Custom Mobile App Development Outsourcing Costs: A Breakdown
While many entrepreneurs prefer to have their software developed in-house to have better control over the process, outsourcing custom mobile app development services has become an overnight game-changer for companies.
Grand View Research reports that in 2022, the global outsourcing market reportedly stood at $261.9 billion. Apart from the former, Zippia has indicated that 59% of businesses opt for outsourcing because of its cost advantages, while 37% of IT tasks are outsourced on average.
Well-known companies like Google, Slack, and Skype have successfully used outsourcing. The first reason to consider is cost efficiency. The best IOS and Android app development costs may range from $40,000 to $300,000+.
This is probably why outsourcing custom mobile app development is repeatedly gaining increased business attention.
So, if you are also considering outsourcing this critical project, you need to ask yourself this question: How much will it really cost you? You must know the factors affecting development costs to budget and make the right decisions.
Consequently, Cognitive IT Solutions, one of the best software houses in Karachi, specializes in custom IT solutions and services. Their services include custom mobile application development to ensure your enterprise thrives competitively.
Rolling back to the topic today, in this article, we will review all the different cost factors of outsourcing custom mobile app development and provide valuable insights so you can make better decisions for your custom mobile app development project.
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How Much Does Outsourcing Custom Mobile App Development Really Cost? Know The Cost Range
For a quick answer, outsourcing the development of a custom mobile application may cost between $30,000 and over $300,000.
Various major factors determine the final solution cost, including the complexity of the app, the required features, a chosen platform—e.g., iOS, Android, or cross-platform mobile development—and the location of the development team.
Thus, consider these aspects in detail to give you a fuller view of what to expect.
Cost Breakdown Of Outsourcing Custom Mobile App Development
1. App Complexity
The development of your app’s complexity will command most of your costs. Here is a breakdown of your expenses based on app complexity:
i) Basic Apps: Such apps do little more than have basic functionality, simple UI, and very basic features. Development costs will run between $30,000 and $50,000. On average, in broad terms, this type of app does just one thing.
ii) Complex Apps: If the app has those middle-range features, a more complex design, and integration with some third-party service, you are talking about an expense of $50,000 to $120,000. This might need even more complicated designs and backend services.
iii) High-end apps: High-end apps with complex features, algorithms, or AR VR technologies may cost between $100,000 and $300,000. Such projects will require complex backend infrastructure at a high level.
Besides this, you can consider a cost-cutting measure with cross-platform development. For example, the Flutter framework or similar platforms for mobile apps let you develop an application that runs on iOS and Android, saving development costs up to 60%.
Factors Influencing Outsourcing Costs
1. Feature Complexity: The more complex the features, the higher the development cost. For example, with Netflix, a simple homepage may be estimated to take 15 hours to build. However, if this homepage is developed to provide personalized content dependent on the user’s location, it would require up to 50 hours, double the UI UX design and development services cost.
2. Team Structure: The cost of the application’s development also depends on the team. It could include business analysts, UI/UX designers, project managers, developers, and QA engineers. The cost would vary based on the location, and the developers’ salaries differ in various places. There is a wide variance between US-based developers who charge an enormous amount more than in Eastern Europe and Asia.
3. Rates of Developers by Region: The developer rates differ in various countries. For example:
👉 North America: $100 to 150/hour
👉 Eastern and Central Europe: $40 to $55 per hour
👉 Asia: $20 to $49 per hour. The cost includes the know-how and experience available in each region; still, high quality does not necessarily have a higher price. In some countries, such as Estonia, the cheapest yet superior development services can be found.
Team Roles And Responsibilities
Each member of an outsourced development team has a definite role to play in the success of a project.
1. Business Analysts: They define the project’s requirements and develop a roadmap. Estonian business analysts average $20,200 annually and are paid 30% less than their US counterparts, who average $68,350 annually.
2. UI/UX Designers: The design is intuitive and visually gorgeous for mobile apps. They receive, on average, $19,300 there in Estonia, while the same level person in the US can draw around $85,300
3. Project Managers: The PM is the right man for communication and usually sets deadlines. Their packages range from $22,800 in Estonia to about $66,100 in the US.
4. Developers: This group comprises the backend team and builds the app’s architecture and features. Estonian mobile app developers cost between $24,000 and $27,000 annually, while US-based developers vary in salary from $74,750 to $83,000 annually.
