The digital transformation has compelled every mobile app development company to focus on building app development. Whether it’s a well-established giant or a start-up, all intend to build a highly functional, engaging, and secure app. The other question is how to bring it to life and this question becomes even more challenging if you have a strict budget. Therefore, businesses strategize on how much to invest and what are the factors that can impact the app development cost. Understanding how to lower the app-making cost and how to stay without compromising the quality is crucial for sustainable growth. After all, it would help if you did not rush to start a project and weigh all factors that affect the cost first.
Outsourcing software development is another way businesses utilize this cost-effective approach that allows for better resource dispersion. It comes with several benefits other than saving money and other resources. It gets you a dedicated outsourcing development team to work on app development while you focus on other core activities. So how do you go about it? What factors must you keep in mind that can impact your offshore app development cost? This blog will comprehensively list factors influencing your app development cost. In addition, we’ll also share some useful tips on how to reduce development costs and avoid hidden ones.
Ready? Let’s dive in!
Factors Affecting the Offshore App Development Cost in 2024
How much does it cost to outsource an app development?
The tentative app development cost can range somewhere from $25,000 to $150,000 and can also exceed $300,000 in the case of customized complex apps. In this list, we’re sharing an estimated range of custom mobile app development costs depending on several factors. So let’s discuss them in detail:
1. Project Complexity
The more intricate and featured app project leads to higher app development costs. Since complex apps require more work, they cost a lot. So, to save money well, it’s important to find the right mix of usefulness, functionality, and ease. In addition, you can always go for MVP development to test the future of your app.
- Simple projects: $10,000 – $50,000
- Moderate complexity: $50,000 – $100,000
- Highly complex: $100,000+
2. UI/UX Features
The cost of outsourcing on-demand App Development services can be affected by what kind of design or elements you want your app to have. Complicated designs and complex user experiences might need more time from the outsourcing team. This can lead to higher costs in making these things. Find a balance between making an attractive user interface and not costing too much.
- Simple design: $5,000 – $15,000
- Moderate complexity: $15,000 – $30,000
- Highly intricate design: $30,000+
3. Geographical Location
Where your software outsourcing development services partner is located can have a big effect on your app development cost. Rates change in different areas, and knowing these changes is very important. But we recommend you not only think about the price but also the quality of work and ease of talking when picking an ODC.
- Low-cost regions (e.g., Southeast Asia, Eastern Europe): 30% to 60% cheaper than expensive areas.
- Mid-cost regions (e.g., South America): 15% – 30% cheaper than expensive areas.
4. Skill Set and Experience
The skills of the people who make it relate directly to how much it costs. With a competent and skilled set of developers or designers, you may be required to spend more, but their expertise can streamline the app development process. Therefore, focus on balancing and selecting a team that matches your project’s needs and budget.
- Junior developers: $20 – $50 per hour
- Mid-level developers: $50 – $100 per hour
- Senior developers: $100 – $150+ per hour
5. Technology Stack
The choice of software technology stack affects both performance and costs. Be mindful while assessing the specific needs of your app and select a technology stack that aligns with those requirements. A well-suited stack ensures efficiency and can prevent unnecessary expenditures on features that might not be crucial.
- Basic technology stack: $5,000 – $20,000
- Mid-range technology stack: $20,000 – $50,000
- Advanced technology stack: $50,000+
6. Project Timeline
Time is money, and this holds in app development costs. It’s simple math, the longer the outsource app development timelines, the higher the costs due to the need for more resources. Plan a realistic and well-structured project timeline, this not only helps you manage expenses but also ensures the quality of the final and effective product development.
- Normal Timeline: As estimated
- Accelerated timeline: 20% – 50% higher costs
7. Post-Development Support and Maintenance
This aspect is often overlooked while developing an app development cost strategy. However, maintenance and support help you keep your app free from performance or security-related issues. Therefore, consider these continuing costs when planning your app project as a full support plan helps your app last and do well.
