcing market revenue will reach $512.50 billion in 2024.
The market size of mobile app development outsourcing is expected to reach $777.70 billion by 2028 at a compound annual growth rate (CAGR 2024-2028) of 10.99%.
The average expenditure for each number of employees in the IT outsourcing market is expected to reach $146.10 billion in 2024.
The largest mobile application development outsourcing revenue share was generated globally by the United States, which was $185.50 billion in 2024.

Most Common Mobile App Development Outsourcing Models:

The most common choices for outsourcing app development practices are discussed below. But what do they include? Which one could be beneficial for your business? Let’s consider their pros and cons so you can make an informed decision:

Offshore Outsourcing:

This option involves hiring developers in a software office in a distant country, especially with a lower cost of living. Outsourcing application development is a cost-effective option, but it also has its challenges.

Let’s look into its pros and cons.

Pros

Outsourcing to areas with lower labor costs significantly reduces the cost of development.
Specialist skills and knowledge may be available in a variety of ways.
Different time zones mean tasks can be completed even when the business is closed.

Cons

Time zone and language differences can hinder communication.
Different cultural values and norms can cause conflict in the workplace.
Difficulty in seeking contract-breach redress due to differences in laws.

Nearshore Outsourcing

This outsourcing model involves a software project with a contract development team in a nearby country. For example, an Australian company outsources an American office.

Let’s examine the pros and cons to understand whether this is a good choice.

Pros

Closeness to the home country improves communication and collaboration when working hours overlap.
Similar cultural differences.
Access to skilled work from a nearby country.

Cons

Language barriers may still exist, as in the US and Mexico.
Other disadvantages of foreign outsourcing may remain.
Prices may remain high in the two EU countries’ economic zones.

Onshore Outsourcing

This onshore outsourcing model requires hiring a software development team in the same country as the startup. For example, an American startup outsources to an American software development agency.

Let’s discuss its pros and cons.

Pros

There is no language barrier because the work is done in the same country as the startup.
Cultural similarities make collaboration and communication easier.
It is easier to maintain compliance with laws and regulations.
Better control over outsourced work, especially if you are in the same room as the development team.

Cons

It is more expensive than other options, especially for startups in high-income countries.
Access to talent is limited to your home country.

Is Outsourcing Application Development a Good Idea?

Is it best to outsource a mobile app development company in 2024? The answer is yes. As you know, the IT industry is evolving so fast that outsourcing is the only option left for you to develop an app on a minimal budget and develop your dream project.

Only a few companies have the advanced technology and skilled developers to create apps. When developing applications and mobile solutions using the latest technologies, hiring an IT staff augmentation company is always the preferred choice.

Outsourcing mobile app development to an experienced and reliable foreign company gives companies a competitive advantage by reducing costs, improving product quality, and improving customer service.

With nearly millions of iOS apps and the same millions of Android apps available, the number of users is increasing daily as new businesses and innovations enter the technology industry.

Are You Still Wondering Why It’s Suitable for Your Company?

Opting for mobile app development services is not a big problem, but the problem is finding a good company. Here are some benefits of outsourcing a company that best suits you for developing your mobile app in 2024. Let’s have a look at some of the benefits:

Reducing Software Development Cost

One of the biggest reasons for outsourcing is cost savings. Companies can save a lot on operating costs and implement the project without exceeding budget. And there are several ways you can save big bucks.

Most SMBs and startups need more technical expertise and skilled people to run an efficient, error-free software development process. Initial investments in infrastructure can be significant and time-consuming.

Leverage Modern Technology and Global Talent

When you hire a reliable and experienced company, you automatically gain access to a highly qualified workforce worldwide. In addition, your team needs to catch up with the latest technology trends and required skills.

Therefore, the best way to ensure excellent quality is to use an outsourced development team, which helps you effectively leverage global technical capabilities and opportunities.

Meet Deadlines Quickly and Efficiently

As a marketer, your primary goal is to minimize time to market. By outsourcing custom software development to a team of experienced developers, you can minimize the burden on in-house developers.

Whether you outsource or just part of the entire project, an outsourced development team ensures fast, high-quality, and on-time delivery. They can also quickly plan and collaborate with your internal team and use agile software development methods to accelerate time to market.

