Offshore Mobile Application Development: Business Benefits and App Cost Breakdown Tips

Offshore development is now an essential part of the business strategy of most large enterprises, enabling significant cost savings, user experience enhancement, and service improvements. The complexity and speed of change in information technology are increasing. It is only natural that businesses seek to outsource the key tasks of IT services to those with specialized technical and professional mobile development skills.

offshore mobile app development

People and businesses have always looked for someone who can help them with tasks they don’t have the time to do or lack the necessary skills to perform them competently. For all the complexity of the mobile app development process, offshore outsourcing is an excellent opportunity to take your business to the next level quickly, efficiently, and at a minimal cost. In this article, we will take an in-depth look at mobile development offshore. How does it really work, and why do entrepreneurs choose this application development approach? Let’s find out!

Defining Offshore Mobile App Development

Outsourcing of mobile app development is a business strategy where a company outsources non-core tasks, such as mobile development, to external contractors, i.e., outsourcing companies located far away from the client. Offshore mobile development provides lower development cost, saves time, ensures flexibility, a high rate of innovation, and increased control over internal resources.

More and more enterprises need highly specialized developers. Meanwhile, to save resources, enterprises are looking to move their mobile app development offshore, looking for firms specializing in their particular niche. As an alternative to investing in software and hiring new employees, offshore mobile application development allows savvy entrepreneurs to create a professional software product and get help without building a permanent internal team.

Offshore App Development on a World Market

Mobile apps dominate the world because of their ease of use and high performance. They have helped reduce operating costs, make systems simple and accessible, and help connect customers directly. According to Statista, 230 billion mobile apps were downloaded in 2021. This number could easily reach the 250 billion mobile app downloads mark in 2022. Businesses are also increasingly willing to provide their enterprise with the benefits of a high-tech mobile solution.

offshore app development

In such circumstances, it is not surprising that the offshore mobile app development services market is booming. Application development is one of the most frequently outsourced IT functions in 2021. The number of enterprises that outsource part of their application development functions reaches more than 60%.

Another study by the National Outsourcing Association says more than 70% of companies plan to increase their use of outsourcing. This practice is more common among large and successful businesses.

For example, the consulting vendor ISG tracks the use of outsourcing in companies from the Global 2000 list. According to ISG, in the retail sector alone, 80% of enterprises already rely on some amount of IT outsourcing to do some of their projects. At the same time, about 10% also outsource additional key personnel to support their growing scale and responsibilities. But what are the benefits of offshore mobile development that attract more and more entrepreneurs to it?

Pros and Cons of Offshore Mobile App Development

So, let’s take a look at offshore development center benefits in a nutshell.

Pros

  • Reduced financial burden due to more attractive rates;
  • Quick setup of the offshore mobile app development team;
  • Ability to focus on core business segments without wasting management resources on non-core activities;
  • Possibility to increase the quality of services;
  • Access to a large number of experts from around the world;
  • High level of tech stack expertise in outsourcing partners.

Cons

  • Issues with working in different time zones;
  • Differences in the work culture and ethic in the contractor’s country;
  • Possible difficulties with project management due to lack of process transparency.

Why Should You Hire Offshore Mobile App Developers?

Access to a Large Talent Pool

Whether you want to hire developers for a startup or expand your existing team, remember there is a big talent shortage. By choosing offshore development of a mobile application, businesses get access to cutting-edge professionals from all around the world. They have high skills in their niche and are interested in working with foreign suppliers to develop an app.

Time and Cost Reduction

Offshore app development vendors are expected to charge less than full-time employees. Also, the partner’s own staff isn’t bloated. The company saves not only money but also time for recruitment. In fact, the partner receives a fully trained and well-coordinated team of professionals in no time.

High Quality of Execution

Offshore teams that do mobile app development are focused on your business goals, and therefore you get exactly what you need. High competition in the market pushes offshore mobile application development companies to keep the quality level high and perform tasks quickly, efficiently, and on time.

Talented and Skilled Professionals

Outsourcers have now become very specialized. They have a wealth of experience in a particular niche. They effectively use specialized equipment, knowledge, technology, and highly skilled personnel to effectively achieve client goals. Building on that, they can offer quality better than a newly assembled in-house department.

Security of Cooperation

If everything is done properly and the parameters of provided service are specified in detail in SLA, the reliability of information services will increase when you outsource app developers. Professional outsourcers performing the same tasks for many years in a row can ensure the protection of corporate data, encryption, and backup of user information. Missing a vulnerability in a newly formed team is much easier.

