How to Outsource Web Development: The Complete Guide How to Outsource Web Development: The Complete Guide
Review: 5- 5 5 How to Outsource Web Development: The Complete Guide

How to Outsource Web Development: The Complete Guide

Rating
Project Management
12 Jan 2024
24 min read
Update:

Those who choose to outsource web development say it’s one of the best possible solutions when creating a website or web application. If you can’t afford to hire your own product team or want to wait to do it, outsourcing gives you access to experienced developers (like Fireart Studio). 

Outsourcing can be beneficial for you regardless of the size of your business. It’s often easier to create a website by outsourcing web development because it can pay off in many ways, including cutting costs, reducing time to market, or making it easier to access top IT startup app development company professionals. That’s why outsourcing web development has become pretty popular nowadays. Find out more in our guide below.

How to Outsource Web Development in 2023: The Complete Guide
Discover the top-quality outsourcing web development with Fireart

Outsourcing, outstaffing, and in-house team

How to outsource web development? To gain a clear understanding of the processes, you need to distinguish web development outsourcing models. 

Outsourcing model

Outsourcing is the practice of employing third parties to carry out activities previously undertaken by the company and was first recognized as a formal business strategy in 1989. 

When a business hires another business to deliver goods or services that it could otherwise produce on its own, we call this outsourcing. On the other hand, outsourcing is when a business employs people from another business to work for it.

Development outsourcing is a business strategy in which a company performs core business tasks with the help of its own (internal) staff and transfers non-core tasks to external contractors – outsourcing companies.

More and more companies need highly specialized developers. The rapid evolution of the technology space drives this trend. It’s not easy to build your own team that can keep up with the innovations appearing every day.

That’s why companies are looking for outsourcing service providers specializing in quality and working seamlessly with multiple providers to achieve the desired result. As an alternative to investing in software and hiring new employees, web development outsourcing allows businesses to create professional software products and get help without having to build a permanent internal team.

Even IT giants like Google, Slack, Microsoft, Alibaba, and GitHub have resorted to outsourcing. Outsourcing saves money and time, preserves staff flexibility, creates speedy innovation, increases control over internal resources, and so much more.

So, what is web outsourcing? This is a full or partial transfer of work to solve problems in the IT field. The obligations of the outsourcer, goals, and objectives, as well as the deadlines for finishing work, are agreed upon prior. You can outsource web app development, any kind of product or platform development as a whole, or just separate parts of the project. 

Outstaffing model

Outstaffing is a remote recruiting strategy in which a third-party contractor offers their primary customer a dedicated team of IT specialists, such as web developers, software developers, software testers, or any other resource, as a distant resource for their IT project.

Simply put, outstaffing is the transfer of some employees from the employer’s staff by registering them in the staff of a legal entity of a company engaged in outstaffing. Generally, employees work in one place but are employed in another company.

In-house team model

What’s an internal or in-house development team? When you hire team members directly as employees, you have an internal development team. They might be sourced from your current staff or hired on demand. Employees of a firm or organization carry out internal work or activities as opposed to personnel from outside the company or organization. The ability to better control the project is one of the main reasons businesses employ in-house teams. 

So, software development, if done in-house, is likely to require a lot of your attention. This is a process that needs to be carefully controlled. By outsourcing software development to a team of experienced programmers, quality assurance professionals, and project managers, you can focus on core business processes that you might otherwise neglect. 

Since your technical partner will manage development and keep you informed of progress, you can devote your time to other efforts. This way, when your product is finally developed, you’ll be better prepared to launch and run sales and marketing campaigns.

What are the benefits of web development outsourcing?

Why is it good to outsource web development? Outsourcing allows a business to concentrate on its core functions. Among other things, it’s used to reduce the cost of labor. 

Here you’ll find a range of benefits that you’re sure to get if you apply any of the outsourcing models in your business processes.

Time efficiency

Firstly, outsourcing web application development saves time, personnel, and resources. A full-time IT specialist is expensive: the salary is higher than the service cost. Additionally, full-time employees have to be more social, i.e., demand additional expenses, etc. Thanks to their vast experience, the outsourcing company’s employees perform their work as quickly and efficiently as possible. As practice shows, full-time specialists work more slowly, and their decisions may often worsen. 

