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From the moment you decide to outsource web development, many questions appear:
- Where to outsource?
- How to find a reliable partner?
- What's the price?
And many more. The blue-sky thinking vanishes, and you face constraints and uncertainties that put a cap on how much dreaming you can do. And it's ok. This is the situation every business founder faces up, and there's the way out.
We at Uptech have a strong track record of building products people love, and it led us to study web outsourcing from top to bottom. We know for sure when web outsourcing is your option, how to do it right, how to outsource a good web development company that will match your needs and values. This is what this piece of read about, let's start.
When Outsource Web Development Is The Way To Go?
When you face a decision to outsource or not to outsource, you can be in two positions: a startup that has just entered the market or an established company that competes with big players.
We worked with both and figured out that in both cases the goal is the same – to outsource web development services but the motives are different. Let’s look at what they are.
Lack of in-house web specialists
Initially, the request from startup founders sounded familiar: "Hey, we have an idea but lack human resources to support it." So they basically looked for an outsourcing partner to provide them with 2-5 specialists to cover some web development scope of work.
Lack of time & money
The next popular question was: "We need to build a web app fast and within the budget. Can you help us?" It's still the most common request, and we're happy to dig in. It's well known that the main reason for outsourcing is cost reduction.
So chances are, outsourcing will save you some dollars. The time part depends on the company you choose. I'll explain later how to ensure that expectations are met on both sides.
Lack of tech expertise
Lack of the right team was mentioned among the top reasons why startups fail at the CB Insights report. It means that having a diverse team with different skill sets is critical to a company's success. So if you feel that you lack tech expertise, need a technical advisor, outsourcing IT services is an option here.
For Established Companies
Need to expand an in-house web team
This one is pretty much the same as the first one for startups. The difference is that established companies usually look for a separate specialist rather than a whole team of project managers, developers, designers, QAs.
Launching a side project
One more cause for outsourcing web development is when you have a running business and want to experiment and test proof of concept. It'd be wiser to outsource a web development company that will tackle the full process instead of involving your in-house team. Most likely, your team is busy and won’t be able to fully support the project.
In addition, the cost of failure is low, it's an experiment, and as they say, "it's better to regret something you have done than to regret something you haven't done."
Looking for advisors
The third reason why established companies approached us is they lack expertise in some domains. For instance, the Nomad project – a web app for buying and renting homes in Dubai, required a backend solution that would be simple and yet functional. All the solutions they got were too complicated, so they didn't hesitate a minute when our team suggested a clear and simple one. The decision was made.
At Uptech, we pride ourselves on end-to-end product development. We take big ideas and turn them into products people love and can use right away. Our cross-functional team of product managers, designers, developers is a group of remarkable people who do their best to build a fantastic product to satisfy our clients and their users.
No matter what your reason to outsource web development is, product success depends on both sides. From our experience, to deliver a great product, there should be a place for respect, open collaboration, and conversation between you and your outsourcing partner.
3 Reasons To Outsource Web App Development Services
With the fact that 68% of US companies outsource, it's easy enough to understand that IT outsourcing is not just a cutting-cost technique. Sometimes it's a must to be competitive in a global market. That should give you some sort of idea about how strong the benefits of web development outsourcing must be. So, let's take a look at them.
Building a web app from scratch will take effort if you don't have a full web dev team. First, you need to find these people. Second – to hire them, which is often a challenge because local specialists are hard to reach. Don't forget about taxes and legal issues.
In web development outsourcing, you save up time on the hiring process and legal issues so that the process will start faster. The delivery process depends a lot on the team you choose. If you did good research, studied the market, and found a dedicated partner, you can be sure of the result. The web development team will be fully engaged in your project, and the collaboration will be smooth.
Though this benefit is on the surface, we'd like to give you some numbers to compare. If you want to develop a web app in the U.S, where the hourly rate of a web developer is $100-150. It demands approximately 1800 hours to build a web app, so the final sum would be nearly $180K - $270K.
