When you decide to develop a mobile app for your business, you need to find suitable app developers first. The design and reliability of the mobile app, the speed of the development, and the overall cost will hinge on the skills and reputation of the app development contractors you select.

This article offers a comprehensive guide on how to outsource app development. We discuss where to find an appropriate software development company, how to evaluate potential partners, and what key points to include in your outsourcing contract.

Opting for a suitable collaboration model

When embarking on an app development path, you should first decide on what hiring model best matches your company and project. There are three possible variants.

Gather an in-house team

You can start mobile app development with an in-house team. With this approach, you can gather all the app developers in one space for clear and direct communication and higher control over the project flow. This approach matches you if the mobile app or other technology you create is the key product you offer to your customers. Apple uses this model, as their devices demand tight integration of software and hardware specialists and a high level of confidentiality.

High overhead cost is the key disadvantage of having an in-house team. When you start mobile app development, you will need several specialists on the team including several app developers, a UI/UX designer, and a product manager who will control the development process. You will have to pay salaries to all these specialists month by month, which can be expensive in some local markets. For instance, here's the table with the annual salaries of each mobile development specialist in the US according to Glassdoor and ZipRecruiter.

Work with a freelancer

If you start a software development project with freelancers, you will still need a team of specialists to accomplish the project. Just like with hiring an agency, working with freelancers provides you with access to diverse tech expertise, high flexibility, and lower costs compared to hosting an in-house team. Freelancers are ideal for projects that are smaller in scale or require specific expertise for short-term tasks.

However, this approach offers some obstacles. Even if you invite several freelancers and create a team, they will need some time to sync, which can take some time. Things like differing time zones and lack of control over the freelancers' workflow can make the application development timelines longer.

Collaborate with an outsourced team

For businesses considering an alternative approach, outsourcing app development to a third-party agency may seem a compelling option. This model is particularly well-suited for long-term and complex projects, as agencies are typically equipped with a team of specialists who can develop an app from scratch. Third-party agencies usually offer a cycle of services, from initial concept through to launch and support, ensuring that all facets of the mobile app are addressed efficiently. In the text below, we'll explore the arguments for and against this approach, delving into both the benefits and potential drawbacks of outsourcing app development to IT agencies.

Key statistics on the outsourcing app development market

The trend for outsourcing tech tasks to external teams became popular back in the 1980s and 1990s when Kodak outsourced some of the non-essential tasks to third-party contractors. Outsourcing tech tasks hasn't lost its popularity until now and nowadays most of the G2000 companies use this approach as well.

Large tech companies such as Slack, WhatsApp, Google, and GitHub are known for particularly handing off application development to a third-party team. Some of them were not known at first but due to the help of an outsourced team, they managed to roll out fast and took over the market. Here are some other stats proving the popularity of app development outsourcing.

• The IT outsourcing market is going to see impressive growth worldwide reaching $591.20 billion by 2025 and $812.75 billion by 2029 according to Statista.
• As for studies by Deloitte, 80% of business owners are going to maintain or increase investments in both back-office services like IT or accounting and front-office services like sales and marketing.
• The global workforce of developers numbered 28.7 million in 2024. These specialists are spread around the world including regions and large tech hubs like Eastern Europe and South Asia.
• The number of smartphone users grows year by year reaching a total of 6.1 billion users, while the number of mobile apps in Google Play store is 1.68 million.

Statistics prove that the number of potential mobile app users is steadily growing. This means most of these users are likely to communicate with brands and companies using mobile devices, making mobile apps a viable business tool. The number of developers and the outsourcing market also grows, which proves that you have numerous options if you want to outsource mobile app development. The only thing you need to do is to find suitable options and evaluate the most reliable partners.

Benefits and challenges of outsourcing app development

Companies that opt to outsource app development enjoy one of the most significant advantages of this model, which is cost reduction. Outsourcing achieves this in several ways.

First of all, partnering with an app development company can help you to reduce overhead costs. Business owners who outsource development are relieved of the costs associated with maintaining physical office spaces, purchasing equipment, and providing employee benefits. These responsibilities shift to the outsourcing company, allowing businesses to allocate their resources more efficiently.