Deep expertise

The second advantage of working with an outsourcing company is the extensive experience it’s likely to have. Creating software isn’t only about knowing how to code it but also about understanding how to manage the process. By outsourcing web development, you hire developers and project managers with experience in managing software development. As a rule, such companies’ employees are real experts in their field. Thanks to this, optimizing workflow and minimizing intellectual and material costs is possible.

Cost efficiency

The third benefit of website development outsourcing is cost efficiency. A company specializing in web outsourcing is cheaper and, unlike a full-time specialist, doesn’t have the habit of going on vacation with the whole team of specialists at the eleventh hour.  

Focus on business priorities

Business priorities are initiatives or objectives that assist your team in completing regular tasks and any additional responsibilities. Stay focused on your business priorities while your team develops a successful product. Making decisions or setting tasks to improve your company’s productivity may fall under this category, too. So, that’s a good reason to outsource website development.

Services from top experts

One of the best benefits of outsourcing web development is the fact that you get the best top experts with proven reputations and years of experience. Outsourcing gives you access to programmers, designers, project managers, and creative people worldwide who can contribute to the success of your project. To create such a team, you must spend time and money recruiting the right people, but an outsourcing company will do it better and faster.

Risk management

With the help of outsourcing web development, you may also minimize the danger and anxiety related to your project launch. With outsourcing, an expert development team can work under the guidance of a talented project manager. This person takes care of all development-related risks. They organize the project’s construction, correspond with the client, and resolve internal problems.

How to outsource web development

Making rash decisions is something businesses should be careful to avoid when thinking about outsourcing website development. Before researching your possibilities for outsourcing web development services, it’s critical to clearly understand the major stages of web development that your project will need to pass through and then consider the key steps of outsourcing.

Define your core business goals

You need to come up with a clear idea of your needs and the scope of your project before contacting a web outsourcing service. Development teams, like any other specialists, can’t read minds; thus, you should:

  • Create a project task chart.
  • Be clear about the requirements, features, technologies, and projected cost.
  • List the benefits and drawbacks you expect from picking an internal team vs external experts.

Generally, strive to be as specific as you can about your needs and preferences because, in the world of technology, having upfront, understandable expectations is half the battle won.

Set a budget

From startups to corporations, every project has its budget. And budgets have limits. Outsourcing is a good idea if you need to cut costs to meet your business goals. 

Though you are saving massively when you choose to outsource web app development compared to hiring an in-house team, these savings will only show if you keep a close eye on the budget. 

Research the market and set a budget for your project. It’d be great if it allowed for some wiggle room, as there probably will be some fluctuations. Discuss the budget with your chosen vendor. The good sign is if the vendor gives you an approximate range instead of a fixed number. From there, you can discuss it and adjust the project elements to meet your needs in the best possible way. 

Find the partner

Finding a web development outsourcing vendor who is also a reliable partner is the next step once you’ve determined your demands from a commercial and technical perspective. Be sure you don’t forget anything and go ahead and find an ideal service.

Choose your outsourcing model

Choose an ideal form of outsourcing. Based on proximity, there are three basic categories of outsourcing: 

  • Onshore
  • Nearshore
  • Offshore

While offshore and nearshore outsourcing offers more affordable pricing, onshore outsourcing makes communication simple.

1. Onshore sourcing

Onshore outsourcing is when a client searches for ways to outsource web development operations to another state within the client’s own country or region.

By outsourcing to a local business, you can eliminate language and cultural barriers and cut expenses and risks associated with training your own staff to build an app.

A client shouldn’t, however, choose an onshore outsourced web development business if they wish to save money. It will also affect how quickly outsourced design or development is completed.

2. Outsourcing on the nearshore

This kind of sourcing for software development is when you outsource web application development to a business situated in the same time zone. The fundamental benefit of outsourcing to countries close to the client is that there’s a cultural and linguistic fit.

When comparing how to outsource to nearshore versus onshore, the former enables more cost savings during web development and, as a result, accelerates business processes.

Yet, nearshore outsourcing still prevents you from selecting the provider with the best level of competence.

