Outsourcing Software Development:
Is it Worth It?
Why Would You Want to Outsource Software Development?
Outsourcing app development is an obvious choice for a company that does not specialise in software development or just does not have enough time and human resources to deal will with it in-house. Outsourcing app development frees your hands - you have time to concentrate on other important things like app marketing, mobile strategy, establishing your brand online and so on. Another advantage is that you do not have to learn a programming language and do not even have to know anything about software development.
Pros and Cons of Outsourcing Software Development
Of course, outsourcing software development largely depends on your financial capacity and time you have to get your product to the market, but let us examine other advantages and disadvantages of building software with third-party developers:
- Freelance Developers
- Easier to hire. Shorter lead times mean that you can get your product to the market faster.
- Lower costs. You can hire any developer you like from any corner of the world, paying in dollars or euro, which gives you an opportunity to take advantage of differences in prices.
- Great for smaller projects. Freelancers are an ideal choice for delegating small tasks and minor projects, increasing speed to market and sparing you from spending much time on secondary tasks.
- The risk of exposing intellectual property. Outsourcing the development of a digital product poses a threat to your company’s intellectual property.
- Miscommunication. If the freelancer is based in a different country with a different time zone, it can be hard to find time to meet and discuss the project that will be convenient for both of you. Another problem is cultural differences and poor knowledge of the language you speak, which again may cause delays and misunderstandings.
- Different coding and design standards. It is important that the developers understood the digital trends that exist on the market of your country. It is much easier to do when you work and reside in the country for which you develop the product.
- More control from your side. You often have to check with the developers from emerging markets, track their progress and discuss your requirements time after time. This all can result in miscommunication. Especially if you do not have a clear vision of the end project and have not supplied the developer with a software requirement specification.
- Unreliable developers. You never know whether the information the developers provide about themselves is true, so you can never be sure in the outcome of the venture.
- Software Development Companies
- Good for projects of all scope. Large digital agencies are proficient in delivering all kinds of projects: they build prototypes, create MVPs (Minimum Viable Products), design responsive website, develop native mobile apps and offer post-launch support and marketing services.
- Effective communication. If the company you hire is based in your country, then there will be no problems in communication - the same culture, the same time zone, you can even meet face-to-face. Moreover, experienced design firms typically have all kinds of specialists to ensure the best experience for the client - project managers, support specialists, sales managers, business analysts and more, not even speaking of technical experts. As a result, this combination of leadership and technical talents enable them to provide you with first-class software in no time.
- Certified experts. Most reputable agencies carefully select their specialists, offering jobs only to the leading industry experts with large portfolios and extensive range of skills.
- Higher costs. Experienced development team charge more per hour, especially those located in the US or Europe. However, given the high quality of their products, your newly designed program will pay for itself soon enough.
- Other clients. You should understand from the very beginning, that you cannot be the development company’s only client - they have other projects to work on, so they will not be able to pay you 100% of their attention.
Why Outsourcing Program Design May Be Worth It
Many companies prefer building software in-house, utilising their internal resources rather than hiring third-party companies to deal with the task. Statistics shows though 60% of enterprises entrust program creation to their own digital experts, the number of companies that choose to outsource such projects steadily grows. Around 30% of all software, creation projects are delegated to third-party development teams, with digital agencies focusing on enterprise apps, bespoke solutions and customer-centered mobile applications. Designing an app in-house is a logical solution for companies that want to have full control over the process and the steps developers take to complete the project. The main problem is that if you do not pay attention to the ever-changing digital economy and trends in the app market, you will not go far.
Take Advantage of Experts
A recent survey of entrepreneurs across different industries showed that more than 30% of them had chosen to outsource app design to build enterprise software for inner use. Approximately the same percentage of people who took part in another research confessed that they hired freelancers or digital agencies to build B2C applications because, as they said, professional developers had more expertise in the required technologies than their in-house teams.
How Much Does it Cost to Develop an App?
The report also says that app creation cost is the primary question that businesses ask when choosing the company to outsource mobile projects. And the answer they receive in most cases is “What is the budget you wish to allocate for the project?”. App design costs depend on many factors, the key ones being the objectives you want to achieve with the product and the features you wish to implement within the app.
How Many Businesses Have an App?
Given that 4.4 million apps are available to the users of two industry-leading mobile app markets - Apple’s App Store and Google’s Play Store - one could only wonder at the fact that there are companies that have not even thought of developing a mobile application and have no idea about the benefits it can bring. Taking the fierce competition and the predominance of mobile usage, app development is a must for modern businesses that wish to stand out.
App Creation Pricing Factors
App development costs depend on the location of the developer, their experience and the size of the design team that is going to work on your project. When planning the budget, keep in mind that only mobile design can account for up to 30% of the investment. For example, American developers can charge as much as $300 per hour, but if you are sure that this is the developer you want to work with, go for it - a quality app will certainly pay off and earn you even more.
How to Choose a Developer?
Last year a report on app development costs across the world was held. It demonstrated that the USA is the most expensive country for software design, while Indonesia ranks as the cheapest place to outsource your project. Developers’ experience is another important factor to consider. Industry expert recommends to choose developers with at least three years of experience, at the same time, the age of the developers does not matter. Many developers from the modern generation had started creating software when they were teenagers, so you should not be surprised when developers at their 20s charge premium rates.
Small vs Large Teams
There is a common misconception that development companies of smaller size charge less, but that is not the case - the size does not matter. Small to medium sized software design teams often charge more because they do not have the resources large companies have. It is not rare that smaller firms claim to be more flexible, agile and innovative, and make it the reason to demand more money for their work.
The Developer You Can Rely on
At our software design company, we strive to build a long-term partnership with our clients to ensure success and profitability of our digital products throughout their entire lifecycle. Our first-class solutions are based on an in-depth understanding of the client's business and close communication with every client as we try to go dip into the needs and requirements of their projects.
Build Your Next App with Us
Our experienced developers, designer and managers never stop until they reach perfection - we are motivated by challenges and are ready to face tasks of any