In an ideal case, there would be enough funds to go around and support all projects, with enough to hire the best experts in the field. However, this is not the case always, and sometimes there is a lack of funds.
Perhaps your company requires the best web development company out there, or a specific expert for a particular task, but lacks enough funds to hire them.
In such a scenario, outsourcing is probably the best option that you will have. Outsourcing costs less than in-house development, there are probably more options available to choose from in that case, and they might even be more qualified than in-house programmers.
With there being so much to consider about outsourcing, it can definitely be complicated to know how to go about it. This is why, in this article, we will take a look at why outsourcing is an option that many companies choose, how much it costs, and how all of it works. We hope that it helps you to understand the complexity of outsourcing and how to go about it, better.
Why Do Companies Outsource Web Development?
There are a number of reasons why tech companies, managers, businesses, and startups outsource website development projects. Some of the main reasons for this are listed below:
1. Less Time-Consuming
As a business owner or a startup, you probably have a lot of huge projects to work on. This means that the project if handled all by yourself, will take a long time to be completed.
On the other hand, if you were to outsource certain sections of the project, like the development of a website for instance, then the overall time is taken to finish the project would be far less than the time taken in doing it all by yourself. This is another reason why a lot of small businesses and startups outsource to other companies.
2. Fewer Expenses
The biggest reason why any company or individual decides to outsource is that it costs less to do so. In certain regions like Eastern Europe or Asia, website development services are bound to cost a lot less than a country like the USA or Canada.
This is why, no matter what service you outsource, it is always going to be cheaper than hiring an in-house or local service provider for your needs.
3. You Can Hire Experts At A Lower Cost
If you are a company that is looking for a service that includes particular services like AR or VR, then you will need to hire dedicated developers to finish this project.
However, it is not always cost-effective if you do it locally. On the other hand, if you outsource your project to a company that is dedicated to web development, it is quite likely that they are filled with a lot of such experts.
These experts will also work for fewer costs. This way, your company will have a wider range of experts to choose from and will not have to spend too much money on them.
4. Team Of Experts
When you outsource a project, you can have a whole team of experts working on your project. This is possible because an outsourcing company can afford to hire a team of experts, as they charge less in that region. Certainly, this is going to be far better and cheaper than the few programmers you will be able to hire locally, for the same project.
5. Project Management
An outsourcing company is dedicated to working on your development needs. This means that they will assign an entire team to your project, while they are working on it.
However, if a team is not managed properly, it will lead to a chaotic work experience. This is this reason why outsourcing companies have a specific project manager or project leader appointed to your case. This manager will make sure that work goes smoothly and all the components of the project are completed on time.
6. No Need For HR Operations
Since your company does not employ the service of a web developer directly, you will not have to deal with HR operations in regard to another employee. This is both cost-effective and time-saving for a lot of small businesses and startups.
What Are Your Options For Outsourcing?
Before we get into the costs of outsourcing, let us take a look at what your options are for hiring a web development company. The rates of outsourcing will depend on these.
1. Local Development Options
Certainly, the first place that you look for a web developer in your local area. This is a good choice for your company if you wish to work with someone who is in a similar time zone as you.
2. Nearshore Development Options
In this case, you would be outsourcing your web development needs to a country that is close to your own. For example, if a US-based company was to hire a company in Canada, they would be hiring a nearshore development company. This can change the development rates, perhaps make it cheaper, while allowing you to stay within the same time zone.
3. Offshore Development Options
Offshore outsourcing is when you hire a company that is far away from your own. For instance, if you were to hire a company in Europe or Asia, it would mean working at vastly different rates and time zones.
Rates For Outsourcing Web Development
We have now covered the reasons why a lot of companies outsource their web development projects. We also know the options for hiring an outsourcing company for your projects. Having understood these, let us take a look at the rates for outsourcing:
1. Eastern Europe
Eastern Europe is the cheapest option in Europe for outsourcing needs. Countries like Ukraine are well known for being centers for outsourcing companies. They charge, on average, $20 to $25 per hour of work, which is far less expensive than countries like the USA.
