As businesses focus on boosting their online presence, the need for professional web applications has become more significant. Established companies may have an online edge, yet there's a wealth of opportunities for newcomers building custom web development solutions. In this article, we examine the benefits and challenges of outsourcing web development, compare custom solutions with basic options, and provide insights on making the most of your digital strategy through effective outsourcing.

What is IT outsourcing?

First of all, let's sort out the terms. IT outsourcing is a strategy where companies hire external experts to handle their tech-related tasks. This can include software development, IT support, or infrastructure management. By delegating these tasks to an outsourcing partner, businesses can focus on their core activities without maintaining a large in-house development team.

It means that you can "borrow" different specialists or an entire team to build a web app from start to release.

Outsourcing and outstaffing

Outsourcing and outstaffing are two different approaches to managing tech work through external resources. In outsourcing, a company hands over a complete project to an external development team. This team manages everything from planning to execution. They deliver the final product, allowing the company to focus on other areas of their business.

In contrast, outstaffing involves hiring external employees to work directly with your in-house team. These specialists fill specific roles needed for your web development project. They follow your guidance and work as part of your development team, but they remain employees of the outstaffing provider.

You should understand these differences because the choice affects project control, cost, and team integration. With an outsourcing company, you gain convenience but lose some direct control. Outstaffing offers more control but requires more management effort from your side.

Why do companies outsource web development?

Software development is challenging, and 70% of projects do not succeed, according to the Standish Group research. Projects can run over budget, over time, meet technical challenges, and more. To mitigate risks, many companies choose to outsource web development and other digital projects.

• Deloitte's research indicates that 70% of businesses outsource IT services mainly to cut costs.
• For 59% of companies, saving money is the top reason to outsource software development.
• Another 57% use outsourcing to focus better on their main business strengths.
• About 47% outsource tasks like web development and web design to manage workload better.

Web development outsourcing also gives companies access to expert knowledge. According to the Clutch Report 2022, businesses outsource equally to reduce costs and to bring in industry expertise. The 2024 report predicts small businesses will increasingly rely on outsourcing, with 83% for engineering, 78% for sales and customer service, and 77% for marketing, especially as they integrate AI technology.

The fact that 68% of U.S. companies choose to outsource shows that IT outsourcing is not just about saving money but is often necessary to compete globally. Deloitte's 2023 survey shows that companies now see outsourcing companies as partners that help shape business strategies, beyond just handling tasks efficiently. For both startups and established companies, outsourcing presents opportunities to launch new projects faster and save budget on hiring employees in-house.

This is only statistics — let's look closer at the benefits that web development outsourcing brings to businesses.

Benefits of outsourcing web development

Cutting costs

Outsourcing web development is often cheaper than hiring full-time staff. It cuts down on costs for recruitment, salaries, office space, and training. Companies pay only for the services they need, allowing budget use to be more strategic. Based on 2024 Global Outsourcing Rates and Trends, businesses that choose to outsource web development can achieve cost savings ranging from 39% to 72%.

Improving speed to market

With outsourcing, projects can start quicker as experienced development teams begin work right away. These teams usually have their development processes in place, so web apps and websites get done faster. This speed is crucial for staying competitive and meeting market demands without delay.

Easy scaling

Outsourcing lets businesses adjust the development team size as needed. As project needs change, you can easily add or remove specialists. This flexibility ensures you're using resources efficiently, making it easier to meet deadlines and handle changing web development project needs.

Providing access to vast expertise

Outsourcing gives access to a wide pool of talent, bringing diverse skills and knowledge. A web development company can have specialists skilled in specific frameworks or experienced in specific industries that are crucial for certain projects. This diversity in skills and knowledge means that companies can find the right experts for their exact needs.

Saving time for business priorities

By outsourcing the technical parts, businesses have more time for their core activities and important goals. This allows companies to focus on growth and innovation, while skilled professionals handle the web development work.

