How to Outsource App Development

How to Outsource App Development : Step-by-Step Process

App development is one field that is experiencing rapid growth. Many businesses are now opting for options that can facilitate a wider market reach while offering ultimate flexibility, hence the need to develop mobile apps. In fact, many users or customers perform most of their tasks via mobile phones. This is attributed to the advancing technology with people adopting faster and seamless solutions to performing daily tasks.

If you are a business owner, whether established or startup, and you feel app development will transform your business significantly, then you are on the right path. However, the challenge comes in when looking for the best app developers.

With the changing market needs and the emerging or trending technologies, it can be a hassle onboarding an app development team that will put up and adapt to the changes, ensuring you get a scalable app that meets all user’s requirements. The good news, however, is that you can outsource app development services and have your work done professionally and in a smooth manner, giving you room to scale the resources and maintain a higher level of flexibility when the project is on.

This guide gives you all the insights on how to outsource app development, why you should consider this approach, possible challenges & solutions, among many other insights.

What is app development outsourcing? Quick Overview

App development outsourcing is the practice where a business contracts a third-party service provider or a full company to handle all the tasks and processes during app development. This method is appropriate, especially when your in-house team lacks specialized skills relevant to accomplishing specific tasks.

However, before you consider outsourcing an app development service, do a quick overview of your business processes and determine if outsourcing is a viable solution.

When to outsource app development

So, how do you know it is high time you considered outsourcing app development? Below are some key points showing your business needs outsourcing app development:

  • When you lack tech expertise

When you have an in-house team, but the team doesn’t have the expertise required to carry out some app development tasks effectively, then this is a clear indication that you need to outsource an app development team for your business.

  • When introducing a new project

If you have a new project or concept in mind that will help put your business to the next level, then you can consider outsourcing an app development team. Instead of exhausting your in-house team with a lot of work, you can outsource another team and create a seamless and motivating work environment for both teams.

  • When you have a limited budget

Hiring full-time employees can be costly compared to outsourcing app development services. By outsourcing, you don’t pay monthly salaries, employee benefits, rent expenses, hardware costs, and training expenses, among many other overhead costs. By outsourcing app development services, you only pay for the agreed amount and for the services delivered.

  • When you want to focus on core business operations

Again, you can opt to outsource app development services when you realize you are spending a lot of time doing some minor tasks.

By outsourcing app development services, you will have adequate time to focus on core business functionalities that can, in one way or another, accelerate your business growth.

  • Working with tight deadlines

When you are working on a tight deadline, an outsourcing app development team can help you beat the deadline without affecting the quality of the services delivered.

Instead of overloading your in-house team with a lot of work, consider outsourcing app development services, which will save you more time. Again, if you considered hiring full-time employees in such a case, it will be time-consuming and costly, thus missing the deadlines which can affect your business progress.

Benefits of app development outsourcing

Outsourcing app developers comes with numerous benefits to your business. Below are some of the reasons why outsourcing app development services is a viable idea for your business:

  • Access to global talent

Outsourcing app development services does not limit you to local talent. Especially when your project is quite complex as well as requires specialized expertise, outsourcing is the right solution. You can outsource an app development team from anywhere across the globe. You only need to define your project requirements, budget, and appropriate tech stack, then search for the perfect app development vendor who will help you accomplish your vision.

  • Accelerated development timeline

Speed is a key factor in app development. It enhances faster time to market, which in turn maximizes revenue in diverse ways. So, when handling digital products and working with tight deadlines, outsourcing app development services will help you finish the project within the required timeline.

Of course, an outsourced app development team is made of professionals who understand the ins and outs of specific industries. They have the skills and knowledge to understand the resources and technologies appropriate to finish a specific project within a specified app development timeframe.

Besides, an outsourced team will do their best to ensure you are satisfied in terms of meeting deadlines and overall quality. They are on the move building a positive reputation to attract more clients.

