Outsourcing Mobile App Development for Startups: Pros and Cons

In this write-up, we will discuss about the pros and cons of outsourcing mobile app

development for startups, and the strategies to find the right vendor.

According to a recent study by Dogtown Media, smart phones consume 2 out of 3 digital

minutes, which means, 67% of the time people spend online is spent on mobile phones. And a

large portion of this time is actually spent upon mobile applications.

Now for startups, apparently, overlooking the mobile app is indeed losing an edge in their

business. Perhaps this is the reason why more than 75% of the startups in 2016 were based upon

mobile apps.

So if you are planning to launch your big-idea in real B-world, iPhone or Android App

Development for Startups is all you need. But wait, our main discussion is about should you

outsource your app development task or should you develop it with the help of your in-house

team?

Beforehand, there are two primary options you have in your hands:

1. Hire an app developer in your team and be prepared to spend whole lot of money on his

salaries, resources and other expenses. For a startup that is already looking to save every

penny, this could be an overhead cost.

2. Find someone who works for you remotely, a company or a freelancer, and pay for the

work he does. No fixed expenses and no overhead costs.

From two points mentioned above, it seems clear that outsourcing mobile app development for

startups is always a winning situation. But before you start searching for the right talent out

there, you need to focus on a few more points, later discussed in this post.

Why you should outsource?

In May 2016, Deloitte completed a research on global outsourcing – a study that highlights the

major stats behind outsourcing and primary reasons why businesses focus on outsourcing mobile

app development for startups. Some crucial points highlighted in the study are:

IT sector, with 72% outsourcing rate, is the leading industry to outsource their projects,

followed by Legal and RE & FM with 63 and 60 percent respectively.

As many as 59 percent businesses consider outsourcing as a powerful tool for cutting

business expenses. 57 percent responders accept that outsourcing helped them focus on

their core business activities, and 47 percent businesses have solved their capacity issues

by outsourcing.

RFP (Request for Proposal) is still the most popular method to find right resources, as 95

percent businesses use this method to outsource their work.

However, there were a few key restraints the forced businesses to avoid outsourcing and

focusing more on in-house resources.

39 percent businesses consider data privacy a big threat, and thus prefer not to outsource

their confidential tasks. However, 14 percent businesses accept that outsourcing can be a

great tool to ensure data privacy.

Tax regulations are yet another key factor preventing businesses from outsourcing their

projects.

25 percent businesses accept that they overlooked outsourcing due to legal restrictions.

However, remaining 75 percent are confident on outsourcing and avoid legal / regulatory

issues.

What are the downsides of outsourcing?

Every coin has two faces, and so does outsourcing. Along with handful of key benefits your

business may get by outsourcing mobile app development for startups, there are a few

downsides you must keep in mind:

Communication and client-vendor relationship is the biggest issue. Due to their different

locations and sometimes different time zones, both parties fail to be on the same page that

may create some issues.

Cutting costs is not always an advantage of outsourcing. Sometimes, hiring an offshore

developer may prove to be more expensive. More often than not, the established app

development companies and freelancers charge more than what you anticipate. However,

there are some small companies and startups that provide quality solutions at minimal

rates. Don’t overlook one such company just because it’s new in business.

Confidentiality, as discussed above, is yet another factor preventing businesses from

outsourcing. Make sure you sign proper legal contracts and documents before start

working.

Where to Go for Outsourcing?

According to A. T. Kearney Global Services Location Index – 2016, India is the most preferred

location for outsourcing mobile app development for startups. Next in the list are China and

Malaysia that too provide skilled developers at affordable prices.

The main reason behind India’s recognition as the global hub of outsourcing is the improved IT

environment in the country. You can easily find highly skilled developers for little expenses.

Communication is yet another big factor since Indians are known to be fluent speakers of

English, the global language.

Companies like Arthonsys, LLP have made their strong reputation in Android App

Development for Startups and iPhone app development for startups. We provide top-notch

services at affordable prices, and we help you grow your startup business in all dimensions. So if

you are planning to hire a mobile application developer that delivers you value for your time and

money, contact us now!