Ability to Focus on Core Business

With outsourcing, management and staff can focus on developing the core business, marketing services, strategy, and key business solutions. They do what they know how to do and leave the rest to professionals.

Comfortable Maintenance

Once a project is released, a large number of employees are no longer needed to support it. Hence, we get a problem: sometimes you need to hire a few dozen specialists quickly, and sometimes you need to fire the extra ones. Mobile app development outsourcing vendors can efficiently scale the staff and keep the software running smoothly for as long as necessary.

 

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What to Consider While Choosing a Mobile App Development Company

Choosing offshore services for mobile app development can be daunting. You need to be very careful when it comes to choosing one. There are many factors that you should consider before deciding on a particular company.

Language Barrier

The reason is mainly an insufficient knowledge of English. Nevertheless, today more and more people of different professions, especially software developers, master English as a means of business communication. Moreover, for such positions as project manager or business analysis specialist, a high level of business English is a de-facto standard of professionalism, regardless of the country.

Cost of Services

This is one of the key factors when choosing offshore development partners. You expect offshoring in remote regions to be more profitable due to the difference in rates and cost of living. Nevertheless, finding a team with a good reputation can be quite a challenge, and their rates may unpleasantly surprise you.

Project Visibility

Your offshore team works just like your in-house one. While it takes a bit more time to adjust, you can still manage every step of your app development project. Regular meetings/feedback calls can help you expedite this process. If the communications are established, you won’t even notice that the offshore mobile app development team is working somewhere far away.

Time Zone Differences

A USA customer can have a hard time working with a partner from SE Asia due to different time zones. In this case, you need to look for services for mobile app development offshore where business hours overlap with yours.

Cultural Differences

Working with people from another part of the world can cause some misunderstandings due to cultural differences. The developers may have a different work culture and generally accepted business norms while the development of mobile app offshore. The way out of this situation is to find a vendor in a region mentally close to yours.

tips for offshore development team

How to Choose the Right Outsourcing Model

There are different models when outsourcing mobile app development. The best way to decide on the right one for your business is to take a good long look at your needs and see if any of the models below fit the bill.

Dedicated Team Model

The dedicated team model is when you hire a team of offshore IT professionals to work on your project full-time. The dedicated team is completely independent of your company and has its own management and framework.

This model is a good option if you need a lot of work done quickly or if you have a complex project that requires specialized talents that you cannot find locally.

Outstaff or Extended Team

The outstaff or extended team model involves contacting an outsourcing company to assign you, offshore experts, to supplement your internal team for the duration of your project.

These individuals will work remotely to handle those aspects of the development that are beyond the skill set of your employees. It is a good option if you need specialized help on a project that cannot be found locally.

Project-Based Team

This type of IT outsourcing works best for companies with specific, one-time IT projects. In this model, the outsourcing team is responsible for managing and carrying out the project. The app owner hands over the project brief and then approves the final deliverables. There is little or no stakeholder involvement in this model.

Here are the pros and cons of these 3 models.

ProsCons
Dedicated Team
  • The team focuses on one project at a time
  • The ability to adapt to changing project demands.
  • Time management and tracking solutions make the process transparent
  • The client has limited control over the development process
  • The recruitment process is time-consuming
  • Not suitable for short-term or small projects
Outstaff or Extended Team
  • Quick access to talents to fill specific skill gaps in your company.
  • Eliminates the cost of hiring extra internal staff.
  • Faster time-to-market.
  • More control over the development process.
  • Team integration can be time-consuming.
  • Disputes between employers and overseas employees may occur.
  • Internal/ extended team coordination can be problematic.
Project-based Team
  • Suitable for simple, straightforward projects
  • Reduces the amount of work you have to do
  • It allows you to work on other business areas as it requires little or no stakeholder involvement
  • Getting the complete picture of a project can be challenging.
  • Team members are not under your control on a day-to-day basis.
  • There may be hidden costs.
  • Potential for mistakes caused by misunderstanding in project conditions.

5 Steps to Outsource Mobile App Development

If you believe outsourcing is the best method to get your mobile app developed, then it is important that you know how it works so that you don’t make a mistake. Below are the typical steps to follow when you want to outsource your mobile app development.

  • Provide a List of Your Specifications

The first step to contracting out mobile app development offshore is to specify your needs. What type of app do you want to build? Will it be a simple app that provides basic functionality, or will it be a complex app that requires advanced features?

