How to Outsource Mobile App Development in 2025 and Succeed

Outsourcing app development allows companies to tap into global talent, save on costs, and fast-track their projects. But how do you ensure that outsourcing app building flow remains efficient, aligned with your vision, and free from common pitfalls?

This guide will walk you through the essential steps, benefits, and pitfalls to watch out for when outsourcing application development. It will help you make informed decisions and maximize your project outcomes.

Outsourcing mobile application development involves entrusting the creation of Android, iOS, and cross-platform applications for smartphones and tablets to an external mobile app developer team, often located in different countries.

The goal of this delegation is to collaborate with an app development agency that has extensive expertise in relevant technologies and a proven portfolio to showcase their capabilities. App development companies offer specialized knowledge and experience that ensure high-quality mobile applications tailored to client needs.

Let’s discover some key statistics proving the growing popularity of outsourcing mobile development:

• More than 90% companies worldwide use IT outsourcing as to the Exploding Topics information
• 72% of financial companies choose outsourcing to enhance their app development flows, considering the Groove Technology report
• According to Statista report, the global IT outsourcing revenue is projected to increase from $541.10 billion in 2024 to $812.70 billion in 2029.

Looking through the given statistical data, you can see that outsourcing mobile development is not just a trend but a strategic move embraced by companies globally to enhance efficiency, reduce costs, and stay competitive in the rapidly evolving tech landscape.

There are many benefits of outsourcing app development that prove the popularity of this approach among businesses worldwide. Let’s consider the most essential of them.

Outsource application development offers lower costs in comparison with an in-house development approach. Yet, the final price is indicated by the country and hourly rates of your outsourcing application development company is located in.

To illustrate, when applying to mobile development outsourcing from the USA to Canada or Australia, it won't make much cost difference. IT companies with headquarters in the USA charge $150-$199/hr, and in Canada, they charge $150-$199/hr, according to Clutch.

However, hiring a tech vendor from Central and Eastern Europe (CEE) in countries like Estonia or Poland, will drastically change the situation. Instead of paying $118,104/yr on average to your iOS developer from the US, you pay from $15,800 to $62,600/yr to an iOS developer from Estonia.

Mobile app development outsourcing ensures a seamless development workflow by leveraging experienced development teams' well-established processes and methodologies. These teams often follow Agile software development methodology and iterative approach, ensuring clear communication and effective collaboration.

Partnering with a skilled outsourcing app development vendor can prevent potential bottlenecks and keep your project on track, even during peak development stages. Furthermore, outsourcing mobile building teams provide regular progress updates, fostering transparency and alignment throughout the project lifecycle.

With the help of the outsourcing app development, you can accelerate your project timelines and achieve quicker time-to-market. External teams are typically well-versed in handling similar projects, allowing them to bypass common hurdles and deliver solutions efficiently. This time-saving advantage is especially crucial for companies operating in fast-paced industries where rapid product launches can create competitive edges.

Additionally, outsourcing firms often offer the dedicated development team services to provide you with experts who work solely on your project, ensuring that milestones are met promptly. It enables internal teams to focus on strategic tasks rather than managing every aspect of development.

Outsourcing mobile app development allows businesses to access to a wide talent pool of developers skilled in various technologies, frameworks, and platforms. Mobile app development companies provide professionals who possess niche expertise required for specific project needs, bypassing geographical constraints.

Collaborating with skilled specialists ensures innovative solutions and high-quality outcomes. Additionally, outsourcing supports companies in mitigating the risk of skill shortages and adapting smoothly to technological shifts, enhancing the success of an app idea.

While outsourcing app development offers distinct advantages, understanding how it stacks up against in-house development is crucial for making the right decision. Comparing these two approaches highlights the strengths and trade-offs that can impact project success and overall business strategy.

Let’s discuss the key factors that differentiate in-house development from outsourced mobile development. This comparison can help you make a more informed decision about the development approach that best suits your company’s needs and goals.

