The mobile app development industry has grown exponentially over the last decade. In 2019 alone, the in-app purchase market size was valued at $76.43 billion. This number is expected to reach $340.76 billion by 2027. There’s no doubt that the number of mobile app users will grow too: according to the forecast from Statista, around 184 billion apps in total will be downloaded by 2024: 139 billion from Google Play Store and 45 billion from Apple App Store.

With such rapid growth, it makes sense for companies that plan to launch their own app to optimize the development process by choosing outsourcing services. What are the options, pros and cons of outsourcing and is it really better than hiring an in-house team which works under your direct supervision? How to outsource mobile app development without the risk of losing control over the process and what are the tips to choose the right offshore company? In this blog post, we’ll try to answer the most common questions.

So, you decided to launch an app. First of all, what development options do you have?

• Hire an in-house development team to work under your control
• Choose an outsourcing app development to work remotely (either offshore development company or a freelancer)

Let’s take a closer look at the advantages, disadvantages and pitfalls of each option:

In-House Development: Pros and Cons

Among the main advantages of hiring an in-house team of developers are:

• Scalability and flexibility: These teams can be scaled up or down based on the demand, moreover, since they are managed directly by your company, they can adapt to changes quickly and efficiently.
• Knowledge and expertise: Since the team is formed according to a specific set of skills, domain and tech expertise, they are suitable for a particular job.
• Stronger culture and better communication: The teams are built within the company, so they create a stronger corporate culture. Being a part of the same organization, they understand company’s values and goals well. This may lead to better productivity and results.
• Less risk and greater motivation: Since the developers are managed by the company itself, there is more control over the team and less development risk involved. Moreover, when the teams are made up of people who share similar values, they are highly motivated and provide better results.

The cons are the following:

• Limited skills: Since the teams are formed according to specific skills, sometimes there’s a lack of knowledge and experience in certain areas and domains.
• Price: Salaries are not the only expense (and they’re often higher than salaries of dedicated specialists), as it requires a lot of resources to invest here, especially at the initial stages, including HR support, office rental and equipment, taxes, paying for sick and annual leaves, adaptation and training, taxes and more.
• Dismissal of personnel: It’s a common case when the company invests lots of resources in onboarding, training and adaptation, after that watching how their valuable employee finds a new job. In this case, the company loses even more money and time to find and hire a new team member.
• Weak communication: Since the teams are formed on demand, they have no previous experience of working together and may have difficulties with communication which can lead to conflicts and poor performance.

Outsourcing App Development: Benefits and Risks

If you want to launch a new app or update your existing one, this cas allows you not to worry about coding at all. You can hire someone else to develop your app instead of spending thousands of dollars, weeks or months on searching and hiring business analysts, QA specialists, and developers. The main pros of choosing dedicated development teams are:

• Time and cost savings: Salaries of offshore development teams are often lower (compared to local specialists in EU and US), when the quality of their work is at the proper level. Your expenses are limited to the monthly payments to the contracting company, which takes care of all other costs related to the development. The contracting company takes full responsibility for finding the right specialists and monitoring their work and results, as well as formalizing the documents and the scope of work. All you need to do is to focus on marketing and sales.
• Access to talents: Outsourcing opens up great opportunities to find the most talented and experienced professionals at a competitive price. Since you’re not limited to the specific region, you’re able to hire experts in certain domains and cutting-edge technologies, who can work and communicate effectively while in different time zones.
• Focus on your project: Dedicated development teams work ONLY on your app, without being distracted by outside projects, allowing all tasks to be carried out efficiently and accurately on time.
• Cohesive team: Usually dedicated teams have experience working with each other on similar projects, which ensures better communication between team members, faster and better results.
• Flexibility: Your timelines can be flexible within a project as you work with the dedicated team either on a full- or part-time basis. Additionally, a dedicated team model allows you to collaborate with as many specialists as you need according to your project’s demand.

Risks to Сonsider When Choosing Outsourcing App Development Services

Outsourcing is one of the fastest-growing industries today. However, it comes with its own set of risks as well. Here are some of the major ones:

• Timezone differences: Working remotely requires constant communication between both parties. If there is a time difference between the two countries, then it becomes even harder.
• Unclear communication and lack of transparency: Many outsourcing companies claim to offer high-quality service but fail to prove it, as well as fail to communicate effectively with their clients. They may promise a specific deadline but never meet it. However, a good outsourcing company must be available 24/7 and adhere to the work acceptance schedule to provide a client with the results according to a fixed timeframe.
• Loss of intellectual property rights: If your company does not retain ownership of the IP created during the project, then you may face legal challenges later.
• Language barriers: If you choose to outsource the project to another country, then you need to ensure that all the people working on the project speak English fluently. Otherwise, you risk losing valuable business opportunities.

