Does your Ruby on Rails business application need highly specialised tasks? Does it require expertise on  additional technologies that your current in-house team lacks? Does the need for specialised skills and expertise within your company’s internal team trouble you? Are you seeking to ensure the smooth progression of projects with readily available expertise? 

If you’re experiencing any of these challenges, you’ve come to the right place. In this article, we’ll walk you through what to anticipate when outsourcing an application development team, along with the essential factors you need to consider.

With over a decade in the application development field, Mallow’s expertise extends to guiding businesses through custom application development. We understand the complexities involved and are well-equipped to illuminate the essential considerations when partnering with an external team for application development.

By reading this article, you will gain a comprehensive understanding of why and when outsourcing your application development is a good choice. As a result, you can make informed decisions on when to embrace outsourcing and reap its multifaceted advantages for successful application development.

When is the right time to outsource your application development?

  • Scenario 1: When knowledge gaps arise within your in-house expertise

When your in-house team lacks the specific technical expertise required for a complex application the development project, turning to outsourcing can be a good decision. Application development often involves intricate programming languages, frameworks, and tools that demand a specialised skill set. 

Outsourcing gives you access to a pool of specialists who possess the requisite knowledge and experience to address the project’s unique challenges effectively. Outsourcing not only expedites the development process but also elevates the overall quality of your end product. Additionally, outsourcing grants your organisation the valuable advantage of flexibility, enabling you to adjust resources according to your unique project needs.

  • Scenario 2: When you need to stay within a budget

Outsourcing often proves cost-effective because it comes without the need to recruit and train additional staff. Outsourcing allows you to find skilled professionals at competitive rates, which reduces your overall project costs. The truth is that outsourcing application development can be more cost-efficient than hiring an in-house team.

Outsourcing eliminates overhead costs such as salaries, benefits, office space, and equipment. Outsourcing also allows access to skilled professionals in regions with lower labour costs. This can result in substantial savings while maintaining the quality of work.

  • Scenario 3: When you have the pressure of a tight timeline

Tight deadlines or the need for rapid development make outsourcing an attractive option, as external teams can dedicate more resources to expedite your project.

Outsourcing removes the burden of micromanagement, as the external team assumes a substantial share of the project’s management responsibilities. This shift in responsibility allows for your internal team to focus on core tasks and strategic decision-making. The streamlined communication and collaborative workflows with an experienced outsourcing partner can result in more efficient project execution, reduced stress associated with micromanagement, and enhanced productivity.

  • Scenario 4: You need to access the latest technologies 

External experts can tailor the latest technologies to your specific requirements, ensuring that your application leverages the technology in a way that enhances its functionality and value.

External development teams often specialise in a range of technologies and stay current with the latest advancements since they have worked on applications across different domains. This expertise allows them to suggest and implement the most suitable and effective technologies for your application’s specific needs.

  • Scenario 5: You need to mitigate the risks associated with launching your application

Established outsourcing partners often have a proven track record, mitigating the risk associated with new or unfamiliar projects. By collaborating with a reputable and experienced outsourcing provider, businesses can tap into a pool of specialised talents without bearing the full burden of recruitment, training, and management.

Outsourcing allows you to distribute the risks related to project management, budgeting, and timelines, as the responsibility is shared with the outsourcing partner. With well-defined contracts and service level agreements, businesses can ensure that their development needs are met within established parameters, minimising the potential for unexpected setbacks.

  • Scenario 6: You need to scale up resources based on demand

If your project’s size fluctuates, outsourcing allows you to easily scale resources up or down without the long-term hiring commitment. Outsourcing provides flexibility to scale resources up or down based on project requirements. This prevents the need to maintain a large in-house team during periods of lower demand. The main reason behind this is outsourcing companies often have established infrastructures and expertise, leading to economies of scale. This enables them to offer services at competitive rates.

  • Scenario 7: You want access to the best possible talent to develop your application. 

Outsourcing provides access to a diverse talent pool worldwide, enabling you to choose from a wide range of skilled professionals. Collaborating with an outsourced team provides the flexibility to work with partners in different time zones, enabling round-the-clock progress.

What are the benefits of outsourcing your application development?

  • Cost savings

Outsourcing development to countries with more budget-friendly labour can significantly reduce expenses compared to hiring an in-house team. This includes savings on salaries, benefits, infrastructure, and operational overhead. Outsourcing contracts often provide clear cost structures, making budgeting and financial planning more predictable. Outsourcing eliminates the need to invest in additional infrastructure, hardware, and software licenses required for development.

  • Access to expertise

Outsourcing allows you to tap into a global talent pool of skilled developers, designers, and other professionals specialising in various technologies and industries. If your application is intended for a global audience, outsourcing to a team from different regions can provide insights into regional preferences and cultural nuances.

When contemplating outsourcing your application development, you gain the added advantage of not training your in-house team in the advanced additional technologies, which might be required for your project only for a short span of time. The outsourcing team will shoulder the responsibility of staying current and implementing these technologies, allowing you to focus on other aspects of your project with confidence. 