Additionally, collaborating with an app development company offers flexibility. You can allocate as many resources as you obtain for development and stop it if your company runs out of resources. With an in-house team, you won't be able to do that since you have to pay the salaries monthly and won't be able to lay off your staff in case some urgent expenses occur.

Also, all the regions differ in prices for outsourcing mobile app development. App developers from the United States, Canada, and Australia typically charge $100–149 according to Clutch, while app developers from other regions like Eastern Europe, Mexico, Philippines, and others can charge $25–49 or less depending on their experience and positioning.

This gives business owners an opportunity to outsource app development to IT agencies in more cost-effective regions without losing quality. A member of Stanford University provided a case to prove this point. The case displays an experiment where one of the companies first owns the app development team in the Bay Area and then relocates it to Poland and India to reduce costs, which helps to save about $5 million.

The researchers from Stanford created an algorithm and some criteria that helped them measure the productivity of the app developers. They analyzed the code in Git repositories and scored each commit. It turned out that the relocated team reached the same level of productivity in 4 months after the relocation.

Cost saving is not a single advantage that companies that outsource app development obtain. We have listed the rest of them in the picture below.

While app development outsourcing brings numerous advantages to the table, it can also be associated with some challenges, such as:

• Complex communication — when you hand off work with your app to a foreign development team, language differences, cultural nuances, and time zones can lead to misunderstandings, affecting project clarity and coordination.
• Hidden costs — accurately estimating the project's cost can be complicated. Issues such as a tech stack and integrations that are new to the app developers, a sudden need for changes, or a lack of shared vision of the product among stakeholders can result in a longer timeline and increased app development costs.
• Lack of transparency — when a development team is not in your office or region, you can't directly oversee or control their workflow. A diligent team should provide constant updates and reports to keep you informed about the progress and ensure the work aligns with your expectations.
• Dependency on vendors — when you outsource app development, you rely heavily on a single team for both the development and maintenance of your app. This dependency can make transitioning to another vendor or shifting the work to an in-house team challenging.
• Complex vendor selection — you should thoroughly evaluate an outsourcing company to have your project guided by a reliable partner. This includes assessing their expertise, understanding communication practices, and verifying their track record. Additionally, check their reliability by reviewing client reviews and testimonials, ensuring you're partnering with a trustworthy and capable outsourced team.
• Security and confidentiality risks — outsourcing app development involves sharing sensitive data and proprietary information with an external team, which poses potential security and confidentiality risks. To mitigate these risks, it's crucial to have strong legal agreements in place and sign an NDA to ensure that your information and intellectual property remain secure throughout the development process.

Diligent and seasoned agencies offer various solutions to mitigate the challenges associated with outsourcing app development. Our Ronas IT team is an app development company, and we provide several measures to address these concerns effectively. For example, we assign a dedicated project manager to each project team, ensuring clear communication and transparency throughout the process for our clients.

To avoid vendor lock-in, we use open-source solutions and make the code the property of our client. We also collaborate closely with designers and developers to create precise app development cost estimates, reducing the risk of hidden costs. Additionally, we thoroughly test all our apps to ensure they function seamlessly after release, safeguarding quality and reliability.

Where to find the right agency for outsourcing app developmen

Google search. To find a partner for mobile app development outsourcing, start by entering specific word combinations like "top mobile app development companies", "best app development agencies" or "mobile app development services providers." This search will likely yield a list of potential partners' websites.

A reliable partner's website will stand out with a good and professional design, showcase expertise through detailed case studies, and share customer reviews to provide insights into past client experience and satisfaction.

Peers and colleagues. Reach out to your peers, business partners, or industry contacts to seek recommendations for app development agencies. Ask about their personal experiences, the quality of work delivered, and the reliability of the service.

Not only can your close contacts offer valuable insights, but you can also explore your competitors' websites. They sometimes mention outsourced teams involved in their app development. For example, the Lainappi team, who outsourced mobile app development for their renting service, has referenced our team on their site.

