A Complete Guide To Outsource Web Development

Wondering if you should outsource to a web development company?

Confused about how to find the right company?

Worried that outsourcing might fail?

In 2021, companies are estimated to generate a whopping 413.7 billion U.S. Dollars in revenue for the IT-outsourcing industries.

Without a doubt, outsourcing is very popular. But does it mean that it is the right choice for you? To help you in knowing this, we have curated a comprehensive guide on everything you need to know before you outsource web development.

From finding out if outsourcing is right for you to interviewing and selecting web development outsourcing companies, we have covered it all. We also list out a few ways to ensure that your outsourced web project doesn’t fail.

Identify If You Actually Need to Outsource or Not

Outsourcing has been a very important aspect of the web development industry from the start. But facing the COVID-19 pandemic since 2019 has increased the importance of remote web development.

However, hiring an in-house team is also effective in the long run. Other times, outstaffing proves to be more apt.

So before deciding on outsourcing your web projects, we recommend you take time to look at other options for web app development.

To develop a web application, you can choose one of these options: 

  1. Outsourcing to a development agency
  2. Hiring an in-house development team
  3. Outstaffing a few experts to work with your team

Here is a quick comparison table listing the pros and cons of each method to help you decide if outsourcing is right for you or not.

Meaning Pros Cons
Outsourcing You hire a web development company that provides a dedicated development team for your project. The team works remotely and develops a full-stack web solution as per your requirements.
  • Cost-effective
  • Rapid development process
  • On-time delivery
  • Dedicated project manager
  • Technical experts working on your project
  • Time to focus on other aspects of business
  • Complete development
  • Risk mitigation
  • Not complete control of the project
  • Cultural differences
  • Possible communication problems
  • Transparency
  • Privacy risks
In-house Team You hire employees that work full-time for your business. You assign tasks among your own personnel who work using your company’s resources.
  • Complete control over the project
  • The team is as invested as you
  • No privacy issues
  • Trusted team
  • Quality assured
  • Continuous long-term development
  • No communication gaps
  • No cultural differences
  • Long hiring process
  • Very expensive
  • Resources spent on training and keeping the team updated with the tech
  • You have to manage the project
  • Lack of necessary skills
Outstaffing Outstaffing is a hybrid of outsourcing and in-house. When you have an in-house team but missing a few developers or designers or other specialists, you contact a web development agency that will let you hire dedicated developers for a specific time duration. Your employees and the outstaffed members you hired work together on a project.
  • Cheapest solution
  • On-time delivery
  • Complete control over the project
  • Quick and efficient hiring process as the company will shortlist capable candidates for you
  • Full-time access to the team
  • Transparency
  • Privacy risks
  • Possible communication problems between your team and the outstaffed developers
  • The team is divided into 2 sections- remote outstaffed employees and your local team. This can be hard to manage
  • You have to manage the project

This table will help you decide which approach is best for your web app development project. Now, let’s look more closely at project requirements when the outsourcing approach is more beneficial to you.

When is Outsourcing Web App Development Right for You?

Cost reduction is the number one reason most companies outsource their web development project according to Deloitte’s Global Outsourcing Survey 2020. So if you want to minimize your project budget, outsourcing is apt for you.

But apart from high ROI (Return-of-Investment), there are many reasons companies choose to outsource software development. According to the same survey in 2018 by Deloitte, businesses ranked these 5 top reasons for outsourcing their web projects. 

  • Faster speed to market
  • Scaling
  • Enhanced user experience
  • Competitive advantage
  • Cost reduction 

So there can be many benefits of outsourcing. On the downside, if you have small projects, or a local development team already, outsourcing can become costly and also demotivate your employees. So here is a list of cases when you should outsource web development services to top web development companies.

  1. When You Need Experienced Developers

    Outsourcing companies have well-trained teams of skilled web developers, QA engineers, and designers under the same roof.

    When you want an error-free and effective web solution, hiring an experienced web development outsourcing team will be faster and cheaper. Plus, the whole development team is already comfortable working with each other, so you will not face any management issues.

