App Development - Outsourcing or In-house

App Development - Outsourcing or In-house

30Aug
2017

Introduction about Why App development

Mobile applications are the most popular among smartphone users. According to Statista, By 2020, mobile apps are forecast to generate around 189 billion U.S. dollars in revenues via app stores and in-app advertising. Mobile apps are preferred by users than websites for its convenience and the ability to give information and current updates on the fly. Smartphones have reduced the need to sit before the laptop/ desktop to do a task, it lets you read mails, edit documents, shop online and other utilities with its convenience.

Mobile app success factors

Forrester Research recently came up with five success factors of companies with top-rated apps in the Apple Apps Store or the Google Play Store.

  • Small Team Size: Small teams can move fast and keep roadblocks to a minimum. The development team size can be a maximum of 10.
  • Be Agile: Following agile methodology has its benefits. Agile methodology lets you deliver small parts of the functionalities every month so that you can see where you are progressing. Agile features continuous build, and Scrum-style scripts.
  • Faster deliveryA success of an app depends on the faster delivery. You should release regularly in small iterations to understand the issues and accelerate development. Web app development is completely different from mobile app development hence prepare your teams for the shock.
  • Quicker feedback: Releasing iterations from time to time will get you quicker feedbacks that will serve as a scope for improvement. Top app development companies have taken it as a priority to implement the feedbacks in their app.

The Benefits of Outsourcing 

  • Expertise: Outsourcing lets you find the experts for your requirement by choosing the best firm. This gives you the freedom to choose the expertise that can render you the best quality. You get a tailored fit website for your requirements rather than spending to hire employees and training them for the case for a short term. You can rather entrust them to the experts and focus solely on the business development.
  • Short Term Commitment: There might be instances that the work spans to only a few months. So taking pains to hire employees, procure tools, etc. which is not for a long run can prove futile. The cost of outsourcing the work is lesser than developing it in house.
  • Evades Office Distractions: Even though it is inevitable, many office environments are huge distractions for developers. With lunch, office chit chat, and a lot of commuting time etc.  The time developers get to do their actual work is less due to which they have to stretch their working hours to arrive at the product. This takes a toll on their productivity and company culture.
  • Experience: Mobile app development companies focus only on the app development and have a wide range of experience in developing apps of different types. They have a dedicated team of trained experts ranging from Product managers, mobile engineers, architects, UX/UI designers, etc. Name a skill and an experience and they will have it for you. They will be experienced in handling challenges and risks that will make your task much easier.
  • Early adaptability to New Trends and Technologies: Mobile app development companies are the first people to adopt new trends and technologies to stay Ahead of their competitors. They motivate their employees to improve their skills in new technologies to focus on figuring out ways they can be used to solve day-to-day pain points.
  • Flexibility: You can outsource some parts of the project and develop some parts of the project in house. You get the flexibility to outsource some parts to a third party organization instead of completely outsourcing it. 

Challenges of Outsourcing: 

  • Choosing a Vendor: The biggest challenge in outsourcing is to find out the right companies to outsource your mobile app development. Make sure your criteria’s that are specific to the needs of your project to help your search better. You can search for the Top mobile app development companies in and entrust the task to them. 
  • Transparency: When you outsource a task to app development firms, there are times when you cannot fully controlling the development of the product and the direction the development is taking a turn. Choose the app development firms who will provide you deliverables from time to time with transparency and collaboration.
  • Communication: Care should be taken that they communicate to you as openly and frequently like an in-house team would. They should be ready to conduct daily calls and meetings and check if they are on the right track and increase the frequency of product demos.
  • Cost: If you are relying on outsourcing for a project that goes for a very long term then it will turn out expensive when compared to training skilled workers in house. Hence such projects will take a toll on the costs. In such cases, cost efficiency can be achieved when organizations can start by partnering with an app development company until they bring an in house team.
  • Quality: While outsourcing the projects, there are times when you have no idea on how skilled is the programmer who writes the code and if he has written an efficient code for your website. An efficient code is necessary for a faster website. Hence you should pick best app development companies who hire best designers and developers.  

