Software Outsourcing: Onshore Vs. Offshore

Here at Magora, we are always ready to help you with any software design or development issue. Our team can help determine the cost of software outsourcing by sharing the experience we gained during our nine years in the IT industry.

Case Studies

What is Outsourcing

IT outsourcing is a common practice, used by different enterprises and businesses, to transfer parts of the work of a project to outside suppliers. Outsourcing software development is an efficient cost-saving strategy, due to the lack of maintenance of the internal workforce performing the tasks you need. Companies can outsource projects to mobile and web agencies to obtain a specific IT service or create a complete information management plan from a software strategy, analysis, coding, installation, to business management. There are two main types of outsourcing:

Offshore

Offshore means outsourcing cooperation with an agency from another country and sometimes a continent. As far as information technology work is concerned, offshore outsourcing is usually done in countries with low labor costs, and tax savings with a stable political situation. Today, this practice is very common thanks to high-speed Internet connections and globalisation processes. But the pursuit of the lowest cost of application building is not the only reason for outsourcing. Some businesspeople choose this kind of collaboration to sidestep the competitors in other countries.

Onshore

We at Magora focus on applications for iPads and holistically understand the scope that iOS operating system offers for the creation of innovative applications. The creation of an application for Apple devices takes lots of effort as we are looking to tap into the user base of Apple through iPhone and iPad; hence our project team consists of immensely skilled developers and iPad app programmers who have ample experience of working on Apple’s App Store and iOS.

Our Achievements:

322 App Development Projects

413 Mobile Applications

75 Enterprise Software Solutions

The cost of outsourcing software development varies due to a range of different factors, from app functions, design requirements, design team size, to the location of developers. The software design can represent 10% to 30% of the overall project budget.

The Cost of Software Outsourcing

Design skills are crucial to the success of the project, and if you entrust the design to established markets in Europe, be prepared to charge around 100 to 200 pounds per hour. Compared to different rates of studios around the world, you can see the trend of European countries more expensive than Asians. But at the same time, the size of the company is not always equal to its rates. Small businesses do not have the overhead of large IT agencies, and offer a more sophisticated and innovative development model, which is why they feel they can charge more. When a global vendor with thousands of employees charges £ 40 per hour for software development, small business prices can reach £ 70. The website developer site also issues. Developers, working in cities where the cost of living is high, for example in London, will be asked three times as much for development.

Onshore Development Costs

The cost of development in reputable software companies in the UK can be very high for emerging projects. With an average cost of £ 35,000 - £ 50,000 to build the first version of the product, some reputable agencies can charge up to £ 100,000 for an MVP creation.
Depending on the number of platforms, functionality, design requirements, the price ranges from £ 20,000 to up to £ 400,000. But paying that money, you get full access to the process of software building and quality assurance.

Offshore Rates

The amount of money to spend on software outsourcing depends on the type of program you need to create. But a factor like human capital also affects the cost. If you use Indian developers, the hourly rate may be less than £ 20 due to low labor costs. At these rates, a simple app can cost from £ 5000 to £10,000, while the cost of a complex solution can increase to £ 35,000. For sure, making regular updates and dealing with users' issues will increase the cost of development. But it's just something you can see on the surface. Risks arising from offshore outsourcing include the cultural gap and the language barrier that causes a misunderstanding of the basic concept of software requirements. In the end, offshore outsourcing runs the risk of getting a poor quality or completely non-operational program, which requires code verification, debugging, and even rebuilding. Keep in mind that you get what you pay for and estimate the risks that work for your offshore IT service provider.

Clients

Outsourcing Developers

Whether you prefer to work with the onshore developers or take the project overseas, you will find a similar situation, starting with cooperation based on a money commitment. This is a search for the perfect IT partner. Let's give you some tips that will help you in the pre-development phase:

Define Your Requirements.Before outsourcing your software project, get a complete understanding of your requirements for the IT solution you need, and determine what you want from an app or a website. The lack of a clear definition of what the product is, and what it is supposed to do, will lead to misunderstandings; and therefore the final product will not meet the desired expectations and goals. In addition, any uncertainty can worsen communication with the contractor, and change the development process by increasing the cost of the program due to higher expenses. Working with a reputable company such as ours, you can count on our analytical department to help you create a successful IT strategy. Cost can be significantly reduced if the requirements list is defined during the planning phase.

Search for an IT Company. If you know the type of program you want to develop, you can find a development team specializing in this area. It's good to find specialists in creating the kind of software you need. If you need an enterprise-class program, contact corporate software builders. However, if you want to create a game that works on iOS devices, you should check out the best game builders. One of the best ways to find a reputable company is to review websites such as Clutch or leading developers where you can find company descriptions, ratings, and referrals from clients. Visit the developer's website and have a look at their portfolio. The company may have experience, which can be useful for the work on your project. Also, the way the website looks may say a lot about the capabilities of the team and the aesthetic sense.

Talk to the Bidders Feel free to talk to the companies before hiring any of them. You need to know a team of IT partners because building an application can take months, and all this time you need to communicate with them and work collaboratively. You can use messaging software, such as Skype, to discuss the idea in a real-time mode. Among the programs and other websites that can help you know your first knowledge, is Google Hangout, Facebook, Viber or you can fill out the feedback form usually provided on the websites of software companies. However, the messaging platform is a way to get in touch right away. Talk to the developers, evaluate their willingness to answer your questions and help you get a clear picture of their services. Discuss the application, make sure you're explicit about your demands, and tell about the platform, features, and design requirements you need.

Creating Features After selecting an agency that meets your outsourcing needs, discuss the milestones of the project. Milestones are the points at which a certain part of the work is completed. These features help you navigate the development process and gain an understanding of where the project is standing. If you outsource our software company, we will assign a committed project manager who will create a contact calendar ensuring that you contact you on specific dates throughout the project progress by providing the update on project status.

Why Outsource Software Development

If you want to develop a detailed software solution for business purposes, outsourcing app development can become the most suitable option for you. It provides numerous advantages, from expert help in concept creation to verification and fast time to market. The most logical thing about outsourcing is the constant and regular interaction with the project manager dedicated to the project, which saves your time and brings your interests to the company and leaves the focus on the core aspects of a business. The process of outsourcing activities has improved efficiency because these tasks need to be explored and implemented by another entity. At the same time, the project manager keeps you informed about the progress of the project by regularly providing you with the results. Detailed software development requires a lot of effort, time and money to invest. Outsourcing to an existing development agency instead of building a team at home is a great opportunity to reduce the cost and simplify an app release. According to Investopedia, businesses that outsource certain services save about 15 percent due to lower costs.

Contact Us

Magora offers competitive IT services through the implementation of the most innovative technologies and a well-established development model. By completing outsourcing projects for hundreds of clients around the world, we have earned the reputation of trusted software developers with a full range of IT services.

Whether you are looking for mobile app developers or web programmers, we can offer you a dream team of talented IT specialists.

<< previous

Hire Software Developer London

next >>

Software House UK