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How Much Does It Cost To Outsource App Development

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Hello, readership!

Do you want to create a mobile app? You can do it in different ways: whether to hire full-time developers or to outsource them. To my mind, outsourcing offers more benefits. I think that most people know what outsourcing is, but if you don’t, I will tell you about it in a few words.

Outsourcing is the business practice of hiring people outside the company. For example, component production, logistics, accounting or IT infrastructure support from independent external partners. Outsourcing is one of the corporate strategies when the creation of prices is assigned to the suppliers.

There are such types of outsourcing:


1. Manufacturing outsourcing
involves hiring a manufacturing company to produce your goods at a cheaper price.A good example can be when the advertising agencies use the services of a printing house.

2. Professional outsourcing involves any type of professional services, that may concern such spheres like purchasing, accounting, law, etc.

3. IT outsourcing

This type includes the maintenance of computers and related equipment, and also website development and software support.

Today, we are interested in IT outsourcing and the main question of today is „How much does it cost to outsource the app development?”

Let’s start.

There are three types of app developers: onshore, offshore and nearshore developers. Who is a better choice?

Onshore indicates that the development company is located in the same country or region as you are.

Offshore means that the company is located in another country mostly with different time zones.

Nearshore denotes that the outsourcing software development is located in the neighbouring countries.

What type of outsourcing is more effective and more economically profitable?

Onshore Outsourcing


Advantages
:

  • your team is located in the same country
  • no worries about language barriers or cultural differences
  • easier to communicate and find compromises
  • knowledge of your market

Disadvantages:

  • a small number of experts
  • the cost is always higher

Offshore outsourcing


Advantages
:

  • innovative approaches to the work
  • high quality
  • time zone differences

On the one hand, it is not convenient at all. One of the reasons is that it is difficult to arrange online meetings. On the other hand, it can be an advantage because your team can finish a project before the deadline.

  • no new infrastructure required

Disadvantages

  • increase of unemployment
  • cultural and social differences
  • security issues

Nearshore development


Advantages
:

  • same time zone
  • qualified performers
  • lower cost
  • no work trips
  • poor organisation
  • not enough preparation

Now, when you already know what is outsourcing, I would like to tell you about the prices. As far as you know, price may depend on different factors. One of them is location.

Let's compare the income of the app developers in different parts of the world.

The Netherlands

This country has the highest response rate. Every company has its own hourly prices. Most of them are from $100 to $115 per hour. There are some companies where the creation of a mobile application costs more than $60 000. Norwegian companies have a rate of $50-99.

France

France has the lowest software development rates – only $15-30. As a rule, the prices for the Western European are slightly higher – $30-50.

Central Asia

Most of the offshore outsourcing services in Central Asia are located in India, Philippines and Indonesia. The rates there are lower than $25 per hour. Sometimes the price can be $15 per hour.

East and South Asia

Software hourly rate in China costs $50-100. Shanghai has a more expensive rate which consists of $200/hour. Outsourcing services in Indonesia, Malaysia, Vietnam cost $30-40 per hour.

North America

Here the average cost of the software development varies from $150 to $195. The market here is full of the offshore development companies, that’s why the prices are quite different.

South America

The rates in South America can vary from $50 to $100. The reason for such different prices is poor skills of the development community.

The reason for this is that Mexico, Panama, Brazil are near to the northern part of the continent, which makes South America more attractive.

Africa

This IT market is relatively new and grows fast. The average cost of the software development is $20-30 per hour. In this year the price has risen and the cost has reached $55. The experts say that the prices of offshore outsourcing will go up in the future.

Australia

The local specialists are expensive. Software hourly rate may be from $100 to $180.

Ukraine

Average hourly rate for the software development is from $30 to $45. From my point of view, Ukraine is the best choice to outsource your app development because it has such advantages as:

  • low prices
  • high quality of the provided services

An average iOS developer's salary in Ukraine is $20,000 per year. The average salary of a Ukrainian Android developer is $30,000 per year.

Poland

The prices are from $25 to $99. The prices depend on the experience and the location of mobile app developers. The prices of the app development are lower than in the US or in the Western European countries.

Conclusion


To sum up, I can say that the prices to outsource app development are very different. The price can be low and the quality can be high. You can compare prices, types of outsourcing and decide what location is more suitable for you. Think about whether you need to save money or not, which country do you like more, where it will be more convenient for you to communicate with developers and what price satisfies you.

Thanks for your attention. Stay safe and healthy. Good luck!

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