- Standard support and maintenance: 15% to 25% of the starting cost for development
- Advanced support and maintenance: 20% to 25% of the starting cost for development
Read More: Offshore App Development Trends
Other Hidden App Development Costs To Consider
A few other hidden cost factors to keep in mind while deciding app development costs are:
- Functional Costs: Third-party integrations. SMS or push notifications, geolocation, or payment gateways.
- Admin cost: The development of an admin panel and custom APIs to manage the app’s operations, content, and user profiles.
- Infrastructural costs: The payment for server, CDN, and integrations.
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How to Reduce App Development Cost: 5 Best Practices
Outsourcing app development involves delegating the creation, design, and maintenance of applications to external teams or individuals. This strategic practice allows businesses to tap into specialized skills, streamline development processes, and often reduce costs by leveraging global talent.
Implementing these best practices can contribute to a streamlined and cost-effective outsourcing app development process.
Here are 5 best practices to help reduce outsourcing app development costs:
- Clear Project Scope and Requirements: Define what the project includes and needs before working with a partner for outsourcing. A clear and complete plan helps avoid misconceptions, lowering the chance of extra tasks or costs during creation.
- Choose the Right Outsourcing Partner: Finding the right offshore development services partner is very important if you want the development process to go smoothly. We recommend you pick places to live that fit your money plan, don’t lower quality but match the cost of living.
- Flexible Project Management and Agile Approach: The agile method stops expensive fixes and makes sure the project stays on schedule. Additionally, this makes it possible to grow little by little, be more open to changes, and use resources effectively.
- Optimize Technology Stack: Try to avoid extra code complexity and costly features that you don’t need and pick a set of tools that matches what your project requires. Of course, having a good technology stack makes the development run smoother without spending too much money.
- Effective Communication and Collaboration: Giving regular updates, listening to feedback, and talking clearly can stop confusion, doing so reduces the chance of mistakes that cost a lot of money or need doing again.
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Wrapping Up
To thrive in this digitally-dominated landscape, mobile apps continue to be a key focus and development objective for growing and aspiring businesses. However, the debate between app development cost and quality is at odds between different top app development companies as these are two factors that decide the success or failure of your app. Still, understanding the costs involved in designing and developing a mobile app will reduce development costs and help you make a better business plan.
When you understand the key considerations for estimating app development costs, you not only optimize your resources but you do even more! Getting insight into factors affecting app development costs also helps you ensure the success of your app while staying ahead of the competitors. Organizations cannot fully comprehend business needs and recommend cost-effective, scalable, and reliable mobile without a proper strategy.
However, app development services require not only significant investment but also technical competencies to translate ambitious ideas into strategic applications. This is where you need a dedicated outsourcing development team to help you quickly turn app visions into reality with seamless user experiences.
Frequently Asked Questions
If you hire a software development company to work on your project, they will charge you between $25 and $45 for each hour of work. If you hire a developer who works only for your project, the cost will be between $20 and $50 per hour. The exact amount depends on the skills and experience of the specific developer you hire, especially if they are working from another country.
The price of creating an app that works on different types of phones and tablets depends on several things:
- How many advanced features the app has
- Where the developers who make the app are located
- How many different screens or pages the app has
- Whether the app needs to be maintained and updated over time
In general, the total cost can be anywhere from $10,000 to $50,000. You also need to think about how much it will cost to keep the app running well and make it better over time.
Yes. The reason offshore labor is cheaper is simple – the hourly rate you pay is lower. However, the hourly rate is just one factor in determining the actual cost of offshoring. Four other areas can have hidden costs that may make you reconsider offshoring:
- Communication challenges: Language barriers and time zone differences can make it harder to communicate effectively with the offshore team, leading to misunderstandings and delays.
- Quality control issues: It can be more difficult to ensure the quality of the work when it’s being done remotely. This can lead to rework and additional costs.
- Intellectual property risks: When you offshore work, there are potential risks around protecting your intellectual property and trade secrets.
- Project management overhead: Coordinating and managing an offshore team requires more time and effort from your internal staff, adding to the overall cost.
So while the hourly rate may be lower, these hidden costs can quickly add up and make offshoring less cost-effective than it first appears. It’s important to carefully consider all the factors before deciding to offshore your work.
