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Determine The Total Offshore App Development Cost

Ashish Chauhan By Ashish Chauhan | September 30, 2020
offshore software app development

One of the biggest questions that companies are asking nowadays is whether to outsource their software development or now.

But why do people go to outsourcing their development?

The reasons are simple, it is convenient, cost-effective, and easy maintenance. However, there are different aspects of outsourcing that determine the cost. One of them is offshore outsourcing development.

Another question – What does the offshore app development cost?

You need to understand that we are not talking about the cost of mobile app development here but the hidden costs that come with hiring the overseas team.

The cost that you will offer for mobile app development is entirely different than the cost that you have to pay when hiring the offshore team. It is not always negative as there are so many positive aspects to it.

With further ado, let us give you an insight into the overall offshore app development cost. 

What is Offshore Software Development?

Offshore is the type of outsourcing that means hiring third-party companies, developers, or agencies for the app development world. However, offshore outsourcing is mainly hiring companies or agencies from a foreign land.

The offshore outsource app development can be of mainly of three types such as:

  • Hiring the developer’s team
  • Delegating certain parts or whole projects
  • Hiring individual developer
outsourcing software app development

Usually, companies hire freelancers that work on separate projects or modules for development. These include 3D model artists, Unity3D developers, concept artists, Android app developers, Xamarin developers, iOS developers, etc.

However, the individual developers don’t have the level of expertise as the company or agency. Hence, many companies go for hiring the individual company instead of hiring freelancers.

To give you a better idea of offshore outsourcing, let us clarify what onshore and nearshore outsourcing are.

  • Nearshore Software Development – As the name suggests, it is outsourcing the development requirement but with the agencies that are in the same time zone. The agencies can be in neighboring countries with the minimum time difference. 
  • Onshore Software Development – This is the one where the development agencies must be in the same country as the client. This makes it more adaptable and approachable for development. 
  • Smart Sourcing – Then comes the smart sourcing of the development that divides the tasks into modules and then outsources these modules to the third-parties. These modules are usually non-core operations that are required for development.

These are the major types of outsourcing software development, now let us walk you through the pros and cons of offshore software development. 

pros & cons of software app development

These are the major aspects of offshore outsourcing that one must keep in mind while settling up the offshore app development cost.

Best Practices of Offshore Software Development

There is no doubt that offshore outsourcing poses some major risks since the companies are not well-known in the market. There are some major concerns that one might have including – is the company expert enough to manage the development? Will they understand? What if they took the advance and ran?

These are just a few of the major concerns that the offshore app development includes. It is essential to have a better understanding of the offshore software development company and work practices before hiring them.

To help you out, here is a rough sketch of what companies must opt for before offshore custom software development outsourcing their product. 

  • Do Your Homework – It is essential to know ins and outs of any offshore mobile app development company before you hire them. It is best to know the marketplace, features, potential customers, target consumers, etc. that can help in giving insight into the offshore company.
  • Roadmap – Prepare a roadmap and priority list to get a detailed insight into business requirements. This includes the legal regulations of that particular country, money transactions, and personal data transfers.
  • Prepare Mockups – The offshore software development company will prepare a mockup or wireframe of your product but it is also essential to it is best to be prepared beforehand. What the product will look like? What are its vital features? How is it beneficial for customers? It is best to know all these questions to take into account while hiring the offshore agency. 
  • Analyze Capabilities – Is the offshore company capable enough to manage the business models? Are they skilled? Have essential resources, tools, and technologies? These are the major questions that one must ask before making a decision.
  • Detailed Description – Know the product description and have documentation of its to set the quality standards. It will help in determining whether the offshore software development company can promise the same or not. 

The following plan can help in determining the next steps in hiring an offshore team. 

offshore outsourcing lifecycle

Steps to Choose the Right Offshore Development Company

reasons to choose offshore app development

Now you know about offshore development and the best practices to be an informed client. But how to choose the right offshore development company?

When it comes to outsourcing there is no doubt that you will have plenty of options to choose from. It is extremely difficult to choose the best out of them that have their separate set of skills, experience, and competencies that can benefit your business.

The most basic thing that the majority of business owners go for is “ask for reference”. They usually depend upon the companies that are known to their contacts that can help them either shine or be concerned.

However, the groundwork is an important part when it comes to hiring an offshore software development company. It is essential to take some time and deep evaluate the options before making the final decision.

