Perhaps you’re familiar with hearing the phrase “business outsourcing” in your daily dealings. 

It’s referring to a process in which a business will send their work to a third party to handle. We would like to briefly identify outsourcing as a whole before we zero in on outsourcing mobile app development.  

One definition of the term outsourcing is as follows:

“Outsourcing is a business practice of hiring a party outside the Company to perform services or create products which are generally the task of the Company’s in-house employees/staff.”

Best Way to Hire Mobile App Developers

Business Function

The function should be the main focus of your mobile app development agency search. You want to know which functions are best to be outsourced. 

Here are three main functions:

             -app development

             -managing database

             -integrating system

Business Model

Next, let’s take a look at the three main model types for outsourcing app development:


The client will have a team of skilled developers assembled on site. The company and developer will constantly communicate directly and implement any necessary changes as production continues. Some people refer to this type of service as “out-staff”. This is when the client receives a team of developers from the outsourcing company but is solely responsible for managing the teams, salary concerns, and time allotment.


These teams would not be present on site but would, in fact, be located relatively near one another. 

Generally speaking, it’s usually within the region in proximity. The guidelines for the project are a little more loosely defined.  


In some cases, the development team is not onsite or located near the client.  

Usually, they are located in another area of the world. These offshore teams like to have all facts and directions before taking on the assignment. 

Contact is usually made via phone, e-mail, or video calls.

Staff Augmentation

Hiring mobile app developers can sometimes be done through a staff augmentation approach. These are the main reasons:

             -acquire special skill-set

             -Larger workforce capacity

             -Cover employment gaps

             -edge over the competition

The staff augmentation market produced $490 billion across the globe in the year 2018. It’s an easy process where the development team sends out specific tasks to teams as well as provides a workspace. A system is in place so that development teams can keep track of work hours and salaries. 

Dedicated Teams

When a company works on your project remotely, they are known as a dedicated team. Not to be confused with staff augmentation, this is when the team works solely under the client. This is usually the arrangement for long-term projects where things are ever-changing. The outsourcing company plays a very small role in this because the team reports directly to the client. This option allows for more direct contact and general involvement if you like a hands-on approach. It gives the ability to oversee daily tasks and monitor progress.

By the Project

Using a project-based team is another option for outsourcing. This is when the app development company takes sole responsibility for the entire task, not reporting back to the client until the completion of the product. All facts must be given in advance, and deadlines will be set. A fixed budget is something to be kept in mind here.  

Budget Building

Budget is, of course, factored into any mobile app development project. This budget will help to determine which options will be chosen. 

The client and app developer will discuss the budget and form a plan. Budget is a key component when deciding to use freelance or in-house developers.

Packages to be chosen are pre-made. Alternatively, you can custom-build your own plan. The prices will vary according to the choices made. Custom has a wider range of price options. Apps that are premade are most cost-efficient, but they don’t have the same authentic feeling. They tend not to be as catchy or specific to your product.

The cost will drastically change according to the choices selected. Here are some things to know will change the price:

             -type of technology used


             -Total team members


             -Release Date

For the upcoming sections, it is important to keep in mind that prices can fluctuate anywhere from $5,000 USD and $500,000 USD. There are many factors in deciding the amount to be spent. People tend to assume they can’t afford app development. But, this is a common misconception, and it is, in fact, possible to hire great app development companies who fit your budget.

Research Development Companies

After making a few decisions on your model and budget, hiring a company is the next step. 

It is essential to know who you’re dealing with. It is advised to do extensive research on companies of interest. Starting with a few notable names like GoodFirms, Clutch, or LinkedIn, is highly recommended to get an idea of the business platform you would like to potentially model yours after. Narrowing a search field and focus on a few companies to conduct your extensive research. Here are some things to consider when making your list:



             -Your Thoughts

             -Presentation Time

Watching for reviews is a good way to help make tough decisions. Use only companies with strong portfolios and who are proven companies.

Payment Method

Here are the three main types of payments used for outsourcing:


             -Fixed Price

             -Pay as you Go

When it comes to staff augmentation, it’s similar to paying your employees. You simply pay the salary of the team you choose for your app development.

A fixed price is usually used for smaller projects, and most have an MVP (minimum viable product). The time, plan, and amount will be disclosed prior to beginning the project. A lot of start-up companies prefer this type of arrangement. It allows them to start small while building as they grow.  

With pay as you go, we’re talking about the most notorious method of the three main approaches. Agile development is primarily where you will see this form. Changes are made along the way, and clients pay for those changes, adjustments, or additions as they are added.  

Cost to Outsource

A major factor when choosing to outsource is the cost. Because of multiple variables, the cost changed quite significantly. Here are some things to consider when dealing with a cost:

             -Location and type of vendor

             -Design, UI/UX

             -Brand cost

             -Complexity and features

             -Infrastructures and API

             -Range of platforms

The research was conducted, and GoodFirms released a statement stating the following in regards to cost:

             -Feature-rich (Instagram and Uber) cost at least $70,000

             -Medium complexity between $60,000 and $70,000

             -minimum features and complexity under $60,000

It comes down to what you want your app to be able to do. It’s that simple. The more complex, the more it costs. Here is an equation to estimate the cost:

Cost=Development Time x Hourly Rate

This is a rough guide to determining costs and will be used loosely during discussions between client and developer. Other factors will be added to provide a better estimate.

While most clients are hesitant to venture into outsourcing mobile app development, the steps we mentioned above can help make sure it’s a great experience. This isn’t something to go into blindly. But, armed with this knowledge, you are well on your way to designing the app you desire in a cost-efficient method. When choosing your app (basic, authentic, social media, on-demand, data collecting, market, e-commerce), all of these factors should be taken into consideration.