While in Ukraine, the hourly rate for an engineer of the same expertise is around $50/hour. Let’s count. The total price here would be $90K.
The difference is vast, especially if you're building a new product, depend on investors' money, and need to launch quickly.
Support it All
We had an experience of working in hybrid web dev teams when part of the work was done by us and part in-house. And that is always an option, but the perfect scenario is when the whole web development is done by one team.
One team knows the project from A to Z, it reduces communication constraints, and allows to implement changes and fix bugs faster than in a hybrid format. For you as a founder, it means efficient delivery, consistent process, and one contact point.
How to Outsource a Good Web Development Company
We talked a lot about when and why you need to outsource web development, what the benefits are, and all this naturally brings us to the question "How to outsource web development?"
Here're some tips on how to outsource web development right from the day you decide to outsource to the end of the collaboration.
Pitch Your Idea
The decision to outsource never comes out of the blue. Most likely, you've talked to friends, read forums, listened to podcasts, etc. The truth is, you learned about web outsourcing in some way.
The next step is to do your homework. What does it mean? You should answer the following questions:
- What is my idea about? – prepare an idea description, including what and why you want to create.
- How do I see the idea? – if it's an app, visualize it with basic screens, features, any other details you can add.
- Who are my competitors?
- How much money can I invest in this idea? – would be perfect if you create three scenarios: optimistic, neutral, and pessimistic.
- How much time am I going to devote to the project?
With all this info at hand and Eric Ries's book "The Lean Startup", you'll do yourself and your prospective partner a big favor. And remember, you're not the one who makes a choice, so make your idea sound attractive to get a good outsourcing company interested in it.
In other words, pitch your idea to the company. You choose the outsourcing company as well as we choose the client to work with.
Search, Compare, Decided, Repeat
The next step is all about research, patience, and comparison tables. To find a good web development company, you need to study dozens of them. That's why it's cool to start with the requirements list.
How to do it?
Take a sheet of paper and divide it into three columns.
- In the first one, write: Things that are crucial to me;
- In the second: Things that are flexible;
- In the last one: Things that don't matter to me;
It will help you keep the focus while searching and filter web outsourcing companies that don't meet your needs.
We recently published an article about the 10 common problems with outsourcing. We shared some useful tips on checking the companies and resources where to find a good we app development companies, such as:
All these matter and give you a bigger picture.
References Are The King
Last but not least, references. We can say with 100% confidence that one 10 min call with a previous outsourcing client counts as one day of research.
It's hard for an outsourcing company to arrange such calls because we need to bother our clients and take their time. But that’s why it is valued that high. And every time when we managed to arrange a call, our prospective client became an official one.
So if there is a chance to set up a call with previous clients or have a short chat with them, grab this opportunity and prepare your questions.
How Much Outsource Web Development Cost
The cherry on top is the price of web development outsourcing. We've talked a lot that outsourcing saves a lot but how much exactly? Well, it's hard to say the accurate price, as there are too many factors involved such as:
- The complexity of the product;
- The scale of a web product you want to develop;
- The number of specialists involved;
- The location of a web outsourcing company;
Even with so many uncertainties, we can calculate the approximate cost of your web app. From our experience, web development of the middle complexity product takes 1200 hours or 3 months and a team of 5 specialists. Hourly rates in Easter Europe, where the Uptech team works, are between $45-70. So it'll cost you $54K - $84K to build a web product with an outsourcing company like Uptech.
The price will vary depending on the region, so you need to find a balance between money and quality.
Ultimately, a successful outsource web application development depends on fusing the clear goal (why you need to outsource web dev) with robust preparation (research) and wise decision-making. It really takes lots of effort from your side to make it happen.
But the result you get, worth it. With a good web outsourcing company, you will save up money, deliver products faster, and get full tech support from top specialists.
Hope outsourcing web development became more clear to you, and now you're fully-fledged to start outsourcing. If you still have questions or want to create a product together, drop us a line!