5. QA Engineers: This type of engineer would conduct testing and fix bugs. They are estimated to cost approximately $18,000 annually in Estonia and $71,000 annually in the US.
Models of Outsourcing
Outsourcing models can be classified by type and relationship as follows:
👉 Offshore Outsourcing: Teams collaborate with distant countries, usually for cost savings.
👉 Nearshore Outsourcing: Teams in neighboring countries collaborate to minimize large time zone differences.
👉 Onshore Outsourcing: Locals are hired for development work. This is the pricier option; however, communication challenges are relatively lower.
There are also relationship-based models that you can choose from:
👉 Staff Augmentation: Other external people are added to your team temporarily.
👉 Dedicated Team: Here, a dedicated team, such as a software house, is hired exclusively for your project.
👉 Project-Based Model: The whole project is outsourced to a third-party team.
Regional Price Comparisons
👉 North America: Developing a fully-fledged app like Netflix would cost around $100 to $150/hour.
👉 Oceania: These rates are very similar to those in North America, so it’s just as costly to offshore here.
👉 Eastern and Central Europe: The cost is relatively low, about $40-$55 per hour. Thus, developing applications in complex projects will cost approximately between $200,000 and $300,000.
👉 Asia will be your most affordable region, with rate levels in the range of $20-$49/hour. However, due to language barriers and time zones, communications could easily become complicated.
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Maximizing Outsourcing Success
Hiring a team is not just outsourcing. Here are some steps involved in getting the most out of it:
1. Market Analysis:
It involves deep research to understand competitors and the market’s demands. This will help lower costs by using resources efficiently.
2. User research:
Only when you know who you are targeting will you know how to meet those people’s needs with your product. Consider starting with an MVP to gather feedback and improve before investing in the full app.
3. Finding the right outsourcing partner:
It is always wise to test some small projects with an outsourcing partner so that you can understand their level of expertise before you hand over your project.
4. Protect Your Intellectual Property:
Always sign a Non-Disclosure Agreement to protect your ideas and confidential information about your product.
Learn more: Digital Secure App- A Robust Security Tool For Your Smartphone
5. Communicate Clearly:
Regular check-ins, clear deadlines, and a clear communication strategy are important to the project’s completion.
6. Feature List:
A clearly defined feature list can help you avoid extra costs. Work closely with business analysts to outline the features you need in your app.
Apart from that, if you prefer custom solutions, look no further than Cognitive IT Solutions, one of the best software houses in Karachi. It offers custom solutions such as custom ecommerce development services, so that you can convert leads competitively.
Final Thoughts
Outsourcing custom mobile app development may be a strategic step forward for a business looking to heighten its digital presence and stimulate customer engagement. Costs vary since complexity, platform choice, and development team, as well as software houses and their locations, can differ greatly, but understanding these factors will assist you better in making decisions.
Given clear project requirements and the right development partner, you will achieve a successful outcome aligned with your business’s goals without any financial breakdown.
Every organization’s demands differ significantly in the business world. Cognitive IT Solutions offers comprehensive solutions and custom website development services, ranging from custom mobile app development to custom ecommerce websites tailored to your business needs.
Their experienced team is proud of its ability to deliver the highest quality, cost-effective solution for each client. By partnering with them, you’re not just investing in an app- you’re investing in a platform for future growth and enhanced customer engagement.
Frequently Asked Questions (FAQs)
How much does it cost to build a custom mobile app?
Well, it depends! The cost to build a custom mobile application normally varies from $30,000 to $300,000, depending on the features, desired platforms, development team location, and design complexities. Uncomplicated apps fall closer to the lower end, while highly complex apps reach the higher range.
How much does outsourcing software development cost?
The cost of outsourcing software development for developing custom software can range from $25 to $150 per hour, depending on the location, project complexity, and developer skill level. Regions like South Asia and Eastern Europe generally offer lower rates than North America; for example, India might cost around $22-$44 per hour, while North America could be $62-$209 per hour.
How much cost can be saved through outsourcing?
The amount a company can save through outsourcing depends on the scope of the outsourced operations and other in-house changes. However, on average, companies can save around 15% through outsourcing.
How much does it cost to make an app in Pakistan?
The cost of mobile app development depends on your requirements, category, and other features. In Pakistan, the estimated expense of building a basic application can vary from Rs. 225,000 to Rs. 450,000, approximately $807.96 to $1,615 in United States Dollars.
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