Full Guide on Outsourcing Mobile App Development in 2023

Full Guide on Outsourcing Mobile App Development in 2023

According to data, the global market for outsourcing mobile app development has reached a remarkable $88.9 billion. Furthermore, according to recent data, 63% of outsourcing consultants anticipate a significant increase in their outsourcing business in 2019. Isn’t this figure enough to demonstrate the popularity of outsourcing? Yes, it is.

According to a Deloitte report, IT outsourcing services have climbed by 31% in the last year and are anticipated to continue to rise. Whether custom web development or cutting-edge mobile app development solutions, you need to choose among the top mobile app development company to get your work done. Isn’t that incredible?

If you’re wondering why the need for hiring an outsourcing mobile app development team is at an all-time high, consider the following. The solution can be found in the global technology industry’s unparalleled growth. The IT industry’s rapid expansion has resulted in increasing competition, high demand, and higher prices. As a result, organizations worldwide want to outsource to stay competitive globally.

What is Outsourcing?

In simple terms, it’s providing your work to a third party. IT services can be onshore (within their country), nearshore (to a nearby country or in a similar time zone), or offshore (to another country internationally with a time difference of more than 4 hours). Over the years, nearshore and offshore have been considered as cost-saving plans for the outsourcing company.

The 3 types of outsourcing that one should consider avoiding confusion

Listed below are 3 places you might like to visit:

Onshore Outsourcing

Person when hiring or providing work to a MVP development company within the same territory as your business is referred to as onshore outsourcing. Let me make this clear by an example: if a startup in India outsources its development work to another company from the same region or within India. It is possible to arrange personal meetings with onshore development; however, small businesses might not find them helpful. The average hourly pricing for outsourcing app development in India ranges from $10 to $25 for junior specialists to $40 to $85 for senior developers.

Nearshore Outsourcing

In this type of outsourcing, a person provides their work to a company operating in a nearby nation with no more than a difference of 2-4 hours.

Offshore Outsourcing

When one decides to outsource to a company located abroad with a time zone difference of four hours or more is known as offshore outsourcing. It is common for businesses to outsource their mobile applications overseas since development services differ significantly from country to country.

Is it still a good idea to outsource app development in 2022?

Longtime knowledge has shown that outsourcing app development has a number of benefits. However, following the epidemic, outsourcing acquired even more traction among firms. It is due to the following reasons:

  • Budget cuts are required, as well as the identification of cost-effective resources.
  • In the commercial world, engineering talent is scarce.
  • Globalization and the opportunity to improve mobile app development quality;
  • A large pool of IT specialists in the aspiring niches (automation, cybersecurity, cloud computing, AI/AR, and so forth) is available.

Outsourcing mobile application development has a number of advantages.

A fast start of a project.

If a short time to market is a priority for you, outsourcing app development allows you to get a start on a project right away. It works best when everyone is required to work remotely, such as a statewide enforced quarantine. In this circumstance, the ideal choice is to hire remote workers employed by a software company rather than freelancers. Taking risks is not a good idea when you are close to losing your business.


Any company that outsources work rather than developing it in-house will benefit from it. An offshore outsourcing company assists organizations in lowering development expenses, which frees up resources for other purposes.

Outsourcing allows you to save time. 

Developing a mobile application for the market often involves a quick turnaround. You save time and money by not having to hire, train, and retain personnel when you outsource such a job.

Engineering brilliance 

When you collaborate with developers from other nations, you gain access to the top engineering talent from across the world, rather than only recruiting people who live within a 30-kilometre radius of the company’s headquarters. It is especially critical when you’re running a startup when hiring a new employee is a significant choice that will affect your organization’s success.

You hire a team that is experienced, well-coordinated, and committed. 

Best-rated outsourcing firms provide fully professional and experienced developers with team members who work closely together and know each other well. You may rest assured that these workers are specialists with extensive expertise in meeting your project’s requirements and implementing the best solutions.

High communication standards are required.

As though you were working with an in-house team, you receive a team that follows the greatest communication standards to provide complete openness throughout the process. They, of course, adapt to your local hours.

Services and assistance from beginning to end

An extensive team of skilled and experienced developers, DevOps, Quality Assist, skilled designers, and project managers is available at all times. Throughout the lifecycle of your project, you may quickly and appropriately modify the size of your team or skill set(s) to the project requirements.

Reduced risk

Once the project contract is signed between the parties, the risks associated with development now become the responsibility of the outsourcing company. Typically, an outsourcing firm ensures on-time and on-budget delivery. Additionally, due to the signing of a non-disclosure agreement, all of your sensitive project data is protected. They provide that there is no possibility of “project theft” or secret information leakage.

Close supervision

Project managers conduct regular interval meetings and demo sessions to help you understand how the project is progressing. Consequently, you’ll always know what your team is working on, and you’ll be able to keep track of how projects are progressing and when they’ll be completed.

How to Hire an App Development Team from an Outsourcing Company in 2022

To help you find and select the best-outsourced development companies worldwide, we have created this 5-step measure guide..

Step 1: Determine your needs.

You’ll need a complete description of your mobile app or the project you wish to see as a result.

Step 2: Begin your search for an app development team.

It is now time to start searching for the best-rated mobile app development company that caters to your needs. Having decided what you want your project to be, you can now begin looking for it. “However, where should one look?” is the query.