In-house mobile app creation teams typically have a deep understanding of a company's products, values, and culture. This alignment can lead to better integration of the app with your organization’s broader objectives. However, maintaining a team with expertise in all necessary domains can be costly and challenging.

On the other hand, mobile application development outsourcing allows businesses to access a global pool of highly specialized professionals who bring diverse skill sets and extensive experience from various industries. This can be particularly beneficial for complex projects requiring niche expertise that may not be available within the existing workforce.

Communication matters, but sometimes it's the cost that decides. Further, you can see approximate calculations defining that outsource app development cost is more budget-saving than the price of hiring an in-house team.

Let’s use social media app development as an example. Our product will include two apps—one for Android and another for iOS devices. Plus, custom UI design and the back-end part.

Let’s say you want to hire an in-house team in Seattle, DC, to build a social app. First, you need to rent an office: ~$70,000/yr or $5,833/m. Second, you need to assemble a team. This is the typical in-house team composition for social app development and their average monthly salaries (source: Glassdoor):

• Project manager: $7.408/m
• UI/UX designer: $6.951/m
• iOS developers: $8.241/m x2
• Android developers: $8.279/m x2
• Backend developer: $6.688/m
• QA engineer:$7.246/m

Usually, mobile app outsourcing companies work 160 hours per month (20 workdays x 8 hours per day). Finally, the team needs 1890 hours to build an iOS/Android app or 3057 hours to cover both. That means the team will finish the app in 19 months.

Total in-house app development cost: $5,833 office rent + $52,214 for salaries = $61,333 per month x19 months = $1,165,327 for design+iOS+Android+back end.

If you choose to outsource mobile app development, it will cost $94,500 for one platform (iOS or Android) and $152,850 for two platforms. Including UI design, backend part, and admin panel. This estimate is based on the average outsourcing rate in our region Central and Eastern Europe, Estonia: $50 per hour.

CEE region is becoming more and more popular for offshore software development due to affordable rates, low taxes, and lots of tech companies.Moreover, Estonian IT specialists are experienced in different technologies and demonstrate a great combination of highly-developed skills (hard and soft) and a proficient level of English.

! Please note that the estimation above is FYI. We didn’t include the planning stage, and the number of hours may change with new features. To find out the exact cost of your software product, please contact us.

Building an app with an in-house team can be time-consuming and resource-intensive, involving hiring or reallocating internal employees. While in-house teams offer greater control, they may not have the capacity to respond as swiftly to changing project demands.

In contrast, one of the significant advantages when you decide to outsource app development is the ability to scale resources quickly during the app development process based on project needs. External partners can flexibly allocate more team members during critical phases or reduce staffing when requirements lessen. This flexibility is especially valuable in the context of global information technology outsourcing, allowing you to tap into a wider talent pool and optimize resource allocation across different time zones.

Managing a development project in-house allows a company to maintain direct oversight of the entire process, ensuring that the project stays closely aligned with its vision and standards. This control can lead to better communication and faster decision-making. However, if you want to outsource app development, partnering with a reputable development outsourcing company or mobile app development agencies can still provide strong project management capabilities.

Mobile app outsourcing often includes transparent communication channels, detailed progress updates, and collaborative tools to align with the client’s goals. For instance, we ensure project transparency and effective management by scheduling meetings at times convenient for the client, conducting sprint reviews, and maintaining constant communication through Slack and other collaborative platforms.

You need to weigh the trade-off between maintaining full control and the convenience of leveraging a skilled mobile app development team with external expertise.

Now, we’ll see how to outsource mobile app development and overcome all the arising challenges step-by-step. By following these practical steps, you can ensure a smooth collaboration process and minimize potential risks effectively.

Choosing the right app development outsourcing company is crucial for the success of your app development project. To outsource mobile app development without complications, evaluate the vendor’s technical experience in mobile app development services. You should also ensure they have expertise in your industry, staying up to date with the latest practices and technologies.