In either case, you will need to outline the specifications for your project so that the outsourcing partner can understand what exactly needs to be created. Be sure to think of your clients and their expectations when planning your app needs.

  • Calculate the Resources Required

Once you have provided a list of your requirements, it is time to calculate how much it will cost to create the app. This involves estimating the number of hours required for each task. Next, estimate how many developers and designers will be needed for each phase of development as well as testing and maintenance phases after delivery.

  • Choose a Partner

Once you have calculated how cost-effective it will be and how long it will take, it’s time to choose an outsourcing partner who can help bring your visions to life within your budget constraints and timeframe restraints. Be sure to do some research on potential service providers before deciding which one is best for this job.

  • Choose a Project Model

Choose a team model that suits your project needs. The dedicated team model is for when you need experts to work on your project full-time. Outstaff model for when you want to plug a skill gap in your internal team, and a project-based model for when you don’t have the time to be fully involved in the process.

  • Choose a Payment Model

Finally, you will have to choose your preferred payment method. There are different types: hourly rate, pay-as-you-go, or fixed-price business model. Your choice will depend on your financial situation, and the scope of the project.

Be sure to also find out what the payment conditions are before committing. A project may not be started until a 50% upfront payment has been received.

App Cost Breakdown Tips

If you’re thinking about building an app, you’re probably wondering how much it’s going to cost you. The truth is, there are many factors that can affect the cost to build an app, from the complexity of the app to the need for specialized features.

A more complex app will take longer to build and will require more specialized features, which will add to the cost. Another factor is the need for specialized features. If your app requires features that are outside the scope of a standard app, such as a custom interface or a data-driven back-end, this will also add to the cost.

Finally, the cost of an app can also be affected by the size of the team. A larger team will be able to work on the app more quickly, but will also add to the cost.

Consider Hiring Offshore Mobile App Developers in Europe

Software outsourcing services are growing in popularity every year. More and more foreign companies seek the best outsourcing market and hire offshore companies in the most favorable conditions. The eastern European region has managed to establish itself as a rather promising destination for large and small companies looking for a competent, responsible, hardworking workforce offering their services at an affordable price.

Thus, today the most promising outsourcing countries in this region are Ukraine, Romania, and Poland. By hiring a dedicated development team in Ukraine, Poland, or Romania, you can count on the following strategic advantages:

  • Contract. Conclude a partnership agreement where each party’s responsibilities are clearly stated.
  • Convenience. For both European and American companies, Eastern European countries, being in the GMT+2, are more suitable than China or India.
  • Sufficient level of English. The vast majority of professionals speak intermediate English or higher.
  • Low cost of the services. All the above-mentioned countries offer relatively low per hour rates for development services. This is achieved by a lower cost of living in comparison to Western Europe and North America.

Now let’s take a closer look at each country.

Ukraine

Perhaps the most lucrative choice. Ukraine takes 6th place in the list of countries with the lowest cost of living. Clients from Europe and the United States can save up to 40-60% by using the services of the Ukrainian outsourcing market.

Just look at the Ukrainian offshore mobile app developers’ rates for the leading mobile platform development specializations. If you gather a team in the USA or Germany, these figures will grow by 1.5-2 times:

Developer gradeAndroidiOSReact Native
Junior developer$1,200$1,200$1,500
Middle developer$2,500$2,500$3,000
Senior developer$3,500$3,500$3,000

Poland

Poland has been on everyone’s lips lately. The country is experiencing a real economic boom, and all businesses in its territory are also growing and developing. Offshore development vendors are no exception.

Polish IT companies are already well known as independent players with their own successful products. Many of them started as outsourcing offshore custom software development teams. This speaks most eloquently about the high level of expertise of specialists in the country.

Developer gradeAndroidiOSReact Native
Junior developer$1,200$1,500$1,600
Middle developer$2,500$2,300$3,000
Senior developer$3,000$3,500$4,000

Romania

Romania is a fascinating choice for IT outsourcing because the country is a real powerhouse in the industry. Numerous global companies, including Intel and Oracle, have already experienced the benefits of working with Romanian specialists.

A key feature of offshore development in Romania is the relatively low cost of services at a high quality of performance and a huge number of specialists. Moreover, almost 90% of Romanian IT specialists speak English.

