Outsourcing App Development Cost in 2022
Outsourcing app development cost is an important factor influencing the choice of your IT partner. This article overviews key factors defining this cost and average prices.
Outsourcing App Development Cost
Оutsourcing app development is a dynamic business, so what advantages can it offer and what can you expect when it comes to outsourcing app development cost? Intelvision offers a dedicated development team to see your project through.
In 2022 outsourcing is nothing new and the need for web and mobile apps is growing. People spend more than ever time on their phones and will expect a modern business to have responsive apps with attractive interfaces. However, only specific tech companies can provide a team of experienced and highly skilled developers that can be ready according to the timeline of your project. As for hiring separate programmers yourself, such practice can be time-consuming and you may face difficulties with separate management during a web app development. Relying on companies like Intelvision who bring experience and know-how to the table is the way to go.
An important advantage of outsourcing is that your technical partner such as Intelvision will cover all the aspects of forming a competent team to work on your web app project, from highly-skilled developers to qualified project managers and business analysts.
This way, you won`t need to spend money and time on the recruitment process and benefits for your staff as these aspects are taken care of by your technical partner. Additionally, you don’t have to pay taxes for the outsourced team as this is covered by your partner too. Outsourcing will also allow you to save money as the average hourly rate of an app developer in the US is $65-150, whilst it is $35-60 in Eastern Europe. Besides, if you outsource from West to East, for example, Ukraine, you can have overnight solutions to problems since the time difference is favorable.
If you are going to outsource a team to build out your web application, it is important to investigate the question of app development outsourcing cost. Essentially, this will help you to decide on the budget for web application development and keep it in mind when choosing your outsourcing partner.
Factors that Influence Outsource App Development Cost
The main concern in any project is to get an accurate estimate of the overall cost of outsourcing app development. In essence, the cost estimate of web application development can be broken down into 3 broad factors, such as project complexity and its features, the size and make-up of the team, and eventually the developers` rates.
Features and Complexity
What should the app do? This might seem like a very simple question but a clear description of the necessary features is vital for a good estimate of the outsourcing app development cost. At Intelvision we believe that a clear understanding of the clients` needs is foundational to good cooperation. Not only will clear requirements make the estimate more accurate, but also less time will be lost on misunderstandings and unwanted features. Intelvision has a broad experience with a variety of features, for example, payment integration or social networks integration into your web app. We also provide cost-efficient video streaming solutions and online synchronization between web and mobile versions just as we did for our eCommerce project, specifically Gifit.
Complexity however doesn’t only come from features in the app. It is also influenced by additional components like regionalization, interplatfrom compatibility, third-party integrations, and visitor analytics. Regionalization in some markets like the EU can require extra features to comply with local regulations. In general, the process starts with a minimum viable product (MVP). This is a basic app that will be employed as a springboard for further development. The MVP is a functional barebones version of the app that could potentially be launched to end-users. Its main function is to ensure that progress is visible and feedback can be gathered. Normally this process can cost anywhere from $5.000 to $50.000 depending on requirements.
When people say app outsourcing, they will have the immediate reflex to start looking for full-stack programmers, Java specialists, or android/iOS developers. However, these are not the only people that you need. Additionally, you will need one or more project managers and UI/UX designers. Besides, business analysts, quality engineers, and regionalization experts might be required. In this case, you should consider what the target audience for your app is. If you only need an app for the US market then no additional regionalization is required.
All these people will need to receive compensation. The size of the team influences outsource app development cost. A large team will cost more than a small team but will be able to handle more work faster. Various roles in the team are also compensated differently.
A good project manager keeps everything going smoothly. They take care of the communication between the developers and the client during the web app development process. They convey the wishes of the client to the programmers and mediate in case of problems or questions. A US project manager will on average make about $66.000 yearly while their Ukrainian counterparts will make about $17.000 in a year.
However, when selecting a project manager you should also take into account cultural and time-zone barriers. In general, you need only one project manager that can serve as a point of contact between the two parties. You might assign one of your own staff as a project manager to have increased oversight of the project. However, you can also entrust this position to Intelvision in order to effectively communicate with your outsourced team as our project managers know the mentality of the team which will help you achieve better results.
App layout and usability have greatly improved as their importance has increased. In order to attract users, your app should be easy and intuitive to use. You could save on this factor, but you might end up with a more quirky or confusing app. If you hesitate whether it is worth to outsource a UI/UX designer, you might be convinced knowing that in the US a UI/UX designer will make around $80.000 yearly, while in Ukraine it is about $12.000. This huge difference highlights the use of outsourcing. For example, Intelvision provides experienced UI/UX designers for any web app project.
