Application DevelopmentEntrepreneurs/Owners

Mobile App Development Outsourcing: Benefits and Challenges

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Written by:
Tayla Carpenter - Guest Contributor

Published
8 min read
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Discover common challenges businesses face with mobile app development.

Small-to-midsize business (SMB) leaders often have too much on their plates to deal with internal mobile app development. According to Capterra’s Services Users Survey, 44% of business leaders still opt for external service providers even if they have the expertise in-house.* The same survey found that 32% of businesses that purchase external services do so for custom software or web development. 

The popularity of outsourcing mobile app development is driven by the fact that it solves a daunting business problem—needing customized software but needing more time or internal expertise to produce it. However, other challenges arise once you start looking into mobile app development. You have to figure out if a mobile app developer can provide all the services that you need. You also have to understand the benefits to make sure they justify the cost of hiring a developer.

This guide addresses these challenges by explaining in detail what mobile app developers can do, the benefits of these services, how to choose a developer, and some challenges you may face along the way.

What is mobile app development?

Mobile app development refers to building applications designed for phones, tablets, and other mobile devices. The developers may choose to use a specific operating system, such as Android or iOS. They could also build a web app that works on a mobile device that accesses the app via its browser.

For an SMB leader, a mobile app is able to give customers access to your business’s people, products, and eCommerce system. You can also use your mobile app to send customers promotions, special seasonal offers, or deals customized according to their buying habits. Mobile app development outsourcing companies are a valuable resource for delivering solutions when you don’t have the skills or time to do it internally.

What types of services do mobile app development companies provide?

A mobile app outsourcing company provides a range of services throughout the development lifecycle. For example, many can:

  • Guide the creation of the most effective app for meeting your goals. For instance, they can craft designs based on your desired end-user experience and ways to leverage the app to augment revenue or other objectives.

  • Build an app according to your specifications. The development company will take into account how it needs to perform on different types of devices.

  • Teach you how to maintain the app. For instance, they can guide you through the steps for updating a back-end database that holds product images and descriptions.

  • Fix bugs that pop up over time. No app is perfect and problems can arise at some point down the line. A mobile app development company can assist with fixing any technical glitches that may crop up. 

  • Make gradual improvements. As your business grows and your app needs change, a development company can implement necessary changes or additions.

  • Make sure your app has the latest security features. This will minimize the vulnerabilities the app might introduce to your digital ecosystem.

  • Build an interface that appeals to your target users. Making something that visually appeals to your users is important, and an app developer will be adept at making sure they are designing your interface with user experience (UX) in mind.

  • Provide guidance and tools: Analyzing app usage trends helps you to optimize your app’s effectiveness.

The key to choosing the right company as you outsource mobile app development is to make a list of your needs beforehand and then compare them to what the company offers. Some developers may only provide extended service support within a specific timeframe, such as a year or six months. On the other hand, some may excel at providing support but offer fewer customization options during the design phase.

Benefits of outsourcing mobile app development

To realize the full range of outsourcing benefits, it’s best to take a systematic approach. Steps to follow include defining attributes of the initiative, identifying the best sourcing options, and comparing important capabilities and services. 

In many cases, especially when developing a mobile app, this assessment process leads SMB leaders to hire a service provider, mainly because they lack internal capabilities. Once that decision has been made, here are some of the benefits many experience:

Cost-effective development

Having a service provider build a mobile app is often far cheaper than hiring a new internal staff member. You can also limit your costs by using a not-to-exceed contract. And because an experienced developer has access to the latest and greatest tools and techniques, you may get a higher-quality end product for your money.

It’s important to remember, however, that even though the overall cost of outsourcing mobile app development can be reasonable, you still need to have a budget that allows for some fluctuation over time. This is because business service purchasers at the outset, use a loose budget framework and continue to be flexible as the project progresses.

Access to experts

Expert mobile app developers understand the technical and usability nuances that can maximize the effectiveness of your app. When outsourcing, you get the advantage of their years of experience with coding languages, libraries, network protocols, and app security solutions.