Providing long-term support

Many outsourcing partners provide ongoing support after the release. This ensures that your web app stays updated and functional, with experts available to fix technical issues, make improvements, or add new features over time.

Just look at this case and see how our client got all these benefits from outsourcing web development to us:

When UK Retreats came to us with the idea for UKR Club, they aimed for native mobile app and website development to create a service that would connect property owners with travelers looking for unique stays in the UK. Our task was to reduce the project's complexity and cost while delivering a functional product that resonated with their audience.

To do this, we assessed their target audience and decided to build a mobile-first web app instead — most users would access the app on mobile devices but they don't require two native mobile apps for this. We began by crafting wireframes and a user flowchart to outline the user experience and brand identity. UK Retreats preferred a minimalistic interface, so we used beige and dark cyan shades with black accents for a confident look.

We picked web development technologies that would ensure the UKR Club app was flexible and could scale easily. We built the web app using React, offering a solid base and allowing for easy future updates. For the backend, we chose Laravel to handle data processing and API functionalities, and we used Laravel Nova for the admin panel, enabling UK Retreats to manage listings smoothly. As a result of our web development services, we implemented the core functionality for the first version of the app and finished everything in 3 months. After the release, our development team stayed available to fix any issues, make improvements, and add features, keeping the UKR Club app up to date and fully functional.

Risks of web development outsourcing and how to reduce them

Outsourcing web development offers benefits but also presents risks. Entrepreneurs are often afraid to lose control over their web development project, spend too much budget and time on the project, and have their unique business ideas stolen. Here's how to handle these challenges:

1. Loss of control: When you outsource web development, there's a worry that the project might not match your vision. Since the outcome relies on an outside team, keeping control is essential. To manage this, have clear communication with your web development company. Regular updates, clear documents, and set milestones help keep the development process on track with your expectations.
2. Potential delays and cost overruns: Web development outsourcing can come with unrealistic budget estimates and timelines. IT projects often go over budget by 27% to 45%. Minimize these risks by choosing an outsourcing partner known for being reliable and offering detailed contracts. A reputable web development company should provide a project estimation that clearly outlines expectations, timelines, and potential costs.
3. Confidentiality issues: Sharing proprietary information or access to systems during web development services needs trust. Protect your intellectual property with non-disclosure agreements (NDAs) with your outsourcing company. Ensure the web development team follows strict security policies and aligns their practices with your confidentiality requirements.
4. Language barriers and communication gaps: Successful web development outsourcing depends on effective communication. Choose vendors that provide English-speaking managers or vendors from your country. Use tools like Slack, Jira, Trello, and Confluence to ensure clear communication and task management. Schedule daily and weekly meetings, maintain thorough documents, and create progress reports to keep everyone aligned.
5. Fixed price model misconceptions: Locking in a fixed price might seem like cost control, but web development success relies more on aligning strategies with goals and having a reliable partner. A flexible approach can be more beneficial, especially if your project will require urgent changes. Trust a reputable web development company with a good track record to mitigate risks, regardless of the payment model.
6. Data security risks: Security is key in any web development outsourcing project. Trustworthy development companies use strong security measures, including NDAs, internal policies, and regular security training. They should also tailor security protocols to your specific needs. This proactive approach helps protect your data and builds confidence in their web development services.

By taking these steps, you can reduce the risks of outsourcing web development and ensure a smoother development process that meets your business needs.

Which businesses need web development outsourcing?

Startups

Startups often have an idea but lack the human resources to support it. They frequently need to build a web app quickly and stay within budget constraints. Without sufficient tech expertise, startups may also require a technical advisor to guide them through the development process. Outsourcing web development helps them access skilled professionals and fill these gaps without the costs of hiring full-time staff. By involving external experts in website development projects, startups can focus on growing their core business.

In 2013, Slack was just starting out, and its founders decided to hire an external web design team to help create their team collaboration app. This team worked on both the app's and website's design, and they even designed Slack's logo. Now, more than 5 million people use Slack every day. By choosing to outsource web design work, Slack was able to build a unique brand with a distinctive look and style.