2. Western Europe
Western Europe charges more than Eastern Europe, but the charges here can still vary a lot. For instance, in a country like Germany, the cost of web application development far more than the other countries in the region. Nevertheless, on average, web development in Western Europe costs anywhere between $50 to $150 per hour.
3. North America
North America is one of the most expensive regions for outsourcing. In countries like the USA or Canada, web developers and programmers earn, on average, close to $100/hour.
Asian countries like India charge similarly to Eastern Europe. On average, a developer in Asia earns close to $20 to $25 per hour.
Oceania has Australia and New Zealand, two countries that are on par with the USA and Canada in their rates of web development. Here too, a web developer can earn $100/hour, on average.
Where Can You Find Outsourcing Partners?
So far, we have covered the prices and other necessary information about outsourcing website development services. The next step is to know where to find such companies.
There are a lot of websites and platforms that can help you to get in touch with outsourcing service providers worldwide. Some of these are listed below:
Clutch is a platform that has its own ranking system for various software and web development companies that it hosts. Their rankings are based on qualities like the number of reviews, the company’s experience, the awards that a company has received for its work, and the services that a company offers. These ratings are also updated regularly. These ratings make a platform trustworthy, along with the companies that it hosts.
Further, if you are willing to use the paid version of the platform, you can also take advantage of their matchmaking program. This program selects potential matches for your projects, based on your needs and the ratings of the companies on the platform.
Upwork is known to offer a wide array of the best freelancers and outsourcing companies available in the market. Here, users must write a job description that is brief and clear and wait for takers to apply for it.
Once applications come in, you can review them and start the interviewing process. The Upwork profiles of the applicants are made available to employers and can be used to hire dedicated developers.
Upwork also provides a team of advisors who can help you with the hiring process. On top of that, it also allows you to pay the hired freelancer or developer directly through Upwork.
GoodFirms hosts some of the best web development companies from around the globe. This site is free to use and has more than 6000 firms on it for various software development needs.
They also have a good rating system in place that allows employers to know which development service or company is good for their needs.
GoodFirms has a list of companies that do mobile app development, web development, and other such projects. It is a trustworthy platform and is perhaps one of the best ones out there.
How Should You Outsource Web Application Development?
The most important question in the case of outsourcing a project is how to do it. In this section, we will address this question in detail:
1. Know Your Needs
The most important thing to remember when hiring a web development and software development company is to know exactly what you need. Once you are sure of what your needs are, you can go about enlisting the exact kind of work that you need.
If you are unsure of exactly what you need, ask yourself questions like: Is it a simple project to support your company? Is it going to help to extend your company’s services? Is it going to be huge? How much can you pay for it? and so on.
These are the questions that your vendor will also be interested in knowing answers to and if you have the answers prepared in advance, it will make the process a lot simpler for you and the vendor.
You must make sure to have a full description of your needs prepared, what features you want to put on the website, what your goals for the website or app are, and so on.
2. Do Your Research
Once your plan for the website or app is prepared, you can now select the web development vendor that you want. Take your time to go to reputed platforms such as those that have been listed above and take a look at the vendors that are available for your needs.
If you have a team in your company that finalizes the hiring of a vendor, make sure to discuss the vendor companies and their profiles in depth with your team. Some things that you can look for are the vendor’s expertise, capabilities, ratings, and reviews, past projects, and hourly rates.
3. Have Regular Meetings
There should be regular meetings held with your vendor even after they have been selected for the project. This way, you will be able to stay on top of the project and be updated on the developments along the way.
4. Plan The Future Of The Project
The future of the project has to be planned from day one. This will help your company to estimate the cost of the project and its requirements. Further, any problems along the way can be dealt with better if they are at least planned for in advance.
In this article, we have tried to answer and outline some of the frequently asked questions that come up when there is a need to hire dedicated developers.
While outsourcing may still be a debated topic in the tech industry, it is certainly not without its benefits. It is cost-effective and beneficial in many ways, as discussed above.
We hope that it is now easier for your company to know how to go about outsourcing your development needs and where to look for good outsourcing companies.
Do make sure to carefully select your outsourcing partners and plan well ahead for the future of the project to avoid any hiccups along the way.