Mobile Application Development utilizing In-house resources

Advantages of using In-house resources 

  • Home-grown app development: In house app development gives you the freedom to choose your developers and resources. Since communication is at the same place, it leads to great collaboration and easy communication. This facilitates understanding of requirements and the developers will have interest in the outcome as they are employees of your organization.
  • Open to changes: Developers are working for you and they will know what the organization requires what it is all about. They can contribute to new features that can be implemented and are well aware of the challenges that the business faces in other areas like sales, marketing and work on it.
  • Gaining In-House Knowledge: If the development is in-house then you will have to make the necessary tools and skills ready to facilitate the application development. Once you have made the team ready and trained them, they will transfer the knowledge to the other team members through Knowledge Transfer (KT) sessions, create documentation and stay with your organization to take up more tasks or update your website from time to time.
  • Control over development: Having an in-house team lets you monitor the development from time to time and lets you ensure that your developer is really skilled as you have hired them. You can be sure that they follow the coding standards and optimize the design top tools to develop your app and create processes to be followed.
  • You can own your source code too without having to worry about the copy rights. 

Challenges of In-house app development:

Lack of experienced app developers

  • Mobile app development is completely different from web application development. With mobile being a new venture to many organizations, the building a skilled team gets difficult.
  • You will have to hire a team of mobile app developers and train them if required depending on the requirement.

Cost: Cost of hiring a developer is expensive undoubtedly. Training them further more adds up to the cost unless you plan to utilize them on a long run. However, especially in the initial stages, sourcing and hiring an internal mobile app development team for your mobile project is cost and resource exhaustive. Since you have to plan, hire and document everything from scratch, it will significantly cost you more in-house than working with a mobile app development firm.

Time: Demand for skilled labor is always high and comes with a cost. You will have to spend time to find the right developers and convince them to join you may be more than you think. Since the project has to be setup and the employees have to be hired and trained, the time taken to start the project will surely be longer than a readymade option of outsourcing. This is definitely a point to be considered if the project needs to reach the market soon.

Cost: In-House vs. Outsourcing

Let us compare the costs required to develop an app in-house VS outsourcing it

The Cost of Hiring In-House Developers  

The Cost of Hiring In-House Developers

The Cost of Hiring In-House Developers

  • Cost of hiring a skilled developer is not cheap; it comes with a price. The below stats say the same too.
  • Buying resources and establishing an infrastructure is again expensive.
  • Moving from web application development to Mobile Application Development has sharp learning curve as both of them are different.
  • Procuring licences, hardwares, softwares, servers etc takes a toll on the time and costs.
  • You will have to hire someone to manage the team of developers.
  • Difficulty to solve challenges in design and development phase due to lack of guidance.

The Cost of Outsourcing Your Development 

Outsourcing is a way lot economical compared to setting up an IT infrastructure, but it has its own investments. A wrong firm will cost you a higher charge and give you a bad quality product. It is always safe to go with reputed app development companies in the market.

App costs vary greatly depending on the size of the development firm and, of course, the complexity of your project. 

  • Large firms: $250,000 – $1,000,000+
  • Medium firms: $150,000 – $450,000
  • Small firms: $50,000 – $150,000 

According to Forbes, $50-$75 an hour is very less compared to the actual cost of developing an app and hence if you are looking to entrust your website to firms offering $10-$20 or even less for an hour in services, you can be guaranteed that your final product will lack quality.

The cost of developing a good quality App can range anywhere from $2,000-$250,000 says the study.

Conclusion

In house development vs. outsourcing mobile app development can be chosen according to your business needs and requirements. Both of them are not mutually exclusive, you can partially outsource them too. At the end of the day both could deliver you the best results if chosen with proper care.

If you are looking for top mobile app development companies in the Middle East, eDesk HUB helps you to find the best one as per your need and budget for your dream project.  As there are millions of app development firms, it is a difficult task to find best app development companies. To make this task simpler for service seekers, eDesk HUB has prepared a list of top mobile app development companies as per their clients rating, reviews, portfolios and market share.

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