Outsource App Development Cost: How To Do It?

Rokas Jurkėnas
October 23, 2024
October 23, 2024
Outsource App Development Cost: How To Do It?

Outsourcing app development cost can be cheaper, but it's not always simple. In this post, we'll look at the real costs and benefits of outsourcing and also show you how to work out your project cost in just a few minutes. By the end, you'll know if it's the right decision for your app project.

What is App Development Outsourcing?

App development outsourcing is the practice of hiring an external company or team to handle all or part of the development process for a mobile or web application. This can involve tasks such as:

  • Planning and design
  • Development
  • Testing
  • Deployment
  • Maintenance

Partnering with a mobile app development company ensures access to experienced professionals who can deliver high-quality apps.

Overall, app development outsourcing can be a valuable strategy for businesses that want to develop high-quality apps without investing heavily in in-house resources.

Top Factors That Affect App Development Outsourcing Cost

Many apps, graphs and a phone illustration

The cost of outsourcing app development can vary significantly depending on several factors. Compared to in house app development, outsourcing can offer significant cost savings and access to specialized skills. Here are some of the key elements that influence the final price:

1. App Complexity and Functionality:

  • Features: The number and complexity of features directly impact development time and cost. More intricate features require more development hours.
  • Design: The complexity of the user interface (UI) and user experience (UX) design can also affect costs. Custom designs and animations can be more time-consuming.

2. Platform:

  • iOS or Android: Developing for both platforms often requires separate development teams and codebases, increasing costs.
  • Web Apps: Web apps typically have lower development costs compared to native apps but may have limitations in terms of performance and device features.

3. Development Team Location:

  • Geographic Location: Developers’ hourly rates vary significantly based on their location. Countries with lower labor costs, such as India or Ukraine, generally offer more affordable rates. Managing an in-house team can be more costly due to salaries, benefits, and additional expenses.
  • Experience and Expertise: More experienced and specialized developers often command higher rates.

4. Project Scope and Timeline:

  • Scope: A larger project with more features and functionalities will naturally cost more.
  • Timeline: Tight deadlines may require additional resources or overtime, increasing costs.

5. Communication and Collaboration:

  • Project Management: Clear communication and effective project management are essential for successful outsourcing. Effective communication with the software development company is crucial for successful project management. Poor communication can lead to delays and increased costs.
  • Time Zone Differences: Working with a team in a different time zone can present challenges and potentially impact productivity.

6. Maintenance and Support:

  • Ongoing Support: Post-launch maintenance and support are crucial for app success. These ongoing costs should be factored into the overall budget.
  • Updates and Upgrades: As technology evolves, apps may require updates and upgrades to remain relevant. These costs should be considered.

7. Other Costs:

  • Licensing Fees: If your app requires specific licenses or APIs, these can add to the overall cost.
  • Testing and Quality Assurance: Thorough testing and quality assurance are essential but can often be overlooked in cost estimates.

What is the average cost of app development?

Money on a phone

According to Cleveroad’s article, the average cost of app development can vary quite a bit depending on how complex the app is.

  • Simple apps: are pretty straightforward, so they don’t cost as much. The price tag usually falls between $40,000 and $120,000. These apps usually have the basics, like user profiles, push notifications, and a simple UI.
  • Medium-complexity apps: The price tag for these apps usually falls between $120,000 and $200,000. These apps have more features, a custom UI, and they might cover social networking or e-commerce functions.
  • Complex apps: start at $200,000 and can go up to $300,000. They need advanced features, third-party integrations, and a responsive, bespoke UI/UX design.

Outsourcing software development can offer significant cost savings and access to a wider talent pool.

Development times also vary. Simple apps take 2-3 months, medium apps 3-6 months, and complex apps 6-9+ months. Factors like platform choice, feature set, and developer location also affect costs.

How To Calculate The Outsourcing App Development Cost?

Person working on a calculator

There are a lot of ways to calculate the cost of outsourcing app development. It depends on what country you want to do it from.

The easiest and most accurate way is to contact a lot of app developers, have a chat with them and get a quote for your project. This is usually a free consultation that you can get with many, but not all, companies.

This method is effective, but it takes a long time.

There is another way to get a very accurate quote for outsourcing app development costs. We have recently launched a tool that can give you an almost 100% accurate quote with a full project plan, what to consider, and what your app will look like.

