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App Development Cost: Is It Cheaper to Outsource or In-House?

Posted 31/08/22

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Mobile applications can help businesses reach potential customers on mobile platforms. In addition, it can also make it easier for potential consumers to find brands for a business through applications. As we know the majority of people have spent their time on their respective mobile phones. As a brand, of course, you want to always be present where the consumer is.

Not only that, several businesses appear for the first time through application creation. But actually how much money needs to be spent to make an application? Is it necessary to create an in-house team or recruit developers from an outsourced IT company?

There are pros and cons in making decisions. If you want to try to make an in-house team, go ahead. However, the drawback is that there is a long process of recruiting developers. Most companies, if they start building an in-house team, need to understand whether the resources or experts they have are sufficient or not, but if it’s felt to be lacking, this will certainly be an obstacle.

Pros and cons of outsourcing, there is an ease in finding the developer you are looking for and according to your wishes to run the project. However, not all outsourcing companies are proven to be able to provide the best services for their clients.

But this will be solved if you compare the money spent with the results obtained. Often this term is called whether or not it is worth the service that has been paid for. The comparison this time will be crucial or even become a new wave of trends in today’s modern companies. Find out more about the insights we got in the cost comparison.

Comparing Costs Between App Development Outsource vs In-house

No one wants their company to lose money, definitely want sustainable revenue and profit. The law of economics has stated that the minimum capital is the maximum profit. The same goes for this decision. What are the costs incurred to pay salaries or just recruit outsourced IT companies? This question will be answered if you continue your reading activities in the next discussion.

How Much Does App Developer Salary?

In this case, we take a sample of 4 countries to compare the average salary they have to pay for developers. Here is an infographic:

  • US
  • UK
  • India
  • Indonesia

app development in-house

Source: Indeed.com, businessofapps.com

Based on this infographic, the average annual salary paid for a single developer can cost anywhere from $5,000-$121,000. Of course, in building an in-house team, it is not enough to just rely on one developer.
It is assumed that if your team composition must have at least 5 developers: 3 frontends and 2 backends, you can imagine the cost you need to pay to hire them.

If you are in the Indian region, the estimated price range can be up to $25,000/year to hire 5 developers. It’s different cases, you want an expert, the costs incurred will be more expensive. In addition, there are also many challenges if you are not ready to form an in-house team. Try to start your application in collaboration with an IT Outsourcing company.

How Much Does it Cost to Develop a Mobile App?

If you are starting to make plans regarding the costs of application development, you have come to the right article. Please note that there are many factors that you need to write in the notes. But in this discussion, I will make it concise so that it can be understood easily. Here are the factors:

1. Country

It should be noted that each country has an estimated price. This price is based on how much they work per hour. In this case, I took 3 examples of different locations, namely Asia (India, Indonesia, etc.), the United States, UK if they were given a project to make an application like TikTok.

It’s assumed to develop an app like TikTok can take 1200 hours. Here is the description:

  • Developers in Asia are paid an average of $20-$50 per hour. Then 1200 hours multiplied by the lowest and highest price you get $24,000 -$60,000 which you need to spend.
  • But if you choose the US the price range per hour is $120-$150. So when multiplied by 1200 hours, you get a price range of $144,000-$180,000.
  • The three lions country has an hourly rate of $100-$120. When multiplied by the processing time, you get a price of $120,000-$144,000.

2. Requirements

In creating or adding features to the application, you must have planned what you want to need in it. Based on research conducted by businesses of apps, there are categories of costs for these specs.

  • Simple app development: $16,000-$32,000
  • Medium complexity: $32,000-$48,000
  • Complex apps: $72,000+

So, Have You Got the Decision Between Outsourcing vs In-House?

It can be concluded that if you choose to hire them then you need to recruit them one by one in forming a solid team. It’s different if you try to work with an IT outsourcing company, not only get a team but you have the opportunity to know how they work as a solid team and produce quality development. So if one day you want to develop your team, you have learned from the experts. Still, have questions about app development costs? Or have other ideas for your business? Let’s discuss with us.

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