In 2019, a Swedish startup came up with an idea of Noah, a farmer marketplace app that connects local food producers with consumers. The aim was to reduce reliance on foreign food suppliers and give farmers access to a larger market. They decided to outsource web development and mobile development to us. Our task was to design and build interfaces for iOS and Android apps for consumers and producers, and a web admin panel. With a tight deadline to launch before Sweden's harvest season, we focused on building an easy-to-use system that met the client's needs.

We crafted a unique branding style for Noah, using simple white and gray colors with soft orange accents to ensure clarity and easy navigation. The mobile apps were developed natively with Swift and Kotlin to ensure smooth performance. For web app development, we used Angular and Laravel that offer strong security and functionality with reusable components. Key features included Google Map SDK for locating producers, Stripe SDK for secure payments, and Firebase for user analytics and login. These choices allowed us to get the app ready for market before the harvest season. As Noah grew, we continued to add new features and provide support.

Mid-sized companies

Such businesses face the challenge of expanding while managing costs. Web development outsourcing helps them grow efficiently. By working with external development teams, they access specialized skills for web development projects, which enhances their services and market reach. This approach keeps mid-sized companies competitive and innovative without extensive internal investments.

When Hamperapp, a laundry service in Florida, wanted to expand its reach and automate its services, the team came to us for mobile and web development services. The goal was to create an app that could automate tasks for various users, including consumers, drivers, managers, and administrators. We started by researching these users' needs, then designed mind maps and wireframes to plan out the app's structure. For the UI/UX design, we updated their color palette with a gentle shade of green, creating a clean and simple look that matches Hamperapp's core values.

For web development, we built a strong backend with Laravel and used Angular for the web version of the client app and admin panel. For the mobile apps, we chose native development using Swift for iOS and Kotlin for Android to ensure smooth operation and flexibility. The app features online payments with Stripe, real-time updates using Ably, and a route optimization feature with Mapbox to help drivers. This approach allowed Hamperapp to grow without needing constant external support, turning it from a B2C service into a provider for both individual and commercial clients. By the end of 2022, Hamperapp had greatly expanded its network, and choosing to outsource web development continues to help them scale up and improve their services.

Enterprises

Enterprises often need to expand their web development team for specific projects. When starting a side project or testing a new idea, outsourcing web development to an external company can be a smart choice. This way, the outsourcing partner takes care of everything, and the in-house team can focus on its current work. Web development outsourcing is also helpful when the company lacks expertise in certain areas. By working with external experts, enterprises get the skills they need without overloading their team. This approach allows companies to try new things while keeping their main operations running smoothly.

Unilever faced risks when expanding their operations, but they succeeded by bringing in outside experts. They combined different enterprise resource planning systems from 24 countries into one system for all of Europe. This change made their system more efficient and has saved them €700 million each year since 2005.

The Commonwealth Bank of Australia (CBA) also saved money by using a multi-sourcing strategy for software development and application management, cutting IT costs by up to US$100 million a year. One of the outsourced projects was a payment solution that combined the bank's systems into one. This reduction in IT spending means CBA can use more of its budget for strategic projects instead of just covering operational costs.

Outsourcing web development vs using website builders

Entrepreneurs often think whether they need to outsource web development for custom projects or use website builders. Both options have their advantages and drawbacks, and the best choice depends on the business's specific needs and goals.

Outsource web development: This option lets entrepreneurs create a website or a web app that matches their exact needs. Working with skilled developers means you can get a website with unique features and web design that fits your brand. Outsourced web development is great for businesses needing complex tools, special connections, or a distinct look. Custom development is also good for companies planning to grow, as the website can change and expand as needed. But this approach usually costs more and takes longer than using website builders.

Use website builders: These tools make website development fast, easy, and often cheaper. With templates and simple tools, anyone can set up a basic site without knowing how to code. Website builders may be suitable for startups or small businesses that need a quick online presence. They fit those on tight budgets or for web development projects that don't need advanced customization. However, they limit website design flexibility and features. If a business grows or needs unique features later, it may struggle with the limits of a website builder.