The outsourcing is not an easy decision and when offshoring is included then it is essential to take some time before finalizing. Remember everyone has a polished portfolio and attractive skillsets, it is essential to check on the backgrounds and see what fits your requirements in the best way.

Another essential thing that is necessary when it comes to choosing the best offshore outsourcing company is to see the prospects as business team members. It is essential to make sure that the offshore custom software development team will be able to work with the onsite members in terms of decision making, conversations, transparency, etc.

But why do you even want to hire the offshore team?

To give you more understanding of it, here are tips to conduct offshoring. 

  • Negotiate rates with the outsourcing team and set deadlines that can fall into the budget. It is essential to do it while determining the offshore app development cost that includes the capabilities that can be understood by the agencies.
  • Next is setting up the quality standards for the product in terms of code standards and software architecture. It is essential to understand the importance of solution architecture that includes code audits and reviews setting off the standards documented. 
  • The team members usually sign NDA with product development. Before that, make sure to know how NDA works that must include confidential and property rights terms clear at the start. 
  • Track progress and communication with the team that is best done with weekly reports and meetings. Make sure that your offshore custom software development team is ready for this to pick up two-way conversations. 

The relevance of outsourcing has always been under scrutinizing but with offshore outsourcing it has become a subject of constant debate. It is essential to work to understand the risks, languages, and time zone differences that come with offshore development.

These also help in determining the cost of mobile app design and development. 

Risks & Red Flags To Watch Out For

The cultural barrier is one of the major risks that fall when it comes to offshore app development. People around the country are different as compared to your culture and follow different beliefs and languages. It is essential to be updated on the small yet meaningful detail of the development for offshore development.

Next is the risk of miscommunication that is also common when it comes to offshore development. The fact is that it is not easy to communicate with the team that is staying overseas, in a different location and time zone. In the present time, electronic communication has simplified the overall project process that includes abstract concepts and complex ideas.

Last but one of the major risks of outsourcing is offshore app development cost. The cost of Offshore Software App Development varies from one company to another even in the same locations. Hence, it is best to understand the overall cost concept overseas before finalizing one company.

We know that offshore outsourcing is a great solution but there are certain red flags that one must keep in mind before hiring that is one of the major risks. The red flags to look out for while hiring overseas company are:

  • Lower Cost – The development company can offer a bit discount but it is never unreasonable. Hence, if the offshore software development company is going low beyond their limit then don’t think it as the right of heart. This can affect the quality of the app development that will automatically affect the company’s reputation.
  • Beware Wire Transfers – The overseas hiring requires the money transfer for the work done. Hence, it is best to ignore wire transfer and go for a credit card that offers protection against any type of fraud. 
  • No Local Contact Information – The contact information holds a lot of value when it comes to hiring the team from overseas. Remember, meeting the team personally is not possible every time they are not sending out the reports. It is essential to have proper contact details that are frequent and easy to get in touch with the team. The best way to be sure is to do a background check that can help in getting accurate results. 

Determine the Hidden Offshore App Development Cost

The cost of mobile app design and development depends on many factors whether it is an offshore, onsite, onshore, or smart sourcing team. Several factors are included in the offshore app development cost that you can understand in:

Apart from this, many other factors are included in determining the offshore app development cost. Let us walk you through the major aspects that can help you get the best understanding of other costs that are not a payment in money but more connected in values and other aspects. 

1. Communication & Zone Alignment

The fact is that overuse of time is money has lost the hidden meaning behind it. However, it is essential to understand the importance of time that can be a major issue when it comes to offshore development. The communication delay can slow down a process with the offshore development that must be kept in mind while hiring them. The developers need to maintain open communication with the client to collaborate with them easily. Real-time communication holds a lot of value such as time-efficiency, low-cost, and high-quality. 

2. Legal Cost

Another major factor that one must keep in mind when it comes to offshore teams is the legal cost. Yes, the cultural difference will be there, which is explained in the points below. There will be political and legal differences as well that can be a bit challenging. Hence, it is best to understand the hidden offshore app development cost that comes with it. 

  • What about the legal issues of working overseas?
  • Trade regulations?
  • Cost of currency fluctuation?
  • What about the project if assigned developers resign?
  • Intellectual-property?
  • Natural disasters?

These are factors on not everyone needs to but it is essential to keep them in mind while hiring the experts. The unprecedented legal issues hold a lot of value in the development world. 

