Outsourcing Software Offshore
This may seem as a good choice in the beginning, but in the long run this decision may turn into
significant trouble. Cost of outsourcing app development may vary from $3,000-$300,000, which is a range
far too expensive to be helpful when calculating the budget of the future app. All developers charge
their prices. We will tell you about the risks that offshore outsourcing of app development posses, so
that you were aware of problems that may arise - after all, forewarned is forearmed.
The Risks of Outsourcing Application Development
First and foremost, when you offer a resident of a foreign country to take part in crucial solutions
that define the future of your company, you run the risk of facing cultural barriers. Outsourcing
software creation to a foreign software development agency means that the cultural views on
aesthetics and technology may differ, and, as software development is mostly outsourced to
third-world countries, the standards utilized by foreign developers may not comply with the latest
trends in the modernised countries. Another problem is that it may take more time for them to get
into the details of your outsourcing project, which might result in lower time and cost efficiency.
Linguistic divide is one more major disadvantage. It is really hard to communicate all your
ideas in detail to a person who does not perfectly speak your language, which may cause
miscommunication. Moreover, the person, whom you relaying your outsourcing project
requirements is thousands of kilometers away and is sitting in front of a camera of their
computer, which may be accompanied by risks of poor internet connection and an overall bad
communication quality. And as you now without a doubt, app development is a complex process
throughout which the participants share their complicated ideas and use elaborate IT
terminology.
But let us get back on topic, the primary reason why many businesses choose outsourcing is
cost. Yes, a foreign third-world outsourcing company may charge you a tempting $15 an hour,
but will the investment pay for itself in the long run? An experienced outsource software
developer who offers their services at $115 an hour is likely to bring you more value than
three junior developers working overseas at $15. Even if you sign a non-disclosure
agreement, you are exposing valuable information about your business and precautions like
court settings.
Security issues and data leaks are also common companions of overseas development.
Statistics shows that businesses that outsource design experience data leaks and IP losses
30% more often than the companies that build their apps in-house or inside the country. Even
if you sign a non-disclosure agreement, you are exposing valuable information about your
business and precautions like court settings.
It is absolutely understandable that even knowing possible risks, sometimes outsourcing is
the only option. If you have decided that you want to hire foreign app developers to build
your business app, here is a list of alarm signals to watch out for when selecting the
agency:
- Extremely low costs. $75 an hour is an average standard to low cost that the developers
in this price tire charge. If buy into developers who charge $5-$15 an hour for their
software design services, it must strike a warning note that the product will likely be
of low quality.
- Inadequate contact information. Pay attention to the contact info that the developer
gives to you. Development agencies based overseas often buy a UK or US area code or use
a temporary address to get in touch with domestic clients. Modern technologies make such
things easily attainable, and some firms and freelance experts take advantage of it as
an aggressive strategy to boost their sales. Such developers typically delete this kind
of contacts after the product has been delivered to prevent further communication if
there are any problems with the app. To save yourself the trouble, thoroughly
investigate the candidates for hire and check the local or office numbers they provide
you with.
Insecure wire transfers. Wire transfers are much less secure than credit card transfers. Be
on the watch when a developer demands a wire transfer instead of a credit card one. A
reputable digital agency will accept secure payments that minimize the chances of fraud and
legal issues.
Clients
The Cost of Outsourcing App Development
A reliable developer will always help you find ways to lower the costs without compromising on the
quality. In app development, the budget of the project largely depends on the type of the app the
clients wishes to create.
For example, a simple corporate system will cost significantly less than complex solutions with many
functions and integrated tools. Human resources is another important factor that determines the budget
for the project. It is obvious that when you hire a freelancer to work on your app all alone, the cost
will be lower than if you hire a full development team with designers, coders, managers, testers and so
on.
Average Cost of Application Creation
Keep in mind that besides the hardware necessary for the development process, you need to pay for
hosting and domain name. Many digital firms also charge a developer fee, and all these payments may
recur on a monthly basis. The price for app development may vary from $25 to $250 an hour from one
developer to another. The price may also vary depending on the level of complexity of the
application. The developers are likely to take more money if the app is feature-rich or require many
integrated services, for instance, in-app payments. The cost of building a simple program can range
as much as from $5,000 to $50,000. At the same time, the cost for the development of a complicated
solution may rise as high as up to $1 mln. Of course, there are reasons that drive the costs up,
such as providing for regular updates of the software, supporting user issues, keeping track of the
reviews of the customers and more.
Cost Evaluation
You can reduce the cost if you know exactly what features you want your program to possess and
clearly communicate these requirements to the developer. On the contrary, if you do not have a clear
image of the future app in mind, it may shoot up costs drastically. It is a good practice to make a
chart of features you want to have and develop a comprehensive mobile strategy before proceeding to
actual development. Negotiate the cost with developers and ask them to provide you with the
estimation of the cost. After all, you want your investment to pay off in the long run.
In-House App Development
Develop With Us
Our enthusiastic and skilful programmers, designers and managers are glad to assist you in developing a
perfect solution for your business that will bring value and boost sales.
You just need to share your ideas with us, and we will take care of the rest - planning, design,
coding, deployment and maintenance of the application. Our specially trained experts will conduct a
research on your business to define its weaks and strengths to optimise your workflow and increase
productivity. Drop us a line right now, if you feel that you have some ideas or questions concerning
app development. We will be happy to hear from you.