Outsourcing web development is often better for businesses that need a custom web design, custom features and plan to scale the app in the future. But for those wanting a quick, budget-friendly solution, especially with limited resources, website builders might be the right choice. The decision should match the business's long-term plans, budget, and technical needs.

Working with a web development company vs freelancers

Web development is a complex process that involves multiple stages, from planning and design to programming and testing. First of all, entrepreneurs should understand the challenges of web development:

Multi-component architecture: Modern web applications consist of frontend, backend, and databases. Building and maintaining such an architecture requires a high level of expertise from developers.

Rapidly changing technologies: Web development is constantly evolving, and professionals need to stay updated on new frameworks, programming languages, and tools.

Security: Web apps are vulnerable to various types of attacks, such as SQL injections, XSS, and DDoS. Ensuring security requires experience and specialized knowledge.

Scalability and performance: Applications must be able to handle increasing amounts of data and user requests without losing performance.

If you outsource web development tasks to a trusted company, you get several advantages over working with freelancers:

1. Experience and expertise: Trusted companies have professionals with significant experience in various projects and industries. They also tend to stay on top of the latest trends and technologies, ensuring modern and efficient solutions.
2. Reliability and responsibility: Contractual relationships with a web development outsourcing company imply clear deadlines and requirements. Companies are more motivated to comply with them since reputation is a key factor in their business.
3. Comprehensive approach: Outsourcing companies can provide a full range of services — from analytics and design to web development and technical support — reducing the need for coordination between different contractors.
4. Flexibility: Companies can quickly adapt to changing project requirements, offering additional resources or advice as needed.

Entrepreneurs might choose to outsource web development to a freelancer instead of a software development company in several scenarios:

1. Tight budget: If the project has limited funding, freelancers often offer lower rates than development companies.
2. Small-scale projects: For simple or less complex web development projects that don't require a large team, a freelancer can be more efficient. Projects like basic websites or feature updates might not necessitate the resources and structure of a full company.
3. Short-term projects: If the web development project is temporary and doesn't require long-term support or maintenance, hiring a freelancer makes sense. Freelancers can be contracted for specific tasks without the commitment of ongoing support.

How to find a reliable outsourcing partner?

Finding a reliable outsourcing company is crucial for your project's success, and involves a thorough evaluation process. Start by understanding your project's goals and requirements. This clarity will help you identify the exact expertise you need from potential vendors. Do your research, looking for contractors with proven experience in your industry or with the tech stack you require. Platforms like Clutch and LinkedIn offer insights into vendor portfolios and client reviews, helping you assess a vendor's reliability and track record.

A trustworthy contractor for web development services should be open and clear about their processes and pricing. They should give regular updates, set clear timelines, and explain their pricing models, whether it's a fixed price or time-based charges. Sending out a Request for Information (RFI) can help you compare vendors based on expertise, past projects, resources, and their approach to handling risks.

It's also important to learn about the contractor's development processes and long-term support systems when considering web development outsourcing. Have conversations with their team to understand their project management styles, communication processes, and quality control methods. A good contractor actively participates in these discussions, showing their ability to listen and adapt their web development services to your specifications.

Be wary of red flags such as very low pricing, lack of expertise, or a high employee turnover rate, as these can indicate deeper issues with outsourcing web development services. Low prices might hide extra fees or result in lower quality work, while high turnover can suggest team dissatisfaction, which could affect project stability. By thoroughly assessing potential vendors, you can partner with a contractor who matches your business needs.

How much does web development cost?

The cost of outsourcing web development is influenced by several factors, including team composition, geographic location, and experience. Let's explore what impacts the outsourcing cost and how these elements play a role.