Easier way to calculate Outsourcing App Development Cost For free

AI software cost estimator first question

To easily calculate the cost of outsourcing app development, Idea Link offers a free, AI Software Cost Estimator that provides a quick, 90% accurate project quote in just 3 minutes. Unlike traditional methods, there’s no need for meetings or back-and-forth emails, making the process fast and straightforward.

Here’s how it works:

#1 Start by entering your project details.

#2 Receive a sharable report that includes:

  • A detailed specification of your product.
  • Preliminary scope, including cost estimation.
  • Projected timeline.
  • Risks associated with development.
  • Recommended tech stack.

With this tool, you can make informed decisions about your project’s budget and timeline, all without the hassle of scheduling multiple consultations.

How much does it cost to develop a messaging app?

Example app estimate

Developing a messaging app like WhatsApp, that prioritizes user privacy and secure communication, can cost between $70,000 to $80,000. This estimate is based on our experience in developing digital products and takes into account various stages of the project, including:

  1. Design & Analysis (2.5 weeks): Initial research, planning, and design to ensure a smooth development process.
  2. Development Planning & Architecture (1.5 weeks): Structuring the app's architecture and laying out the technical specifications.
  3. Development Timeline (13 weeks): Building core features such as private messaging, voice and video calls, media sharing, group chats, and business tools.
  4. Quality Assurance (QA) (2.5 weeks): Comprehensive testing to detect and resolve any issues before launch.
  5. Deployment & Handover (1.5 weeks): Finalizing the app for deployment and ensuring a smooth handover.

The project duration of 21-25 weeks ensures a thorough implementation of features like end-to-end encryption, cross-platform compatibility, and advanced communication tools. The price range includes a buffer to accommodate any potential challenges and a premium for security expertise to guarantee a robust, secure, and feature-rich messaging platform.

You can read the full estimate report here.

How much does it cost to develop an educational app?

Educational app estimate

Developing an educational app, designed as a university test companion, typically costs around $50,000 to $70,000. This estimate is derived from our extensive experience in developing digital products and covers all key project stages, including:

  1. Design & Analysis (2 weeks): Initial research, planning, and UX/UI design to ensure a seamless user experience.
  2. Development Planning & Architecture (1.5 weeks): Setting up the app's structure and technical specifications.
  3. Development Timeline (12 weeks): Building essential features such as user registration, social login, test-taking modules, progress tracking, subscription management, and payment integration.
  4. Quality Assurance (QA) (2.5 weeks): Rigorous testing to identify and resolve any potential issues.
  5. Deployment & Handover (1 week): Finalizing the app for launch and ensuring a smooth transition to the client.

The total project duration is approximately 19-22 weeks, ensuring a comprehensive implementation of features like offline access, personalized study recommendations, real-time updates, and performance analytics. The pricing includes a buffer for potential challenges, ensuring that the app meets educational standards and delivers a reliable, user-friendly experience.

You can read the full estimate report here.

Final thoughts

Two hands shaking

Outsourcing app development can provide cost benefits, but it's not without its challenges. Businesses need to evaluate project requirements, desired features, and target platforms to make informed decisions. By considering factors such as team location, app complexity, and post-launch maintenance, companies can better estimate costs and avoid surprises. Outsourcing remains a viable option for those looking to scale without extensive internal resources.

Choosing an outsourcing partner has implications for both quality and budget. Businesses should evaluate the developer's experience, communication skills, and location to find the best fit. Different countries offer different rates, so it's important to research options before committing. Clear project management and communication can help reduce delays, improve quality, and ultimately save money.

For companies on the fence about outsourcing, using a quoting tool can simplify the decision-making process. Our tool provides quick, accurate estimates and helps you understand the project scope, timeline, and budget without multiple consultations. If you like what you see in your personalized quote, you can continue working with us on the project.

References

Evgeniy Altynpara, How Much Does It Cost To Develop An App

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Rokas Jurkėnas

Founder
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Rokas is an entrepreneur and a No Code expert in one. He has founded two businesses, Idea Link, the leading No Code agency in the Baltic States, and Scantact, an online and on-site event management solution for expos, trade shows and fairs with lead retrieval functionality. He is the most prominent voice on the topic of No Code in Lithuania, having spoken twice in Login, the leading innovation conference in the country, sharing his knowledge in social media and news outlets.

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