How Much Does it Cost to Outsource Mobile App Development 2024

Mobile app development outsourcing is a contested issue. Many business owners believe that internal development is superior because of the control of the entire team. Yet, Grand View Research claims that outsourcing services' global market will rise to $261.9 billion by 2022. Zippia states that about 37% of the average IT department tasks are outsourced, and 59% of companies prefer outsourcing due to the lower cost.

Big companies such as Google, Slack, and Skype have successfully used outsourcing for several years. What do companies appreciate best about outsourcing software development?  Let's look at some figures. The cost of outsourcing app development at the cost 50 dollars per hour for iOS and Android will be approximately:

• • Simple app development cost - $40,000-120,000

  • The cost of developing an app for medium complexity is between $120,000 and 200,000

  • Complex app development cost - $200,000-300,000+

Cross-platform development is a straightforward method of cutting costs. For instance, the Flutter framework lets software developers build an app that can run across numerous platforms simultaneously. This method is especially beneficial for custom mobile app development services as it speeds up the process and decreases the requirement for separate code bases for different platforms.

Also Read : Factors That Impact the Cost of Building Mobile Apps Australia 2024

What Exactly is Outsourcing?

Outsourcing is a form of strategic collaboration in which a business engages an outside party to manage operations, perform tasks, or perform services on behalf of the company. This third party, often called the third-party facilitator or service provider, can mobilize its workforce or technological infrastructure to fulfill these duties on the company's premises or in different places.

Companies today use outsourcing to perform many different activities. This includes delegating information technology functions like programming and software development and providing technical assistance. Call center and customer service operations are typically outsourced in addition to other tasks, such as production processes, human resource processes, and financial duties, such as payroll and accounting management. It doesn't matter if it's an entire department or just a segment of one. Businesses can outsource as needed.

Also Read : Top 40 + Profitable Mobile App Ideas for Startups In 2024

Factors that Influence Outsourcing Application Development Cost

Software development is a nebulous procedure that affects a combination of factors that influence the final cost. It's difficult to determine the cost of developing an app without analyzing the project's requirements.

Here's a short list of the significant factors that determine the price of a home:

• • Complexity of characteristics

  • Team members

  • Developers" rate

Let's now examine each of these aspects.

Features and Complexity

The time and complexity of the entire project are centered on the functions. The longer developers spend on each function, the greater the cost of outsourcing mobile app development.

To help the user, let's examine the Netflix homepage in depth. It takes approximately 15 hours to create a basic home page for users who aren't registered. This is enough to make the software's MVP (Minimum Viable Product) version. However, creating something more advanced that is memorable for your customers would be best.

Let's update our homepage to include personalized features, such as monitoring users' IP addresses and showing movies that are popular in the user's country—with these enhancements, the humble 15 hours of work turned into an incredible 50 hours, increasing the outsourcing development cost by more than a third.

Developer Team

The development process involves more than programming. Different experts work on your app before its launch. Since talent is often the sole cost in IT, the work of each expert will make up the total cost of outsourcing mobile application development.

Let's identify the various specialists involved and determine the responsibilities of each.

Business Analysts

If you're talking to an outsourcing company for software development, business analysts are the first to discuss this with you in the initial planning phase. They're there to help you determine the requirements for your project, create the MVP feature list, and determine the costs of developing software.

The state of Estonia (EU) is the largest European outsourcing hub. On average, Business analysts in Estonia make $20200 per year. Business analysts in California, the US, earn an average of $68,350 annually.

When you consider these rates, you'll see that the initial phase of your project will cost three times more in the USA than in Estonia. In addition, software development companies in Estonia provide free consultations and rough estimates.

UI/UX Designers

An attractive design of the app can be a significant factor in the app's popularity. Missing buttons, incorrect colors, or irritating loading screens can deter new users. This is why you should hire an experienced UI/UX designer on the team. They begin by creating wireframes that show the layout of your app and the layout for each of the screens. Then, they design the complete UI/UX design based on business analysts' requirements.

The median designer's salary in Estonia is $19,300 per year. Conversely, Californian UX/UI designers make an average of $85,300 per year. This is an enormous distinction that again demonstrates the advantages of outsourcing.

Project Manager

The most trusted friend of the development team as well as the client. Project managers act as intermediaries between engineers and clients during development. They are responsible for organizing the working process, relaying the client's demands to the development team, and delivering the software delivered in red on average per year. Estonian project managers earn $22,800 a year. Based on glassdoor.com, American PMs earn an average of $66,100 annually in the average.

