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Cost of outsourcing app development: Onshore vs. Offshore
What is the real cost of outsourcing app development? Taking into account that many companies can outsource IT services, you may be surprised at the difference in their interest rates. We will fully understand the outsourcing application development and the costs of these services.
What influence the price of the app?
Each development case is unique and should be elaborated individually. Customize your app for your requirements. Software architecture, application platform and functionality are the most fundamental part of the final cost. The price ranges from £ 20,000 to millions of pounds. Offshoring prices starts at £ 2,000, but an app developed at this prices will hardly suit your needs?
How to estimate the approximate cost of app development?
Mobile and web application development is a vital decision for companies which plan to grow and maintain their customers and optimize their business to increase productivity and efficiency. Custom app development services can not be estimated at fixed prices, costs depend on many factors, such as
- Platform or platform selected;
- Integrated function;
- Project interaction;
- Mobile friendly;
- Quality code;
- Developer hourly rate.
The total cost of the in-house/offshore teams
As an entrepreneur, if you want to succeed in the future, you may think that the prospect of hiring an in-house team of developers for a long time will be better than outsourcing, especially if you are a large company established with long-term projects. Let's compare these two alternatives.
The first advantage of outsourcing is the lack of need to provide workspaces, hardware and equipment to the development team compared to hiring internal teams. Finding space and equipment is not the end of expenses. Team management also demands additional costs, including furniture costs, stationery, equipment maintenance and so on. However, adding additional costs or recruiting qualified specialists, responsible for the IT department is responsible.
Technology is a dynamic field of development. In order to keep up with all IT trends, learn new programming languages, the latest technology, programmers and designers regularly visit different courses, conferences, conferences, webinars and read specialized literature, which means additional costs. In other words , unlike outsourced companies, you should continue to invest in your knowledge base and internal knowledge of the team.
When outsourcing, you hire a specialist for a brief appointment, you pay for the work performed. You can expand the relationship with the task of the outsourcing company to complete the task only for the outsourcing development team. During the creation of an in-house IT department, you will establish long-term partnership with full-time staff who needs monthly salaries and benefits, such as dental and health insurance, sick leave, paid holidays, and so on. Therefore, in the long-term perspective, the recruitment of internal teams can be expensive.
Finally, it turned out that the entire team is proficient in the different technologies you may need for a development project, which can be a and daunting task. The outsourcing company may do a good job for you.
Outsourcing and offshoring: What's the difference?
Often, people do not distinguish between these two concepts. But that's the same as it would be a mistake, let's clean the air. Outsourcing is a universal concept, and relocation is a relatively narrow term. Therefore, outsourcing can be either onshore or offshore.
- Outsourcing means using a local external company for specific internal business processes or services. This business model helps customers reduce their internal infrastructure and in-house team and the associated costs. IT service providers are located in the same country. For example, if a British company outsource an IT company in the UK, it will be on the coast.
- Offshoring is the process of finding service providers in different countries and often on another continent. If a UK firm hires a Russian IT company because of its low labour cost and a service provider offers services remotely, it will be an offshore business model. I believed that North American agencies are India and Indonesia and other Asian IT companies, the largest offshore outsourcing business.
Often, small businesses reduce costs by investing abroad. The low cost of outsourcing application development is caused by lower labor costs. So why would you pay billions of pounds to local developers, so working in other countries might be cheaper? So the answer is simple: you get the cost of your payment. If you expect an effective high-performance application, you should consider it twice and then hire a developer for £ 20 per hour. Offshore App Development Before you collaborate with offshore outsourcing software companies, you should be aware of some of the risks.
At first glance, this does not seem to be a big thing, but it is. In addition, foreign business practices are different, their aesthetic culture patterns are not the same. You will need time to understand yourself and explain your project to see what you want. Also, these explanations, although the hourly rate is low, but it will cost a lot of money. If you want to take a chance, opt to use the Scrum company, which will ensure the transparency of app development, allowing you to better control the process, even if it is offshore.
Misunderstanding and distance
The other risks you run are an opportunity and eventually you will not get the desired result. It is difficult to explain your thoughts to those who sit in front of you, especially if you do not even know what you want. That's why developers use agile methods that require regular appointments and comments. In an offshore outsourcing case, you will pass your thoughts on to people who do not know you thousands of miles away without having to meet that person every time you want or need it. In this case, you have a high risk and the cost will not be rewarded. The output may be the hiring of a local representative company.
Cost and quality
£ 20 per hour is an appealing price, but is it working? The average cost of ensuring better quality apps is a minimum of £ 40-70 per hour. Reducing costs will ensure quality degradation. In the development of the app, for a long period of time, this storage will reach you in your pocket. Higher initial cost of high quality, instead of having an app with many errors, from the beginning, easier to eliminate the development of startup apps. Choose outsourced app development to ensure they have a quality inspection department or hire a specialized IT consultant to help you determine if the product design has been carefully designed.
Outsourcing app development services
Whether it is outsourced IT companies onshore or offshore, we can ensure that our cooperation with our development company is an economical company, tailored to your company's needs for high quality apps. Strong data processing for mobile or web apps will help you increase productivity and improve customer relationships. This software development organization specializes in tailoring your project to your specific needs.
We have a full team of professional developers and designers who can provide you with complex and highly functional mobile apps.
Mobile app development
We talked to you in plain English to describe our chances. No matter how you think, no matter how challenging, we can make life in a relatively low bed. We use the operating system and all the advantages of the device to create native applications on all major platforms, including iOS, Android, Windows. App designers consider the various specifications and functions of the operating system to create an intuitive and eye-catching design to ensure customer retention. We focus on app security and safety as one of the metrics of qualitative products.
Web App Development
This outsourcing app development company has a proven agile development process based on the Scrum approach. This method means an iterative loop called Sprint results delivery. Every sprint We ask that you provide feedback so that the development is as transparent as possible and the effort to reduce costs. We do not allow you to imagine your app, we provide a central function of the work program, which is called MVP (the least viable product), so you can see how it works and decide to improve the content, add which features and which direction the developer should follow. The project manager dedicated to your development case will be accompanied by the entire process to help you provide expert advice and make sure you always know what happened.
Quality assurance department
Not every outsourcing developer has experience in quality assurance, and we have a complete quality assurance department, with experts in different fields of IT to ensure the quality of your product. From the conceptual stage, these people try to predict problems and errors that may occur during the app development process. That's why our software products stand out. We will not try to use extra encodings to remove errors, make your application clumsy, but from the start to avoid them from your expectations of amazing results. Initial costs of quality assurance Significant reduction New improvements in the quality of the app In terms of quality, we are incomparable.
How much does your app cost?
Each project is different from other projects, and each app has no fixed price. The average cost of the application we create is around £ 30,000 to £ 40,000, but it always depends on your requirements. You can easily find the real costs of outsourcing app development, call your business to let us know about your project.
Do not hesitate to call us!
Our representatives will help you identify functionality and let you know the approximate cost of your business application. We can ensure that our quality proves that the cost is reasonable. Let's start a friendly conversation, maybe we can have a great joint project.