  • Cost-effective

This is one of the key benefits of app development outsourcing. It is way cheaper to outsource an app development team compared to hiring a full-time team.

With full-time employment, you have to pay monthly salaries, rent or space expenses, other employee benefits, and other overhead costs. This is contrary to when you outsource an app development team where you only pay for the agreed amount, and the team carries out the required tasks.

Depending on the region you outsource your app development team from, the costs could even be lower, thus enabling you to save more for business expansion. In fact, if you are working with a fixed or tight budget, outsourcing will simplify the processes and make your work more professional.

  • Broad skillset

An outsourced company comes packed with a team of different specialists. This means you will get a wide range of services under one big outsourced team. For instance, you will get developers, software engineers, business analysts, quality assurance specialists, & project managers, among other specialists, who will enhance the completion of the project while maintaining high standards.

Of course, a team with diverse specialists will speed up the development process since each specialist carries out specific tasks in a professional manner.

  • Better business focus

App development can be a complex process that needs a high level of expertise and project monitoring. This can limit you, especially when you have to handle some other core business functions.

Instead of stressing and overwhelming yourself, you can outsource a professional app development team and delegate most of the tasks to them. You will then have adequate time to shift your focus on matters concerning your business at large.

  • Easily scalable

App development outsourcing allows you to scale your teams appropriately based on project requirements.

When the project is quite complex and requires more specialists, you can easily add more team members to accomplish the tasks. You can also scale the team based on the project changes. For instance, the introduction of new technologies may require different specialists to carry out the task. Outsourcing will allow you to add more team members in such a scenario. Again, if the deadlines are almost near yet the project is still huge, you can easily add more team members to speed up the development processes. Similarly, if the work is reduced and there is no need for some specialists, you can easily drop some members, thus allowing you to save on costs and other resources.

This high level of scalability gives companies better flexibility to carry out business processes in a seamless manner, ensuring you meet the objectives.

  • Better security

Outsourcing app development services offers better security compared to in-house hiring. Professional app development companies have a better understanding of legal and local legislation data and security concerns in relation to specific industries.

In fact, if you outsource a reliable and loyal app development company like Aalpha Information Systems, you will get extensive advice on some protocols you should follow to ensure your app meets the required security standards to avoid future issues.

Pro tip: don’t forget to sign an Non-disclosure agreement – NDA with your outsourced partner. This will help safeguard your data and any confidential details about your company.

How to outsource app development: step-by-step process

How to outsource app development step-by-step process

Once you establish the need to outsource app development services in your company, follow the steps below to ensure the whole process turns out successful:

  • Understand your app or product

Start by understanding what your product is all about and why you need the app. While you can get an app development agency that can advise based on some analysis and market research, it is vital to have your vision and objectives you want to achieve in the end.

Once you are in a better position to explain what you need, it becomes easy for your outsourced agency to understand what you need to put in place appropriate measures and procedures to achieve all these for your business.

So, as you figure out your product or app at this stage, make sure you answer the following concerns:

  • What is the existing problem you need to solve with the app?
  • What is the main purpose of the product or app?
  • Which features should you integrate into your app?
  • Do you need a cross-platform, Android, or iOS app? Who are your target audience?
  • How will you monetize the app or product?

Answering these questions will guide you later on when selecting the right app development service provider for your project.

  • Create a plan

Once you define the app you need along with the problems you want to solve, you need to create a practical plan that will help you execute all the processes seamlessly.

Of course, you will share the basics of your product with the outsourced agency. However, you need to have an initial plan and overall concept of the final product, hence the need to create a viable plan.

Under this step, make sure you know what to expect with the product and the goals you want to achieve afterward. Therefore, make sure you address the following concerns at this step:

  • Budget estimates for the entire project
  • Business objectives
  • Target end users
  • Operating system
  • Must-have features for the app
  • Marketing trends

With a clear plan with all the details in order, you will simplify the work of the outsourced agency. They will understand your vision and assemble all the necessary resources, tools, and mobile app tech stacks required to actualize your dream. Besides, such a plan will create a streamlined workflow and processes for both you and the outsourced team.

