Outsource App Development Cost: Complete Price Breakdown

Key Takeaways

• An average outsource app development cost can range from $55,000 to $110,000 depending on multiple factors.
• A brief exploration of outsourcing app development cost and factors influencing it.
• Outsourcing is key if you’re targeting cost savings. You can develop a full-featured app with low labor costs by tapping into a global tech pool.

How much does it cost to outsource app development? The final cost mainly depends on several factors—project size, complexity, and geographical location of the development team.

Let’s dive into the details so you can make the best choice for your app project.

Outsource App Development Cost in the USA: A Quick Overview

Generally speaking, the cost of developing a basic application with simple UI/UX, through a team of developers, 1 designer, and 1 QA ranges from USD 15,000 to USD 30,000. As these factors change, the cost of outsourcing app development changes.

Let’s look at the main factors influencing app development costs to better understand the estimates.

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What are the Factors That Influence App Development Outsourcing Costs?

While you search for outsourced app development costs, you encounter different IT vendors with standard rates. To determine fixed figures for the final app development cost, there are other factors taken into account:

1. Features and functionality
2. Development team
3. Developer rates
4. App type and complexity
5. Supported platforms (Android vs. iOS, Native vs. Hybrid)
6. Complexity of UX/UI design
7. Back-end infrastructure and connected APIs
8. Types of outsourcing cooperation models

Now, let’s take a detailed look at all the factors affecting app outsourcing costs.

1. Features and functionality

   One of the most influential factors impacting the cost of outsourcing app development is the features and functionalities you decide to integrate into the application. Regarding features, it means more specific about tools or capabilities (like payment gateway or GPS). On the other hand, functionality refers to how all the features work together to meet users’ demands and enhance user experience.

   It is important to consider both factors as the entire application architecture revolves around the features and functionalities.

   The more advanced features you aim to integrate, the more time an outsourced app developer will invest. This will drive up the cost of outsourcing mobile app development. Similarly, sophisticated functionalities, including multi-platform support and data synchronization, will increased development costs and time.

   Here is the breakdown of the list of features, their descriptions, estimated costs, and time taken by the developer to develop it:-

   Feature Category	Description	Estimated Cost	Estimated Developer Time
   Basic Features	User authentication User profile management In-app notifications	$6,000 – $17,000	2-4 weeks
   Intermediate Features	Social media integration Push notifications In-app purchases/subscriptions	$17,000 – $55,000	4-5 weeks
   Advanced Features	Geolocation Real-time chat API integrations Data analytics/reporting	$55,000 – $155,000	8 – 16 weeks
   Complex Features	Augmented Reality (AR) & Virtual Reality (VR)AI Custom backend development Voice search	$155,000 and above	16+ weeks

   Note: These estimations can differ depending on the app you decide to develop, the features you want to add, and the business logic.
   (Sources:- Clutch, GoodFirms, Upwork, Statista)

   If you’re curious to know ‘how much it costs to outsource according to app type?’ here are a few examples:-

   App Type	Estimated Cost
   Basic App (No Back-end)	$20,000 – $60,000
   On-Demand Service App	$40,000 – $120,000
   E-commerce App	$40,000 – $500,000
   Social Media App	$30,000 – $70,000
   Simple Gaming App	$25,000 – $50,000
   Healthcare App	$80,000 – $500,000
   Enterprise App	$80,000 – $200,000+

   Note: These estimated figures are based on research and can differ depending on the app you decide to develop, the features you want to add, and the logic.

   (Sources:- Clutch, GoodFirms, Upwork, Statista)

   Therefore, it is crucial that the complexity of features and functionalities directly corresponds to the app’s development cost.

2. Development team

   Development team structure is a significant factor influencing the cost of developing a mobile app idea. Certainly, it is essential to recognize that app development extends beyond programming. A successful product launch requires the expertise involved in the earlier stages of development, to make it possible to release your product.

   Apart from hiring app developers, a fully functional team will certainly add up to the cost of outsourcing. It includes:

   • Business analysts
   • Project manager
   • UI/UX designer
   • Android/ iOS developers
   • QA engineers

   On the other hand, the location of the development team significantly influences the overall cost of outsource mobile app development. Regions like North America and Western Europe are typically expensive, but they deliver guaranteed development solutions adding value to the investment. On the other hand, Eastern Europe, India, and Southeast Asia offer the most affordable rates with a high level of expertise and technical skills.

3. Developer rates

   Developers are the prime cost drivers in determining the cost of outsourcing app development. Many software development companies offer fixed rates for their services. However, one straightforward way to calculate the cost of outsourcing mobile app development is given below.

   Outsourcing Cost = Total App Development Time (in Hours) x Hourly Rate

   However, the developer rates are greatly influenced by several factors like location, skills, experience, and complexity of the project. But, it is important to note that hourly rates do not necessarily equate to better outcomes. Likewise, an experienced developer with refined skills can complete the task with high-quality code, lowering overall development time.

