Key takeaways

• Outsourcing mobile app development to nearshore and offshore can significantly reduce costs, allowing companies to allocate resources more efficiently without compromising quality.
• Collaborating with outsourcing companies opens access to a diverse pool of skilled professionals, ensuring that projects are handled by experts with the right skill set for the job.
• Outsourcing enables faster development cycles, ensuring that apps reach the market quickly, giving companies a competitive edge in the fast-paced mobile app market.
• By entrusting development tasks to outsourcing firms, internal teams can concentrate on core business operations.
• Whether scaling up or down, companies that outsource mobile development can easily adjust their development teams according to project demands. This ensures agility and responsiveness in a dynamic market environment.

Introduction

Spotify, a $47-billion app that boasts 574 million users and is likely downloaded on your phone, took four months to go from greenfield to prototype. It then took almost a year more for it to reach closed beta. 

While Spotify is a unique mobile app that solves non-trivial challenges — like making massive-scale audio streaming feel effortless — the majority of “average” applications aren’t that much simpler. A medium-complexity app, like a booking solution or a fitness tracker, will set a team of 4–10 people back by at least 4–7 months. Given the six-figure mobile engineer salaries in the US, no wonder so many companies outsource their app development efforts.

If engaging outsourcing companies for mobile app development is among your plans in 2024, check out this quick guide. Our article will outline all of the basics, how-tos, and pitfalls that you need to consider should you decide to hire dedicated mobile app developers in offshore or nearshore locations.

Why outsource app development

Cost reduction

By collaborating with a custom mobile app development company, you get access to skilled Android and iOS developers in regions where labor costs are more favorable. Experts from LATAM, Western Europe, and South Asia offer rates ranging from 35% to 65% lower than those in the US, while keeping the same quality standards. This approach mitigates the expenses associated with hiring full-time developers locally, particularly during periods of fluctuating workloads.

Access to specialized skills and expertise

With 75% of companies reporting difficulties in filling professional roles in 2024, businesses might not easily find mobile app developers for their projects. 

The complexity of mobile app development requires a diverse skill set covering development, QA, project management, and design. Tech hubs like LATAM offer access to a vast pool of specialists and make building teams with the required expertise, cost structure, and time zone alignment possible.

Faster time-to-market

In 2023, approximately 36,000 new iOS apps and 90,000 Android apps were released each month, highlighting the competitiveness of the mobile app market. Rapid time-to-market ensures reaching users before competitors and securing a stronger market position. 

In our experience, Dedicated teams that focus solely on your project can expedite the development process, leading to faster releases and ultimately benefiting your company’s competitive edge in the market. In a recent project, it took AgileEngine’s 2-person team only three months to fully develop our client’s MVP of a cross-platform iOS/Android app, complete with all backend services and a web-based admin panel. Version 1.0 shipped the same week to 20k people who pre-ordered the device without any errors or major usability issues reported.

Focus on core business operations

When bringing a new app idea to reality, the development process can require a significant investment of time and resources from a business. This might strain your in-house team, potentially diverting their attention from the crucial aspects of your core business operations.

By leveraging custom mobile app development services, you can effectively manage your workload, ensuring your team maintains focus on essential tasks while still progressing with new projects. 

Scalability and flexibility 

Expanding your app’s development or adding complex features may require you to hire more team members. Outsourcing offers scalability and flexibility, allowing you to adjust the size of your development team based on the needs of each project. This ensures that you always have the right resources available.

Challenges of outsourcing mobile app development services

Choice paralysis

If you struggle to navigate through the myriad of available vendors, begin by defining clear project requirements and objectives. By identifying specific criteria such as technical expertise, project management capabilities, and cultural fit, you can narrow down the options and focus on selecting the most suitable outsourcing partner. 

Conducting thorough research, including reading reviews, requesting case studies, and seeking recommendations, can help validate the credibility and expertise of potential vendors, facilitating informed decision-making.