This relieves you of the burden of constantly monitoring the rapidly evolving tech landscape, ensuring that your Ruby on Rails application remains cutting-edge and competitive in the market. With the expertise of the outsourcing team, you can expect efficient adaptation to emerging trends and seamless integration of new features, ultimately saving you both time and resources.

  • Faster time-to-market

Finding and hiring skilled developers can be time-consuming and challenging. Outsourcing eliminates the need for lengthy recruitment processes. With an experienced outsourcing partner, you can accelerate the development process, launch your application sooner, and gain a competitive edge in your market.

Many outsourcing companies have dedicated quality assurance and testing teams to ensure that the developed application meets high-quality standards before launch. Outsourcing offers flexibility in scaling your development resources up or down based on project demands. This agility can be crucial for managing peak workloads or unexpected changes.

What to look for in an outsourced application development team

Building an application development team is a critical phase demanding thoughtful attention to secure project success. As you construct your team, several pivotal aspects deserve your focus. Start by identifying the specific skills and expertise tailored to your project’s needs, whether it involves mobile app development, web creation, or other specialised domains. Search for teams who boast a robust portfolio underscoring their pertinent work and technical prowess. Effective teamwork hinges on solid communication skills, ensuring seamless collaboration and a clear grasp of project objectives. 

Pay attention to the importance of cultural alignment, as a harmonious team dynamic can significantly elevate productivity. Evaluate the team’s familiarity with your preferred development tools and methodologies, along with their adaptability to emerging technologies. Draw insights from references and feedback from past clients, illuminating the team’s professionalism, dependability, and ability to meet deadlines. Scrutinising these aspects enables you to fashion a proficient, united application development team primed for triumph.

For efficient application development team hiring, refer to this article on how to hire an application development team.

Common challenges faced while outsourcing an application development team

Common challenges faced Ways to overcome the challenges
Communication barriersEstablish clear communication channels, use video calls and project management tools, and ensure all team members are fluent in a common language. Regular updates and check-ins are vital.
Time zone differencesPlan overlapping working hours for real-time collaboration, define core working hours, use asynchronous communication tools, and prioritise documentation for continuity between time zones.
Cultural differencesConduct cross-cultural training, promote open discussions about cultural nuances, and encourage understanding and respect among team members from diverse backgrounds.
Quality controlSet clear quality standards, establish a comprehensive testing process, ensure regular code reviews are being conducted, and define expectations for deliverables, coding standards, and bug-free code.
Lack of direct controlEmploy effective project management methodologies, provide detailed project briefs, establish milestones, and maintain regular progress updates to ensure project alignment.
Data security concernsImplement stringent security protocols, sign non-disclosure agreements (NDAs), use secure communication and collaboration tools, and choose outsourcing partners with proper certifications like ISO.
Dependency on outsourcing partnersMaintain a diverse network of partners, consider multi-sourcing for critical components, and have contingency plans in place in case of unexpected issues with your primary partner.
Hidden costsClearly define the project scope, deliverables, and associated costs upfront in the contract. Regularly review project progress and expenses to identify and address any potential cost overruns.
Loss of domain knowledgeImplement a thorough knowledge transfer process, document project details comprehensively, and encourage collaboration and regular interactions between the in-house and outsourced teams.
Managing remote teamsPromote a culture of trust and transparency. Set clear expectations, roles, and responsibilities for each team member.
Legal and contractual challengesWork with legal experts to draft well-defined contracts that cover intellectual property rights, liability, confidentiality, and dispute resolution procedures.
Unforeseen changes in RequirementsBuild flexibility into the project plan, establish a change management process, and maintain clear channels of communication to address and adapt to changing requirements promptly.

How much do outsourced application development companies charge?

By now, you have a clear idea about how outsourcing your Ruby on Rails application development would look like. You have an overview of when, why, and how you need to opt for the option of outsourcing your Ruby on Rails application development.

Once you are done with examining the overall picture of the option to outsource your Ruby on Rails application, your next action item would involve determining the cost that you would incur while working with an application development team. But Hold on! Even before that, you first need to understand all the factors an application development team considers in the cost they charge you.

The final cost of developing an application is determined by several factors that application development companies take into account. These factors include the type of business model, target users, and services, which help to frame the app’s budget design. The app’s complexity, design, platform, and features are also significant factors that determine the cost of developing an application.

Check out this article on how application development companies determine the cost they charge to get deeper insights into what factors application development companies consider before they arrive at the final cost that they charge you. 

Feel as if Mallow could be the right choice to build your Ruby on Rails application? Check out this article,  Is my Ruby on Rails project right fit to be built by Mallow to get a complete idea about your project’s compatibility with team Mallow.

Still, wondering from where you need to take your next step? Feel free to reach out to our team.



Sathish is an accomplished Project Manager at Mallow, leveraging his exceptional business analysis skills to drive success. With over 8 years of experience in the field, he brings a wealth of expertise to his role, consistently delivering outstanding results. Known for his meticulous attention to detail and strategic thinking, Sathish has successfully spearheaded numerous projects, ensuring timely completion and exceeding client expectations. Outside of work, he cherishes his time with family, often seen embarking on exciting travels together.

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