  2. Require Faster Time to Market

    Web development outsourcing vendors are experienced in working under strict deadlines. They have an efficient workflow that ensures maximum results in minimum time. 

    Such companies are well-versed in starting the project on the very first day you sign the contract. Thus, you gain a competitive edge by developing and launching quality web solutions in just a few months.

  3. Want to Enhance Your Business Process

    As digital solutions are becoming mainstream, you must look for an outsourcing partner who elevates the way you do business. 

    The right development partner can develop a custom web solution from scratch with your requirements in mind. This way your outsourced web development solutions will make your business processes more flexible, scalable, and agile.

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5 Steps to Outsource Web Development

So you have decided to outsource website development. Now what? 

How to find the right company? Should you hire a US-based or Indian web development outsourcing company? How much should you pay? 

Let’s find out. Here is a step-by-step guide on how to outsource web development- 

  • Define your project goal 
  • Define your project requirements
  • Define the timeframe, location, and budget
  • Find and shortlist web development companies
  • Choose outsourcing web development company
  1. Define Your Project Goal

    Each web application is different. Therefore the most essential step before starting any project is to define what your goals are with the project.

    Therefore, here is a list of questions to ask yourself before finalizing a web app project. 

    • What is the purpose of the web app?
    • What problem will the web solution solve?
    • Who will benefit from your web application (your target audience)?
    • What exact solution are you delivering to your users?
    • What is the USP of your idea? What makes it stand out?
    • Is there market scope for the idea?
    • What are your expectations from the app?
    • What is your vision for the web solution?

    These questions will help you set clear expectations about your web app idea. Additionally, it will give you a basic understanding to start the web development process.

    With defined expectations and goals, you will be able to convey your idea to the web outsourcing team comprehensively. Many times, if you are working with an experienced team, they will help you enhance your idea using creative solutions.

  2. Define Project Requirements

    With a clear project vision, it is time to list down the more technical features. Visualize the working of your web app. Think about what all features it will need.

    Some questions to ask for defining the project requirements – 

    • What kind of web solution do you need – such as web app, website, enterprise-level, CMS, eCommerce, or web portal?
    • Which platform do you want to launch it on – mobile, desktop, cloud, TV, tablets, wearables like smartwatches, hybrid platform, or cross-platform?
    • What are the basic features of the app? (The bare minimum the web app needs to work)
    • What are some other functionalities you need to add? 
    • What are unique features you want to add if any? (The extra feature to attract users)
    • Do you have an existing solution you want to build on? Or are you starting from scratch? 
    • Do you have to integrate the web application into an existing website or database?  
    • Which specialists do you need on your web development team – developers, designers, QA team, copywriters, SEO experts, database managers, marketing team?

    Do some research of your own to find your target audience and analyze what they need. Read case studies and take interviews of potential clients. This will give you an idea about your target audience. 

    To know more about the market and what features your web app should have, analyse your competitors’ sites and apps. Check for the features they have included, their marketing strategies, and what their users are complaining about.

    Before approaching an outsourcing IT company, make sure you have clear requirements backed with research. Most companies will do a thorough market analysis themselves before they start developing, but it is better if you have some basic market knowledge too.

  3. Define Time Frame, Budget, and Location

    Timeframe

    We can say with experience that every web project has unexpected changes that can completely disrupt your timeline. But still, you have to set some deadlines to ensure that your resources are not being wasted.

    Considering the project requirements, you can calculate the approximate time it will take to develop and launch the web application. 

    Some factors that affect the total timeline of your web project – 

    • Project scope 
    • The scale of the project 
    • Number of features required
    • Experience of the development team
    • Testing and quality assurance

    Based on the complexity of your app idea and how many unique functionalities you require, the development can take anywhere from 1 month to 12+ months.

    Location

    Choosing the place where your application will be developed is vitally important. Since web development is a labour-intensive job, the cost of web development depends on the location of the team.