  • Research

With a practical plan and a clear vision of your product, you can now begin searching for a reliable & expert app development agency for outsourcing.

There are many app development companies you can outsource your project to. However, the success of your project depends on the type of app development agency you choose.

Determine if you need a full development company such as Aalpha Information Systems or if you need individual freelancers. Both choices have their benefits and pitfalls. The choice will depend on your budget, type of project, and preference.

While freelancers are cheaper, you can’t be sure of the final quality plus security of your business dealings.

Full development companies, on the other hand, can be costly, but you are sure of top-notch quality plus the security of your business dealings.

As you do research, you need to factor in the location of the outsourcing agency. Is it offshore, nearshore, or onshore? Again, the choice depends on the nature of your project and your preferences.

  • Offshore involves contracting app development agencies located in other countries. This means the time zones are different and cultural practices are different. While this model is cost-effective, you might experience communication and engagement challenges, especially without proper planning.
  • Onshore involves contracting app development agencies located in the same region as you. This means they are familiar with the country’s laws, regulations, and related practices in relation to your project. Communication under this model is simple and seamless. This model can be costly compared to nearshore and offshore models.
  • Nearshore involves contracting app development agencies located in the near regions (neighboring countries). The costs are moderate under this model, and there is a good balance between accessibility and overall costs.

Finalize this step by listing several app development service providers who are likely to accomplish your project in a professional manner.

You can search the companies via online platforms, social media platforms, offline, referrals from friends &colleagues, or even from forums.

  • Compare Portfolios and conduct interviews

At this point, you have a list of app development agencies ready to handle your task. However, you need to filter and narrow down until you remain with the most qualified app development service provider.

Do this by checking the following:

  • Past projects and portfolios
  • Reviews from past clients
  • Case studies
  • Customer communication and satisfaction rate
  • Awards
  • Type of projects they have handled previously

These guidelines will help you settle with a qualified app development service provider specifically for your project needs.

Finalize this step by choosing the most appropriate vendor for your app development needs.

  • Agree on pricing model and payment method

Different app development companies prefer different payment methods and pricing models. So, before signing a contract, you need to set clear matters regarding payment to avoid inconveniences. You need a plan that is flexible with you and your budget as well.

Google Pay, Apple Pay, e-wallets, and credit/debit cards are some of the payment methods for most app development agencies.

The pricing models include the following:

  • Hourly – here, you pay for the hours the team spends working on your project. The price can be from $20 to $ 1000 or even more. It all depends on a number of factors, such as the number of teams and the complexity of the project.
  • Per project – under this payment model, you pay an agreed amount according to the services rendered.
  • Monthly payments – this model works more like a subscription plan where you pay an agreed amount on a monthly basis.
  • Sign an agreement or contract

At this point, you have your outsourced app development partner, and you’ve settled most of the requirements. However, before the agency starts handling your project, there need to be signed agreements binding and protecting the teams involved in diverse ways.

Below are the vital agreements both parties should sign before the project begins:

  • NDA – non-disclosure agreement: to safeguard or protect the confidential details of your business and product at large.
  • SOW – statement of work: outlines the tasks or work to be accomplished, including the deliverables.
  • DPA – data processing agreement: outlines the process of handling and protecting data.
  • Payment terms: outlines the agreed payment plans, including the timeline and structure.
  • MSA – Master service agreement: highlights the terms and conditions of the engagement.

Pro tip: you can consult or seek legal advice from professionals to stay on the safe side, especially if you are new to such a business venture.

Once both parties sign the agreements, the outsourced agency can continue with the project.

  • Keep good communication with developers

Finally, once the project is one, effective and frequent communication will accelerate the development process while ensuring nothing is left uncovered.

In the case of an outsourced agency, you will work hand in hand with a project manager who will keep you on track with the project’s progress. Just make sure you agree on the communication channels and frequency to give each party ample time.