Achieving Flexibility and Scalability

Hiring full-time developers in-house for short-term projects is not practical, especially if software development is not your core business. For example, if you want to create a successful business app to bring your business to your phone. Hiring a full-time professional for this job is pointless because there aren’t enough projects to keep him busy. You must continue to pay him even when he is not working.

In this case, outsourcing mobile project developers gives you the flexibility and scalability that you desperately need. Depending on your project requirements, you can choose the size of your development team. You can also increase or decrease it according to the project’s progress and requirements. This, in turn, helps you save a lot of time.

Better Risk Management Strategies

Outsourcing can help you reduce many risks associated with software development. First, using external resources helps avoid the risk of draining investments in infrastructure, recruitment, and ongoing maintenance. This is especially effective when you have a limited budget, a small team, and time constraints.

Second, you can reduce the risk of technical problems and costly mistakes. Since the outsourcing team has the necessary skills and knowledge in the respective fields, there must be more room for prolonged projects, missed opportunities, and customer dissatisfaction.

How to Outsource Your Project to a Mobile App Development Company?

So, you’ve decided to outsource your mobile app development team. Great, but the next question is where to start. The best option is to figure out your expectations for the team you want to end up with. To do so, follow these simple steps:

Define Project Requirements

Before looking for software development companies, you must have a clear and detailed understanding of your application ideas. If you can communicate your goals, plans, and timeline to potential partners, they can best advise you on solutions and workflows.

Choose an Outsourcing Model

Search for an outsourcing team by deciding which works best for you. If saving a budget or enabling an application 24/7 is a priority, the rest of the world is the best choice. More importantly, is close cultural or time zone compatibility. In this case, consider going to or staying on shore.

Identify the Right App Development Companies

The next step is to create a list of potential outsourcing partners based on their skills, expertise, pricing, and other key factors. Here, you should also check out the relevant app development companies and look for case studies and independent reviews that confirm their credentials.

Establish Project Management

Contracts let you decide how your relationship with the outsourcing team works. This includes establishing specific workflows, collaboration between outsourced and in-house mobile developers, and measuring and reporting progress. These considerations must fit your overall goals and should be overseen by the project manager.

Ensure Support and Maintenance Post-Launch

The benefits section mentions that appropriate support mechanisms and related services should be established and implemented before and after release. That way, the knowledge that helped develop the app can be used to maintain and improve it as users use it.

Possible Pitfalls to Consider When You Outsource Mobile App Development

When outsourcing mobile app development companies, there is a lot to be clear about the quality of the service providers. Many tech companies have had bad experiences with outsourcing, and we know how hard it is to find the right team. But you do not have to worry. Here are some of the common pitfalls to avoid while outsourcing a mobile app development company:

Miscommunication

Working with offshore teams is usually far away. However, the in-house team leader sometimes goes to offshore destinations or vice versa. But even these visits can be more helpful in correcting everything and not going wrong. So, if you want to outsource your app development to another country, be prepared to educate yourself on remote project management practices.

Fortunately, remote communication has become easier with many project planning and remote communication tools such as Slack, Zoom, and Skype.

Time Zone Differences

As the name suggests, offshore destinations are usually far from the customer’s country. Therefore, both countries must find a suitable time to meet. For example, the consequences can quickly escalate if an offshore team has an urgent problem that can only be solved with an in-house development team. Additionally, these differences can make it difficult to control the quality of the work.

However, if the time differences are too inconvenient, you can outsource application development to a nearby country or region. For example, Latin American developers may be more comfortable in the US or the UK in Eastern Europe.

Cultural Differences

Both internal and external team members have different cultural backgrounds and approaches to work. This leads to a distinct understanding of problems and even communication barriers. For example, Asian developers may hide problems and mistakes for fear of punishment. Therefore, a company must have a clear cultural code that team members must follow. And most importantly, overseas team members should be treated the same as in-house.

Escape of Confidential Information

When outsourcing a mobile app development project, the client must assign tasks to the outsourced software development agency with its sensitive information and, in some cases, even customers’ sensitive information. The client company must implement appropriate legal and organizational measures to minimize these risks.

Looking to Outsource?

Outsourcing mobile app development remains a strategic approach for companies that want to develop high-quality mobile apps in 2024. By following the key steps above and addressing potential challenges, companies can leverage outsourcing to drive innovation and reach their application development goals.