Quick Summary:

One of the most heated debates in an organization includes the popular: In-house web development VS outsourced web development approach when it comes to developing web apps. While companies have a fear of connecting with underdeveloped, insufficient, or unskilled outsourcing teams, they are even more concerned about the higher costs involved in in-house development. In this article, we have listed a comprehensive guide to outsourcing web development. By the end of this article, you will gain a precise piece of knowledge on what exactly web development outsourcing is, and how it benefits the companies. We have also listed 5 Myths related to outsourcing and brief steps on how to outsource web development projects successfully.

Introduction

Web development outsourcing

Outsourcing Web Development has turned out to be a major global trend today. Hardly any companies deny or contradict the benefits of outsourcing web development services. Large organizations and businesses have been outsourcing for years as a famous option to build an MVP. The best part is the technological advancements are making it easy for small businesses as well, to outsource web development projects.

As online presence becomes more and more vital, outsourcing is gaining the same hype as well. However, several companies run out of time, money, resources, and people to build a website in-house. In such cases, opting for outsourcing is the best decision that organizations can make. Delegating certain tasks to outsourcing companies is more beneficial than handling them with in-house developers. If you wish to know how to outsource web development today, read on!

What is Web Development Outsourcing?

Several Companies use an external contractor to finish all the web development activities instead of leaving the task up to the in-house team. This process is known as web development outsourcing.


Why do Companies Outsource?

Although the major reasons to outsource vary and depend on a lot of factors, there are generally 3 ideal motives of companies to outsource. Under Deloitte’s research,

  • The chief reason for companies to choose to outsource includes saving up to 59% of company costs.
  • The second reason states that outsourcing enables companies to concentrate on their core competencies up to 57%.
  • Around 47% of companies outsource duties like web designing and Web development to solve capacity issues.
Why Companies outsource web development?

Benefits of Outsourcing Web Development

Reduced Costs

According to data from Glassdoor, a senior Ruby on Rails developer in the US has an average salary of $110,00, whereas, in Eastern Europe, it is more than half or less. However, you must also look into the other necessary costs involved in the hiring process like work equipment, rent for office space, insurance, etc. Usually, companies can save between 20-75 percent of costs with outsourcing. You know you can reduce software development cost by hiring dedicated developers.

Risk Sharing

When companies outsource, they put their part of the risk on the contractor. Simply put, the contractor embraces all risks on the company’s part. A fixed price model enables companies to put up maximum risks on the contractor besides the material model and time that shares risks between both parties.

Zero Hiring Hassles

Wish to build a team of your own? Try these:

  • Introduce a hiring process and establish it
  • Find good candidates
  • Convince them to put their hands on your project
  • Onboard your new members successfully
  • Mentor them well
  • Encourage them in terms of professional development.

When you choose to outsource, you skip each of these irksome actions.

Benefits of Outsourcing Web Development

Add an Expert to Your Team

By outsourcing, you get to connect with experts you lack. Outsourcing opens doors to finding experts from around the globe. These experts can provide you with incredible and non-trivial ideas. How did we miss this? An international team helps to a huge extent when it comes to building a global-oriented web development.

Focus On The Necessary

Once you hire an outsourcing team, you can focus on the rest of your projects and perform your duties better. While assigning them their work, you can carry on with other important tasks like business modeling, generating and validating hypotheses, market analysis, or competitor analysis.

Hire The Best

If you wonder which outsourcing team to choose, make sure you go for companies with a good reputation globally. Furthermore, you can grab this opportunity to find creative minds as per your budget. You can reinforce your current team by adding professionals from all over the globe whenever necessary.

Change Specialists

Although micromanagement is not healthy, having the privilege to fire experts according to your work can be highly useful.

Swift Development And Delivery

The total count of global websites released every year is huge. This further indicates that you need to hurry up with your release to gain higher chances of success.

Less-Zero Stress

With a reliable outsourcing team, you can rest assured that they will cover up all the known and unknown risks so that you can stay calm during the development procedure.

Achieve Greater Flexibility

Looking back over the years, flexibility has become one top reason why companies opt for outsourcing. Surviving in this competitive market is a tedious task. Being ready to adopt changes and implement them in businesses is what is the need of the hour. Speaking of service providers, bear in mind that the changes, the possibility of offering fast deployment, using a modular architecture, and adopting agile processes make them ready to adopt the changes.

Want to Leverage these Benefits of Web Development Outsourcing?

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Above were a few benefits that companies obtain when they opt for outsourcing. Although the list has experienced a huge impact over the years, outsourcing is doing an excellent job when it comes to maintaining its popularity. Below is a small discussion on the Myths related to Web development outsourсing. Let’s uncover their roots.

Myths Associated with Web Development Outsourcing

Myths about Outsourcing

The outsourcing world is filled with prejudices and myths. Below, we have listed and busted the most common type of web development myths.

Myth 1: One Bad Attempt = Waste of Trying

If a team fails to succeed in the first attempt, it is usually said to give up. However, a second approach is always beneficial. An organization that tries to stay ahead of its competitors can crack the attempt a second time. The best part is, every successful IT company has one failure story. This straightway denotes how an organization succeeds by taking a second chance.

Myth 2: Intercultural Communication Does Not Work

Mon-developed companies strongly assume that interacting with individuals belonging to a different culture is tiring and worthless. However, this challenge is too exaggerated. Although it can be true to an extent, there are no issues that cannot be resolved. Bear in mind that the contractor belongs to an IT company regardless of where they are from. The professional IT environment is the same everywhere.