Business analysts are the first people clients have to talk to when starting outsourcing and planning the project. Business analysts help clients decide on project requirements, prepare an MVP feature list, and estimate the cost of outsourcing app development. Business analysts in the US might cost about $70.000 per year, while these specialists in Ukraine will cost almost 3 times less.
Finally, the developers are the core of any app creation effort. When looking for outsourcing opportunities in other regions, developer cost is mostly determined by the amount of qualified professionals and the local standard of living. In some places there might be a difference between qualified professionals who work with different technologies, like NodeJS, .NET, Android, and IOS. A general overview of the median rates can be found in the below table.
While this table gives a nice overview of the general price per region you should still take into account that some technologies might require specialists and that you also need more senior profiles for any project. If you need more niche technology in your app, the outsource app development cost will go up. More senior developers are also vital since their leadership and know-how will improve the project greatly, but this comes at a price. In general, you will always need at least one experienced programmer who can support the team with his/her knowledge and tackle difficult technological problems. In conclusion, depending on what project you envision, you should get a correct mix of technical experts with varying levels of seniority. This is a balancing act between quality and cost, but remember that not every app needs to be perfectly polished. Look for the quality that you can afford and that will meet your web app requirements.
Average Cost of Application Creation
Let’s now look at an appropriate general estimate of what it will cost to develop your web app with different complexity.
If you need a simple web app that only has basic functionality, a budget of approximately $5000 to $10000 is required. Examples of these apps are websites with online brochure features, landing pages with several interactive elements, or simple elements for the existing websites.
The web apps of middle complexity such as advanced eCommerce retailers and marketplace-based ones or additional modules for the already existing sites will be more expensive and more robust. If eCommerce functionality is required for processing payments, you automatically should keep in mind the fact that privacy and security may require high-level solutions. This might seem like excessive functionality but eCommerce lives on the trust of users. They have to rely on your app to handle their orders and sensitive financial information with the appropriate accuracy and security. Therefore, these apps will also need a more complex layout, third-party integrations, search tools, filtering mechanisms, and potentially other advanced capabilities. At this point, you should expect numbers around $15.000-$30.000.
If you need to have your enterprise web app developed, you might expect a cost of roughly $100.000 or even more, especially if you would like to have some post-release updates or maintenance. These applications help make core business operations automatic or offer advanced solutions for software projects. Since these apps are so varied, it is difficult to name the specific price of their creation. However, at Intelvision we will provide you with a free cost estimation of your app.
Important thing is to remember that you can expand on an app and Intelvision is ready to help you with this as we did in the Vaillant project.
If the initial app requires more features or new integrations, an update can easily be rolled out by our developers. So don’t think that you need to immediately shoot for the stars with your first version. Build on the feedback and let the Intelvision team scale your app after the first release according to the changing requirements.
Outsourcing App Development Cost in Different Regions
Costs of outsourced app development vary greatly not only because of the given project specifics and app features but also for the concrete region where the team is situated The table below provides an overview of the approximate costs of an outsourcing app development in North America, Western and Eastern Europe.
Expenses for the development of all types of applications in Eastern Europe are much lower than in North America and Western Europe. Outsourced app development from Eastern Europe costs in general twice as cheap as from Western Europe and about three times less than in North America.
Choosing a Pricing Strategy
In general, you have 2 ways of working when developing your web app. You might either agree on a fixed price for your web app development, or you retain the services of a team for a certain amount of time.
You can only work with a fixed price if you have a well-defined product. Afterwards you agree on a price and due date after which you receive your web app. This method is favored for the control that it gives to you. You tell the outsourcing team what you want and when you want it.
The Intelvision team will then take care of all the issues while respecting the deadline, staying within the budget, and delivering a perfectly functioning web app.
A time and resources approach works with an agile approach towards the development. Every sprint a new version is created, ready for roll out. You can easily correct the proposed plan if circumstances change or assumptions are proven wrong. This approach has less clear deadlines but will generally result in a better end product.
Why Outsource Ukrainian Developers
As a main Eastern European outsourcing technical hub, Ukraine has a wide pool of highly-skilled and experienced developers. There are about 200.000 Ukrainian developers with profound knowledge of different programming languages and cutting-edge technologies, and the Ukrainian IT community is constantly growing. Ukrainian developers have a good command of the English language and work in synergy as a closely-knit team. Thanks to this, Ukrainian IT teams, for example Intelvision, can quickly and effectively provide top-level solutions for the app development at affordable rates. Additionally, Intelvision offers full IT support for various industries, from healthcare to fintech.
Outsourcing of app development is a great way to get high-quality and quick IT solutions to drive your business forward. While the final cost of your outsourced app depends on its complexity and features, size and rates of your team, with Intelvision you might be sure that you will be getting the best price-quality of app development.