Moreover, review their portfolio for successful projects and case studies to understand the benefits of outsourcing mobile app development. Check the vendor’s reputation and client reviews for reliability. You can read the client’s review about the collaboration with Cleveroad as an outsourcing IT provider on our Clutch page.

You should also check if the partner has a wide talent pool and can provide the specialists you need and maintain a consistent team throughout the project. Assess their methodologies, tools, and certifications. Confirm that their team structure aligns with your project needs and prioritize cultural compatibility and language proficiency.

To prepare for project development, you should clearly outline your app’s purpose, features, and target audience. This involves creating detailed documentation, including user stories and wireframes, if it is possible.

What else should you do while preparing to outsourcing mobile development project?

• Specify technology preferences, platforms, and frameworks upfront
• Set expectations for timelines, budgets, and key milestones
• Address potential challenges and how to manage them
• Regularly review and refine requirements as needed

In order to help you seamlessly define the requirements for your future app development project, our team offers you our special Solution Workshop stage free of charge. Contact us now to transform your initial ideas into a comprehensive list of detailed requirements for your upcoming application creation.

Effective communication ensures smooth collaboration between teams. That’s why you should use structured communication channels with your vendor, such as project management tools, for transparency and to streamline workflows.

You can also schedule regular meetings for updates and feedback for your app development outsourcing flow. Set up protocols for different types of communication (e.g., urgent issues, daily updates). Ensure both parties agree on a response time to maintain progress. We at Cleveroad prioritize clear communication to ensure the smooth and transparent app development flow aimed to meet all our clients’ needs.

Henrik Loop, the CTO of Blockbuster, gives the following review as to communication with Cleveroad team during the project:

A comprehensive contract is essential when you hire an app development company to provide mobile app development services. This contract offers legal protection and sets clear expectations. You should include details on project scope, payment terms, and deliverable timelines. Also, specify ownership rights of the app and intellectual property.

Cleveroad also prioritizes confidentiality, including robust clauses to safeguard your sensitive information, especially in outsourcing scenarios. The contract will address conflict resolution procedures for potential disputes and include quality assurance and performance benchmarks to ensure the highest standards are maintained.

Whether your project involves Android app development or other platforms (regardless of your industry), our team ensures the contract is legally compliant with relevant jurisdictions and tailored to protect your interests, providing a solid foundation for a successful collaboration.

You can regularly monitor the performance of the outsourcing team against agreed milestones to ensure a successful mobile application. Moreover, you should use KPIs to measure productivity, code quality, and adherence to deadlines.

At Cleveroad, we prioritize open communication to promptly address any discrepancies or challenges in performance. Our team conducts regular progress reviews and demo sessions to ensure deliverables align with your expectations at every stage. It helps us maintain project momentum, foster transparency, and create a collaborative environment focused on continuous improvement.

Whether working with an offshore mobile app development provider like Cleveroad, provide constructive feedback and address issues early to succeed with your project. We also prioritize User Acceptance Testing (UAT) to identify and resolve potential issues early.

Our team actively monitors bug resolution and ensures product stability, adhering to best coding practices and maintaining detailed documentation. These proactive quality checks minimize the risk of major issues at the end of the project, delivering a polished and reliable product.

By following these strategic steps, you can streamline the mobile app development outsourcing process, reducing risks and ensuring a high-quality outcome. However, it's equally important to anticipate potential roadblocks to prepare for a smooth collaboration.

IT outsourcing can bring significant benefits to mobile app development, but it also comes with potential challenges that companies must navigate. Below there are some major challenges businesses face and a brief explanation of how Cleveroad as an experienced outsourcing vendor, can effectively resolve them.

Communication issues often arise due to time zone differences, language gaps, or cultural misunderstandings, which can impact collaboration. Poor communication can create a lack of clarity around project goals and requirements.

