Mobile App Development Outsourcing: Everything You Need To Know

Nowadays, the global mobile application market size was valued at USD 154.05 billion in 2019 and is expected to grow at a compound annual growth rate of 11.5% from 2020 to 2027. The impact of COVID-19 is significant in this massive growth of the mobile app development industry, especially in the mobile app development outsourcing field. As a result, businesses tend to outsource to other countries like Vietnam, China, and India to access to the top talent in the world at an affordable price. When an entity uses outside resources to perform activities that could have been handled by internal staff and resources, this is referred to as outsourcing. When a company outsources work, contractors may be hired to perform functions that were previously performed by employees.

Here’s what you should know about Mobile App Development Outsourcing and why so many businesses use it.

1. What is outsourcing?

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The term “outsourcing” is frequently associated with businesses that fire domestic employees. Outsource mobile app development hire remote contractors overseas to do the same job for less money. While this does occur, it is only one type of outsourcing. And it is one of the most extreme types of outsourcing.

Outsourcing occurs when a company hires an outside contractor to perform a task that an employee could perform. The outside contractor could be from another country or someone who lives right down the street. Everything from janitorial services to IT support to customer service could be outsourced.

Employees may not lose their jobs in some cases. Employees may be transferred from the original company’s payroll to an outsourcing company, which will handle payroll taxes, benefits, and other issues for those employees. The employees’ day-to-day tasks will not change significantly, but their paychecks will be issued by a different entity.

If you want to know How does outsourcing work and why companies choose to outsource to other countries, let’s check out: What is outsourcing and How does it work?

2. What is mobile app development outsourcing?

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If you are going to outsource mobile app development, you must ensure that you are hiring an excellent service provider. Compare the services, skills, and fees of various vendors before selecting the service provider who can best meet your company’s needs.

A job contract awarded by a contracting party from one country to a company with a team of human resources with a specific skill set located in another country is known as mobile app outsourcing. The software is shipped to the client’s organization once the proposed job is completed.

As a result, mobile app development outsourcing has seen tremendous growth in recent years. Offshore outsourcing provides the ability to retain skilled overseas personnel at a fraction of the human resource cost that many entrepreneurs face.

The smooth flow of communication between the offshore vendor and the onshore client is critical to the success of an offshore mobile app development center. The two sides’ continuous constructive dialogue is not limited to verbal communication, but is aggressively pursued in writing, meetings, and conferences as well. As a result, the offshore vendor’s local presence can be a huge benefit to the client, even if it may cost the client more.

3. Benefits of Mobile App Development Outsourcing

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3.1 Extensive expertise

Outsourcing’s most valuable assets are a diverse set of skills and a wealth of experience. A mobile app development company that develops apps for a variety of businesses can employ specialists with a wide range of skills. This enables you to confront and solve problems head on. With an in-house team, you will have to look for more specialists as the project progresses, which will result in additional costs and lost time.

3.2 Wide talent pool and scalability

When a task is not one of your company’s core competencies. It naturally takes longer to complete and may produce subpar results. Outsourcing the work to an experienced app development company ensures a quick turnaround, expert-quality work, and the ability, based on experience, to anticipate and prevent problems that an inexperienced team might never have considered. Mobile app development outsourcing allows your company to focus on its core competencies while the app development company focuses on theirs.

3.3 Cost-effectiveness

It is less expensive to outsource app development than to hire your own team. Even if you decide to hire a US-based outsourcing firm, the cost will be less than that of most in-house development options. Furthermore, skilled outsourcing providers in Eastern Europe, India, and Asia offer app development services that are likely to be even cheaper.

3.4 Enjoy ongoing support

Adding a mobility strategy is more than just developing mobile apps. It entails regular app updates, as well as cloud hosting, security, and analytics. A company that specializes in app development can handle the entire process, from initial strategy and design to development and ongoing support. These services have fixed costs, so there will be no unexpected budget surprises, and you can rest assured that your app is in capable hands.

In short, if you want to create a professional-quality, user-friendly, bug-free, cost-effective app, and keep it up to date and running smoothly while realizing a significant ROI, outsourcing your mobile app development is the way to go.

4. When is Outsourcing Mobile App Development Right?

4.1 If time to market is critical

Outsourced teams have greater access to resources and expertise. Outsourcing should always be considered when lacking in-house hands or staff. Sourcing, hiring, and training employees to complete the task on your own could result in significant delays in project delivery, so outsourcing should always be considered when lacking in-house hands or staff. 

4.2 If the cost factor is essential for you

Typically, in-house resources are more expensive. By outsourcing, your team can concentrate on product and company development, while the outsourcing company focuses on development. Furthermore, outsourcing firms have custom libraries, ready solutions, and dependable IT-infrastructures that increase development velocity while saving time and money. 

4.3 If you need niche expertise

AI, ML, VR, AR, or even Salesforce and DevOps are necessary in many projects. Custom configuration and maintenance are needed. Outsourcing organizations can give on-demand engineers with unusual or specific skills when it comes to a project-by-project or one-time basis.

