mobile app development for startups

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.


why do companies 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.


top countries for IT outsourcing
Source: A. T. Kearney


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 developers that delivers you value for your time and money, contact us now!