Explore How to Outsource Mobile App Development Effectively


In the dynamic world of digital technology, mobile app development outsourcing isn't just a fleeting trend – it's an industry standard. Giants like Alibaba, Google, and WhatsApp have all leveraged this approach, reaping the numerous advantages that come with it. 

As businesses aim to tap into global talent and advanced technical expertise without breaking the bank, the decision to outsource app development has proven to be both strategic and rewarding. Dive in with Saigon Technology to learn how you can navigate the journey of mobile app development outsourcing successfully.

The Outsourcing Mobile App Development Market in 2023

The surge in demand for digital solutions is unmistakably reflected in the Application Outsourcing market trends for 2023. Projected revenue figures are set to soar, reaching an impressive US$118.7bn this year alone. What's more, with an anticipated CAGR of 1.82% from 2023 to 2028, we can expect the market volume to reach an enviable US$129.9bn by 2028, as detailed in this comprehensive report. The United States stands out, poised to generate the lion's share of this revenue, forecasting a whopping US$43,290m in 2023. 

Major players like IBM, Accenture, and VMware significantly contribute to these figures. Companies are increasingly opting to outsource app development, seizing the twin benefits of cost-efficiency and high-quality application management. The draw of application development outsourcing becomes more pronounced when considering the substantial IT budget reductions and the allure of tapping into global talent pools.

How to Outsource App Development: A Comprehensive Guide

In today's tech-savvy world, with Application Outsourcing projected to touch US$118.7bn by 2023, mobile app development outsourcing is pivotal. Ensuring your endeavor into app development is systematic and refined is essential. 

Here's a detailed roadmap of how to outsource app development:

1. Develop a Detailed App Blueprint

  • Purpose & Vision: Every app begins with a vision. Clearly outline the primary objectives and the potential transformative impact on users in the outsource app development plan. Understand your app’s purpose in the broader industry landscape.
  • Features & Specifications: Beyond listing desired features, visualize the synergy between them. Understand how each feature enhances user experience and contributes to the app's overall value proposition.
  • User Persona & Journey: It's crucial to know who will use your app. Delve into their challenges, preferences, and how your app can bridge existing gaps. Detail the user's journey, right from discovery to continuous engagement.

2. Establish a Comprehensive Budget

  • Direct Development Costs: This encompasses all the direct expenses from ideation to deployment. Assess how every feature or design element impacts your budget.
  • Contingency Fund: Unexpected developments are part and parcel of app development. Allocate funds to address unanticipated requirements or modifications.
  • Post-launch Costs: Beyond initial development, apps require continual nurturing. This includes updates, customer support, marketing campaigns, and user acquisition strategies.

3. Determine the Development Avenue

  • Nature of Service: Are you looking for a holistic outsource app development solution or specific services like system integration or consultancy? Detail your exact needs.
  • Scale of the Project: Differentiate between a large-scale enterprise application and a niche app. The scale influences vendor selection, development methodologies, and budget allocations.

4. Conduct Exhaustive Provider Research

  • Reputation & Portfolio: Analyze reviews, dissect client feedback, and scrutinize past projects. Determine their successes and how they handled challenges.
  • Niche Expertise: Each provider brings a unique skill set. Identify providers with expertise in your app's category or industry.
  • Engage in Preliminary Discussions: Initiate dialogues to assess their understanding of your project, their proposed solutions, and their alignment with your goals.

5. Select the Ideal Engagement Model

  • Project Complexity & Duration: Each project's unique requirements dictate the best engagement model. Whether it's Time & Material, Dedicated Teams, or Fixed Price, the model should reflect your project's nature.
  • Flexibility Requirement: Consider potential project evolutions. If you anticipate considerable changes, opt for adaptable engagement models that can pivot seamlessly.

6. Draft a Comprehensive Contract

  • Scope & Deliverables: Clearly delineate the project boundaries, expected outcomes, and deliverables. This ensures alignment between all parties involved.
  • Milestones & Payments: Link payments with progress milestones. This ensures motivation, maintains momentum, and guarantees financial transparency.
  • Terms & Conditions: Address potential concerns in advance. Incorporate clauses that safeguard intellectual property, ensure confidentiality, and detail dispute resolution mechanisms.