Fortunately, many hiring sites have profiles of outsourcing businesses, agencies, or contractors. Consider the following scenario:


For example, when you go to a bakery when you want bread, and the clutch is where you go when you need an outsourcing crew. A highly rated B2B directory lists outsourcing firms by region, rating, and expertise. The clutch includes search options, categories, classifications, and even reviews of outsourcing providers to aid you in your search.

Platforms for freelancers

Sometimes you don’t need an entire team, and simply the absence of one or two professionals prevents you from progressing with the development. In this instance, freelance marketplaces like Upwork, Fiverr, Freelance, etc., are the best option. Individual contractors can be found there who will labor for fixed pricing or hourly.

However, there are numerous drawbacks to working with freelancers.  In the first place, you cannot be certain that someone is trustworthy or that they have the necessary experience. On the other hand, Freelancers are very affordable for routine jobs or short-term projects.


It’s no secret that outsourcing firms have blogs offering their knowledge, skills, and growth recommendations. You may learn about a company’s capabilities, background, and how they can assist you by reading their blog.

Step 3: Do a portfolio review and reach out to former clients.

It is advisable to take a look at their portfolios before contacting any app developers or submitting any contact forms.

Step 4: Determine the type of service.

When it comes to hiring outsourced app developers, you have three options: project-based, dedicated teams, or outstaffing.

Step 5: Choose the method of payment as per your needs.

Depending on your budget, you can choose flat-rate or time-and-material pricing when hiring a dedicated team or a work-by-project method. Ideally, before you hire outsourced app developers, you should have a clear vision of how you would like your application or project appearance.

Don’t miss these 9 Characteristics while appointing a Reputable Mobile App Outsourcing Company

  1. In addition, the business responds within a reasonable timeframe (taking into account differences in time zone differences).
  2. Their initial response is to inquire about the project, in contrast, to automatically replying, “Yes, we can do that,” whenever a request or proposal is made.
  3. It is their pleasure to give you a virtual office visit, to discuss previous projects with you in detail, and to assist you with your design or development needs.
  4. Their ethical standards are obvious; for instance, they admit to working on the same project, refusing to reveal the client due to a non-disclosure agreement.
  5. There is a friendly atmosphere in the chat, but it is also professional.
  6. They have a great project manager who is a great communicator as well as a native speaker.
  7. They are not known for their low rates or affordability. Their argument can convince you that this feature should cost $1,000 instead of $100.
  8. In spite of their discussion of the latest technology stack, they explain the advantages of tech choice A over tech choice B in plain and simple English.
  9. They can describe in each and every single detail what they plan to accomplish (and appear to know what they are doing).

Estimated Cost to Outsource Mobile application development 2022

In the context of outsourcing mobile app development, it’s like asking, “What does a car cost?”. It ranges in price from $10,000 to any level you desire. The project requirements, platform, the technology employed, the developer’s experience, and location all influence the ultimate cost of outsourcing app development.

For starters, price disparities between areas can save you thousands of dollars.  Mobile App developers in the United States, West Europe, and Australia companies charge the highest rates, which can reach $250 per hour.

Eastern European developers (particularly in Ukraine, Poland, and Belarus) produce software of equal quality for two to three times less, starting at $30 per hour and rising to $110 per hour.

Companies in India, the East Asian region, and Africa offer wages as low as $10-$15 an hour, but there is a catch. These regions’ app developers have a shady reputation, and you don’t want to jeopardize your app’s quality. However, for those who are interested in numbers, the cost of designing a mobile app ranges from $15,000 to $1,000,000. That means a simple software may cost anything $20,000 and $50,000 to develop. A more complex and feature-rich programme, on the other hand, may cost well over $1,000,000 with outsourcing.

Here’s how much it costs to produce some popular mobile apps on average:

  • $70,000 to $1,00,000 for a business app like Starbucks
  • $1,20,000 to $1,55,000 for a photo-sharing social media app like Instagram
  • Airbnb, an internet rental marketplace – $1,40,000 to $2,00,000
  • $1,00,000 to $1,40,000 for a taxi booking service like Uber or Ola.
  • $2,00,000 to $2,50,000 for an e-commerce marketplace software like Etsy
  • $70,000 to $1,00,000 for a real estate smartphone app like Realtors.

Summary on outsourcing mobile app development

Outsourcing mobile app development will lower increases team efficiency, and guarantees that the project is ended on time. A collaboration like this can benefit a wide range of businesses, such as startups, large corporations, and mid-sized companies. As a result, if you wish to maximize the benefits of hiring an external team to develop your app, you should carefully choose the one you will work with. As a result, look over their portfolio, technology stack, and customer feedback. Choose the most appropriate engagement and pricing model for your needs and start the discovery process. If you are not sure about how much amount you are going to spend on app making, you can check this calculator to estimate your app development cost.

Known for his amazing writing and technical blogging skills, Edward Thompson is the admin of the Techenger. Joined back in 2019, after moving from San Francisco to Chicago to switch from his role of staff writer to a guest blogger. Since then, he never looked back to his past. In nutshell, he is a tech enthusiast who loves to write, read, test, evaluate, and spread knowledge about the growing technology that surrounds mankind.

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