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What is strategic outsourcing? How to use it for app development?

Businesses and enterprises always look for different ways to optimize their operations and reduce costs. It helps these organizations enhance their core competencies. One such strategy that has been in practice for years is outsourcing. Businesses farm out several procedures that enable them to focus on their core processes.

The technological revolution has especially led to a huge increase in outsourcing as not every business has the infrastructure and talent required to develop software applications such as websites, mobile apps, and so on. However, brands are moving over traditional outsourcing and opting for strategic outsourcing.

In today’s blog piece, we will explore the concept of strategic outsourcing, focusing on its most popular subset – app development outsourcing, to showcase how both can be used for app development.

Suggest Read: Traditional outsourcing vs. in-house app development: What is best for your agency?

In this blog

  1. What is strategic outsourcing? An introduction
  2. What are the two types of mobile app development outsourcing?
  3. Advantages of app development outsourcing
  4. How to utilize strategic outsourcing for app development?
  5. AppMySite no-code white label app development: Best option for strategic outsourcing
  6. Frequently asked questions

What is strategic outsourcing? An introduction

Strategic outsourcing refers to a process of delegating different business tasks to external service providers who specialize in different areas. The process involves a more thoughtful and comprehensive approach than traditional outsourcing, which often only focuses on cost savings.

Strategic outsourcing further involves partnering with third-party vendors with sufficient expertise and capabilities to perform tasks more efficiently than the enterprise’s in-house team. Thus, we can say that outsourcing is transactional but strategic outsourcing focusing on relationship and partnership building. 

Similarly, app development outsourcing, a subset of strategic outsourcing, is a business practice where a particular company hires a firm to take care of the technical aspects of its app-building processes. It is useful in situations when a company has a project that requires a specialized development team.

There are three popular methods of strategic outsourcing. These options are listed below:

  1. Hire an app development company or agency that offers ongoing support
  2. Hire freelance mobile application developers who understand your vision
  3. Subscribe to a ready-to-use (preferably no-code) software development solution

The first two options are traditional but challenging as it is difficult to gauge the caliber of a company or individual based purely on their marketing and branding. While portfolios can give you some idea of their credibility, it does not guarantee the success of your project in specific. Besides, these options are costly and time-consuming.

On the other hand, a software platform or a SaaS solution that offers free trials and versions can be more reliable in the long run. Their pricing is often more transparent and not mercurial like that of the traditional agencies. Such platforms can offer automated solutions and support while saving tons of money and time.

Method of OutsourcingAverage Cost (in USD)
Local agency in the US150,000
In-house team in the US110,000
Agency in Ukraine60,000
Freelancers in South Asia40,000
No-code app builders< 50 per month


What are the two types of mobile app development outsourcing?

App development outsourcing involves hiring a third party to develop different mobile apps. Businesses use different kinds of outsourcing strategies. Among them, the two major practices are as follows:

Nearshore outsourcing

It involves contracting external services, such as app development, to a third-party provider located in a nearby country or within the same geographical region. This outsourcing model is chosen for its geographical and often cultural proximity. It helps facilitate better communication and time zone alignment and reduces travel time and costs. 

Offshore outsourcing

This is the process of outsourcing processes to an agency or firm located overseas. Most businesses in industrialized nations, like the United Nations or Canada, outsource using this model. This is because they can hire better talent and resources on an affordable budget from other developing nations.

Advantages of app development outsourcing 

App development is not a new concept, neither is its outsourcing process. However, its significance and advantages have continued to grow across companies and industries. These include:

Cost-efficient and affordable

One of the most important benefits of the mobile app development outsourcing process is that it is cost-effective. Most businesses find it costly to develop a mobile app in-house. They need to hire and train a team of designers, developers, and testers and invest in infrastructure and technology. It also involves allocating a budget for ongoing maintenance and updates. Hence, app development outsourcing allows such businesses to tap into the expertise of experienced professionals without the fear of any overhead costs

Faster time-to-market

Time is of the essence, especially in the competitive world. Outsourcing mobile app development allows different businesses to expedite the application development process and reduce app development timelines. It means they can get the app to market much faster with a dedicated team working on the respective project. This further helps the business gain a competitive edge and capitalize on the latest market trends.

Access to a global talent pool

App development outsourcing projects provide businesses with access to a global talent pool. The management can choose from a range of skilled developers and designers from different technologies and domains. This access to specialized skills also ensures that the specific app is built as per the highest quality industry standards.

Freedom to focus on core processes

Organizations can free up their in-house team to focus on their core business activities when they outsource mobile app development. The employees can concentrate on marketing, strategic planning, and customer engagement while leaving the technical aspects to the outsourced experts. This specialization enhances business productivity and efficiency with time.