7. Implement Effective Project Management

  • Choose a Management Tool: In today's digital age, leverage platforms like JIRA, Trello, or Asana. These tools facilitate task tracking, milestone achievements, and team collaborations.
  • Set Clear Communication Channels: Open, consistent communication is crucial. Whether through weekly check-ins or milestone-based meetings, ensure all parties remain aligned.
  • Feedback Mechanism: Constructive feedback drives excellence. Establish regular feedback loops to keep refining the development process.

8. Testing & QA

  • Internal Testing: Before the app reaches users, conduct rigorous internal testing. This preemptive measure identifies and rectifies bugs or usability issues.
  • User Acceptance Testing (UAT): This step is invaluable. By letting a select group of users test the app, you gain insights into real-world performance and user experience.

9. Launch & Post-launch Strategy

  • Soft Launch: A limited initial release provides a glimpse into the app's market performance, allowing for refinements before a full-scale launch.
  • Feedback Loop: Post-launch, remain receptive to user feedback. Their insights can guide essential improvements.
  • Updates & Maintenance: The app's journey doesn't end at launch. Regular updates, feature additions, and bug fixes keep the app relevant and effective.

10. Monitor, Evaluate, and Iterate

  • Performance Metrics: Utilize analytics tools to assess app performance, user retention, and other critical metrics, adjusting strategies as required.
  • Continuous Improvement: In the fast-paced world of app development, stagnation is detrimental. Regularly update the app based on feedback, industry trends, and technological advancements.

Outsourcing mobile app development is a journey of collaboration, innovation, and precision. This roadmap ensures businesses traverse this journey strategically, leveraging the immense potential of mobile app development outsourcing to sculpt digital marvels. 

Reasons to Outsource Mobile App Development

In today's technologically charged business landscape, mobile app development outsourcing has emerged as a dynamic paradigm for companies aiming for agility, expertise, and cost efficiency. So, what exactly is outsource app development? In essence, it refers to the strategic delegation of IT-enabled services to a mobile app development company, especially after the telecommunication and internet surge of the late 1990s.

“The growth of offshoring of IT-enabled services, although not universally accepted, both to subsidiaries and to outside companies (offshore outsourcing) is linked to the availability of large amounts of reliable and affordable communication infrastructure following the telecommunication and Internet expansion of the late 1990s. Services making use of low-cost countries included back-office and administrative functions, such as finance and accounting, HR, and legal call centers and other customer-facing departments, such as marketing and sales services IT infrastructure and application development knowledge services, including engineering support, product design, research and development, and analytics.” Outsourcing (2023) Wikipedia.

1. Access to Global Talent 

You can outsource app development across geographical boundaries, allowing companies to harness the knowledge and expertise of seasoned professionals globally. With a diverse skill set, your application will not only be technologically sound but also incorporate a unique blend of global best practices and innovations.

2. Significant Cost Savings 

Engaging with an outsourced development team means significant savings on overhead costs, from infrastructure to personnel. This economic efficiency allows businesses to allocate resources more strategically, ensuring the final product delivers without stretching the budget.

3. Faster Time-to-Market 

With dedicated outsourced teams when you outsource mobile app development, timelines are often reduced. Continuous, round-the-clock work cycles coupled with expert execution ensure that your application is developed efficiently, facilitating quicker launches and seizing market opportunities.

4. Access to Cutting-Edge Technology 

Outsourced app developers are typically at the forefront of technological advancements. This ensures that your app is built with the latest tools, technologies, and methodologies, positioning it as a leader in its domain, primed for adaptability and future growth.

5. Better Business Focus

With our dedicated mobile app development team at the helm, you’ll be able to concentrate on and prioritize your core business elements for increased growth. There will be improved alignments of your resources, strategies, and goals while we focus on outsource app development.

6. Scalability and Flexibility

Two essential factors of any successful business are scalability and flexibility. They ensure long-term success, which means projects can expand to incorporate new elements at any given time. Our team is ready to adapt to any changes in demand, even if it means an increase in production volume, market expansion or reaching more customers with the mobile app.

7. Streamlined Project Management and Continuous Business Support 

Outsource app development often encompasses more than just development; it includes dedicated project management for smooth operations and post-launch support. This holistic approach ensures not only the delivery of a high-quality app but also its optimal performance and maintenance in the long run.

Outsourcing mobile app development provides companies with a robust set of advantages, ensuring that the app isn't just functional but also innovative, cost-effective, and market-ready.

Primary Challenges in Mobile App Development Outsourcing

When you outsource app development, despite its numerous benefits, it inherently presents its own challenges. We don’t just identify these challenges but actively create strategies to address them, ensuring our partners navigate through seamlessly.