4. App type and complexity

   The type and complexity of the app are the core factors influencing app development costs. Considering app type—whether native, cross-platform, or hybrid apps can provide you insights into the overall app development cost.

   • Full feature native app in case of developing an app for a single platform i.e., for iOS, or Android.
   • Cross-platform development in case of shared codebase across multiple OS platforms.
   • Full feature hybrid app to web code within a native shell.

   To accurately calculate the cost of outsourcing mobile app development, it is crucial to understand the app type and its functionality in detail. Below is a breakdown depending on app complexity, helping you make informed decisions on your project’s budget:

   Complexity	Estimated Cost	Examples
   Low Complexity	$50,000 to $80,000	Basic calculator To-do list app Weather apps
   Moderate Complexity	$90,000 to $120,000	Taxi booking app Food delivery app E-commerce app
   High Complexity	$120,000 to $150,000 or more	Social media apps

   A few factors influencing app complexity are:

   • Feature set
   • Back-end infrastructure
   • Third-party integrations
   • Supported platforms
   • UI/UX design

   Understanding these elements provides you with better clarity on technical requirements and helps you project the development budget.

5. Supported platforms (Android vs. iOS, Native vs. Hybrid)

   In the case of platforms, developing a single platform app is much more cost-effective than developing one for multiple platforms i.e., iOS, Android, and web browsers.

   Android vs iOS App Development

   Android and iOS are two major operating systems. It’s possible to create an app that supports all platforms. However, if you’re aiming to minimize financial risk, developing the application for a single platform—either iOS or Android—can be a smart initial choice.

   Native vs. Hybrid

   If you’re uncertain about “how much it costs to build an app” without knowing what type of app you want to create, then you can either choose the native or hybrid app development approaches.

   Native app development focuses on developing OS-specific applications tailored for one platform: iOS or Android. To develop apps for both operating systems, you need to create two separate apps. This gradually increases overall development costs.

   Hybrid app development entails creating an app that works on multiple operating systems. The primary advantage is it reduces the overall cost of app development.

   Choosing between native and hybrid depends upon budget, features, and requirements.

6. Complexity of UX/UI design

   There’s a difference between developing a simple app and a mobile game app. For instance, WhatsApp has a simple-to-use interface designed for neat and clean navigation. On the other hand, mobile games like Fortnite require the development of complex 3D models gaming engines, and advanced graphics rendering. Therefore, an app with intricate UI/UX elements will cost you more than a simple UI/UX app.

7. Back-end infrastructure and connected APIs

   Some of the apps are simple to look at on the phone, yet they have highly complicated backend infrastructures. Take Netflix, for instance. The OTT app interface seems to be user-friendly for browsing and streaming content.

   However, in the backend, Netflix relies on complex CDNs (Content Delivery Networks), transcoding of video/audio for different devices, and managing large databases of media.

   Additionally, Netlfix uses AI-based recommendation engines to deliver personalized content suggestions.

8. Types of outsourcing cooperation models

   The different types of outsourcing models you choose affect the cost of mobile app development.

   Location-based models:

   Location plays a vital role, as it influences work communication and collaboration with the team. Understanding their time zone is crucial because once the project starts, it will impact the meeting schedules and response times. Apart from that cultural differences affect the communication style as well as team dynamics. Therefore, highlighting these nuances is key for effective collaboration.

   There are three primary outsourcing models based on the location difference between your organization and outsourcing partner:

   • Offshore outsourcing: Involves partnering with IT companies located in remote parts of the world.
   • Nearshore outsourcing: Refers to working with developers in nearby neighboring countries.
   • Onshore outsourcing: Involves collaboration with developers from within your country’s borders.

   Engagement-based models:

   Selecting the right cooperation strategy is key to providing high value for future teams. Below given are three common outsourcing engagement models:

   • Staff augmentation: This model extends team expertise by hiring temporary members.
   • Dedicated team: This model supports you in delegating particular tasks to free up the in-house team.
   • Project-based model: This model targets delegating the entire project to an outsourcing company.
   • Time and material model: In the T/M model, the client is billed based on the working hours spent and the material used to complete the project.
   • Fixed price model: In this model, a fixed price is decided for the project, regardless of the time or resources invested to complete it.

   While the factors influencing the app development costs are essential, as these can vary significantly depending on the region you choose to outsource to.

Cost to Outsource App Development by Regions

As we are pretty much clear with the factors influencing the outsourcing app development cost; it’s time to figure out how much developers from different regions charge for their services.

1. North America (USA & Canada)

   North America is one of the most expensive regions for outsourcing mobile app development, offering access to top-tier developers. Developers in these regions earn a lot compared to others. Companies charge between $100 – $250 per hour for developing advanced or complex level projects.

   For example, developing social media or entertainment applications can scale between $250,000 – $450,000. Startups often hire developers choosing outsourcing locations to reduce costs while maintaining quality.

   Conversely, enterprises look for skilled talent, excellent IT infrastructure, and growing expertise in AI & ML, to achieve their expected outcomes. At, Space-O Technologies, we help startups and enterprises to stay within budget while ensuring quality deliverables. Click here to get your free quote!