Reduced risks and errors

Risk management is important for any business endeavor. App development outsourcing mitigates certain risks associated with different kinds of mobile app development. Businesses can benefit from experience and proven development processes by partnering with a reputable outsourcing provider. This also reduces the likelihood of costly mistakes and helps in avoiding any resource wastage.

Unlimited scalability and flexibility

App requirements may often evolve with a business’s growth. Not every in-house team is equipped enough to scale and adapt accordingly. Outsourcing provides flexibility and scalability across different cases. A business can easily scale up or down its respective development team based on project needs. It ensures that the business always has the right resources in place.

24/7 maintenance and support

In today’s interconnected world, customers expect round-the-clock support. Outsourcing app development to a provider in different time zones can be beneficial. The business’s specific outsourced team can ensure continuous app development and support for customer satisfaction while the in-house team is on snooze.

How to utilize strategic outsourcing for app development?

Every app development outsourcing project and partnership is different. Yet, the process of starting and maintaining a good partnership remains the same across organizations. Here’s how you can outsource app development in an optimized and strategic manner: 

Define your project requirements

The outsourcing business management team should have a detailed understanding of the app project before looking for app development companies. Prospective partners will be able to aptly advise on solutions and workflows if the business clearly communicates its objectives, plans, and timeframes. Therefore, you should be thorough with your mobile app market research before finding a reliable team or tool.

Choose an outsourcing model

The search for an outsourcing team should begin by deciding which outsourcing model is best for the business. For instance, offshoring to another part of the world will likely be the best option if the priority is saving budget or enabling round-the-clock app development and support. However, the business should look at onshoring or nearshoring if a close cultural or time zone fit is more important.

Identify the right partner

The next step for the business is to create a shortlist of potential app development outsourcing partners. The selection must be based on their skills, expertise, pricing, and other important factors. It is essential to conduct due diligence on the app development companies in question. Look for future-friendly, simple, affordable, and faster solutions that uncomplicate your job and offer a one-window solution.

Establish an operating procedure

Once you have found the right partner, proceed to implement the outsourcing processes. With a clear deal in place, you can determine how your relationship with the outsourcing team will come into play. This further includes collaborations between partner developers and in-house mobile developers and the setting up of different workflows. All of these considerations related to app development project management should be aligned with the business’s objectives and overseen by a project manager.

Ensure support and maintenance

The business must also establish appropriate support mechanisms and related services for the launch itself and beyond. This means the same expertise that helped with the specific app development can also be used to maintain and improve it after the launch. Thus, it is better to go with a platform that ensures ongoing partnership in terms of services, support, and assistance.

AppMySite no-code white label app development: Best option for strategic outsourcing

As discussed above, strategic and non-traditional outsourcing is the way to go. This is where AppMySite emerges as the most reliable solution. Our white-label app development platform enables you to opt for non-traditional outsourcing where you do not have to cede control of the development process to third-party agencies.

Alternatively, you can go with this modern method of outsourcing where you can use our platform and infrastructure to create, develop, and deploy mobile apps. Here, you can build apps without coding in a DIY (Do-It-Yourself) environment. The point-and-click and drag-and-drop tools make app design and development a breeze even for beginners and non-IT individuals.

Build white-label apps for your own business or extend the no-code app builder platform to your customers under your own brand name. The choice is yours. Ensure faster time-to-market and cost-efficiency and create apps for all kinds of businesses, industries, and more.

Wrapping up

Strategic outsourcing and app development outsourcing are not merely cost-cutting measures. Both processes can elevate your business processes, increase organizational efficiency, and drive growth, innovation, and competitiveness for your brand.

You can leverage the numerous benefits of app development outsourcing and optimize your operations to thrive in the mobile app market. Partner with a strategic outsourcing platform that has the potential to transform how you operate, and aids you in achieving your app development and success goals.

Frequently asked questions

What is meant by outsourcing app development?

Outsourcing mobile application development is the process of delegating app development to an external agency or platform. It enables businesses to access highly skilled employees and development infrastructure on an affordable budget. This can be an incredible choice if the business wants to develop its mobile application without taking the traditional route of custom in-house development.

How to find the best company for app development outsourcing?

Businesses interested in outsourcing should define their respective project requirements and check reviews and portfolios to find the best mobile application development company. They must also consider their respective hiring model and location and conduct technical interviews before signing a contract. It is best to look for future-friendly automated platforms that incorporate modern methods of outsourcing and development.

Is it always better to outsource app development?

Building apps with some external teams helps businesses lower their labor costs. It also helps them reduce overheads associated with maintaining an in-house team for the app development process. Experienced outsourcing providers can always speed up the application development process, which enables businesses to have a faster time-to-market. However, it depends on the needs, goals, and vision of the business.

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