Here are some tips for how to outsource app development successfully by avoiding overcoming these common challenges:

  • Choosing the Wrong Vendor: The foundation of any successful outsourced project is selecting the right mobile app outsourcing company. A wrong choice can have repercussions beyond just monetary costs. Extensive research, vetting potential vendors through interviews, and validating their credentials can safeguard against this.
  • Time-Zone Differences: Geographic diversity, although a strength, can introduce coordination challenges to outsource app development. However, with proper planning, this hurdle is surmountable. Creating overlapping work hours and leveraging asynchronous communication tools can ensure continuous productivity and efficiency.
  • Communication Hiccups: Clear, consistent communication forms the backbone of successful projects. In its absence, visions may become blurred, leading to undesired outcomes. Regular status updates, feedback sessions, and using the right communication platforms ensure that everyone stays on the same page.
  • Security Concerns: In today's digital age, data is invaluable. Protecting it, especially during the software development process, is non-negotiable. Partnering with an experienced mobile app outsourcing company ensures the implementation of top-tier security measures, guaranteeing the safety of sensitive information.
  • Lack of Control Over the Team: Entrusting an external team can sometimes feel like relinquishing control. However, this concern can be alleviated with modern project management tools, which allow clients to monitor progress closely and remain an integral part of the decision-making process.
  • Unexpected Results: A well-defined vision is essential, but so is its accurate translation into a final product. Setting detailed project specifications, continually revisiting goals, and ensuring iterative feedback throughout the development cycle minimizes surprises at project completion.

Points to Take in Advance of Mobile App Development Outsourcing

Before taking the pivotal step of outsourcing your app development, an informed approach is imperative. Start with a comprehensive blueprint of your mobile app, detailing every feature, user journey, and end goal. This not only guides development but sets clear expectations.

Next, drafting a preliminary budget is paramount. This estimate serves as a financial compass, ensuring you allocate resources wisely. As you delve into the extensive domain of outsource app development, it's crucial to thoroughly explore the qualifications and expertise of potential developers.

Application Development Outsourcing: Principal Models

In the realm of mobile application development outsourcing, understanding the best-fit software development outsourcing model for your business is crucial. At Saigon Technology, we've elucidated some of the predominant frameworks to guide businesses in making informed decisions:

Time & Material Contracts 

The T&M model offers unparalleled flexibility in software development outsourcing. Especially apt for projects with dynamic requirements, outsource app development with these contracts involves billing clients based on the exact time spent and resources employed by the development team. Such an approach ensures that you're investing only in what's being executed, catering to projects with a shifting scope.

Staff Augmentation 

Every project might need niche expertise at various stages. With the Staff Augmentation model, businesses can seamlessly integrate global experts into their existing teams, ensuring that skill gaps are effectively bridged. This model enables real-time scalability, allowing teams to adapt according to project demands, enhancing both productivity and cost efficiency.

Dedicated Development Team 

Imagine having an offshore team that operates as an intrinsic part of your in-house squad as part of outsource app development. The Dedicated Development Team model offers just that – a group exclusively committed to your project, fostering intense collaboration and alignment. Though it may sometimes imply higher costs, the benefit lies in the team's unwavering focus and aligned objectives for superior results.

Project-Based Model 

For businesses that prefer to keep their focus on core operations, the Project-Based Model is ideal. This structure means entrusting an entire project, from ideation to execution, to an offshore partner. While this model economizes on time and internal resources, it's worth noting that it might offer clients less direct control over every development phase.

Fixed Price Model 

Under this arrangement, both parties agree on a predefined cost for the entire project. It's most suitable for when you outsource app development with well-defined requirements and scope. However, any additional changes or requirements can affect the agreed-upon cost.

Comparing the Differences Between In-house and Outsourcing App Development


 In-house Development

 Outsourcing App Development

 Initial Cost

 Often higher due to infrastructure setup, hiring, and training expenses.

 Typically more cost-effective as businesses pay for the development services without incurring the costs of maintaining a team.

 Skill Diversity

 Limited to the expertise of the hired team. Can be restrictive for diverse project needs.

 Access to a broad spectrum of skills and expertise, ensuring versatility in development.


 Greater control over team dynamics and immediate alterations to project scope.

 Depending on the outsource app development agreement, changes might require renegotiations, but established firms offer adaptive models for flexibility.