    Today, the most popular locations to outsource web development are – 

    • Asia: China, India, Malaysia 
    • Northern America: The US and Canada 
    • Latin America: Mexico, Brazil
    • Eastern Europe: Poland, Ukraine, Romania
    • Western Europe: UK

    As you can guess, the price of development varies a lot for each of these countries. But keep in mind, low costs don’t necessarily mean low-quality products. The huge difference in the cost is due to the hourly wages for developers and engineers.

    For a quick comparison of the locations of outsourcing web companies, check out the table below which mentions the hourly rates of web development job profiles for these countries.

    Country Avg Outsourcing Cost
    Northern America
    US $75 – $190
    Canada $70 – $170
    Asia
    India $20 – $50
    China $35 – $80
    Malaysia $35 – $70
    Latin America
    Mexico $40 – $80
    Brazil $40 – $90
    Eastern Europe
    Ukraine $25 – $70
    Poland $35 – $85
    Romania $30 – $75

    Budget

    After having a time frame and a location set, you can calculate the approximate cost of your web app on your own.

    However, these factors also influence your web development cost – 

    • Project complexity
    • Features and functionalities
    • Development Team
    • Location
    • Time

    For a more detailed understanding, check out our step-by-step guide to estimating web app development costs on your own.

    Of course, the cost of development is not fixed and will change after you talk with different web development companies as they enhance your idea. But you will definitely get a rough estimate.

  4. Find and Shortlist Companies

    Finally, it is time to go deep and make a list of web development outsourcing companies. There are sites like GoodFirms, Indeed, and Clutch that will help you find an outsourcing company in a location of your choice and that fits your budget.

    • Past Work in Your Niche

      The best company to outsource website development is the company that already has worked on a similar project like yours. For example, if you want to develop a social networking web app, it is better to go with an outsourcing company that has previously developed similar web apps.

      This way, you will ensure that the development team is capable and understands your business goals. Also, they might even enhance your web app idea with their technological knowledge.

    • Company’s Portfolio

      Check the portfolio of the company. See what kind of products they have made and how effective their web solutions are. 

      Don’t get impressed by big names in the company’s portfolio. 

      The point of checking an outsourcing company’s portfolio is to find out their designing skills, copywriting skills, and the technologies they use. Focus on the quality of work instead of their clients. 

    • Client Reviews

      Worried outsourcing will be a bad experience? Did your last outsourced web project not work out?  

      Then read client reviews of the outsourcing companies. 

      Read about the experience of each company’s previous clients. Find out about the company’s work ethics, timeliness, communication, dedication, creativity, and trustworthiness. You can also find about their development cycle, their technological expertise, and how they respond to unexpected changes. This will help you decide if the company is worth your money.

    • Hourly Rates of the Company

      The approximate rates of the company are also an important aspect to consider. Choosing the bigger companies will cost more but will have more experience and credibility. Smaller companies may be cheaper but lacking in experience. 

      So keep in mind the hourly rates of a web development outsourcing company even before approaching them and getting a project estimate.

    • Social Networking Profiles

      Check the company’s websites, their social media profiles. Look at their Clutch, GoodFirms, LinkedIn pages to know more about the company’s working and their core values. You can also check their GitHub page if it exists to see their code.

    Take time to research different companies and shortlist a few considering all the above factors. There are so many web development companies around the world each offering a wide range of services. You are sure to find a few that fit your business needs.

  5. Choose Outsourcing Web Development Company

    Talk to the outsourcing firms you have shortlisted. Hold meetings with the companies, discuss your ideas and expectations.

    When you are interviewing them, consider a few important criteria – 

    • Which communication methods do they follow?
    • What deliverables can you expect?
    • Copyright and privacy statements
    • Division of the total budget
    • Which technologies do they plan to use?
    • Ask for references of previous clients you can talk to
    • The different payment methods and hiring models the company offers

    These are some of the important points that will help you figure out your equation with the company and whether they meet your criteria or not.

    One other important thing to consider – Vision

    Choose an outsourcing company where the web development team will understand your business vision and keep it in mind when coding. This will ensure that the team believes in your idea. If the team is as invested as you in the project, the end result will be much better.

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How to Ensure Outsourcing is Successful?

