Published in


Software Development

Revealing the Cost of Offshore Software development

The real cost of offshore app or software development

A few years ago, Apple came up with a catchy slogan- “There’s an app for that.” Today in 2020, there are 8.93 million apps in the world, and the ambitious slogan of a phone manufacturer has become a reality.

There are mobile apps for everything from emotional support, to calendar management, to fitness, banking, and finance, Real-estate, healthcare, insurance, e-commerce, online gaming, pretty much every human need under the sun.

But app development can turn out to be quite costly, especially if you happen to be in the US or UK and have chosen a nearshore app development partner, i.e., that is in the same geolocation as you.

Depending on your location, the cost to build a mobile app ranges from $25.000 to $100.000. If you are also considering complexity and scope, the price rises to about $20.000 to $50.000 for a simple app, while a complex app with multiple features would cost $100.000 to $200.000.

While multinational conglomerates can afford price tags such as the above, the cost may prove to be a little too steep for a fledgling start-up. But don’t despair. We can reduce the cost of app development without having to compromise on quality. The solution is simple — offshore app development outsourcing companies.

This solution works exceedingly well for both large enterprises as well as new-born start-ups. But just as a coin has two sides, so does offshore outsourcing. The agenda of this article is to lay bare the pros and cons of offshore app development outsourcing while examining its cost and ROI.

Why Offshore app development outsourcing?

An offshore app development team consists of skilled developers based in a completely different country or even continent, which is why it is sometimes called overseas outsourcing.

Today, if you seek to develop an organizational talent pool of experienced software development resources for your app development project, you should definitely consider offshore app development, and here is why-

· Reduced costs

Given that the cost of living in popular outsourcing destinations like China, Eastern Europe, or India is significantly lower than their counterparts US, Western Europe, and the UK. This, in terms, means lower pay rates, resulting in a lower cost to the company deciding on app development outsourcing.

· Saved time

When you choose offshore app development outsourcing, you will not have to spend valuable time on hiring, training, and retaining employees. With outsourcing, you acquire a ready-made team that has experience in similar projects, has built many apps, and can effectively contribute to your app development project.

· The high quality of work delivered

While opting to outsource app development, there are hundreds of readily available reviews about your prospective outsourcing partner, allowing you to make the right hiring decision. With the help of sites like clutch.co, you choose from the best-rated companies and find the perfect application development outsourcing partner for your organization

Armed with basic background information on the subject, let us now address the nagging question: How much does it cost to outsource app development?

How expensive is it to outsource app development?

It is noteworthy that the total development cost always depends on the country your offshore outsourcing partner is situated in. The average costs of outsourcing also vary depending on the partner’s app hourly rate.

Here is a comparison table of the costs of app development in the most popular app development outsourcing locations.

Again, the costs mentioned above are only approximations as there are other hidden costs that a company may have to incur while hiring an offshore outsourcing partner. However, these numbers provide a fair representation of the disparity between costs in accordance with geolocations making India one of the hottest hubs offshore app development outsourcing.

It is easy to confuse higher prices with better quality, but such is not the case at all. As mentioned earlier, prices depend on the economic situation of a country and not on the expertise, experience, or skillsets of the app developers.

Granted that the cost outsourcing app development is significantly higher in the first world, but that is mainly because of economic forces. The question to be asked is not only “how much will it cost to build an App?” but also “how much does it cost to run and maintain an app?”

What else to keep in mind when outsourcing app development?

Once you have decided on outsourcing your mobile app development project, you are faced with the choice of a big company, a small one, and perhaps even independent developers. Each of these possibilities has its own advantages and disadvantages.

While small companies and independent developers are mostly focused on one project at a time, providing more attention to your project, the technical expertise and development capabilities of a middle or larger firm cannot be competed with.

The pricing of your app may even depend on the number of employees in the outsourcing company and can vary from 25$/hour to 50$/hour. If you are looking at an outsourcing company for long time collaboration, it is always better to choose a company that has proven expertise and experience in both Android and iOS development, preparing you for future engagement opportunities.

Why should you outsource app development to India?

India is a booming tech hub known for the exceptional capabilities of its coders, developers, and programmers, as well as the tightly run ships that most Indian IT firms are.

With superior project management and vast expertise in creating an app that appeals to a global audience, India is one of the foremost countries to outsource app development, and Radixweb leads the pack. In addition to highly effective costs, here are a few reasons why India and specifically Radixweb is your go-to destination for app development outsourcing-

1. Skilled developers

One of the most respected industries in India, IT has long titillated the minds of young graduates ready to take on the world. Indian app developers are known for keeping pace with their colleagues from the USA and EU without any compromises on the speed of delivery, code, or UI/UX quality and app functionalities.

2. Numerous IT centers and institutes

From school kids to grad students to professionals, India boasts of one of the largest IT workforces in the world, and more and more people are gaining interest in the sphere. It is believed that younger people find it easier to acquire new skills, and IT developers from India start learning programming at a sufficiently young age.

3. No Communication-gaps

India has one of the largest English speaking population, and English happens to be the official mode of communication in the country. With rampant westernization, rest assured that if you outsource to India, the professionals you hire or outsource to will have effective communication skills.

4. Great quality at an effective price

Price happens to be a tricky issue. As a client, you will obviously expect a great product at a low price. Prices in India are very low compared to the US or EU, and yet, there is no loss of quality. Marketing leading companies like Radixweb create MVPs for clients to demonstrate tech capabilities, and only once the client, i.e., you are satisfied, do we enter into an engagement.

5. 24X7 development

One of the greatest offshore app development advantages is that your product is being worked upon 24X7. Radixweb prides itself on providing highly flexible offshore teams to our clients.

Our teams are not only exceptionally skilled and experienced but also, while you have shut your doors for the day, your app is also being worked upon by a team of dedicated developers.

Dual shifts allow for a clear flow of communication between you and the project manager, leading to a clearer understanding of the requirements of the app, resulting in a better product.

In Summation

In summation, the cost is clearly one of the strongest deciding factors while choosing an offshore app development outsourcing partner. However, it is possible to save on costs while still reaping the benefits of a premium quality solution-

Basic takeaways:

· Start with a small project

· Negotiate

· Conduct initial interviews properly

· Provide detailed specifications

· Work in milestones

· Perform regular checks

· Conduct testing

· Do not chase the cheapest option

At Radixweb, a market leader in software and application development outsourcing, with a team of 450+ developers, 2900+ clients across 25 countries, and 4000+ successful projects, you can be sure that your app development is in the right hands.

So if you are looking to outsource your application development initiative and are intimidated by what it may cost you, get in touch with us and receive the perfect combination of quality, capability, and cost-efficiency.

Read more:



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Sarrah Pitaliya

Sarrah Pitaliya


Digital Marketing Head at radixweb.com. Creating valuable insights that would help brands and businesses to enhance their sales growth.