2. Eastern and Central Europe (Ukraine, Poland, Romania, etc.)

   Eastern and Central Europe have emerged as one of the biggest tech hubs across the world. Entrepreneurs favor these regions because of the value they offer for money. The average hourly rates range between $50-$70/hour, significantly reducing the overall costs.

   Developing a taxi booking application will cost you around $200,000 – $300,000. There is a common belief that lower cost reflects the quality of the product, but many businesses find it

3. Western Europe (UK, Germany, France, etc.)

   Western Europe is home to many talented developers. However, it significantly depends on the country you’re choosing, the price can vary between $80/hr to $150/hr. The developers might be skilled but the costs can be steep, particularly talking about the UK, they have high hourly rates. Germany for example, has a vast pool of professional developers, their prices range between $75-$99/hour.

4. Asia (India, Vietnam, Philippines, etc.)

   Asia is one of the most debatable outsourcing regions due to its highly competitive rates. Many entrepreneurs are falling for the most affordable price range between $20 – $50 per hour.

   Developing an app like Netflix in this region costs around $70,000 – $150,000.. Although these rates are attractive, the major concern is the time difference which may lead to difficulties in scheduling the meetings in real time with project managers.

   In addition to regional pricing differences, the collaboration model with the outsourcing team can significantly impact the overall app cost structure.

   Understanding regional pricing is key, but certainly, it’s crucial to know about hidden costs that can impact your overall budget.

What Are the Hidden Costs in Outsourcing App Development?

While outsourcing app development, there are likely chances of getting the target of hidden development costs that are often overlooked. Below are the potential expenses and solutions to overcome them.

1. 3rd party services

   During the development phase, the need to include integration with some third-party API, CRM, or service often arises. This can significantly extend the app development timelines and lead to increased costs of developing an app. Such integrations are important to keep up with the entire functionality of the app, leading to complexity and additional resources.

   Solution:
   When you hire an app dev team, consider looking for a company that offers mobile app architecture which involves the design and organization of an app’s components. The dev team creates the app’s infrastructure and considers all integrations, even third-party services. Thus, there is less likely chance of spending shifts of development timeframe once you’ve started it.

2. Multi-platform support

   A common mistake in native mobile app development is neglecting to implement other operating systems after the first version launch. Many companies focus on developing apps on a single operating system but after some time they decide to expand to another platform which adds to development time and costs.

   Solution:
   After conducting market research, determine the best app development platform preferable for your target audience. Plan out the first version on a decided platform, collect customer feedback, and then plan out to develop another operating system. This approach allows you to address platform preference with user insights, saving money for future re-development.

3. Maintenance costs

   A commonly overlooked aspect of the cost of outsourcing software development is the hidden maintenance cost required post-launch. This part is often overlooked by many businesses during the initial development phase and creates confusion. That’s why you must keep in mind that even after the launch of your application, continuous investment is needed to maintain, update, and optimize your app post-launch.

   Solution:
   It is important to prepare a budget for maintenance and updates from the outset. After launching the app, there are likely possibilities for bug fixes, feature enhancements, and compatibility updates. Such regular updates ensure that your app remains functional also preventing larger cost issues later.

With a clear understanding of the hidden costs of outsourcing app development, it’s crucial to explore the key tips for the successful creation of your mobile app.

Final Thoughts on Outsourcing App Development Cost

Above-given factors influence the cost of outsourcing app development, and obtaining precise estimates can be challenging. The total cost depends upon the project requirements, complexity, and scope.

Hence, it is advisable rather than solely focusing on the pricing packages IT vendors offer try to evaluate their records, skills, cultural similarities, and compatibility with your business needs. This approach will potentially increase the likelihood of developing your app below your budget.

So, whether you’re a start-up or a seasoned enterprise, Space-O offers you the perfect outsourcing partnership. We provide affordable costs, with evident results, no matter if it’s your next iOS or Android app project or both. With Space-O, you’re not just getting an app developed, you’re scaling tangible and measurable success.

Why Outsource App Development to Space-O?

Space-O is a professional mobile app development company, with a proven track record of delivering bespoke outsourcing solutions. With over 14+ years of experience, we’ve been providing budget-friendly solutions to businesses. Our unique software products are tailored to their business requirements.

Space-O in numbers:

• 300+ Software projects developed
• 1200+ Clients worldwide
• 140+ In-house software developers
• 14+ Years of experience
• 98% Success score on Upwork
• 100% Project Transparency

Our proven portfolio and track record showcase our custom-made projects that helped businesses reach different domains, boost workflows, and help clients beat competitors. With a team of highly skilled IT experts, we specialize in putting their expertise and creativity into developing future-proof software products. They’re well-versed with the latest languages, frameworks, and technologies.

At Space-O, we have been offering outsourcing solutions to develop MVP for the final product. We approach every project with a commitment to deliver innovative ideas and solutions to meet your business requirements. What’s more? Book a consultation with our experts to know how our custom solutions help address your needs.