3. Documentation Cost

The technical and detailed instructions can be extremely helpful to the team that is another factor added to offshore software development cost. This must be maintained with the proper documentation that offers a high level of understanding to the offshore team. The offshore team doesn’t work with the descriptions of the problem, some goals scribbled on the paper, and UI designs.
Hence, it is best to take out time and prepare proper documentation that can help the offshore team. Remember you are not going to meet them daily so it is best to give them all the requirements. 

4. Project Management

If we generally talk then outsourcing is increasing on a massive level that is included in the different factors of project management. These include issuing EFPs, documenting requirements, negotiating contracts, evaluating responses, and legal fees. These are the major aspects that can be managed with the right project management. The offshore software development company usually has a development manager with which the company can communicate with.

5. Cost of Infrastructure

The infrastructure is already maintained in the reputed offshore software development company but they might lack a few resources that you need. Like operating systems, servers, databases, and enterprise applications. In such cases, it is best to scale up to the infrastructure challenges that can be communicated easily with the project managers. 

6. Ease of Doing Business

Next comes how overseas can make it easy for you to manage your business in a wheel-greased collaborative, technique, and organized way. These aspects are meshed up together to skyrocket the productivity of the business. There are some of the critical aspects that enrich the team environment and effectiveness as listed below that are included in the offshore app development cost.

  • Agile Training – Agile methodologies are one of the most essential aspects of the development world. It is one of the major advancements in the world of software development that helps the team to work together. However, the team needs to communicate with each other to achieve the desired results.
  • Visa Processes – It is best to conduct business with proper management of the talent. Especially when you understand that getting a visa is not as easy as it is shown in the movies and not to forget about the cost of traveling. It is best to conduct businesses with foreign talent only if you are sure that you will get the desired results. 

7. Cultural Affinity

We are living in a world full of diversity and homing so many people of difficult culture. It is colorful and positive in its way. Additionally, the hiring team overseas is a chance to connect with people of difficult cultural backgrounds, new perspectives, and new things. This is a major benefit of hiring the overseas team that comes from different backgrounds with a unique set of minds that think differently and work uniquely. It adds a major development perspective to the overall project. Just make sure to maintain communication. 

8. Unexpected Errors Cost

The software is done to the best of your ability and goals but what about the errors that might come later on. The quality check is not as easy as one might feel it to be. The project quality check must be done properly with the experienced developers and designers team. The motive is to ensure that the unique product is delivered in the market. It can be an additional hidden cost that no one might have predicted. 

9. Tangible Cost of Visiting Offshore Team

As mentioned earlier, time is money. And if you spent this time traveling from one location to another (overseas) then it is just going to be a waste of time. It will drain the accounts and it is highly possible that you won’t receive the desired results.
The best thing is to come to terms with “how long does it take to develop an application” and its total cost to avoid unnecessary visits to the offshore software development company. However, we understand that face-to-face interaction has a different type of impact on collaboration as compared to video conferencing that is not a viable option.
Now understand the other costing factor that will be added to it.

  • Minimum of 2 days travel.
  • 2 company representatives to understand the process.
  • Flight cost
  • Hotel and food cost

These are the major additions in the expense report. However, if the agency is talented enough then you will be able to get the amount back to your account in the matter of a few months in the form of revenue. So, choose wisely. 

10. Intangible Cost

Then comes the intangible cost that is involved in the overall visiting factor to the offshore custom software development team. People traveling can also face several challenges when it comes to development. This shapes the well being of the employees that one must take into account.

  • Jet lag – The circadian rhythms and body clock disruption while on the flight is a major physiological condition that employees can face. Jet Lag is a major concern for the employees that rapidly travel that require a day or two to get their body in shape to get to work.
  • Time spent in the air – While traveling from one location to another, the employees will be spending a maximum of time in the air with no work done. On top of that, not everyone is comfortable with the long flight which is another problem. 

Apart from these factors, some additional costs are included in all the outsourcing factors. But let’s see how these factors can be managed by the offshore custom software development outsourcing team and how it can affect the cost of offshore app development. These are mainly how one can maintain infrastructure costs. 

11. Cutting Hiring Cost

If you hire an in-house team then the salaries, training cost, and then increments are going to cost you a lot of money. This is an expensive solution to having a development team that includes the infrastructure cost is not an ideal solution. Hence, it is ideal to go for outsourcing development and especially offshore that is cheap as compared to onshore.
The best thing is that there is no need to hire any developer instead the offshore software development company will have web developers, designers, quality analysts, etc. with years of experience. Additionally, the clients can interview and interact with the offshore team to understand how they can take the project forward. 