Android/iOS Developers

Developers form the backbone of the entire team and are accountable for the software's structure and overall performance. To create an app packed with advanced features and seamless performance, developers need a solid understanding of the project's technology stack.

Typically, software engineers earn the highest wages among team members, which means they are the ones who influence the cost of contract-out app development to the highest degree. In Estonia, the year-round Android developers' pay is $26,400 annually for Java developers and 24,000 annually for Kotlin developers. For instance, in the USA, Java developers charge $79,200 per year, while Kotlin devs charge $83,000 annually. Unlike iOS developers In Estonia, Swift engineers earn $27,000 per year. In the US, their pay is $74,750 per year.

Be aware that, depending on its size, the project might require multiple developers. Outsourcing companies can allocate up to 10 developers for each project.

QA Engineers

Quality assurance is essential for all projects. Insecure bugs and flaws not noticed by developers could cause user frustration and result in data leaks. To avoid backfires, including a QA engineer on your team is recommended. Most outsourcing firms offer testing services as part of the final price of outsourcing the development of mobile applications.

On average, QA technicians in Estonia make $18,000 per year, while the average salary in the US is $71,000 per year.

We strongly suggest not using freelancers for big projects. Most of the time, they don't care about profound quality assurance. If they don't do enough testing, they'll release your product with flaws. If the bug pops up, you must call your developer again and pay them more to solve the issue.

Developers" Rate

Apart from standalone programmers, software development firms offer fixed prices for their mobile app development services. The cost is usually the same across the same area. For instance, Estonian software development companies charge an hourly rate of $40 to $65.

The most straightforward method of estimating the costs of outsourced mobile application development is to multiply the time required to develop by the company's price. Let's look at the cost of several projects.

Project Price Examples

Outsourcing app development costs can vary depending on the level of complexity and the number of features. In this article, we'll review several examples of projects and determine their costs.

• • The Netflix-like application that integrates with a streaming algorithm, an engaging layout, and various payment options will require approximately three 038 hours to develop. Based on the $50/hour cost, the project is available for iOS and Android, costing roughly 155,000. If you are working on cross-platform development, the duration and price will be much less, estimated at $80,000. In addition, this article will show you how to create a video streaming platform similar to Netflix or Disney+.

  • A primary e-commerce platform with a catalog of items, cart, and payment gateways will require about 2,500 hours. The development costs for both platforms are $120,000 for a moderately complex product. If you develop your app on both platforms, the price will be about $68,700. Find out more about e-commerce app development by reading this article.

  • An Uber-like application with GPS navigation, various passenger rides, and diverse payment options will require 294 hours. Outsourcing Uber-like app development costs will be approximately $120,000 for iOS and Android versions with mid-complexity. Cross-platform development could cut IT costs associated with software down as low as $63,000.

Also Read : Cost To Pay A Company To Develop An Mobile App

Types of Models for Outsourcing Cooperation

Remember that various collaboration models impact the costs of outsourcing development work for mobile applications.

Models Based on Location

The location plays an essential role in establishing communication between your colleagues. Selecting the best model based on location can significantly reduce communication barriers due to time zones or cultural differences. Let's look at the three most popular models:

• • Offshore Outsourcing: You are working with an IT company located in remote areas of the globe.

  • Nearshore Outsourcing: means that you share the development of your app with developers located in close proximity to, say, neighboring countries.

  • Offshore Outsourcing: is a partnership between developers in your nation.

Models that are based on relationships

The right collaboration strategy will have the same great value for you and your team in the future. Three methods are suggested to help you clarify and define the essential procedures, such as the cost of outsourcing app development as well as the roles within your project:

• • Staff Augmentation: Staff Augmentation is a method of enhancing team knowledge by outsourcing members for a short period. Each specialist earns eight hours per day, multiplied by their hourly rate.

  • Dedicated Team: This model helps assign specific tasks and free your team members within the company. In addition, you will receive independent staff members who work according to your needs regularly. The specialists also get paid for eight hours, multiplied by the hourly rate.

  • Project-based Model: This is the most commonly used model, which entails assigning the project to an outsourcing firm. In this instance, payments can be made by multiplying the amount of time needed to finish the whole project or just a portion completed by the rate the vendor charges per hour.

