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How Much Does It Cost To Outsource App Development in 2021?

Sophia Martin 179

Have you got a billion-dollar idea for creating an app for your business? What will you do and decide next — outsourcing the app development or choosing to hire a team on your own?

Well, it’s a never-ending hot arguable topic among businesses!

Some entrepreneurs blindly believe that in-house app development will be a better choice as it gives you full control of the team. But, statistics claim that more than one-third of small businesses (37% IT services) have opted to outsource a business process as it helps in cost-cutting and increases the availability of skilled engineers.

The leading titans of the industry like Google, Slack, and Skype have been effectively using outsourcing for years and leveraging the perks of offshore mobile app development.

But, if you are a startup founder, an active entrepreneur, or a business owner- who is in doubt about how to outsource app development, how much does it cost to outsource a mobile app development and the best practices of outsourcing the app development, then you have landed at the right place.

Till now you must have heard about the pros and cons of outsourcing app development. But you have often ignored the fact that there are many technology startups who have scaled up to full-fledged companies by simply outsourcing their core or secondary app development.

Here is the table of content:

  • How Much Does It Cost To Outsource Mobile App Development?
  • How Much Does It Cost To Build an App in 2021?
  • What Exactly The Process of App Development Outsourcing Involves?
  • How To Outsource The Right App Developers- Revealing the Signs of Good Mobile App Outsourcing Company
  • Conclusion: Should You Outsource The App Development?

Let’s get into the depth of these points for better understanding:

How Much Does It Cost To Outsource Mobile App Development?

With the increasing benefits of outsourcing, undoubtedly more and more companies are inclining towards offshore app development services. But how much does it cost to outsource an app development is one of the most often asked questions.

Well, asking this question is more like asking about the cost of buying a car. Like asking the price of a car depends upon the model, year of making, brand and more, in the same way, the cost of outsourcing an app is defined by the project requirements, operating platforms, the technology used, developer’s experience, location and more.

Coming to the bigger picture, to calculate how much does it cost to build an app, businesses can either estimate the number of hours required to develop each feature multiplied by the hourly rate of their developer.

The hardest thing here is to understand the hourly cost to hire a mobile app developer. However, for all those enthusiasts who better understand numbers, the cost of developing a mobile app ranges between USD 20,000 to 40,000+.

Now you must be wondering why there is a huge variation in the app development cost?

Put your all attention at this point, understanding this fundamental concept will help you gauge the cost to build an app. As the hourly cost of the app developer goes up, the time it will take to develop specific features and functions go down due to their expertise, skills and knowledge of handling the task.

So it would be best to push up the budget of your project as high as it can go in your circumstances. But, if the truth is to be told, a simple mobile app development would cost a few thousand dollars whereas an app with multiple complex features and functionalities will quickly add up to your budget.

How Much Does It Cost To Build an App in 2021?

With the above statement said, that the cost of outsourcing mobile app development can greatly vary between USD 20,000 to 40,000, many startup founders are in a dilemma whether their app idea would fit this budget?

The simple answer to this question is — it depends on your business needs and the below parameters:

  • What type of mobile app are you planning to build?
  • How complex is your app design?
  • What features and functionalities are you trying to implement in the app?
  • Whether you are using the latest technologies, tools or frameworks in the app?
  • Which operating platform do you choose to target?

Considering the above parameters, we have made it simple for you to understand the app development cost with the rough estimations:

  • A Simple App can cost from USD 17,000 to 20,000+ with a basic display of information and the implementation of basic features.
  • A Moderate App can cost from USD 20,000 to 25,000+ with its own database, which collects information and interacts with a backend.
  • An Advanced App development cost can range between USD 30,000 to 35,000+ with the full-fledged integration of advanced features and functionalities with several backend platforms, complex UI/UX, accepting payments from multiple gateways and other complex features.

If you are new to the app development market and looking for the overall cost of the app development, then here is the average cost breakdown for some popular mobile app outsourcing solutions:

  • On-demand Grocery Delivery App Like Instacart- USD 25,000–30,000+
  • Social Media App like Instagram — USD 20,000–25,000+
  • An Online Marketplace app like Etsy — USD 25,000–30,000+
  • A Taxi Booking App Like Uber or Lyft — USD 17,500–20,000+
  • An Online Marketplace App For Property Rentals like Airbnb — USD 25,000–30,000+

Also, the pricing can be greatly varied as per the hourly cost of the developer depending on the region you prefer to hire a developer.

What Exactly The Process of App Development Outsourcing Involves?

When it comes to developing a mobile app, there are a lot of things you need to go through including project management, analysing the business scope, development process, UI/UX design, app testing, deployment, update and often maintenance. But what are the actual steps in building the app with the offshore outsourcing team?

