The Key Pros and Cons of Outsourcing Mobile Application Development
Updated: Apr 28, 2020
Mobile applications have been an effective way to launch or expand business today that outsourcing mobile application development has become common to companies around the world who are looking to improve business and create stronger engagement with their customers. This is because outsourcing mobile application development services allow companies to focus on what they do best i.e. improve products yet be able to shorten time to market of mobile apps and decrease project costs as compared to having an in-house mobile application development team.
However, some companies still think twice about outsourcing and build in-house teams instead. Decisions such as this could cost companies business especially when market conditions force them to think quickly and act faster such as the COVID-19 pandemic that pushed offline businesses to go online or stop operations all in all.
This article will briefly discuss the strengths and weaknesses of outsourcing mobile application development services, the things to look out for when planning to outsource services, and why the Philippines is a good space to outsource mobile application development services.
Pros of Mobile App Development Outsourcing
1. Cost savings
Outsourcing the app development work to a third-party company results in minimized costs compared to having it in-house. Mobile application development is a dedicated project and can lie outside the scope of the daily routine of an in-house IT team. This means that having it in-house would require getting dedicated resources and new talent that need capital investment. Meanwhile, mobile app development outsourcing companies already have their own infrastructure and have app development as one of its expertise.
2. Faster time to market
A seasoned mobile app development outsourcing company would already have a talent pool in place, ready to take on new projects double time, without needing training on new technology. This matches our already-fast-paced business environment where the ideal time to launch a mobile app is always ASAP.
3. Reliable output quality
Outsourcing mobile app development guarantees that the tech partner’s developers have extensive experience, competent knowledge, and high tech infrastructure to use. They have the dedication and focus to deliver high-quality work that also prove their skill level and can bring them repeat clients and more new projects.
Cons of Mobile App Development Outsourcing
1. Compromised data privacy
Working with an outsourced mobile app development partner means collaborating closely and divulging confidential information such as the nitty-gritty of business processes and the customer details which means that there’s a risk of leaking important data. This can be avoided with a strong non-disclosure agreement and IP protection agreement, backed by appropriate legal and organizational measures, but to carefully choose a partner with a commendable track record may also help.
2. Difference in expectations
Getting a third-party tech company for mobile app development also means that there is a risk of not meeting client expectations. There will be times when the development team may not gather the requirements clearly enough which may trickle down to the app functionality or design that may take more time to correct. This may be avoided with an open communication style between the client and the tech partner. Having solid documentation and a detailed brief of the requirements will definitely help the project succeed.
3. Less control on project development
In addition to the cons of mobile app development outsourcing is the lessened ability to control every detail of the process. Having it in-house will give the client company access to the progress of the project anytime while having a third-party partner makes this a challenge as their operations are offsite. Nevertheless, this can be resolved by having a project manager who can focus on the mobile app development outsourcing company and be your liaison when it comes to project management.
Outsourcing in the Philippines
The first outsourcing contact center in the Philippines was built in 1992. With the promising opportunity outsourcing brings, the Philippine government established the Philippine Economic Zone Authority or PEZA to support export-oriented manufacturing and service facilities in 1995 that encouraged more outsourcing companies to build operations in the country.
The flourishing outsourcing industry in the Philippines can be attributed to the many benefits the country and its workforce offers. Here are some of the top advantages that make the Philippines the best outsourcing destination for mobile application development outsourcing:
1. Cost efficiency
Businesses can save 60% to 80% of operational costs by working with a Filipino third-party tech company made possible by the affordable cost of living in the country. The daily salary of Filipino professionals can amount to only the hourly salary of an employee in Europe or the US.
Western culture is still deeply seated in the Filipinos’ everyday lives, and remain to be highly adaptable to foreign cultures. In addition, hospitality is an integral part of Filipino culture and tradition. These factors make Filipinos easy to socialize and work with.
3. Commendable English proficiency
English proficiency is integrated into the education system and is enforced even before Filipinos receive formal education. The Philippines is one of the largest English-speaking countries in the world with seventy percent of its population being fluent in English. With this, seamless communication and collaboration with Filipinos can be expected.
4. Versatile and highly-skilled talent pool
Local universities and colleges produce an addition of 500,000+ to the pool of skilled and qualified workers annually and the Philippines is expected to continue to benefit from this young and talented workforce in the coming years.
Working with a third-party mobile app development outsourcing company in the Philippines with such dynamic talents and skills enables you to scale quickly and efficiently without any capital investment or infrastructure requirements. You can expand a team quickly and cost-efficiently. Equally, you can scale down your team if seasonal work is in place or your business takes a turn for the worse. Generally, you can arrange agreements with outsourcing tech companies for customized commitments and very flexible terms.
5. Proactive government support
The local government provides the outsourcing industry with strong support by way of regulations and incentives that encourage foreign companies to choose the Philippines for their offshore operations. To provide such incentives, the Philippine government established the PEZA and special economic zones (SEZ).
The local government further expressed their commitment to supporting the industry via the Philippine IT-BPM Roadmap 2022, a program whose goal is to acquire 1.8 million more jobs for Filipinos and $40 billion in revenues by 2022.
Despite its few downsides, mobile app development outsourcing continues to be a wise strategic move for global companies. Having the Philippines as your outsourcing destination lets you maximize the benefits of having a third-party tech partner for mobile app development work. Undeniably, the country provides foreign companies with the opportunity to experience the advantages of working with a world-class talent pool while minimizing costs.