  1. Clear Communication

    According to Grant Thornton’s International Business Report, 98% of the participating companies reported that failed communication was the main reason for their outsourced projects not working.

    Communication is key in outsourcing web development projects. You and the development team are in different places working at different hours. The developer’s only source of information about the project is you. 

    Therefore, it is important to have clear and understandable communication that results in very little chance of misinterpretations.

    • Set up weekly meetings with the project manager.
    • Use some project management tool like Skype or Slack (we use BaseCamp) to keep yourself updated with the project’s on-goings.
    • Give feedback – positive and negative. Help the developers and manager to understand your thinking process.
    • Ask doubts – They are the experts but developers sometimes forget that not everyone speaks the language of tech. So ask questions and ensure you are on the same page with your team.
    • Ask for documentation – Maintain a singular source of information to streamline the project management. Clear documentation will help you and your team in understanding what is exactly happening in the code.
  2. Fill in the Cultural Gap

    If you are hiring a company based on the opposite side of the world, there are bound to be some cultural differences. What is a classic and elegant design for you may be different for them. While you value flexibility, they might function better with clear-cut instructions.

    Of course, established web development companies have experience working with US clients and do not face this problem. Nevertheless, try to minimize the effects of cultural differences on your project by organizing intercultural training sessions.

  3. Divide Your Budget

    Yes, coding and developing is the most important aspect of web application development. But there are other stages of the development lifecycle that are equally important.

    Most companies decide to skip testing, hoping to cut down the cost of development. But quality assurance is extremely essential. Most outsourcing companies spend around 20% of the total development budget on the testing and debugging process.

    There is no point in spending thousands of dollars on writing code if the code doesn’t work properly. Similarly, research about your target audience and competitors is vital. Not giving enough budget here can result in a product that no one wants to use. So divide your budget among each phase of the web development project.

  4. Sign NDA

    In today’s world, information and ideas are the most valuable currency. Therefore, it is very important to ensure that your web app idea is protected.

    When choosing an outsourcing company, make sure to ask for an NDA (Non-Disclosure Agreement). This will ensure that the idea remains your intellectual property, and if you share any confidential data about your business, it remains safe.

We have also answered some of the most asked questions in the next section. Check the web development cost, how to find outsourcing companies, and what to ask while hiring web developers.

Frequently Asked Questions

How much does outsourcing web development cost?

The cost of an outsourcing project depends on the complexity of the web solution you require. In general, if you are outsourcing to a US or Canada-based company, the cost of web app development will be as follows.

Type of Web Solution Simple Medium Complex Innovative
Approx Cost (in US) $3,000 – $15,000 $15,000 – $60,000 $60,000 – $2,50,000 $250,000 +

How to find outsourcing companies?

There are web platforms such as Upwork, Clutch, and GoodFirms that you can use for searching outsourcing companies. You can also talk to your friends and colleagues if they have outsourced web development. Another option is to hire a specialised team that will provide you with a list of appropriate companies suited for your web project.

What to ask when interviewing outsourcing companies?

Questions to ask when interviewing a company for your web project:
  • What development process do you follow?
  • What technologies are you proficient in?
  • What is the estimated cost for this project?
  • Are you willing to sign an NDA?
  • Can I choose a dedicated team for my project?
  • Have you worked on a similar project before? If yes, please share details
  • Can you provide some client references I can talk to?

Partner with the Top Outsourcing Development Company

Outsourcing web development is risky, but with planning and communication, you can have a well-developed web solution for your business. By following our 5-step process, you can find the right outsourcing vendor for your web development project.

If you want an experienced, trustworthy outsourcing partner who will understand your requirements, talk to us. Our developers are trained in creating innovative solutions on a budget. Contact us today to discuss and validate your idea for free. And don’t worry, we sign NDA even for a free consultation.

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Author Bio
Jigar Mistry
Jigar Mistry
Designation: CTO - Monocubed

Jigar Mistry is the CTO of Monocubed and is the main curator and writer of the content found on this site. He has 14+ years of experience in the information technology industry. He always believes in quality, in terms of code and application.