Developer gradeAndroidiOSReact Native
Junior developer$1,200$1,500$1,500
Middle developer$2,500$2,750$2,500
Senior developer$3,500$4,000$3,000

According to Brainspotting research, Romania, which has a population of only 20 million people, is one of the top ten countries in the world with 95,000 certified IT professionals. The offshore development market in Romania is always open to new customers, and it’s time to take advantage of this opportunity before a competitor does.

And these are not all the advantages of offshoring application development. Of course, it is best not to just read about them but to experience them for yourself.

 

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Consider Newxel Your Trusted Offshore Development Partner

If you like the idea of offshore mobile development, it’s time to find a reliable partner who will assemble a team specifically for your project quickly and professionally.

This is exactly what Newxel offers. Our rich experience in building offshore mobile development teams, the team as a service (TaaS) approach, as well as the talent pool of over 500 specialists allows us to build teams for projects of any complexity. Just look at the examples of our successful offshore mobile development projects:

An Offshore Development Team for a Fintech Project

A world-renowned company developing a popular messenger decided to expand its team. The team was just opening a new fintech area and badly needed qualified specialists.

Newxel was eager to get to work and, in a short period, managed to hire offshore software developers that could cover all aspects of the product creation.

All in all, we took on:

  • Hiring a team of Java engineers, iOS and Android developers, QA specialists;
  • Creating an office space for the team;
  • Overcoming legal challenges;
  • IT support;
  • HR and Accounting;
  • Office management and procurement.

In fact, the client got even more than expected. After we launched a relatively large number of vacancies for a new fintech project, we simultaneously opened several vacancies in the main direction of the client’s business needs.

Game Development Team for a Mobile Gaming Company

The potential of the gaming industry in today’s reality shouldn’t be underestimated. It is constantly evolving and promises its owners a serious profit. That’s why, when Israeli company CrazyLabs, one of the world leaders in the sphere of mobile game development, announced its willingness to open an office in Ukraine, we had no second thoughts.

First, we found out everything about the business goals and needs of the client. After that, we invited representatives of CrazyLabs to visit the Kyiv offices. We got acquainted personally, checked possible locations, and discussed important management issues. After learning about all the specifics, we set out to create an offshore crew of game makers.

The results are as follows:

  • Fully-staffed team: front-end specialist, full-stack website developer, mobile developers, QA engineers, and data engineers;
  • 2.5 months of the recruitment process;
  • The team keeps expanding and creating new mobile game masterpieces.

Cases speak louder than words. You can get more insight into our competence by visiting our case study page. Or simply click the button below, and we’ll start implementing your idea right away.

 

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Final Thoughts

Businesses that want to keep up with the times release their own mobile apps. This is a way to optimize processes, gain a competitive advantage, make customers more loyal, build communications more effectively, etc. At the same time, this is a non-core segment of the enterprise, so they do not hesitate to outsource this task, saving money and increasing the quality of the final product.

If you choose a reliable partner for your mobile application development offshore and conclude a good contract in which all unforeseen issues are spelled out, the risks are minimized, and the benefit compared to the in-house team remains substantial. The main thing is to find a reliable partner with experience, a good reputation, and specialists, or contact Newxel and get a ready-made team of professionals in the blink of an eye.

FAQ

What is offshore mobile application development?
Offshore mobile development is hiring a team of mobile application developers located far away from the customer. Offshore specialists abroad can give your business a massive boost with reasonable resource spending
Is it worth hiring offshore mobile app developers?
This approach allows you to solve the problem of finding qualified personnel and saving on equipment purchase and management.
What are the benefits of offshore mobile application development?
The main advantages are quick creation of a team of professionals, the ability to focus on core business, high-quality services, access to a large number of experts from around the world, a high level of the technological expertise of outsourcing partners, and much more.
Why should I consider Newxel as my offshore mobile development partner?
By choosing Newxel, you guarantee your project's success. Our company has been specializing in assembling top-notch teams of professionals for projects of any complexity for many years. Contact us, and we'll get you started, or take a look at our case study section to learn more about us.
How much does it cost to outsource mobile app development?
The true cost of development of a mobile application offshore can vary from $5,000 to $50,000 depending on the size of the project, the app development company involved, the number of developers, the technology used and the type of mobile application to be developed.
Can you outsource app development?
Yes, you can. When you outsource out mobile app development, you not only save money, but most importantly, you get a high-quality product. However, it's important to do your research and choose a reputable company. You'll also need to be clear about your project needs and timeline to avoid any misunderstandings.

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