For a large corporation, it makes sense to have an internal app development team always on standby to assist with any mishaps and continuously improve the setup. In such cases, the internal DEV team better understands the company’s needs and can offer suggestions to improve it further. For a large company, it is important to get constant updates from the DEV team and guide them to what the organization wants to achieve.
However, having an internal app development team may be more of a disadvantage for a smaller company. It can be expensive to set up an app IT department, and the cost of having devs on standby could easily cripple the budget. Therefore, it is no surprise that many small companies outsource their app development needs to third-party experts.
Outsourcing your mobile App development needs as a small company is practical. It is a great way to deal with short-term issues and plan for long-term solutions without fixing everything in one go. This means less downtime for the app and fewer bulk expenses because of a systematic and priority-based application development approach. As a result, you can quickly prioritize your company’s and app’s needs.
Advantages Of Outsourcing Mobile App Development
The app outsourcing market has grown and is now valued at $88.9 billion. Data also shows that a small company can cut its expenses by up to 75% by outsourcing its app development needs. And as it stands, 59% of companies in the US are already outsourcing to cut costs. But even though the numbers support the decision to outsource, what are the actual benefits?
As mentioned, one of the primary reasons companies outsource their app development needs is to cut costs. Dev outsourcing can help reduce overhead costs, infrastructure, and resource costs.
Having an internal dev team means you have to place them on a retainer or salary. This means they will be paid regardless of whether further developments or updates are done on the app. Such costs can quickly build up for a small company and result in the company’s budget not being used efficiently. Outsourcing ensures you only pay for DevOps services when need be, for example, if you need an app update or it crushes.
Establishing an IT department can also quickly eat through a budget. You will need dedicated servers, high-performance PCs to handle the development process, and office space to accommodate your team. Such needs require you to invest in infrastructure and additional resources, further increasing the company’s overall expenditure.
It is easier to track expenses by working with an external team while knowing precisely what you are paying for. For example, if you need a system update or to test the app for bugs, you contact your third-party app development partner and be invoiced for that specific need. If you have an internal team, you may not be able to track such expenses as they are on salary. Better tracking results in more accountability and a better ROI.
A Bigger International Talent Pool
Hiring an internal team means you can only hire individuals in the locality who can easily travel to your office. This locks out many talented people not just in the US but from all over the world. The reality is many countries are developing in tech rapidly. Some of these countries have a large population skilled in IT. Outsourcing allows you to take advantage of this talent pool without the restriction of location.
It can also be cheaper for you to hire outside the US. In most cases, you will not be required to pay for employee benefits like pension and medical care. Additionally, an IT expert outside the US may be less expensive because of cheaper living costs.
Due to the difference in time zones, outsourcing from an international pool could help increase efficiency further. If you work with an IT outsourcing company in a different timezone, you could ask them to fix something during your night (their day) and have it ready by your morning.
App development skills are highly specialized. Since you can pick from a wider talent pool, you have more options for picking someone with the skill set you are looking for. With a smaller talent pool, you may only find experts specialized in back-end or front-end app development. In such a case, you may need to hire multiple people to work on the same app. If you cast your net wide and target the global talent pool, you may find a team that focuses on multiple aspects of app development, cutting your costs down further.
Outsourcing app development is a great way to reduce risk. Since you may not be an IT expert, outsourcing ensures your app is in the hands of an experienced team. Having an internal team can result in many things going wrong, and it will be upon you to fix them. It will also mean you cannot focus on your core business as you try to fix something you have little knowledge of and even less control over. Outsourcing ensures you give the DEV team space to do what they do best, app development, and you can focus on what you do best, running your business.