Project size and complexity

One of the primary considerations is the complexity and size of the web development project. Simple projects, like basic landing pages, usually cost less, while more complex web applications or large-scale websites are on the higher end of the spectrum. For instance, business websites can range from $1,000 to $50,000 and take between 2 to 12 weeks to develop, while web applications might cost from $10,000 to $100,000, requiring 16 to 30 weeks to complete.

Location

Location significantly affects costs of web development outsourcing. Development teams in North America, Canada, and Australia often charge between $100 and $149 per hour. In contrast, developers in regions like India, Ukraine, Poland, Spain, Mexico, and the Philippines offer more competitive rates, typically between $25 and $49 per hour. This difference presents cost-effective options without compromising quality.

Experience

Experience is another critical factor that affects the outsourcing cost. Developers with extensive expertise or those using specific technologies might charge more, but they bring valuable skills to the project. Common web development rates for technologies such as WordPress, PHP, Ruby on Rails, Drupal, Django, and ReactJS usually fall between $25 and $49 per hour, reflecting the demand and skill level required.

Pricing model

The choice of pricing model also plays a role — whether it's a fixed price or an hourly rate. Fixed-price projects set costs upfront based on specific requirements, while hourly rates, common in custom or ongoing projects, depend on the work done and resources used.

On average, web development services on platforms like Clutch cost less than $10,000, with 50% of companies charging between $1,000 and $15,000. About 31.8% of them price between $15,000 and $30,000, while 18.2% range from $30,000 to $50,000.

Custom web app development with Ronas IT takes about 3–4 months, with budgets starting at $30,000. These apps provide users with interactive experiences and dynamic content. As for simple corporate websites, completing these takes us around 2–4 weeks for $5,000 to $8,000. You can see the approximate costs of other web development services here:

While the cost of web development outsourcing can vary widely, understanding these influencing factors — location, experience, pricing model, and project scope — helps set realistic expectations. With this knowledge, businesses can outsource web development to a suitable contractor.

Our approach to web development

At Ronas IT, we offer a wide range of web development services, customizing each project to meet the specific needs of our clients. Our services cover everything from simple landing pages to complex web apps, ensuring secure and efficient digital products.

We use modern and reliable technologies like Laravel and Django for robust backend development. On the frontend, we use React for building interactive user interfaces and Angular for developing dynamic single-page applications. We choose them for their wide resources, strong community support, and reliable security features.

Our process starts with gathering detailed requirements to understand your needs and expectations. After analyzing these, we decide whether to focus the design on mobile or desktop first. Then our UI/UX team creates visuals and design kits. We work in short 2-3 week periods to deliver updates and tangible results. Our developers build clear and scalable code for core features. Once completed, products are deployed across development, staging, and production setups to ensure quality. We offer ongoing support after launch, maintaining stability and integrating feedback.

Since 2007, our development team has served various industries, including e-commerce, fintech, healthcare, logistics, marketplace, education, and real estate, ready to tackle any challenge. We deliver projects on time, adjusting team size if needed. We prioritize confidentiality, signing NDAs to protect your ideas and data.

If you're interested in building a web application or a website and searching for an outsourcing partner, we're always ready to help. Get in touch with us by filling out the form below and we will get back to you in 24 hours to discuss your web development project.

To conclude

Outsourcing can be a smart move for businesses looking to expand their online presence effectively. By choosing to outsource web development, companies gain access to specific services that might not be available in-house, helping them control costs and improve efficiency. This strategy allows businesses to focus on their main operations while leaving technical tasks to skilled professionals. Whether it's creating custom software development solutions or providing long-term support for web projects, outsourcing offers a dependable way to achieve business goals.

Entrepreneurs should balance the benefits of outsourcing web development with potential risks, like loss of control and data security issues. These challenges can be managed through clear communication, careful vendor evaluation, and strategic planning. Whether you decide to work with freelancers or a software development company, understanding your project's needs and aligning them with the right outsourcing partner can bring significant advantages, such as cost savings, faster time to market, and access to a wide range of expertise. By making informed decisions, businesses can fully benefit from choosing to outsource web development services.