Factors Affecting The Cost To Outsource Mobile App Development?

The majority of companies and businesses that outsource mobile app development have just one target in their mind which is to get a high-performing mobile app within a budget.

But, often companies don’t consider the factors that influence the development cost. Thus they end up overpaying the development company.

These factors are necessary to bear in mind, whether you’re looking for a basic or complex mobile app development.

Also, you can’t figure out the cost of mobile app development if you overlook these 4 factors. 

Below we’ve put together 8 factors that influence the cost to outsource mobile app development.

Read Our Complete Blog Here: 11 Factors That Skyrocket Cost Of Mobile App Development

8 Factors Affecting The Cost To Outsource Mobile App Development

1. App Type And Complexity

Not every app consists of the same numbers and complexity of features. Some consist of elementary-level of features and some are integrated with high-level advanced features.

That being said, the cost of development varies. If you want your app to stand out and offer the next level of experience you must integrate ultra-edge features like Augmented reality, Geolocation, and payment gateways. However, you must prepare to pay the high cost of development.

Creating apps that consist of advance level of features takes more hours, tons of resources, and more input and effort from developers. Hence the development bill increases.

Simple mobile app development – Basic features, Premade templates, 1 supported platform only. The cost to develop simple mobile app development is $10,000-$20,000.

Medium mobile app development– Backend communication, features like app login, social media integrations, search option, filter, etc. The cost to develop medium mobile app development is $50,000-$70,000.

Complex mobile app development – 2+ platforms supported, highly engaging and creative app interface, next-level customization, advanced features like Augmented reality, 3rd party integrations. The cost to develop medium mobile app development is $90,000+.

Read Our Complete Blog Here: How Much Does It Cost To Make a Complex Mobile App?

2. UI/UX Designers

To make people love your app and spend more time on it, you need a professional and dedicated UI/UX designer. 

When it comes to estimating the cost to outsource mobile app development it can vary depending on whether you use off-the-shelf templates, basic patterns, or a complicated design with serious animations, custom illustrations, and transitions.

If you want to use the first option it can be very cost-effective and with very fewer effort and resources you can get it designed for your mobile app. 

On the other side, if you want your app to look nicer, more engaging, and attractive you can go with the second option. Designers have to make everything from the ground up and it can be way more expensive and take months to get complete.

3. Technology

The technology that you outsource mobile app development company will use, determines the cost of mobile app development. 

The time it takes to complete the development process depends on the language and framework. Plus, the experience and skills of the developers also matter.

A mobile app development firm will inform you about the required technologies and whether they are free to use or have a cost when providing an estimate for a project.

4. Back-End Infrastructure And Connected APIs

Some apps look very engaging and attractive on the phone, but their back end is not very robust. On the other side, some apps have a very simple front end but their back end is extremely complex. 

That means if you’re looking for something that has a very complicated back end like VPN, the cost may be very high because it consumes a great deal of effort and time. Hence the mobile app development bill increases.

The same logic applies when iterating APIs. If you’re incorporating an external payment gateway, mapping, streaming, and geolocation, you may expect a high cost of app development.

5. Type of Business Model ( Cost To Outsource Mobile App Development Varies From Business To Business)

Whether you’re designing an app with an in-house app development team or outsourcing to an app development company working miles away from you, it’s crucial to understand that an app differs from business to business, and so is the cost.

Let’s make it easier with a real-life example.

For example, you want to develop a mobile app for internal use.

By internal use we mean, that you want to build an app that automates task or improve collaboration for people working within your company.

The price for such an app will be comparatively lower than an e-commerce app. 

Because the features, target audience, and functionality will be relatively low-end than an e-commerce app.

Therefore, the cost to outsource app development will be lower.

In simple terms, when you outsource app development its indispensable to go through the factors such as the type of business, the target users, and the services.

6. App Development Team (Outsource Development Team Is Better In Every Aspect)

Outsourcing mobile app development is one of the ways to develop a mobile app.

There’re two more ways tha are popular and considered by many businesses to develop a mobile app.

The two other ways are freelancers and hiring an in-house team.

Now, let’s compare both these methods with an outsourcing company.

From a budget standpoint, Teaming up an in-house app development team can break the budget barrier.

In simple words, this method can be above the pay grades for 90% of businesses and companies.

Alternatively, hiring a freelancer is a budget-friendly method but when it comes to project duration it can take 3x more time than the other option.

The second issue with hiring a freelancer is the inferior quality of the final product. 

Compared to freelancers and building an in-house team, outsourcing mobile app development is better in all aspects and variables.

Because outsourcing mobile app development is not handling one project at a time. They have multiple projects.

Also, a professional app development company has expertise in multiple domains and expert resources to deliver excellent service. 

Also, from a budget standpoint, this method might be more expensive than freelancers but cheaper than hiring a full-scale in-house team.

Tip of the day: Outsourcing app development to countries like India, Pakistan, Bangladesh, and countries in eastern Europe can reduce the cost of app development to freelancers.

7. Location (South Asian And Eastern Europe regions Are Affordable)

Outsourcing mobile application development to a company based in the US is extremely expansive than handing over the job to a company located in any country in south Asia or eastern Europe.

Do you need to know? 

Here’s why it is.

For instance, if you hire a team from the US you need to pay in the US dollar. Also, the average hourly pay rate for developers in the US is 100x that of India or Pakistan.

Also, first-world countries like the US, Canada, Australia, and the UK have a higher standard of living. 

If you’re thinking about the quality of the final product developed by a US-based company will be a lot better than a product built by a company based in the US because of the significant change in cost.

Well, this is not the case.

You’ll get a similar product from both companies located in different regions but with a huge difference in price.

In very rare cases, you might experience cultural and language differences when working with people from different countries.

8. Technology (Modern Technology Increase Development Bill)

Outsource mobile app development companies are divided into two groups. 

The first group consists of companies that use modern-day and cutting-edge technologies to build software.

Therefore, the software they built is top-notch and top-grade.

Because of all these reasons the time it consumes is longer. 

Hence the cost to outsource app development to such a company can be higher.

On the hand, the second group consists of companies that don’t use modern-day technologies to develop an app.

Therefore, less time it takes and lowers money to had to pay.

But the final product might not be such great.


Is It More Expensive To Outsource?

Absolutely Not! Companies or businesses which outsource mobile app development do it so they can build the app under the budget. If you’ve got a limited budget to spend on mobile app development outsourcing is the ideal option.

How Do You Outsource a Mobile App?

Outsourcing mobile app development is easier than hiring an in-house team and finding freelancers. Follow the following steps and you’ll find a professional company to outsource mobile app development. 

Step #1: Define your project requirements:

Step #2: Research and shortlist potential vendors:

Step #3: Request proposals: 

Step #4: Evaluate proposals

Step #5: Interview and select the vendor:

Step #6: Sign a contract

Step #7: Collaborate and communicate

Does Outsourcing Reduce Cost?

Yes! In fact, 99% of the enterprise and businesses which outsource mobile app development do it with one goal in mind which is access to talented and experienced developers under a budget. In simple words, outsourcing can help you reduce costs significantly.

Can Outsourcing Be Expensive?

Unfortunately, it can be expensive if you haven’t done the proper research first. The biggest example of how outsourcing can be expensive is that for instance if you are from regions like South Asia and Eastern Europe and outsource to an app development company located in the US or UK.