 Resource Availability

 Can face constraints with limited team members or when requiring specific tools and tech.

 Outsourcing development firms generally have a larger pool of resources, tools, and tech, ensuring uninterrupted development.

 Time to Market

 Might be slower initially, especially if the team needs training or tool procurement.

 Often faster due to specialized expertise and existing infrastructure that accelerates the development cycle.

 Knowledge Retention

 Knowledge remains within the company, beneficial for long-term maintenance and iterations.

 Knowledge transfer is crucial post-development. Collaborating with reputable firms ensures effective handover and documentation.

 Focus on Core Competencies

 Companies might divert from their core operations to oversee app development.

 Companies can retain their focus on primary business activities, leaving the app development to external experts.


 Scaling the team for larger projects might require additional time and investment.

 Easier to scale operations, as mobile app development outsourcing firms can quickly allocate more resources based on project needs.

How Much Does It Cost to Outsource Mobile App Development?

Outsourcing mobile app development has transformed the tech landscape, enabling companies to optimize their resources while still achieving stellar outputs. Cost-effectiveness and global talent accessibility are two of its prime advantages. 

However, pinpointing the exact cost of outsource app development isn't straightforward. The figures are influenced by a confluence of factors, including regional disparities, the developer's skill set, the technology used, and even the methodology of hiring.

Key factors shaping pricing levels:

  • Regional Differences: 

Every region presents its unique price points when it comes to software development. Countries across the globe have distinct economic scales, labor markets, and technological infrastructure. 

  • Developer Seniority: 

Seasoned developers bring vast experience, knowledge of best practices, and problem-solving skills, but they also come at a premium cost. On the other hand, while junior developers might be more budget-friendly, they might require more supervision and longer timelines.

  • Technology Stack: 

Some technologies in outsource app development  are widely used and come with a vast talent pool, making them more affordable. However, cutting-edge or specialized technologies might not have as many experts available, making them a rarer and often more expensive resource.

  • Hiring Model: 

The path you choose to traverse while hiring can impact your pockets differently. Whether you go through traditional hiring agencies, freelance platforms, or specialized tech talent marketplaces, each comes with its own set of charges, benefits, and limitations. 

Hourly Rate of Outsourced App Developers in Various Regions:

  • Asia: 

The vast continent of Asia, with its diverse countries and cultures, offers a myriad of pricing brackets when it comes to outsource app development, averaging at $28 hourly. While countries like India, Vietnam, China, and the Philippines have carved a niche for themselves in IT outsourcing, it's essential to weigh their economic benefits against factors like political stability and communication barriers.

  • Europe:

Europe, with its rich history and modern tech hubs, bifurcates its pricing between the West and the East. Western Europe, with powerhouses like Germany and France, averages at about $75 hourly, while Eastern Europe, including nations like Poland and Ukraine, stands at approximately $58. 

  • Australia and New Zealand: 

These regions are known for their robust tech ecosystems and advanced economies with outsource app development. Their pricing often mirrors North American standards, but they also bring to the table a unique cultural perspective and high-quality work standards.

  • North America:

As one of the frontrunners in tech innovations, North America, especially the US, commands an hourly rate of $77 for software development. The region is characterized by its pioneering tech environment, stringent quality standards, and a vast reservoir of seasoned professionals.

  • Vietnam Presents a Unique Opportunity

Nestled in Southeast Asia, Vietnam is fast becoming a tech beacon. Its burgeoning IT scene is a testament to its growth and potential in software development. Coupling affordable rates with a surge in tech education and infrastructure, Vietnam offers an attractive proposition for companies looking to outsource mobile app development. When evaluating outsourcing prospects, it's not just the monetary aspect but the overall value proposition, and Vietnam consistently showcases its prowess in delivering both.

Some App Types That Many Businesses Consider

In the ever-evolving digital landscape, businesses are continually seeking to elevate user engagement and drive conversions. Outsourced app development has proven to be a strategic choice, paving the way for high-quality, efficient, and cost-effective solutions. Here's a look at some app types businesses frequently lean towards when venturing into application development outsourcing:

  • Basic Mobile App: Often the starting point for many businesses, these apps serve a singular function and are devoid of complex features. They provide a straightforward user experience and can be swiftly developed.
  • Modern Data-Driven Applications: These applications necessitate a continuous network connection, often curating and presenting data in real time. They're quintessential for businesses that thrive on timely data processing and presentation.
  • Authentication Application: Security is paramount in today's digital age. Applications with intricate login functions ensure that user data is protected, fostering trust among users, particularly for businesses that deal with sensitive information.
  • Social Networking Application: Riding on the wave of high connectivity and interaction, these apps are designed to create communities, promote user interaction, and enhance networking. They're crucial for businesses aiming to foster a sense of belonging among users.
  • On-Demand Application: Merging the aspects of logins and social connectivity, on-demand apps are tailored to cater to instant user needs, be it food delivery or ride-sharing. Such applications are pivotal for businesses looking to offer services on the fly.
  • e-Commerce Mobile App: A game-changer in the retail sector, these apps are equipped with comprehensive details about products, streamlining the online shopping experience. With an intuitive interface and seamless navigation, they play an instrumental role in boosting sales for businesses in the e-commerce domain.


► Learn more:  

How to Choose the Right Mobile App Outsourcing Company?

  • Appropriate Service Model: 

Whether you prefer a dedicated team, a fixed-price model, or time & material-based engagement, it's essential to select an outsource app development company that offers a service model which aligns with your project requirements and budget.

  • Reputable Companies: 

A company's reputation for outsource app development speaks volumes. Do thorough research to ascertain that the company has a stellar track record, marked by successful project completions and satisfied clients.

  • Security Is A Top Priority: 

In the age of cyber threats, ensuring your app's security should be non-negotiable. The mobile app outsourcing company you choose must have stringent security protocols and prioritize safeguarding user data.

Delve deep into the company's portfolio. Their past projects can offer valuable insights into their design aesthetics, functionality proficiency, and the industries they have served.

Ensure the company is proficient in the latest technologies and tools. A diverse technology stack indicates their ability to deliver state-of-the-art applications tailored to specific business needs.

  • Expertise: 

Beyond just technical know-how, the company should have a team of experts who understand market trends and user behavior and can offer strategic insights to make your app more impactful.

  • Industry: 

While versatility is commendable, having experience in your specific industry can be a considerable advantage. Such a company would already be aware of the industry-specific challenges and user expectations.

  • Clients: 

Who are their past and current clients? High-profile clients often indicate a certain level of trustworthiness and quality in the services provided by the mobile app outsourcing company.

Real reviews from previous clients about outsource app development can provide an unfiltered perspective about the company. Look for reviews that speak about the company's strengths, areas of improvement, their responsiveness, and overall experience.

Outsource App Development to Saigon Technology

With an impressive array of awards, a diverse and expansive portfolio, an adept team of professionals, and a commitment to leveraging the latest technologies, Saigon Technology offers unparalleled advantages when you choose to outsource mobile app development. When you work with us, you’ll find innovative solutions for your mobile app development projects.

Final Thoughts

By aligning with Saigon Technology, you're partnering with a proven leader, recognized for its excellence and commitment across the globe. Don't just outsource; choose a partner who understands, innovates, and collaborates to bring your vision to life. Ready to embark on a transformative digital journey? Reach out to us today if you want to outsource app development, and let's build the future together.


In our commitment to transparency and clarity, we address some of the most frequently asked questions about outsourced app development. Here are three pivotal questions that clients often pose:

1. Where Can You Find To Outsource App Development?

The digital landscape is brimming with opportunities to outsource app development. Platforms like Upwork and Clutch offer a myriad of choices. However, for robust, reliable, and future-proof solutions, partnering with a dedicated company that specializes in outsource mobile app development, such as Saigon Technology, ensures a balance of quality, expertise, and cost efficiency.

2. Why Outsource App Development for MVP?

The action to outsource app development, especially for MVPs (Minimum Viable Products), is a strategic move. It allows businesses to rapidly test their product idea in the market without committing to full-scale production. By tapping into the resources and expertise of outsourced app developers, you gain speed, flexibility, and cost-saving benefits, ensuring your MVP is both high-quality and market-ready.

3. How to Check Outsource App Developer Expertise?

Evaluating the expertise of outsourced app developers involves a multi-pronged approach. Begin by reviewing their portfolio, looking for projects that align with your domain. Client testimonials and reviews can offer insights into their reliability and performance. It's also beneficial to engage in a direct conversation when you want to outsource app development, asking about their experience, technology stack, and project management methodologies. We take pride in its transparent communication, always ready to showcase our proficiency in mobile app development outsourcing.

Content Manager

Thanh (Bruce) Pham CEO of Saigon Technology

A Member of Forbes Technology Council

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