Introduction
The obvious and increasingly popular solution is to outsource app development. But with so many outsourcing partners to choose from, how do you know which one is right for your organization and your specific set of needs? You trust your valuable project to people whom you have not met personally, how do you know they’ll get it right? If we compare hiring in-house vs outsourced developers, the latter option can significantly reduce your costs along with providing a high-quality outcome.
Let's start exploring this!
Understanding what you need to do
Before you begin searching for developers and designers of mobile applications, you must know the exact purpose of your application, know what to strive to achieve with your business. Without a clear idea of your application and its end result, your team will not be able to implement your ideas and turn expectations into reality. We advise you to take the time to analyze application stores, you can also use competitor applications, so it will be easier for you to evaluate competitive advantages and see if you can come up with an attractive one in your new application.
Try to answer each question from this list to determine the function of your future application...
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What is the purpose of your application?
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What problems can the application solve, which target audience?
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Does your business need an app for iOS or Android, or for both platforms at once?
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Does your business need a native app or a cross-platform app, as the two options significantly differ in price?
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What is the monetisation strategy to follow?
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Do you want your app to be free or have a lite and a paid version for the customers to choose from?
Outsourcing Model: How to Choose for App Development?
There are two basic models: outsource (or project-based) and outstaff. The project-based model implies that an outsourcing company takes 100% control and is responsible for all the processes of your project. But you will not be able to give them assignments directly and discuss issues related to the project.
The project-based model implies that developers devote time not only to your project in 88% of cases they are involved in several projects at the same time and this does not allow them to be focused on one task.
Outstaffing model means that a team of hired workers employed by the outsourcing firm performs work assignments of another firm (customer).
Hired developers remain officially hired by an outsourcing firm but your company gets the opportunity to set tasks and manage hired programmers as you want and distribute their work time.
In fact, outstaffing is good because you can hire a vetted professional without dealing with the hassle of paying overhead benefits, taxes, insurance, legal responsibilities, etc. Development outsourcing means developing your app on a turn-key basis. However, outstaffing allows you to hire and control individual developers or managers.
Fixed price vs. Time-and-resources: How to choose
Outsourcing service providers currently offer a wide range of pricing models, but you need to identify and choose the right ones. It may seem that choosing the right pricing model is complicated and not entirely clear. This is because you need to balance risk and reward for both parties.
You need to be sure that the outsourcing partner offers solutions that will be effective for your business and that it guarantees the maximum return on investment.
Let's define the main pricing models for outsourcing, before you choose one of them.
Fixed Price Models
The fixed-price approach is only suitable if you know that you will not make adjustments and changes to your project. This type of model is ideal for long-term projects as it stimulates the effective implementation of projects. To succeed with this outsourcing pricing model, be prepared for your outsourcing partners to request flexibility in terms of payment terms.
Time-and-resources
Flexibility is the word that will accurately describe this pricing model. It does not depend on fixed prices and strict deadlines. The actually consumed resources and time is what you pay for, you can alter the primary plan and respond flexibly to any changes. The final cost of the application may vary depending on time and resources.
So, don`t forget that in outsourcing, goals should be clearly defined on the basis of requirements and budget, so the choice of outsourcing pricing models depends on the budget and market trends.
What are the main risks associated with outsourcing?
You need to be prepared for the various risks of outsourcing that you need to study in the process...
Confidential data diversion
Outsourcing involves the transfer of confidential project data to a third-party company, therefore there is a possibility of leakage of valuable data, regardless of how reliable the outsourcing company is.
A non-disclosure agreement (NDA) and an intellectual property (IP) agreement are good ways to protect your information in general. The same way, it will be better not to limit yourself to these specific documents, but to use additional legal measures to protect your data.
Misalignment between client expectations and the final product
An outsourcing company may interpret the requirements of your application in different ways or not collect the necessary data about your project, as a result of this additional money and time.
To avoid this risk, your communication with the developers should be as unambiguous as possible and the requirements of your project must be indicated in the signed contract.
Conclusion
When you finally come up with a documented application idea, you will need to do your own research to choose a company that fits your needs, goals and budget.
Outsourced projects can provide rewarding results, but of course, they come with an element of risk. To get all the benefits of development outsourcing, you will have to make some effort to choose an outsourcing company, but the time spent on this is definitely worth making your application the best!