Balancing price and quality

When selecting a vendor, prioritize both cost and the value you’ll receive from outsourcing services. This encompasses the vendor’s expertise, track record, service level agreements, and scalability capabilities. 

Negotiating transparent pricing structures and establishing clear expectations regarding deliverables and quality standards upfront will help you ensure alignment between cost and quality throughout the project lifecycle.

Time-zone management

To facilitate seamless collaboration across different time zones, businesses can implement various strategies, such as establishing overlapping working hours, leveraging asynchronous communication tools, and adopting agile project management methodologies. 

Transparency into processes and results

Maintaining transparency throughout the development process is crucial for building trust and ensuring alignment with the outsourcing team. However, achieving this can be challenging, particularly when dealing with remote teams and different cultural contexts. Clear communication channels, regular progress updates, and defined milestones are essential for keeping stakeholders informed about the project’s progress and results.

6 steps to outsource mobile development

Step 1: Define your app project

• Conducts preliminary assessments to identify critical issues.
• Ensures that basic functionalities work before further testing.
• Is useful post-deployment to ensure proper system functionality in the newly deployed environment.

Step 2: Identify potential outsourcing vendors

• Research and shortlist mobile app development outsourcing companies based on experience, portfolio, testimonials, and location.
• Ensure the selected vendor aligns with your project goals and budget.

Step 3. Select the right talent outsourcing strategy

Choose an engagement model that suits your project requirements and business goals.

Step 4: Establish a communication and collaboration framework

• Set up clear communication channels and appoint dedicated points of contact on both sides.
• Schedule regular meetings to review progress, discuss issues, and ensure alignment.

Step 5: Monitor project progress and maintain flexibility

• Stay involved in the development process, providing feedback and addressing concerns.
• Request regular progress reports and ensure adherence to milestones and deadlines.
• Remain flexible and adapt to changes in project scope or priorities as needed.

Step 6: Plan for post-launch support and maintenance

• Confirm long-term support for app maintenance, updates, and improvements.
• Report and resolve any post-launch issues or bugs promptly.
• Monitor app performance metrics and collaborate on optimization efforts.
• Plan future enhancements and feature updates to keep the app competitive in the market.

Key talent hubs/locations when outsourcing

When choosing between nearshore and offshore outsourcing for development projects, it’s important to weigh the advantages and challenges associated with each option.

Nearshore outsourcing entails partnering with service providers located in geographically close regions. For example, US companies may outsource to locations in Latin America and Canada.

Offshore outsourcing, on the other hand, involves collaborating with providers from distant regions. For US companies, these locations typically include Europe and Asia

How to choose a custom mobile app development company 

Industry expertise

When selecting a mobile app development company, it is important to prioritize industry-specific expertise. Look for a team that thoroughly understands your business niche, including regulations, technical requirements, and market dynamics. Their hands-on experience with similar projects ensures that they can effectively tackle your unique challenges and deliver solutions that resonate with your target audience.

Cultural fit and collaboration capabilities

When executives consider potential vendors, 22% express concerns about negative impacts on company culture. It’s essential to understand that it’s not merely about finding skilled developers; it’s equally crucial to ensure that the work dynamics, decision-making processes, and success metrics of both parties are aligned. Neglecting cultural fit can lead to failed projects and missed opportunities for long-term collaboration.

Successful track record proven by client reviews

Take a close look at the outsourcing company’s success stories and what their previous clients have to say about their work. Request case studies, references, and portfolio samples to show the quality of their projects and client satisfaction levels. Focus on factors like project success rates, timely delivery, adherence to budget, and overall client happiness.

AgileEngine’s top-1% mobile experts have over a decade of experience in delivering award-winning solutions leveraged by millions worldwide.

Closing thoughts

Whether you’re looking to develop a new app or improve your mobile presence, our team is here to provide you with the best possible solution that meets your business goals and customers’ needs.