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Pros and Cons: Startups Outsourcing Mobile App Development

Published: August 14, 2018
Pros and Cons: Startups Outsourcing Mobile App Development

For developing a mobile app, startups can delegate the jobs to a team of professional developers and continue to focus on their core business activities. However, not everything written and read on Internet serves the purpose exactly as needed and proves fruitful at the end. Just like other business decisions, outsourcing the mobile app development to another company has its sets of pro et contra, i.e. pros and cons.

Anup VP – Sales & Marketing

The information in this blog will help you understand the advantages and disadvantages of outsourcing mobile app development for startups, and the right strategies to find the right developer.

The Eye Opener

According to a study, 67% of the time people spend online is spent on Smartphones and the majority of this percentage is spending their time using mobile apps.
(Source: growth-millennial-mobile-apps)

When it comes to startups, having a mobile app is indeed imperative to give them an edge in their business. Due to the benefits it brings to the table, more than 75% of the startups in the last two years were solely based on mobile apps. Thus, what should a startup do when it needs to have a mobile app? Should it outsource to an app development company or build an in-house team to develop the app?

The Deciding Factor

Building an in-house team with developers, testers and marketers would ask for whole lot of money on their salaries, resources and systems. For a startup, this could be discouraging and become an overhead cost. Getting the app developed by a third party, – a company or a freelance developer – is quite affordable and without any fixed expenses and overhead costs. It seems clear that the decision of going with outsourcing mobile app development is a profitable option. However, the decision should always be made after considering the pros and cons of it.

Pros of Outsourcing Mobile App Development

In a study on global outsourcing, a number of aspects contributed to be the primary reasons why businesses focus on outsourcing mobile app development for startups. Some of them are –

  • IT sector, with 72% outsourcing rate, is the leading industry to outsource their projects, followed by Legal and RE & FM with 63% and 60% respectively.
  • As many as 59% businesses consider outsourcing as a powerful tool for cutting business expenses. 57% responders accept that outsourcing helped them focus on their core business activities, and 47% businesses have solved their capacity issues by outsourcing.
  • RFP (Request for Proposal) is still the most popular method to find right resources, as 95% businesses use this method to outsource their work.

Cons of Outsourcing Mobile App Development

Just like the two facets of a coin, outsourcing has compromised its reputation too. Even after benefitting from outsourcing mobile app development for startups, there are few aspects that force businesses to give it a second thought. According to the same study as referred above –

  • 39% businesses consider data privacy a big threat, and thus prefer not to outsource their confidential tasks. However, 14% businesses accept that outsourcing can be a great tool to ensure data privacy.
  • Tax regulations are yet another key factor preventing businesses from outsourcing their projects.
  • 25% businesses accept that they overlooked outsourcing due to legal restrictions. However, remaining 75% are confident on outsourcing and avoid legal/regulatory issues.
  • Other hindrances that acts as a blockade in outsourcing are –
  • Communication issues due to difference in locations and time zones
  • Outsourcing to a big brand or a top development company can be quite expensive

Eventually, finding the right development company is the solution to all the woes. As a startup, you may have to look up the credibility factor alongside experience, market reputation, cost and ease of doing business if you are thinking of outsourcing your mobile app development needs. No matter whichever option you choose, there will be challenges you might be facing. Still, for many startups, delegating their mobile app development to those who are skilled and deliver value, is the most suitable option with less number of challenges to face.

If you are still in a dilemma, we can cure it. Request a free consultation to assess what is the right option for you.

(Source: www2.deloitte.com, www.linkedin.com/pulse/)


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