Review aggregators. You can also search for partners on platforms like Clutch, GoodFirms, and Upwork. These platforms provide convenient access to reviews and ratings, making it easier to assess a firm's reputation and reliability. They allow you to compare multiple agencies and freelancers based on proven expertise and client feedback, helping you find the right fit for your app development needs.

You can also view other less popular sites providing directories with mobile app development agencies like The Manifest, SoftwareWorld, Extract, and others.

Tech conferences and events. These events provide app developers with an opportunity to share their knowledge and provide new networking options for entrepreneurs searching for reliable outsourcing partners. Such conferences even arrange sessions where counterparts can meet each other face to face. The upcoming events include Web Summit 2025, TechCrunch Disrupt 2025, Apple WWDC, Droidcon Global Series 2025, and many others.

Social media apps. Use platforms such as Quora, LinkedIn, and Reddit. On Quora, you can use the question-and-answer format to ask for recommendations and insights about various agencies. LinkedIn provides tools like professional groups and advanced search features to connect with agencies and read reviews shared by peers in your network. Reddit offers active subreddits dedicated to app development, where you can engage in discussions and seek advice about suitable partners who can be involved in mobile app development outsourcing.

Chambers of commerce and professional associations. You can use them to find onshore mobile app development professionals, who are based in the same country or region as your business, offering advantages like cultural alignment and easier communication. Chambers of commerce and industry-specific professional associations maintain directories and organize networking events where you can meet local talent. These sources are useful because they often provide access to reputable developers, and their events offer opportunities to engage directly with potential partners.

Essential skills and knowledge for an effective app development outsourcing partner

After you have gathered a list of app development companies, it's time to estimate the knowledge and skills of potential contractors. The companies that can build a mobile app from scratch, should have the following expertise.

Technical knowledge. Before choosing an outsourcing company, decide whether your app will be built for iOS, Android, or cross-platform. This choice determines the technologies and programming languages needed, such as Swift for iOS, Kotlin for Android, or frameworks like React Native for cross-platform development.

The team should understand mobile app development technologies and be able to connect your app to other systems smoothly. To check if they have the needed expertise, ask for examples of their past projects or look for case studies on their company's website.

UI/UX design skills. When you outsource app development, don't forget to check the team's abilities in mobile app design. They should be able to create clean and intuitive screens while staying updated with current design trends. Interface designs should be visually appealing, practical, and easy to develop.

Proficiency with modern visual editors like Sketch, Figma, or Adobe XD is an essential skill. To assess design capabilities, ask for examples of previous work or check for the company's design portfolios on platforms like Dribbble or Behance.

Data safety procedures. Reliable development teams openly share the practices they use for data safety. Their primary goal should be to ensure your mobile app is secure. This is typically achieved by employing an up-to-date tech stack that guards against common data security threats.

It's also important for teams to establish restricted access to various parts of your project, ensuring only a team lead has full oversight, which helps prevent sensitive data from leaking. Additionally, a reputable team should have no issues signing a non-disclosure agreement to protect your project further.

Project management. A development team should include a project manager who is responsible for coordinating the team's efforts and maintaining clear communication. This manager will create regular reports on the team's progress, ensure that all deadlines are met, and keep the workflow transparent to you. It's important to inquire about the cost of the project manager's services, as this is typically billed separately from the work done by designers and app developers.

Testing and QA. When you outsource app development, ensuring the quality of your mobile app is crucial. A diligent team should implement comprehensive testing processes to ensure the app functions smoothly. This includes conducting tests like unit, integration, and user acceptance testing to catch bugs before launch. To verify testing capabilities, ask the development team for detailed information about their testing methods and request case studies or examples of past projects.

Communication skills. Apart from hard skills, check for the outsourced team's soft skills. The team should be responsive, keeping you updated with regular progress reports and being open to feedback. You can gauge their responsiveness during your first meeting by observing how quickly they answer your questions and whether their time zone aligns conveniently with yours. It's preferable to choose a team capable of conducting online meetings, allowing you to ask questions directly and ensure clear understanding throughout the mobile app development process.