Myth 3: Major Language Issues Will Occur

Several IT companies around the globe consider English as an official working language. Anyone looking for outsourcing prefers communicating in the English Language. Although sometimes the issue exists, it can only occur at the initial stage. As long as you understand each other’s communication and work pattern, it’s good to go.

Myth 4: Only I Can Do It

This is a very common misinterpretation among small organizations and startups. Founders prefer doing everything of their own at the initial stage. However, as the company grows, things become difficult to manage. As a result, the company bears a loss. The advice here is to stop forcing yourself and take the initiative to welcome other experts in your team for incredible success. The more brains, the more ideas!

Myth 5: Outsourcers Will Misuse My Personal Data

Although we cannot consider this as a myth, it is true to some extent. There are always risks of stealing personal data. However, let us think about this rationally. The considerable profit that a contractor can get from your data is usually negligible. In case a data leak is detected, it harms the reputation of the contractor. Hence, unless your data consists of any treasure map or web design specification, you don’t need to stress it.

How to Outsource Web Development?

How to Outsource Web Development

You need to follow a few steps and refrain from making hasty decisions when it comes to outsourcing. To get a brief knowledge of how outsourcing works, make sure you examine the entire framework thoroughly. Below we have listed a brief on how to outsource web development projects.

1. Decide and Clarify

First things first, know your project requirements and your final goal. Consequently, make sure you define each of your expectations precisely to the outsourcing team. Don’t hesitate to disclose each detail of your project.

2. Calculate Time-Frame and Budget

As every outsourcing region charges different rates, pay keen attention to this factor, as having a budget will help you select the one that best suits your needs. Discuss the length of the project and set a deadline. Communication is the key. The more you open up, higher chance that you will receive the best. Make sure you choose the type of outsourcing as well: Onshore, Nearshore, Offshore.

3. List all Potential Vendors

Once you select the type of outsourcing you want, search web development vendors. You can check on the web or go with recommendations. Make a contract with the one that meets your needs, budget, has a good reputation, and is responsive. The contract must include payment details, provisions, and your services. Additionally, sign an NDA contact with them to restrain from leak or data.

Minimum Team Needed for Outsourcing Web Development Services

Generally, if you are thinking of outsourcing, make sure you have a minimum set of four web development members in your team. Below is a table with specific roles that the experts specialize in.

ROLE DESCRIPTION
Project Manager The Project Manager(PM) is the conductor of the entire development team. The PM develops your product exactly like you wish to. They keep track of your time, budget, and progress. Although they are always on your side, they understand and manage the entire team tactfully.
Backend Developer This developer plays a key role in outsourcing web development. Selecting a poor backend developer leads to a disastrous end product. Ideally, they look after the server-side of your project. An expert backend developer will always provide excellent solutions to make your product even more scalable, productive, and customizable.
Front-end Developer The front-end developer looks after the client-side of your project. This expert specializes in the stage that comes between coding and designing. They are highly knowledgeable about technologies, thus ensuring that the end product provides an excellent user experience and supports different systems, operating systems, browsers, and devices. This expert plays an important role as well when it comes to front-end development outsourcing.
Designer The designer plays another incomparable role. They are in charge of giving an attractive look to your product that appeals to the customer’s eyes. A highly qualified and skilled designer will incorporate your entire idea into the project and show the clients what they are eager to look at. A key point here is, having a great design eases the outsourcing of web development services globally.
It involves a lot of boilerplate code It reduces the boilerplate code


Factors Influencing the Overall Cost of Web Development Outsourcing

There are many factors that play a role in determining the final cost of outsourcing web development and designing. Besides the company being a major factor, few others include:

  • The complexity of the project and tech stack
  • Hourly average rates of each specialist involved in the project as per the countries they belong to.
  • The total number of experts involved in the project
  • The timeframe/deadline of the project

Outsourcing Costs in Different Countries

Today, outsourcing web development is quite easy. This is because a lot of countries are blessed with highly skilled outsourcing experts. However, when firms and businesses plan to outsource, cost is the prime factor that plays a vital role. At the end of the day, money matters, and every company looks forward to saving money. The below table depicts the average hourly rates of outsourcing in different countries.

REGION COUNTRY OVERALL AVERAGE HOURLY RATE
Eastern Europe Ukraine $25-$75
Poland $35-$85
Romania $30-$75
Latin America Brazil $50-$120
Argentina $40-$100
Mexico $40-$110
Asia China $35-$60
India $20-$70
Malaysia $35-$60
North America The US $150-$215
Canada $135-$190

With the above-listed table, you can make an easy decision on how to outsource web development for your company considering your business’s suitability and profit margin. To sum up, while American and European countries charge a higher hourly rate, Asian countries offer affordable and reasonable solutions.

At Bacancy, we offer a non-disclosure agreement signed, transparent pricing options, and secure coding with full rights to the client.

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Conclusion

Although time difference can be a problem for an international outsourcing company, experienced companies manage excellently and offer smooth communication. They shift their schedule to fit in with your timezone. Never neglect that communication is the key to a positive and successful outsource web development. As a client, you can always contact the Project manager to clarify your doubts and ask for progress. Make sure that you communicate well because staying on the same page is essential. Once both of you settle down and the workflow is established, see how your company reaps the extensive benefits of outsourcing web development.

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