Also Read : Top Mobile App Development Trends in Australia

Cost to Outsource App Development by Regions

Once we've identified the elements that affect outsourcing costs for app development, we can find out what developers from different regions pay for their services.

North America

North America is one of the most expensive regions to contract out mobile app development. Compared to other areas, developers in the US and Canada make more money than developers in different regions. On average, companies charge $100-$150/hour. At this rate, the outsourcing development cost for a Netflix-like app will range from $303,800 to $455,700. That's an incredible cost for an outsourcing project. This is why many firms prefer hiring developers who have low hourly costs.

Oceania

Oceania is on the same continent as North America. With a rate of $100-$150/hour, developing mobile apps for outsourcing has increased dramatically. A simple mobile application for e-commerce is expected to cost $250,000 to $375,000. Outsourcing your work to Oceania for your business is sensible if you're in Australia or New Zealand. Therefore, you'll gain greater control over the development team.

If you're on an excessively tight budget, you can explore other locations. It's possible to get the same high-quality services at less cost. Furthermore, flights to Australia are costly and lengthy from virtually any location worldwide.

Eastern and Central Europe

Central, Eastern and Northern Europe is one of the most significant technological hubs in the world. Entrepreneurs are attracted to this region because of the value for dollars it provides. With a standard of $40 to $55 per hour, the final outsourcing costs for app development are considerably less. According to these figures, an Uber-like complex project with custom features will cost around $200,000 to $300,000.

It's a popular misconception that prices reflect the quality of service. But this isn't the case. Estonia is among the top 10 nations in terms of the number of professional developers. In addition, Estonian project managers are highly organized and modify meetings according to the client's schedule. Therefore, you'll be able to have a committed team of developers who can build you high-quality products for reasonable outsourced development costs.

Additionally, it's simple to schedule meetings to meet with members of the EU group in person. For instance, Estonia is visa-free and offers plenty of affordable flights. A one-way, direct flight to Tallinn is not over 200 dollars from any location within Europe. For US travel, a single ticket for flights departing from San Jose, CA, costs a minimum of $700.

Western Europe

Western Europe is also prosperous with skilled developers. However, depending on the country you select, the cost range can vary between $50/hour and $150/ hour. This wide variation is due to the number of developers working in specific countries.

Germany is an example. It is home to the most professional developers worldwide, and their rates range from $50 to $99/hour. Outsourcing good-quality app development is affordable. However, Portugal has far fewer developers.

Because of the absence of engineers, Portuguese firms that develop software charge $150 per hour; with this cost, the ridesharing application could be priced at 159100 for $50/hour and $477,300 for $150/hour.

Also Read : The Mobile Application Development Lifecycle Update 2024

How Much Does It Cost To Hire An App Developer?

If you're wondering what it would cost to develop the app you need for your company, finding out where the app developers are located is essential.

Of the numerous factors that impact the cost of developing apps, to determine the price of app development. It's where your developers reside, their expertise, and the type of expertise you can expect from them.

This is why the price to hire mobile app developers may range from $40 per hour to $150+.

Be aware that a high price doesn't necessarily mean the highest quality product since it usually depends on the economic situation of the country in which your developers reside.

Here are the wage variations of app developers that you should be aware of depending on their place of work:

• • United States (USA): $150

  • United Kingdom (UK): $100-$120

  • Australia: $100

  • Western Europe: $125

  • Eastern Europe: $70

However, the hourly cost of hiring an app designer will be determined by the following aspects:

• • The programming language is used to create an application (Swift, Java, Kotlin, PHP, JavaScript, and Golang).

  • The project's difficulty level and the number of experts needed (programmers, testers, programmers, business analysts, scrum masters, project managers, etc. ) will determine the need.

  • Experience and qualifications (senior experience, middle).

Conclusion

Outsourcing app development simplifies the process by using expertise and the ability to scale. Develop your ideas with simple tools that allow you to create personalized, robust apps without the hassle of coding and speed up your app's development process to make it successful. Build robust apps that are easy to use. Make your business more successful with JPLoft and make your app idea come to life quickly!

Applications play a crucial part in modern-day people's lives, which is why they are essential for businesses trying to keep their edge in the market. Outsourcing mobile application development can be an effective way to cut costs. However, it is necessary to select a reliable supplier to guarantee high-quality outcomes that will meet your expectations.

If you are looking for an experienced mobile app development company, contact Loft. We employ the most efficient technology stack to create apps with a robust function to ensure the app is a success for your company.