In addition, expert mobile app builders have significant experience with troubleshooting issues during the development process and debugging apps. Granted, gaining access to experts isn’t free. However, according to Capterra’s study, many are more than willing to pay for their expertise. For 18 months, those who purchased business services paid between $4,000 and $8,000 more for software development than those who paid for other services. By investing in superior skill, however, you often end up with a superior product.

Flexibility and ability to focus on core business

Many business owners feel it’s also important to choose a mobile app dev company that’s as flexible as they are. In Capterra’s study, creativity and flexibility were top priorities among 31% of those who purchased business services. When a developer has woven flexibility into the fabric of their culture, they’re more likely to understand your need to maintain agility during the dev process.

Flexibility encourages teamwork between owners and managers as they strive to keep up with innovations and emerging opportunities. It also fosters a more dynamic thought process for solving problems throughout the app development process. And by encouraging that flexible mindset with your app development company, you free up the time and bandwidth you need to address core business challenges for your own company as they arise.

Fast development

Speed is key for SMB owners because they often have to adapt to a quickly changing competitive environment, and so outsourcing to produce your app faster can make meeting sensitive, important timeline milestones easier.

For example, suppose it’s early January, and you want to launch an app that features an eCommerce solution before the holiday season. Even though several months may seem like an adequate cushion, you never know what issues may arise during your testing phases. By offloading your dev to an outside company, you benefit from having an entire team working on your app at the same time. As a result, you may get your first working iteration by summertime.

Reduced risk

The risk of designing an app that’s unstable or has security vulnerabilities is significant when you’re doing it in-house. By contracting with a service provider, you can include stability and security metrics in your service level agreement (SLA). In this way, you transfer much of your risk to the app developer.

You can also reduce reputational risk by outsourcing because the end product will most likely be superior than if you choose to do it yourself. A reliable, stable app reflects well on your company’s professionalism and commitment to providing excellent solutions.

Challenges of outsourcing mobile app development

Two of the most pressing challenges involved in outsourcing mobile app development include:

Communication

You have to communicate the features you want and the role they play in moving your company toward its goals. When there’s a misunderstanding in this area, the developer may not include the features you need to make your app robust. Also, they may deliver high-quality features for some app elements but lackluster ones for others.

Quality control

Software-as-a-System (SaaS) ecosystems often include application programming interfaces (APIs) that developers can use to add features to apps. SaaS ecosystems also often include data integration points and complicated infrastructures. In the end, service providers may create solutions that are not very user-friendly or intuitive. When this happens, it can negatively affect adoption rates.

To overcome this challenge, you should test applications your mobile app developer has already built. Pay attention to how quickly they retrieve data and how well any API-based services perform. If the app’s workflow isn’t smooth or there’s excess latency or interruptions, that developer may have an issue with quality control.

Choose a mobile app development service provider

Choosing a mobile app developer should involve a mix of steps that prioritize your needs, including an impressive developer portfolio.

Capterra graphic showing the steps to take to choose a mobile app dev service provide

Using this systematic approach, you can minimize the chances of hiring a developer who’s not a good fit.

Find the best developer for your project

Use this guide to align the benefits of hiring a mobile app developer with the advantages it gives your organization. This makes it easier to justify what may be an important, fruitful investment. You can also use the info above to choose the best developer and predict—and avoid—some of the stickier challenges.

Your next step is to dig deeper into what to look for and what to do when finding a mobile app developer. These resources can give you a good head start:


Survey methodology

*Capterra’s 2022 Services Users Survey was conducted between July 25 and August 23 among 1,078 past business-services purchasers (defined as those who have purchased or commissioned a qualifying service in the last 18 months) who work at an SMB (defined as a company with fewer than 1,000 employees and between $5M and <$1B in revenue) in the U.S. Respondents must have spent at least $10,000 on their most recent service engagement to qualify.


Looking for Application Development software? Check out Capterra's list of the best Application Development software solutions.

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About the Author

headshot for freelance author Tayla Carpenter

Tayla Carpenter is a freelance writer specializing in software, finance, and technology. Her work has been featured on the websites of several leading fintech and tech providers.

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