Outsourcing Custom Software Development
When a third-party company develops custom software for you, it means that you resort to outsourcing development services. This solution has an ample amount of advantages, including cost reduction, improved efficiency, and mitigated risk. At the same time, you can get experienced developers to work on your project without the need to hire them full-time. Therefore, it comes as no surprise that such companies as Microsoft, Apple, IBM, and more outsource their custom software development.
When you decide to contract development work to a third party, it’s better to get to know which country is the best for outsourcing your business activities. Numerous resources agree that Ukraine offers tons of benefits to companies deciding on this offshore development destination due to more affordable labor and deep IT expertise. Also, Ukraine is becoming more attractive for outsourcing development services due to the government’s support.
At the same time, while outsourcing is perceived as a cost-saving app development strategy, time difference between Ukraine and the USA can be a crucial factor for some decision-makers even despite the developers’ expertise.
However, to understand the full landscape of outsourcing perks in the modern paradigm, let’s take a closer look at the global outsourcing software development view. We will detail the key outsourcing areas companies can benefit from when embracing technology.
Breaking Down Outsourcing Custom Software Development Services
Scaling The Team up and Down for Rapid Flexibility
When companies hire in-house developers, this step involves supporting, educating, and onboarding new staff members. While outsourcing stakeholders hold these responsibilities too, they share them with a partner. However, the most important thing is that the process of finding and integrating the right talent into the workflows is significantly simplified and optimized.
For example, your company wants to add 2-3 developers to the team. Instead of initiating the recruiting process, paying bonuses to headhunters, waiting for the transition, and so on, you get access to a wide range of talents, all without going the extra mile to achieve the same results.
Talent Pool and Quality Access for Growth Alignment
When you outsource development services from a trusted partner, you unlock access to the pool of established talents mixed together to work on a variety of projects. This way, you will hire a squad with profound expertise and vast experience in custom app development to bring value to your project.
The development service provider will remove the major headaches associated with quality control, competency check-ins, and professional growth you would face when running an in-house team.
Tax Policies, Social and Medical Package
Outsourcing is all about giving you maximum value with minimal hassle from your side. When you choose this approach for building your custom app, you do not worry about tax, medical insurance, social packages, or bonuses for your in-house team.
While building custom software is a serious investment, there are ways you can cut the final cost of your project. Undoubtedly, the total amount of money you will pay for the custom app will depend on the service level, talent seniority, and experience. But it will be good to know that your savings can be from 20% to 40% between Ukraine and the United States (depending on the state and labor market conditions). This way, outsourcing services from Ukrainian IT companies deliver strategic economic value to the company.
Pandemic has changed the way we live and made us accommodate new conditions. Digital communication has become a norm, which enables close cooperation with overseas partners. For example, at HebronSoft, we organize online calls that bring the same value as offline meetings. By bringing together proper management, planning, and skills of setting up communication, outsourcing companies ensure the distance does not affect interaction with Clients.
Collaborating with the software development partner relieves you from the need to establish an internal system for managing and supporting employees. Along with talents who will work on your project, you also acquire a well-managed team with at least two levels of engagement – HR and the delivery organization. The technology partner will have an in-house motivation system, personal growth programs, quality improvement guidelines, and other instruments for team management and nurturing.
Benefits of Outsourcing Custom Application Development
While we already vaguely covered some of the perks of hiring an outsourcing development company for your custom app building project, we want to show you more advantages of this solution.
- NDA protected process. – You will sign a contract establishing confidential relationships between the parties in terms of the use of confidential, proprietary information, or trade secrets.
- Intellectual property ownership by client. – This type of partnership involves that the copyright for the digital product will belong to your company.
- Full control of the product development cycle. – As a product owner, your company will manage the development process from A to Z.
- Dynamic team capacity management & advanced scalability. – The outsourcing model allows you to extend the development team or decrease the number of talents working on the project at the company’s demand.
- Connection with top talents. – Your company gets connected with a large talent pool of experts working in the app delivery industry for years.
- Latest technologies application. – Outsourcing IT companies keep their employees in the loop of the latest trends in app development, so your company will benefit from the knowledge and skills of specialists implementing cutting-edge technology.
- Advantage from time zone differences. – When you choose to work with offshore companies, the difference in time zones can give an advantage by extending minimum 6 hours of productivity.
- Better product quality. – As experienced and skilled specialists with deep expertise in the app development niche will be implementing your project, this will result in a product of better quality.
- Project risk mitigation. – The outsourcing company will assess the risks and adjust the project scope to eliminate the possible pitfalls and bottlenecks.
- Higher resource involvement. – Leverage the resources of the IT service provider to get a custom solution that addresses your needs.
- Swift time-to-market. – When speed matters and you would like to adopt custom software within the shortest time, a reliable outsourcing partner will ensur you launch the product as soon as possible.
- Maintenance & support of the solution. – Apart from developing and deploying a custom application, outsourcing partners will also maintain and support it on your request to ensure its smooth operation.
- Concentration on core business processes. – When you entrust the development process to professionals, you can focus on core business operations essential for its performance.
Custom Software Development Cost
The price range of custom software development is vast, depending on several factors. First, app complexity is a crucial factor. The number of features and functions, the complexity of design, the database complexity, third-party integrations, and other parameters will impact how much you will pay for the custom-tailored solution.
|App type||Functionality||Average cost|
|Simple app||Basic UI, MVP functionality, 1 platform||$40,000 – $120,000|
|Medium-complexity app||More elaborate UI details, more advanced features, 1 platform||$120,000 – $200,000|
|Complex app||Hing-end UI, feature-rich functionality, 2+ platforms||$200,000 – $400,000 +|
But as we already mentioned, the development company’s location should also be taken into account. The developers’ hourly rate depends on the region, so here is what you can expend from IT organizations that are located in different countries.
|USA||$120 – $150|
|The United Kingdom||$100 – $120|
|India||$20 – $30|
|Poland||$44 – $70|
|The Philippines||$6 – $20|
|China||$15 – $45|
|Ukraine||$20 – $80|
Wrapping It Up
Custom app development is a complicated process that is worth every single effort you invest in it. Since it involves building a solution tailored to the needs of your business, it is going to give your staff or customers unique tools that will cover their demands.