Challenges of outsourcing app development and solutions

While outsourcing app development is a modern and viable solution that gives companies better scalability and flexibility in their operations, it has a set of challenges, which include the following:

  • Security concerns

In outsourcing, business owners must share confidential details of their businesses, which, in one way or another, can be risky. Most clients often worry about sharing such sensitive details about their business. However, when working with an expert outsourcing agency like Aalpha Information Systems, you are guaranteed a high level of data protection.

Solution: the ultimate solution to this matter is signing an NDA while stressing specific rules and guidelines the outsourced agency should follow.

  • Choosing the wrong vendor

There are many app development agencies, with each specializing in different services and offering different prizes.

With this in mind, it is possible to choose a service provider based on their prizes without factoring in other elements. In the end, you might end up selecting a vendor who lacks adequate expertise relevant to accomplish your product development.

Solution: always do a thorough vetting process before selecting the final service provider. Above all, check their profiles, case studies, past experience, past projects portfolio, and reviews from past clients, among other factors.

  • Communication issues

Communication is a key element that will enhance a successful collaboration. Outsourcing allows you to onboard teams even from different countries, hence different time zones and cultural practices. This can lead to some challenges, such as delays and miscommunication when the project is already on.

Solution: always discuss upfront the viable communication channels and frequency before the project begins.

  • Unexpected results

Imagine you’ve already entered into an agreement, but you don’t get the anticipated results in the end. This can be devastating, especially if the project is urgent.

Solution: always communicate to your service provider what you expect. Give regular feedback as you track or monitor the progress of your project. This will ensure both parties are moving on the same page.

What is the cost of outsourcing app development?

The cost of outsourcing app development services is based on the following elements:

  • Number of the development team
  • Region of the outsourced team
  • Type of an app of complexity
  • Delivery timelines
  • Tech stack
  • Features to integrate
  • UI/UX design, among many other factors.

With this said, the cost of outsourcing app development services can range from $5000 to $300,000 or even more. It all depends on the factors described above.

Quick tips for a smooth and successful app development outsourcing

So, you’ve already made up your mind and you are on the move to outsource the best app development agency. Here are some quick guidelines that will enhance a successful process:

  • Set clear expectations– from the very beginning, have clear expectations and share all the details with your service provider in a timely manner.
  • Discuss payment before signing the contract– don’t make assumptions on matters costs and delivery timelines. This will enable you to plan your finances well while avoiding surprises of unexpected expenses.
  • Timely feedback is key– as you monitor and track the project’s progress, always share timely feedback and any other concerns that may arise when the project is already on. This will help the team envision what you anticipate in the end and work towards achieving your vision.
  • Don’t focus on prices– when selecting an app development service provider, low costs do not always mean good or poor quality, and neither do high costs. Instead, check the agency’s experience, past projects, and expertise in specific fields.
  • Regular communication is vital – to ensure your outsourced team works towards the same goal as yours, put in place effective communication strategies and channels. You can use slack for seamless communication, zoom for video calls, and Jira for tracking the tasks, among other modern solutions that will keep communication alive.

Conclusion

App development outsourcing is a modern solution for companies to hire top talents in the app development field while maintaining a high level of flexibility and scalability.

If you are new in the app development business and searching for a reliable partner for outsourcing, consider the details shared in this guide, and you will experience a smooth and successful collaboration with an outsourced agency.

Want to outsource app development services? Contact our mobile app development company : Aalpha information systems and get a quotation at no cost!

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Written by:

Stuti Dhruv

Stuti Dhruv is a Senior Consultant at Aalpha Information Systems, specializing in pre-sales and advising clients on the latest technology trends. With years of experience in the IT industry, she helps businesses harness the power of technology for growth and success.

Stuti Dhruv is a Senior Consultant at Aalpha Information Systems, specializing in pre-sales and advising clients on the latest technology trends. With years of experience in the IT industry, she helps businesses harness the power of technology for growth and success.