Not sure? Let’s take a look:

  • Getting Collaborated With the Best Choice of Outsourcing Company

Finding the best app development team for your project is one of the most daunting tasks for businesses. There are so many things to consider while looking to hire the perfect outsourcing app development company. With thousands of software development companies are budding up every day all across the world, choosing the one is really a nerve-wracking task.

Considering these questions will help you determine who is the perfect choice to partner with:

— How Much Is It Going To Cost To Build Your App?
— Do they assist you with in-app deployment?
— Do they provide Post-App launch maintenance services?
— What app development methodologies do they follow?
— Do they provide a project manager?

These types of questions will help you easily narrow down the list of the best choices of app development companies.

  • Make A Choice Between Operating Platforms

After you choose the best option for you, the next phase is to determine which operating platform you are planning to launch your app. It is supposed to be an Android app, an iOS app or a Hybrid app? Or maybe native iOS and Android?

While making a choice between operating platforms, you need to think of development time which will be influenced by the number of functionalities and features and their complexity.

  • Development of the App

The actual app development process will begin from here and depending upon the project needs, it is advised to hire an IT expert that can handle back-end and front-end development of the app.

Apart, make sure the team consists of UI/UX designer and quality assurance engineer that can easily assure the project quality. This stage can be divided into smaller chunks so that all the parts of the coding are bug-free and work without any flaws.

  • Deployment of the App

Now your app is ready to release, but 7 out of 10 apps are usually rejected at the Apple store. Google Play store has few flexible guidelines to release an app at the store whereas the Apple App store follows a strict policy to launch an app.

So that’s where you need to look for the app development company that helps you launch your app and minimize the risk of app rejection.

  • Post-Launch App Maintenance

No matter how brilliant an app you have launched, to make it run smoothly, you need to keep updating and maintaining it with the latest features. In fact, at times, some of the issues are discovered by the users as well, so to fix it immediately you need the support of the app development team.

Usually, most of the reputed outsourcing app development companies offer support to the post-project, so you can ask about your options.

How To Outsource The Right App Developers- Revealing the Signs of Good Mobile App Outsourcing Company

Now you know the cost to hire a software developer and what steps it involves in the app development process, but picking the right team of app developers is always a problematic task for startups. To save on budget and development time, you always need a software development house that has everything under one roof.

Usually, businesses begin their search by hitting the Google Search engine and check out the official website of the top three companies they would like to hire. But only checking the information regarding project track record, client reviews and rating are not enough to decide whether they are a good fit.

There are a number of parameters that you need to evaluate while partnering with the mobile app development company. So here is the list of potential points that need to be discussed with an app development company. These are the most essential yet basic things to check, so of course, you can expand this list. But here are the few essential ones:

  • Diversification of the company profile
  • Online reputation of the company — can be verified with the rating on B2B leading firms platform
  • Possibility to prepare a prototype before the actual coding starts
  • What are the methodologies and technologies they used for everyday work? (Agile or Scrum)
  • What tools are being used for communication and how often do they communicate with the clients?
  • Review their testimonials from the previous clients
  • Are they supported by business partners like Google or Microsoft?
  • What are the work ethics that they strongly follow?

These are the few basic things that businesses should consider while hiring an app developer. But here are some signs of a potential software development firm that you can choose to collaborate and proceed further with your project details without any doubt!

Signs of a Potential Mobile App Outsourcing Company

  • The company is active and replies to all your queries in a timely manner even while working at different time zones.
  • Proactively asking questions about your project rather than just saying we can do it every time you ask for their inputs or an idea.
  • They are more willing to talk about past projects and even don’t mind giving the virtual tour of their office and connecting you with a designer or developer appointed for your project.
  • Their ethical standards speak a lot about their work culture. For example, they admit to working on a similar project but don’t disclose the name of the project due to the NDA agreement.
  • The overall tone of their conversation must be friendly yet professional.
  • Their project managers have great communication capability and a perfect command of the language.
  • Low rates and affordability isn’t their only selling point. They will accurately justify why the customization of the features will cost USD 100 instead of USD 1000.
  • They will talk more about modern technologies and explain things in a simple English language.
  • They can give you the fair details of the project, how they plan to execute it.

Conclusion: Should You Outsource The App Development?

With the end of this blog, it is fair enough to conclude that outsourcing mobile app development has become a new trend for tech business owners as well as startups. But it demands detailed awareness and research to determine who is best to collaborate and how much does it cost you. This blog has covered enough information to let you hire a mobile app development company that perfectly fits your app development needs and ensures you excellent quality of the project. Outsourcing mobile app development is the easiest way to get started with your own app if these crucial criteria are kept in mind.

Undoubtedly, there are many companies out there to serve you, but you need to pick the right one without losing your money. A competitive app development firm can be easily discovered by evaluating the above-mentioned parameters along with their experience, talent, background and communication abilities.

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