12. Improved In-House Operations

If you are outsourcing the development then your team can mainly focus upon the other tasks or operations like sales and return that automatically increase overall revenue. The repetitive and complex tasks can be managed by the offshore software development company whereas the core operations can be managed by the in-house team that enhances the customer experiences. 

13. Leveraging Low Wages

Another factor that affects the cost of Offshore Software App Development is low wages. The fact is that hiring developers or designers with great expertise and skill is a challenging task. Hence, it is best to hire a dedicated team on an hourly or project basis that costs less than the in-house team. 

14. Use of Latest Tech Stack

If you think that it is easy to choose the right technology stack for your Mobile App and then train the development then you need to think again. It is just an additional cost that is on the neck that can be easily avoided with an offshore development company. The best thing is that at minimum cost, it will be easy to get the best tech stack for software development.
Since you will be hiring an offshore software development company, it is not your responsibility to train the employees. The company will manage the training for the employees, all you have to focus upon is regular updates and new technologies. 

15. Pay Per Projects

The major disadvantage of hiring an in-house team is that you have to pay for the resource even if you can’t utilize it to its full potential. This is easily overcome when it comes to offshore custom software development outsource teams that are committed to working and you need to pay them for the projects. You can sublimate the contract ones if the project is in your hands. 

How to make Offshore App Development Productive?

Now you are deciding to hire the offshore custom software development team but what are you going to do to make sure that they are productive when it comes to your world? How to make offshore app development productive

You might be a pro at “How to outsource app development” but about the next step?

There are so many things that are required like diligence, patience, and a clear understanding of skills when it comes to long-run projects.

Hence, it is best to leverage as much as possible from the outsourcing team and ensure that they are productive. 

1. Out-Taking & Outsourcing

The pros of hiring the offshore outsourcing team are a bit clear now from the above article and you might understand its advantage as well. Also, after the completion of your project, you won’t need to communicate with the offshore custom software development team (we are not talking about maintenance).
Hence, it is an ideal approach to go for project time frame development when it comes to hiring the team that is specialized in their skill sets. When it comes to outsourcing, out-tasking is its least drastic aspect that breaks up the elements in an external and internal level when it comes to development.
Hence, you are outsourcing a small portion of the project and utilizing the expertise available. It is best to only go for out-taking when you don’t have to work on the whole project at once. 

2. Hybrid Model

There are different requirements set that are included in the offshore app development cost that includes customer resource management, digital marketing, web designing, development, and whatnot. Hence, the maintenance and management of the development cycle must be done constantly that requires experts.
Then comes the hybrid model that can collaborate in-house teams with the offshore team to come up with an ideal solution. This can be followed to pick up the development and work with a team that can bring topnotch solutions. 

3. Intelligent Techniques

Another aspect that is added is multi-sourcing which is usually done when it comes to offshore outsourcing. Hiring the team for more than one element or a company project is a part of the intelligent techniques. The major benefits of hiring an offshore custom software development company as multi-sourcing are:

  • The outsourcing team knows the tricks for the right research and understanding of the competitors. 
  • Goal-oriented results.
  • Strong talent set with limited restrictions in terms of outsourcing. With viable ways and workaround time, offshore outsourcing is at a great advantage. 
  • Lower risk and cost risks with intelligent ideas. 

Why Appventurez is the Right Offshore Software Application Development Company?

The best thing that any company owner can do while hiring an offshore outsourcing company is to do market research. This helps in calculating the offshore app development cost that can be beneficial for the business and cost-effective.

Offshore outsourcing holds a lot of value in the developing world due to major standards set for the companies. Now companies are adopting offshore custom software development due to the superior alternative to the talent and a long-term relationship.

However, it is essential to make sure that communication and management are effective as per the company without sniffing it up.

This is where Appventurez falls in. Even though we work in a different time zone, our team of developers and designers work around the clock to offer the best solutions. So, contact us and we will help you out with your development. 

Ashish Chauhan
Ashish Chauhan

Co-Founder and VP Mobile Architect at Appventurez. An expert programmer who is passionate and loves to explore emerging mobile technologies. As a leader, he is a perfect match as he is always there for the team to help and guide them to learn and implement smartly and effectively.

⚡️ by Appventurez

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