4.4 If your in-house skills are limited

An outsourcing company can give you the time you need to appropriately upskill your resources. More importantly, this ensures that your clients and customers receive high-quality products or services as soon as possible. 

5.5 If IT is not your core competence

A software development outsourcing firm can use industry-standard best practices to ensure an efficient software development process, as well as create or improve IT ecosystem performance and project scalability. Acquiring IT knowledge and developing mobile apps on your own could take a lot more time and money.

5. Options for Outsourcing App Development

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5.1 Freelance developers

Freelance developers charge fair hourly rates and have appropriate expertise. While no assurances are in place, this may undermine the entire development process.

You are employing a hand or head developer when you engage a freelancer. But the managerial issue the company must tackle isn’t fixed.

Having a simple app is helpful to developers that have expertise in specific platforms and technologies. If the features you need match the developer’s area of competence and skill, you can save a lot of money on app development costs.

5.2 Off-the-shelf solutions

These are usually the cheapest and quickest to launch options. Therefore they are difficult to configure and transition from if another system is required. Furthermore, off-the-shelf solutions do not suggest rapid upgrades and modifications in response to market trends, which is inflexible within company requirements.

If your objective is to create an app for an established firm. That is to say, you don’t require anything unique or personalized, an off-the-shelf solution can be right for you.

5.3 Development company

A team built based on the client’s specific demands and organizational model can be an end-to-end development team building an app from the ground up or an in-house team extension.

With a software development firm, you have more flexibility than off-the-shelf solutions, faster time to market, higher quality, and less risks. We highly recommend outsourcing software development if you need to construct a custom solution or a sophisticated app.

It is typically more expensive than hiring freelance developers or using off-the-shelf alternatives. Nonetheless, a development firm will only charge for the amount of work completed.

6. How Much Does it Cost to Outsource Mobile App Development?

So you’re probably aware that outsourcing mobile app development has many benefits and only a few manageable downsides. Let us now discuss the budget.

Is it cost-effective to outsource mobile development to another country? Of course, the hourly pricing will vary depending on a variety of aspects. Such as the type of app, the features we want to include, the project’s complexity, and so on.

When choosing to outsource app development, location is also a factor.

As stated in the article, European developers can charge between $20 and $170 per hour. This price depending on their level of seniority. Whereas American developers can charge between $50 and $200, and Asian developers can charge between $45 and $150.

There will be a lot of hours to pay for no matter what type of app you design. As a result, even a minor variance in hourly rates might have a significant impact on your budget.

Here are several examples:

  • Simple apps can range in price from $5,000 to $10,000.
  • A social media app can cost as much as $100,000.
  • A ride-sharing app or other complex app can cost up to $1,000,000 or more!

Prices, as you can see, vary, but they are quite high. As a result, it’s a wise idea to outsource mobile app development to overseas countries where digital agencies and development firms offer much lower rates.

See more: 5 Steps To Outsource Mobile App Development In Vietnam

7. Top Mobile App Development Outsourcing Companies In Vietnam

7.1 InApps –  Best Software Outsourcing Company in Vietnam

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On Clutch, InApps Technology was named TOP #1/210 firms in Mobile Application Development in Vietnam and TOP #4/750 firms in Southeast Asia.

As a top Software Outsourcing Company in Vietnam, InApps works with various clients on a daily basis to assist them de-risk the process of bringing their outstanding ideas to life.

InApps tackles clients’ most difficult problems by offering unrivaled services in strategy, consulting, and digital technology. InApps has created world-class apps for clients all over the world.

7.2 OutSourcingVN – Best Mobile App Development Outsourcing Company

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If you’re unsure whether software development outsourcing is right for your company, consider the project’s timeline, available internal talents and resources, budget, and the risks associated with your line of work. Outsourcing software engineers can help you achieve product-market fit in record time and with exceptional results. OutsourcingVN are becoming one of the tops enterprise mobile app development company in Viet Nam that you can trust.

7.3 Enlab – Best Custom Mobile App Development Company

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Enlab is a group of engineers with diverse backgrounds and experiences. This company share a passion for harnessing cutting-edge technologies to build world-class digital goods. Enlab matured in our career and found a purposeful and meaningful life while contributing to the success of our customers.

Beyond the typical offshore software development function of cost reduction. Enlab aspires to become the lab for smart software that enables organizations to thrive digitally. Therefore, Enlab abbreviation for Enterprise Lab, was named. Enlab began tiny, yet they do small things with enormous passion. 

See more: 5 Steps To Outsource Mobile App Development In Vietnam

In Conclusion

Today mobile app development outsourcing has become commonplace all around the world among companies from different industries and has proved to be an effective way to launch or expand a business. The advantages of outsourcing mobile app development services are varied. Mobile app development outsourcing can shorten their time to market, decrease project costs, and improve the quality of a product. Choosing the right mobile app development company is never easy but we hope that this article will help you get your vision of Mobile App. According to our research, the three companies mentioned above are all leading Vietnam software outsourcing companies in the field and you can trust the choice. 

Thanks for reading!