Points to include in a contract with a mobile app development services provider

When meetings and negotiations with all potential outsourcing partners are over, you will have to sign a contract with the most suitable one. To avoid the most common challenges of outsourcing mobile app development, include the following points in the agreement.

Scope of the project

When you outsource app development, one of the key things to clarify is the project scope which usually includes project goals, deliverables, tasks, and deadlines. A well-thought-out project scope is crucial and can be included as an annex to the contract. Our team works by the Time and Material model, which is why we always add a file with an estimate and breakdown of the mobile app by features to agree on the scope of work and approximate mobile development cost.

Change management

Sometimes, the created scope may require sudden changes. For example, some new features need to be added, and project goals, deadlines, and app development process change. In such cases, you can establish a procedure for project change. To do this, include points on how they will be documented and who will review and approve them.

Ownership of the product

When you outsource application development, include the issues explaining who owns different parts of the app. Of course, the business owner's company usually wants total control over the development results but in some cases, it's more complicated. For instance, the customer may order to develop a website based on the existing engine. In this case, the engine would belong to the engine provider, the development deliverables to the outsourcing agency, and the content displayed on the website to the customer of the agency. Other entities that can be included in this issue include databases, SaaS licenses, IT environments, hosting, and others.

NDA

One of the biggest doubts companies have when they outsource app development is that their unique ideas would be disclosed. This can be especially disturbing if an outsourcing partner already works with some of the rivals from your business domain. To avoid the disclosure of sensitive info, first double-check the reputation of your partner and sign an NDA to establish a confidential relationship.

Payment terms

Define the payment structure, specifying milestones, due dates, invoicing procedures, and any penalties for late payments. To ensure financial transparency and accountability, establish clear expectations for when and how payments will be made throughout the development process. By having detailed payment terms, both parties can reduce misunderstandings and maintain a smooth financial relationship during the project.

Data protection compliance

When outsourcing mobile app development, it's essential to document all compliance requirements to safeguard data effectively. Ensure that both parties comply with regional laws like GDPR in the EU or HIPAA in the USA. Before beginning a partnership, thoroughly understand data protection compliance in the regions where your businesses operate, especially if you're offshoring. Also, the contract should include common data protection practices like ISO 27000 standards and PCI Data Security Standard.

Apart from these points, you may include many others that you or your outsourcing partner require. They may describe communication terms, performance and quality assurance standards, dispute resolution, warranty, responsibilities in providing tech equipment, and others.

Cases of our app development company

Our Ronas IT development team has been on the market for 14 years already. During this time many startups and middle-sized businesses chose to outsource app development to us. That's why in our portfolio there are numerous cases dedicated to web and mobile development, UI/UX design, and analytics. We are eager to share some of them.

Lainappi mobile renting app

A few years ago a team of startuppers from Finland decided to outsource mobile app development to our team. They wanted to develop a rental app where people could rent and rent out things they possess to promote rational consumption. The team approached us with a ready-made version of the interface design that we offered to redesign. As a result, we have improved the logic of the interface a bit, added more high-quality visuals, and created the branding that reflected Lainappi's mission.

As a part of the development process, we have elaborated item search features, payment process, and chat for app users. Our clients wanted to have the app both for iOS and Android but needed to test their business idea with minimum resources, that's why we offered them to develop an application with React Native. When we released the app, the Lainappi team was satisfied with our performance and stayed with us for maintenance.

ShipMe web and mobile app

A team from Saudi Arabia approached our team to outsource app development of their shipping service to us. Saudi Arabia has a large retail market that would benefit from the service that connects customers who need to ship batches of goods and carrier companies who can ship these batches. Our task was to develop mobile apps for customers and shippers and a dashboard for service administrators.

As a part of application development, we have elaborated workflows for each app, designed interfaces, and the brand identity of the service. Our client decided to develop mobile apps with native technologies, and we have complied with this request. During the development process of the web admin app, we used the Laravel framework, integrated the backend of all the apps from the service, and covered all of them with tests to ensure it is reliable.