Our outsourced app development team uses advanced project management tools (e.g., like Jira or Trello) to streamline communication. We also set clear communication protocols, including regular video calls, instant messaging, and updates. What is more, we have a robust project management office, and these specialists act as liaisons to maintain consistent communication on the project.

Ensuring high-quality standards can be difficult when outsourcing, especially if the vendor lacks robust testing practices. Without rigorous testing phases, technical issues might only appear post-launch. This can damage the app’s reputation and require costly post-release fixes.

To solve this issue, we implement strict quality assurance protocols and thorough testing at each development phase. Our QA engineers apply to automated testing tools to identify and resolve potential issues efficiently. We also conduct performance, security, and compatibility testing to ensure reliability and provide regular quality reports.

Collaborating with an application development outsourcing partner can sometimes raise data security concerns, as sensitive information might be exposed to third-party vendors, leading to potential risks to intellectual property or personal user data. Such issues can result in a loss of trust and significant financial repercussions.

When you choose Cleveroad for mobile application outsourcing, our dedicated development team ensures that stringent security measures are in place. We adhere to industry best practices tailored to your business needs, whether you're building a simple app or a more complex solution. To protect your data, we implement encryption, secure data transfer protocols, and sign Non-Disclosure Agreements (NDAs) upon request, safeguarding the uniqueness of your app concept.

Project delays can disrupt the overall launch strategy, affecting revenue and competitive positioning. Changing project requirements can also add pressure, leading to missed deadlines.

To solve this problem, Cleveroad experts use Agile methodologies to manage and adapt to project changes efficiently. We plan for potential risks and implement strategies to mitigate them. Moreover, our specialists establish regular sprints and reviews to ensure that issues are addressed promptly and timelines stay intact.

Cleveroad is a skilled software development outsourcing company headquartered in Estonia with R&D centers in the US, Norway and Poland. We have been providing IT services to clients all over the world for 12+ years, including building mobile and web apps, creating UI/UX design, and conducting Quality Assurance testing.

Our talent pool in Europe consists of more than 1200 IT experts and 250+ in-house software engineers. We have distinguished ourselves in the IT sector by being included among the leading B2B IT service providers lists, such as the Premier Verified Status on Clutch, Top IT Services Companies, Clutch Champions, Top 1000 Service Providers, and Clutch Global Leaders.

By outsourcing app development to our company, you will receive the following advantages:

• Custom software development services for a wide range of business domains, including Healthcare, Logistics, FinTech, e-Commerce, Travel, etc.
• Working with our team of highly qualified developers capable of integrating a variety of cutting-edge technologies, such as blockchain, cloud computing, AI and ML, the Internet of Things, etc.
• Signing Non-Disclosure Agreements (NDAs) per your request to safeguard your app concept
• Robust project management office to make sure the development team deliveres desired outcomeson time, in accordance with your company's requirements, and within your budget
• Flexible and seamless cooperation models, including IT Staff Augmentation and Dedicated Team Services
• Cooperation with the ISO-certified company with ISO 9001:2015-certified quality management systems and ISO 27001:2017-certified security management

Here are some of our latest outsourcing projects, successfully delivered to our clients from different business domains:

• Occaz, a car state checking app for French users, intended to verify the state of the vehicle (e.g., engine condition, interior/exterior) before buying it
• Blockbuster, a video-on-demand platform for viewers across the Nordic region (Denmark, Sweden, Finland, Norway) to provide fast and high-quality TVOD to the customers
• Nedley Lifestyle Scorecard, a mental health tracking app for the US and Australian markets to fight depressive disorders and work on mental and overall patients’ health
• TrainAway, gym directory for travelers, intended to make workouts during trips comfortable and seamless in any part of the world

You can read a review from one of our outsourcing clients, Alexander Shrøder, the owner of the TrainAway app, to know more about their collaboration with our Cleveroad app developers.