3. Offshore

Employing web engineering staff based overseas is referred to as offshore or international outsourcing.

The likelihood of a client and an offshore outsourced web development business having diverse languages and cultures is very high. Yet, the majority of foreign sellers speak English.

Outsourcing software development to an overseas location has many benefits.

A client can gain access to the broadest pool of qualified specialists by hiring an offshore company to outsource the development of a web platform without having to pay a lot of money. All ongoing processes are also accelerated by it.

An outsourced development team must adhere to the agreed-upon contract terms and adhere to time constraints and other restrictions. It’s an essential component of outsourcing web development.

Think about these different forms of IT outsourcing and pick the one that best suits your needs and professional objectives:

 

Onshore Nearshore Offshore
Cost-Effectiveness Low
Medium
High
Speed
Medium

Medium
High
Quality/Expertise Low
Medium
High
Risks Low
Medium

Medium

 

An outsourced development team must adhere to the agreed-upon contract terms, time constraints, and other restrictions. Being on the same page about these is an essential component of outsourcing web development.

Top countries for outsourcing software development

How to outsource web development to get the best bang for your buck? First, choose the region wisely. Outsourcing of code development has become widespread. The traditional leaders in the field of IT production are China, India, Eastern European countries, including Ukraine, and more. Let’s check on the best countries to outsource development.

India


India is currently regarded as one of the top nations globally for outsourcing software development. The population of India represents 17.7% of the world’s population. It’s one of the most important sites for many businesses to outsource their software development. 

Recent studies show that India’s software business is expanding by 60% annually.

Over the past three decades, India’s market for software development has expanded by more than 30%. 

Up to 100 countries are already receiving its software services exports. 

The Software Industry Analysis Study claims that developers from India are highly qualified technical graduates. 

India’s software market is five times less expensive than, say, those in North America.

An hourly fee of roughly $25, based on India’s Clutch. Indian web development companies often charge an hourly rate of $10 to $15 on Upwork.

Common coding languages include Java, C++, and Python.

Bangalore, Chennai, Mumbai, and Kolkata are the top tech cities.

Ukraine

Outsourcing software development to Ukraine may be advantageous for your project.

Ukraine is the largest country in Europe and the 44th largest country in the world. The demand for a workforce skilled in information software technologies is always increasing internationally, and around 200,000 specialists in Ukraine service thousands of businesses.

Ukraine showed a 20% increase in information technology growth in 2020, and even in the time of the full-scale war, they’ve managed to grow their IT export. So, if you have your doubts, dismiss them. You can outsource web application development to Ukraine without a second thought. 

According to Clutch, Ukraine has an affordable hourly price, ranging from $25 to $100 per hour, depending on the seniority of your developers. Upwork says Ukrainian coders are often paid $20–40 per hour.

Common programming languages include Python, Java, and Ruby.

Kyiv, Kharkiv, Dnipro, Lviv, and Odesa are the top tech cities.

Romania

In 2023, Romania joined Ukraine as a desirable location for outsourcing. By 2025, Romania’s 14.3% active information technology industry growth is anticipated to double. A well-organized educational system helps to foster this high-quality growth. 7,500 new software developers will graduate this year.

The first high-tech software unicorn, UiPath, as well as numerous offices of major international software firms, including Microsoft, IBM, HP, Oracle, Intel, Luxoft, and Amazon, are located in Romania.

Prices: Clutch and Upwork’s pricing rates range from $25 to $49.

JavaScript, NodeJS,.NET, C#, ReactJS, and PHP are common programming languages.

Top Tech Cities: Bucharest, Sibiu, Iasi, and Cluj-Napoca.

Poland

Poland, like Ukraine, is in Central Europe but has traditionally been seen as being in “Eastern Europe. A recent report claims that Poland competes with Ukraine, with over 100 enterprises and 255 thousand highly educated software team specialists.

According to Kearney Global Services Location Index research last year, Poland was ranked as the twelfth most desirable outsourcing destination. Poland has a sizable pool of software engineers and is also reasonably priced. 

According to Clutch and Upwork, Poland charges between $25 and $100 per hour for offshore software development. Smaller locations like Katowice are where you may find the lowest quality products for $25 to $50. The highest ones are found in Poland’s major tech outsourcing hubs, such as Warsaw and Krakow.