Banking mobile app

Our team was approached by an entrepreneur from the US who decided to outsource the app development of the neo bank to us. In the United States, many residents face challenges in obtaining a credit card due to low credit ratings. Our client's aim was to create a service that assists users in improving their credit scores, ultimately helping them qualify for credit cards and offering them the opportunity to manage and use these cards effectively.

During the application development process, we designed the interface and used React Native for mobile development and Karavel for backend development. We also integrated the mobile app with the infrastructure from Bond BaaS provider. By doing this we automated the KYC procedure and ensured that the banking app complies with regulations like PCI DSS and ISO/IEC 27001 necessary in the financial field.

Breaking down the cost to outsource app development

The app development cost usually depends on factors like project complexity and rates charged by your tech contractor. According to some sources, an application can cost anywhere from $30,000 to $300,000. However, some platforms provide more precise numbers. Let's explore the price statistics for different types of apps.

Mobile application development

According to Clutch, most mobile app development projects reviewed by this platform cost $10,000–49,999. However, more complex projects can cost $50,000–199,999 or even more. As for this platform's statistics, hourly rates of companies involved in iOS, Android, or cross-platform app development don't differ and make up $25–49 per hour.

As for Goodfirms, outsourced app development can cost $12,960–$68,320 for a simple app, $34,560–$136,640 for a complex app, and $56,160–$185,440 for an advanced app. According to this platform's statistics, the outsourcing company's location is one of the key factors forming the cost with the USA, Canada, and Australia charging the highest $90–120 and Europe, Asia, and the UK charging $60–75 per hour.

When trying to calculate the cost of mobile application development, always remember that if you choose to develop two separate native apps for iOS and Android, you will have to pay two different teams of developers. In contrast, cross-platform app development allows you to create an app for both platforms from a single codebase and with one outsourced team handling all tasks. As a result, cross-platform development is generally more cost-effective.

Web app development

According to Clutch, most of the reviewed web development projects cost less than $10,000. However, more complex ones can cost $10,000 to $200,000 or even more depending on the number of advanced features and flows. The platform names the outsourcing team's location as one of the main aspects affecting the price. As for the statistics, companies in the US, Australia, and Canada have the highest hourly rates of $100–149, and Eastern Europe, the Philippines, and Mexico charge $25–49 per hour.

As for the information provided by Goodfirms, it costs $10,000–25,000 to outsource app development of a simple and middle-range application. Complex and feature-rich apps can cost $25,000–$50,000, while apps with advanced features may cost $50,000 to $100,000 and even more. The source states that it's common to develop the MVP of the app for the minimum price of $10,000–25,000 and keep adding new features to it after testing the app with real users and gathering their feedback.

Web app development includes both outsourcing company's design and development fees and additional costs. These include expenses for testing, web hosting, infrastructure, and annual maintenance, typically 10–20% of the development cost.

How much does it cost to outsource app development to Ronas IT?

We are Ronas IT, an outsourcing company from Estonia. Through our extensive experience in the market and assisting numerous clients in launching their digital products, we have developed a project estimation method for custom software development that is both convenient for us and flexible for our clients.

Our web and mobile application development projects usually cost between $30,000 and $50,000, with hourly rates ranging from $55 to $90. We assign an analyst to each project to create a detailed breakdown, listing and prioritizing all features and processes. We work on a Time and Material model, so longer timelines increase the outsourcing app development cost. Our estimates typically reflect this structure.

We have separate charges for certain services required for successful mobile application development. Each project includes a project manager, whose hours can vary, so their work typically costs $320 per week. Our DevOps services are offered by subscription and generally cost $1,000 per month.

Wrapping up

All in all, it's clear that there are numerous companies offering mobile app development outsourcing services, but the key challenge lies in identifying a reliable partner. You can identify a trustworthy one by carefully checking their reputation, reviewing case studies, and considering word-of-mouth recommendations. Successful outsourcing can bring several benefits, including cost savings, access to a global talent pool, scalability, and the ability to focus on core business activities.

If you're looking for an outsourcing partner, our team is ready to design and develop a mobile app from scratch. Our expertise is proven by many successful cases and positive reviews on Clutch. They reflect our commitment to delivering high-quality solutions tailored to our clients' needs.