How to Outsource App Development Without The Risk of Losing Control Over the Process?The most common problem faced by many business owners is that they lose control over the entire development process. As a result, they end up spending more time and resources than necessary. To avoid this situation, here are some tips that can help you out.

• Understand the requirements: It is very important to have a clear understanding of the requirements before starting the process. This will help you identify the scope of the project.
• Get regular updates: Keep yourself updated about the progress made by the team.
• Monitor the performance: Check whether the team is meeting deadlines or not.
• Review the project regularly: Check whether the project is moving ahead according to schedule.
• Communicate clearly: Let the team know what exactly you want from them.
• Stay connected: Always stay connected with the team so that you don’t miss anything.
• Don’t be afraid to get involved: The team might require your input at times. So, do not hesitate to provide it.
• Pay attention to feedback: Listen carefully to the feedback provided by the team.
• Take corrective measures: When required, take corrective measures to improve the overall experience.

How to Choose the Right App Development Company for Outsourcing?

There are certain qualities that you must look into while selecting the best software development company for outsourcing. Here are some of them:

• Experience: Choose a company that has been providing services for several years. They will understand your needs better and give you a solution accordingly.
• Quality of work: Check the portfolio – whether the company provides you with high-quality apps. This will ensure that you don’t face any issues after launch.
• Flexible payment terms: Ask the company if they accept flexible payments. You can pay them at their convenience.
• Good communication skills: Communicate with the company regarding the project. Discuss everything thoroughly. This will save both of you from any confusion.
• Transparency: Always keep an eye on the budget and the timeline. Don’t sign any contract without knowing what exactly you are going to do.
• Customer support: The company must provide 24/7 technical support to solve any issue.
• Reputation: Look for a company that has great reviews from its previous clients.
• Reliability: When it comes to reliability, it is essential to know how long the company has been operating.
• Cost-effectiveness: Compare the cost of hiring a local team with the cost of outsourcing.
• Security: Make sure that the company uses secure technologies such as HTTPS.
• High ROI: A company that offers high returns on investment (ROI) is always preferred by businesses.
• Trustworthy: A trustworthy company will never ask for money upfront. Instead, they will charge you only after the completion of the project.
• Technology expertise: Find out whether the company is familiar with the latest technology trends.
• Customization: Ask the company about customization options.

Freelancers: an Option or a Risk?

App development is a highly competitive field. As a result, some companies prefer to outsource this activity to freelancers rather than employ a full-time offshore team of developers. There are some benefits and risks associated with using freelance developers. Here are some of the major concerns:

Pros:

• Freelancers are sometimes more affordable than full-time workers.
• They can be easily found online.
• They are more flexible than full-time workers and can adjust their schedules accordingly.

Cons:

• Lack of quality control: Since it may me difficult for you to estimate the level of expertise and knowledge of a freelancer, there’s the risk that they do not have the same level of expertise as a full-time employee, thus they may not be able to provide you with the best possible solution. This means that your application may not function properly.
• Time constraints and unreliable communication: Since freelancers are working independently and remotely, it is hard to monitor their progress, moreover, they may not be available when you need them. This means that you may not receive timely updates about the status of your project.
• Poor documentation: Since the freelancer doesn’t have a permanent office, it is hard to track down his documents. This makes it hard to find answers to technical issues.
• Lower productivity: Since the freelancer spends much of his time looking for new clients, he cannot focus on other activities. Moreover, you cannot guarantee that he works only on oyur project and is not busy with other clients. This may reduce his productivity.
• Low morale: Since the freelancer lacks job security, he may feel stressed and unhappy. This affects his productivity too.

Conclusion

• Hiring an in-house team, indeed, has losts of benefits, but you should take care of everything: starting from finding the right specialists and onboarding, to constantly controlling the working process and maintaining documentation, not to mention the enormous costs of this development way.
• Hiring freelancers may seem to be the easiest option, but also a risky one on the other hand – a person you chose may turn out to be unprofessional and unreliable and eventually let you down.
• Hiring full-time dedicated development teams is the most secure, cost and time effective way to create and launch a successful mobile application. Choosing outsourcing mobile app development services, you get a cohesive team of professionals at a competitive price, fully devoted to your project and available 24/7 for communication.

Softvoya is a full-cycle agency specializing in software development, UX/UI design and advertising. We help our clients build mobile apps, software and websites, from start to finish, from design to product launch, with a special focus on growth marketing. Need to create an app or MVP? Contact us today to discuss the details!