Common programming languages include Python, Java, SQL, and C++.

Top Tech Cities: Lodz, Kraków, Warsaw, and Kraków

China 

China and Taiwan are just a few of the Asian nations that rank in the top 10 outsourcing destinations worldwide.

The Asian region is excellent for outsourcing software projects, with up to 200 software organizations and about one million employees. Is it the best place to outsource web development? Some say so, while others struggle with cultural differences. 

The #1 destination for offshore enterprises is China. It offers the most qualified software developers with excellent English skills at the most reasonable costs.

Software developers in China typically charge up to $50 per hour.

Python, algorithms, and functional development are common programming languages.

Top Tech Cities: Shenzhen, Beijing, and Shanghai

Philippines

The Philippines has been on the list of best outsourcing countries for a decade. It’s fantastic due to its low expenses, competitive market, and strong software history. Software development in the Philippines has developed into one of the more well-established sub-sectors of the nation’s information technology industry, according to the Philippines IT Industry study.

Costs range from $25 to $49. The average hourly wage on Upwork ranges from $15 to $35.

PHP, ASP.NET, Ruby on Rails, and ASP.NET Core are common programming languages.

Leading tech cities: Manila

Argentina

Argentina is one of the best-educated nations in Latin America. It’s a superb strategic location for software development and startup project evaluation. It makes sense that Argentina has a large number of IT outsourcing businesses. In the QS Higher Education System Strength Rankings, the nation sits at twenty-one. The high level of English in South America is another plus when deciding which state to offshore from.

Just two hours separate Argentina from the States and around five from Europe in terms of time zones. Also, it’s only a four-hour flight from Silicon Valley to this region. This makes it the best place to outsource web development if the time difference matters for you. Not so much from the financial side, though.

According to Clutch, web development costs $25 to $100 per hour. The hourly prices for Upwork in Argentina range from $25 to $55.

Frequently used programming languages: Java, Python, SQL, Distributed systems development.

Top Tech Cities: Buenos Aires.

What factors affect the cost of outsourcing web development?

Consider the quality of the product or service and the firm’s unique selling proposition as you compare the prices of various outsourcing companies. See what each provider has to offer beyond their standard services. To help you create your plan, manage the transition, and make sure your outsourcing journey is successful, Fireart always offers consulting support for web application development outsourcing.

Cost of living

The cost of living is the sum of money required in a certain area and time frame to pay for necessities, including housing, food, taxes, and medical care. To compare how expensive it is, for instance, to live in one city against another, the cost of living is frequently utilized. Living expenses are influenced by salaries. So, you need to consider this before choosing a contractor with an ideal team.

Risk management

There are dangers associated with outsourcing a web development team, including those related to data security and business control, as well as incompatible business processes. As a result, your potential outsourcing provider needs to have a risk management strategy and plans for dealing with unforeseen events.

Regular performance evaluations, examinations of contract compliance, and other risk reduction techniques should all be part of the plan. An efficient outsourcing provider examines every facet of the project to make sure everything goes as planned.

Support for infrastructure and IT

Technology support and infrastructure are essential to the effectiveness of an organization. When outsourcing, confirm that the intended provider is utilizing the appropriate technologies. Check to see if their infrastructure is up to date, as good IT support and business infrastructure help ensure progress by supporting efficient project coordination and management.

Payment models

The two most widely offered cooperation models are the Fixed Price and Time and Materials. In a fixed-price agreement, you make the full project payment after the finished good is delivered. In a time and materials agreement, payment is made following the completion of a predetermined amount of work and is based on an agreed-upon hourly or daily rate.

Fixed-rate

It’s the ideal pricing mechanism for projects with constant requirements. This model requires a clear definition of the scope and specifics of the project. We will assign a qualified team to work on your project at a fixed price.

The fixed-price outsourcing model is used when project requirements and deadlines are defined. At a fixed price, the customer and the third-party team agree on and carefully enter into the contract the requirements, stages, terms, and cost of creating software.

