outsource app development cost

Overseas Outsourcing vs. In-House App Development Costs

Does outsourcing app development jobs overseas really create more opportunities than trade-offs? The rising number of companies that push their app creation needs offshore seems to prove that there are plenty of good things to be said about hiring abroad. Fortunately for employers, the cost of outsourced app development is lower overseas compared to hiring a US-based software developer.

The most common misconception about offshoring is that the quality of work in other countries is below par. In truth, many professionals based abroad, even in third-world nations, can level with and even surpass what local talents can offer. The lower outsourced app development cost in such countries is unrelated to the skills their workers bring to the table.

In this article, we discuss the cost of overseas outsourcing and compare it with how much it costs to hire local talents in-house. We also talk about the merits of offshoring and why software companies should consider it.

Outsourcing App Development Abroad vs. In-House: Cost Comparison

The cost of hiring an international app developer from India and the Philippines (or any other third-world country) is about one-fourth or even much less than what you would typically pay for the same level of talent in the US.

An app developer from the Philippines can charge anywhere between $2.19 to $5.25 per hour, depending on experience and expertise. In India, the rate is slightly higher, at $2.44 to $7.50 per hour. In Eastern Europe, the rate ranges from $3.18 to $12.43. Now compare these rates to a US-based app developer who has an average salary of $47.00 per hour.

Capabilities-wise, there’s not much difference between what US-based app developers can do compared to their offshore counterparts, especially with the democratization of high-speed internet in practically all parts of the world. In addition, hiring app developers in-house entails additional expenses that include setting up an office, purchasing equipment, and paying for employee benefits.

Time is another resource that could be better spent on building core competencies and revenue-generating strategies. Outsourcing software development work overseas is generally linked with short-term contracts as the majority of projects are requested on an ad-hoc basis. This affords you the time you need to focus on what truly matters to your operations. Plus, the ability to tap into an individual’s expertise without necessarily signing into a long-term commitment is an advantage.

What Types of Apps are Usually Outsourced Overseas?

While app development is a skill that can be mastered anywhere in the world, there are certain regions that are preferred for certain types of software development projects.

Communications and conferencing apps, as well as project management apps, are usually outsourced to Eastern European developers, while financial and e-commerce apps are outsourced to Indian developers. Meanwhile, gaming and leisure apps can be outsourced to professionals in the Philippines and other Southeast Asian countries.

Myths About Outsourcing Software Jobs Abroad

The most common myth regarding outsourcing has to do with poor quality. Even up to now, there’s a prevailing notion that outsourced services, whether it’s app development, web development, digital marketing, and even basic administrative and back-office services, are inferior compared to their domestic or US-based counterparts. This is just not true.

High-speed internet is already available in practically all parts of the world, allowing most countries access to whatever is the latest technology available in applications and software development. In fact, a lot of the most commonly used apps today, such as Whatsapp, Github, Slack, and even some Google apps, were developed and created by outsourced teams of app developers.

As long as the proper management and partnership safeguards are put in place, there’s no reason for outsourced development teams to underperform compared to their inshore counterparts.

Thinking of Outsourcing App Development Overseas? C9 Staff Can Help

Outsourcing is one of the best business decisions any entrepreneur can make. And when they partner with C9 Staff for their app developer outsourcing needs (or any other position for that matter), not only are they opening their company to the possibility of attracting the best professionals in the world, they also take advantage of all the cost benefits of outsourced staff.

C9 Staff’s end-to-end managed remote staffing solutions take care of the entire remote staffing process for the client. This starts from sourcing, recruitment, and hiring and continues to staff onboarding and staff management. Our access to 35 international talent and labor markets allows us to find, source, recruit and hire app developers that fit the client’s skills requirement.

To learn more about how C9 Staff can help your business, schedule a free consultation here.

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