Nuts and Bolts of Software Development Outsourcing

As a leading software developer, we know that many customers are worried about outsourcing software development. Is this a good idea? How do I make sure I choose the right developer? Why cannot I build it all by myself? If I hire an outsourcing development team, is it better to pay once every hour or at a fixed price? Our experts are ready to clear everything up.

Why Outsourcing Software Development?

Outsourcing application development is a clear choice for companies which do not specialize in software development or do not have the time and sufficient human resources to handle internal companies. Outsourcing IT production frees your hands - get the time to focus on other different important things like marketing, branding, mobile strategy, online promotion and so on. Another benefit is that you do not need to learn the programming language and you do not have to understand a lot of nuances of software development.

Plus and Minus of Software Development Outsourcing

Outsourcing software development depends on your capabilities and your budget as well as the time for app development project. And, the most important, the deadlines up to which you should bring your product to market, as the seasonal trends sometimes are very pressing.

Let's examine pros and cons of building programm with outsourcing third-party developers:

Freelance Developer


Easier to hire shorter delivery times means you can bring your product to market faster.

Reduce costs. You can hire any of your favorite developers from any corner of the world to pay in US dollars or euros, which gives you the possibility to take advantage of the price differences.

Suitable for small project freelancers are ideal for outsourcing small tasks and small projects, increasing time to market and saving time spent on secondary tasks.


Expose the risk of intellectual property rights. The development of outsourced digital products poses a threat to the company's intellectual property.

Disinformation If freelancers have different time zones in different countries, it is difficult to find time to get to know and discuss both aspects of the project. Another problem is that they lack cultural differences and their knowledge of language, which can lead to delays and misunderstandings.

Different design and coding standards. Developers should understand the digital trends existing in the market of their country. It is easier to do when you work and live in the country where the product is developed.

More control on your side. Often you need to check with emerging market developers, track progress and discuss their needs in a timely manner. All this can lead to poor communication. Especially if you do not have a clear idea of ​​the final design and do not provide software requirements to the developers.

Unreliable Developers You never know if the contractor's information on your own are true, so you'll never be sure of the results of the business.

Software Development Company

Suitable for the full range of items. Large digital organizations are proficient in a number of projects: create prototypes, create MVPs, design-sensitive webs, develop native mobile applications, and provide post-launch marketing and support services.

Effective communication. If you hire a company in your country, then there is no problem in communicating - the same culture, the same time zone, you may even meet in person. In addition, experienced design companies often have a variety of experts to ensure customers - project managers, support specialists, sales managers, business analysts and other aspects of the best experience, not even technical experts. Therefore, the combination of leadership and technical talent so they can always provide first-class software.

Certified specialists. The most reputable organizations have carefully selected their specialists to work only with industry-leading experts with a large investment portfolio and extensive skills.

Main Disadvantages

Profitable The experienced development team charges more hourly rates, especially on the US or European development team. However, given the high quality of your products, your newly designed program will soon pay for itself.

Other customers. You must understand from the outset you can not become the only customer to develop the company - they have other projects to work on, so they can not pay 100% attention.

Why Outsourcing Plan Design Could Be Worth It

Many enterprises like to build software internally, using internal resources rather than hiring outsourcing companies to handle the task. Statistics show that while 60% of companies have set up their own digital specialists to commission programs, the number of organizations that choose to outsource these projects has grown steadily. Approximately 30% of app design projects are assigned to third-party development teams focusing on enterprise apps, custom solutions, and customer-centric mobile applications. The internal design is the logical solution of the organization which wants the contractor to completely control the process to complete the steps required by the project. The main issue is that if you do not pay attention to the evolution of the digital economy and the software market, you do not go very far.

Working with Specialists

A recent survey of entrepreneurs in different industries shows that more than 30% of companies choose the app design outsourcing to build internal corporate software use. About the same percentage of people involved in another study admitted that they hired freelancers or digital institutions as their outsourcing partners to build B2C apps because professional builders had more experience in the required technology than the internal team.

What is the Cost of Developing an Application?

The report also said that the cost to create enterprise software in the choice of mobile enterprise outsourcing projects raised the main problems. And in most cases, they received the answer is "you want to allocate the budget for the project is how much". The cost of the app design depends on many factors, the key is to achieve the goal, you want to achieve in the application of products and functions.

How Many Companies have Apps?

Given that 4.4 million apps can be used by two industry-leading mobile software markets (Apple App Store and Google Play Store), people can only suspect that some companies do not even think about developing mobile apps and not know the benefits. For fierce competition and mobile use, application development should stand out from the modern enterprise required.


Price Factors

Outsourcing application development costs varies in compliance with the location of the contractors, their experience, and the size of the company, design and development team that will work on the project. When planning your budget, note that only mobile design concept and realisation can account for 30% of the budget. For example, US outsourcing contractors charge up to $ 300 per hour, but if you're sure you want to use the outsourcing partner, you can choose a high-quality app so you get more revenue.

How do I choose an outsourcing contractor?

Last year, app development cost reports were conducted around the world. This shows that the United States is the most expensive software design country, while Indonesia is the cheapest place to outsource its project. The developer experience is another important consideration. Industry experts recommend choosing developers with at least three years of experience and the age of developers is not important. Many programmers of the modern generation have begun to create programs since been teenagers, so you should not be surprised when a 20-year-old developer gets a prize.

Small group vs. big team

There is a general misunderstanding that small-scale outsourcing development companies charge less, but that is not the case - scale is not the most important factor for the development. Small and medium software design teams often charge more in total, despite have the lower hourly rates, because of lack of experience or they do not have enough resources. Smaller companies claim to be more flexible, and more innovative, and this is not uncommon, which is why more money is needed for the job. They are studying on your account, and sometimes, makes more mistakes in researching the new technologies.

You can Trust our Developers

Outsource software architecture and development to Magora. In our outsourcing software design company, we are committed to building long-term partnerships with our customers to ensure the success and profitability of digital products throughout the lifecycle. Our first-class solutions are based on an in-depth understanding of our client's business and our close communication with each customer as our digital agency must answer your company needs and requirements of the project.

Build your Next Application with us

Our experienced developers, designers and managers will never stop till the product is perfect - we are challenged by the incentive and are prepared to face any complexity of the task because it is exciting to do our job. If you have an idea of ​​achieving a digitized project, you can rely entirely on us - we'll provide you with valuable advice and help develop a comprehensive software solution that adds value to your business and attracts customers. Drop a line and we'll be happy to hear from you.