Reveal The True Cost of Outsourcing iOS App Development

What is on the “hype train”?

Great ideas are in all of us. Everyone has one, or many, but having ideas is one thing, carrying it out is an entirely different matter. The same principle can be applied in designing an application, particularly mobile apps. If you are ready to start the hard work but lack the needed expertise, you might be thinking about outsourcing your product/service to a third-party development agency.

According to the report of Computer Economics (2019) on IT outsourcing statistics, 56% of organizations chose to outsource their app development. Among those organizations, 55% are increasing the percentage of work outsourced in comparison to only 11% choosing to decrease. Even though some pros and cons are evident, it is no doubt that outsourcing is the inevitable trend that is followed by not only medium/small size companies but also big ones.

Why Outsourcing iOS App Development?

The mobile app industry is an ever-changing, competitive space, 24.79% market share of IOS devices (by the end of 2019) proves that the IOS platform is a fertile land for app development. Another obvious reason is that Apple App Store applications bring in more money, specifically 25% of app store applications yearn over $5,000 per month, compared to 16% of Google Play apps.

It always goes back to the principal element – budget. Having a big or small budget is not so much of an issue as long as you know how to invest it. But the burning question is, how much does it cost to develop an app? And more specifically an iPhone app?

The Breakdown of Outsourcing iPhone App Development Cost

Before getting into details about this, we need to understand how each factor can affect one another in a project. Let’s look at figure 1 below:

Each side of the triangle has a direct impact on the other two. Thus, adjusting one of the parameters forces you to change the other two.
E.g., You want to reduce the budget => you will have to review your scope (and therefore, the deadline ).
In case you have an MVP of which you do not want to change the perimeter => it will be necessary to adopt the budget and the planning.

Are you still puzzled about how to make an app in general? Refer to this How-to guide to successful mobile app development.

1. Types of Apps

The price varies considerably among different types of apps. The cost to build a mobile app may range from $25.000 to $100.000 or even higher. Here are the numbers (this is generally applied for both IOS and Android):

  • A simple iOS app with basic functionality usually takes up to two months to build and costs about $10.000 – $30.000.
  • A more complex app that requires more than two months of development will cost about $30.000 – $50.000.
  • A high complexity IOS or Android app with an extensive database and multiple features for an enterprise can last more than 06 months and costs up to $80.000 – $100.000.

The average cost of app development is dependent on numerous factors, different complexity, location, experience may induce different prices.

2. Locations

Locations are of great importance, there is no two-way about it. According to the Software Outsourcing rates in 2019 by Sumatosoft, the hourly rates vary drastically in accordance with the regions.

  • Eastern Europe: With the average hourly rate of $35/hour (ranging from $25 to $40). Well known for their highly skilled developers and engineering skills, Eastern Europe is no doubt the most demanded market. The sector can be divided into two branches: Ukraine, Belarus, and Russia (lower costs) and Poland, Hungary, Bulgaria, Romania, and the Balkan countries (higher costs).
  • America & Australia: The high cost of living, a big market, and high demand of IT personnel Australia and America have a considerably high rate, ranging from $100 – $180/hour in Australia and $150/hour in the American market.
  • Central Europe: countries in central Europe such as France, Luxembourg, Belgium…etc., due to an adequate amount of IT personnel, the hourly rate is usually around $300-$1000 a day depending on the experiences and technology of the developers.

3. Experience

Aside from the locations, the level of expertise of IT personnel is also a noteworthy factor. It is without a doubt that senior developers cost more than junior ones. But, still, you can find companies providing experienced senior developers for the same rate as junior engineers in your country (that is why location is the utmost decisive factor).

In Short

Long story short, outsourcing an app (whether it is for iPhone or Android phones) depends on a variety of factors ranging from locations to project length to the level of expertise. However, in such a competitive market as of today’s, a booming age of digitalization. It is possible to select an outsourcing plan that fits your budget.
You have an idea of developing a mobile app and want to know the exact cost? Are you still not sure about the idea of outsourcing your app? The team at Digital Unicorn team will assist you with drawing and consulting to form the first draft of your app, at the same time giving you a more accurate quotation based on your requirements. Contact us now!

Lucas Kacem

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Lucas Kacem

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