By signing the contract, the client entrusts the remote programmers with the project from A to Z, but with a guarantee that the price won’t change during the work or after the project is deployed. One fixed-price contract also implies that during the development process, the client isn’t allowed to change or add requirements that have not been approved and recorded in the contract.

The contract is recommended for projects of any scale: from testing outsourcing to website builder development outsourcing.

T&M

It’s sometimes complicated for managers to predict the success or failure of a project at an early stage. Some clients feel helpless trying to clearly define what will work well for a project and what will not.

A flexible contract must be signed to accommodate unexpected changes that provide a time and material outsourcing model. A time and material contract allows requirements to be modified to meet business needs at any time during the development process and only pays for the actual development time and effort.

Dedicated team model

In most cases, complex long-term projects require an in-house development team. But what if the skills of internal developers aren’t enough to implement the project, and there is no time to participate in the laborious process of finding technical talent? A dedicated team outsourcing model will help you get out of any dilemma.

You should also receive assistance from your potential outsourcing provider in assigning the project manager to oversee an overseas staff. You will be able to coordinate the project more easily if you do this rather than constantly checking in on its status.

A good outsourcing company has a team of experts who are qualified to produce excellent outcomes. If you’re looking for a company to deal with, pick the one that has workers with your required stack and can onboard them quickly.

The customer pays monthly for each specialist hired, including a fixed fee for the services of an outsourcing company. Control over the progress of the project, along with the number of programmers, remains in the hands of the customer. This allows you to work directly with our developers. This is a much more affordable option than hiring a new employee and more reliable than using an untested freelancer.

How to ensure outsourcing is successful

Outsourcing requires meticulous planning for the collaboration to thrive, just like any other business strategy. Apply the best practices to ensure better security and outsourcing success.

Make partnerships with the right outsourcing company

Reliability and reduced costs are the main goals of outsourcing for both the company and the service provider. Outsourcing has its advantages, but partnering adds a substantial new dimension. Partners who are reliable and solid always watch out for one another.

Gauge your potential provider’s industry expertise

It would be best to evaluate your prospective provider’s knowledge in the sector. Start by reviewing their portfolio in terms of previous projects, client feedback, and achievements or distinctions.

You can gauge their credibility and track record using this information. By confirming that your objectives align with the vendor’s processes and services, you will discover how the outsourcing company runs its operations and keeps up with trends.

Sign NDA

A nondisclosure agreement (NDA) is a written contract between two or more parties that states that the parties will keep any sensitive information obtained during their business relationship to themselves. 

NDAs offer vital security for business owners who communicate secret information with potential partners or investors, their workers, and contractors, much as the privacy agreements that safeguard confidentiality between doctors and patients and between attorneys and their clients.

Sign a service-level contract

Services and standards you anticipate from your provider may be outlined in a service-level agreement (SLA), a contract between you and your outsourcing partner. Make sure an SLA’s terms and conditions are precise and understandable before you sign it.

The SLA eliminates any potential for confusion on each project party’s obligations and goals, which helps to prevent issues related to unfulfilled needs. It’s wise to get the advice of a legal expert if you’re unsure about the details of your SLA.

Conclusion

We hope that this complete guide answers your questions about how to outsource web development. Hiring a specialist through outsourcing without long-term obligations is often more beneficial than building a great in-house team.

Outsourcing web app development from a top web development company is a great option in cases when you need the expertise and results fast. All you need is to know your case and the peculiarities and set a budget and terms. By outsourcing, we at Fireart Studio can give our clients the high-scale service they’ve come to expect from their favorite brands while freeing up time and resources so they can concentrate on other areas of their business. 

Are you looking to outsource website development? We at Fireart Studio have delivered numerous projects for clients from all types of industries and all regions. Don’t hesitate to get in touch — we will be happy to answer your questions and give you a free consultation. 

Got a project in mind?

Reach out to us at Fireart, and we'll help you bring it to life

Your name
Email
Message

Our Clients

Over 200 brands have built their products with us at Fireart. Yours might be next!

Rolls-Royce
Limehome
Just Eat
FREE NOW
Bolt
TheoremReach
Pipedrive
Back Office
Toggle
Google
Atlassian
ByNext
Swisscom
JAM
dots