Outsource-Mobile-App-Development

Engagement Models for Mobile App Development

19

Jun. 17

67.5 K

VIEWS

In this mobile driven world, Business associate IT outsourcing with cost efficiency and price arbitrage. Why not do more for less?  Statistics state that around $288 billion has been spent globally for IT outsourcing services and according to Deloitte reports, 53% of businesses outsource their IT functions. The reasons for these staggering figures to outsource mobile app development is quite simple: Due to sheer amount of benefits of outsourcing, it is highly implemented across different domains.

Mobile app development outsourcing helps to reduce and control expenses, reduce the time to market, accelerate company transformation.

However, when you decide to outsource mobile app development, selecting the best service provider and most importantly the engagement model becomes difficult task.

When it comes to selecting the engagement models, you are generally offered three models : Fixed Cost Model, Time and Material Model and Dedicated Hiring Model. Each model has its own pros and cons. Selecting appropriate engagement model for your business need complete analysis to outsource mobile app development.

To simplify the decision, let’s go through all three models.

Fixed Cost Model

You have to define the scope, requirements and timeline and pay a decided amount of fixed price for the final product. This helps a low risk option for the clients and is almost best suited for the situations when scope and specifications for the projects are clear.

When to Choose Fixed Cost Model?

  • When you develop small or medium project that do not last for more than few months.
  • Requirements are clear enough, well-defined and unlikely to change much.
  • You want to test a new contractor, before you hire them as your permanent vendor.

Advantages:

  • Transparency ensures timely delivery according to the release plan.
  • At the project assessment stage itself, the process of development is divided into individual tasks. Thus, the workflow can be seen before it is initialized.
  • It is pre-negotiated and predefined model.
  • Complete access to reports on the development process
  • Well-versed with any kind of projects

Disadvantages:

  • Limitation in communication.
  • There are scope-related risks, amendments in the scope will result in a change in the price.
  • Minimum flexibility

Time and Material Model

Project and efforts are estimated in terms of  execution time and resources deployed.If you are willing to invest in the gradual and continuous development of quality app development, then this can be the perfect model.

When to Choose Time and Material Model?

  • You do not have clear requirements and also have constantly/regularly evolving needs.
  • The project is large, complex and requires multiple iterations.
  • Requirements are fluctuated on time.
  • You appreciate transparency in customer-vendor relationships

Advantages:

  • Unlimited Communication
  • Flexibility to change the needs without modifying the agreement
  • Freely prioritize the tasks
  • Complete access to reports on the development process
  • Well-versed with any kind of projects
  • Simplified project specification amendment as per the market needs.

Disadvantages:

  • Price fluctuates based on the time and effort invested.

Dedicated Hiring Model

Under this model you can hire dedicated developers for your development purpose and keep the task and project management in-house. You only have to pay a fixed monthly fee for each resource you use. You are flexible to select skilled resources  and complete development process with knowledge retention.

When to Choose Dedicated Hiring Model?

  • You have in-house staff and can manage the direct projects
  • Long-term or ongoing project(s) which need outsourcing mobile apps continuously
  • You have a fair vision about your project evolution and enough resources to stay on top of all management aspects
  • You need more man-power to augment your  in-house development team

Advantages:

  • The service provider is responsible for the administrative support, infrastructure, performance and hiring resources.
  • You have complete control over the resources in the development strategy.
  • Easy to change the priorities and tasks.
  • Complete access to reports on the development process
  • Well-versed with any kind of projects
  • Imparts a deeper knowledge to developer about overall business case and actual goals.

Disadvantages:

  • Need substantial managerial experience and a technical background.

Outsource Mobile App Development to LetsNurture

LetsNurture is one of the leading provider of web & mobile app development services giving you access to qualified and experienced professionals with a sound domain knowledge. Moreover, we have catered many applications in different niche.

When you outsource mobile app development to LetsNurture, you can expect cutting costs, superior project control and dedicated resources. Get in touch with us to know more about our services. You can write to us at info@letsnurture.com

Author

Sunil Veluri
Posted by Sunil Veluri

Blog A directory of wonderful things

6 Business Models That Online Marketplaces Use to Earn Money

As the ongoing pandemic continues to push consumers to shop online and get delivery directly to their homes in a bid to stay safe from the spread of Covid-19, online …

Store sensitive data using KeyChain

There is always some sensitive data that our App holds for instance, Passwords, Touch Id, Certificates, Tokens or Biometric information. In general, React Native does not come bundled with any …

How to Tackle & Manage SKUs as an Ecommerce Business in 2021

If you are just starting to build up your eCommerce business, you may have started thinking about the size of your inventory but not necessarily, how you are going to …

How to setup Contact form 7 plugin In WordPress

Contact Form 7 is the most popular and oldest WordPress contact form plugin. It is easy to integrate and equally easy to deploy. For setup contact form 7 follow the …

Setting up a multi-platform SwiftUI project

What is SwiftUI? Before SwiftUI, we were designing iOS applications User Interface into storyboards. Storyboards are an imperative user interface. From June 2020, Apple released SwiftUI for design applications in …

Steps to Create Apple Enterprise Developer Account

The Apple Developer Enterprise Program allows large organizations to develop and deploy proprietary, internal-use apps to their employees. This program is for specific use cases that require private distribution directly …

React Native: First Demo

Let us start to build our first React Native application on Windows as a development operating system and Android as a target operating system. If you are looking to set …

AdMob Mediation in Android

We all know about Admob Ads very well. Here, I would like to explain what mediation features and how it will be useful for developers. Let’s take a simple one …

How to Setup Twilio Package for SMS in Laravel

In your application workflow, you may need to pass important information to your users. Most services require your users to have an internet connection and unfortunately, this isn’t always the …

Kotlin Coroutines in Android

Multithreading is a well known programming concept which all developers might have come across. The concept of multithreading is a vast subject and includes complex mechanisms in it, but in …

Google in app purchase in android app

Before we start with app purchase, Let’s get a basic idea of what type of digital content we are selling to users. Google’s Billing system gives us mainly two types …

COVID lockdown has brought the digital future forward

The Novel Coronavirus epidemic that has spread its tentacles worldwide almost brought business and the economy to its knees. With no way of attending office, how are employees supposed to …

The Impact of COVID 19 on Restaurant & Hospitality Industry

Coronavirus has literally crippled the economies of different countries catastrophically and has forced many industries to put down their shutters for long. Some have closed down temporarily abiding by the …

AI for Pneumonia Detection

The risk of pneumonia is enormous for many, especially in the nations where billions face energy poverty and rely on polluting forms of energy. “The WHO estimates that over 4 …

AI for Food Detection

“Four simple ways to fight diabetes/Obesity: Go for regular medical check-ups; Exercise more; Watch your diet, and Cut down on soft drinks.” – Singapore PM Lee Hsien Loong (Nvidia Research …

Django vs Laravel vs Node js

Web Frameworks are basically software packages that ease the complexity of web development. They come with many inbuilt features that are common in web development, thus minimizing the development time, …

Tech in Prenatal Care-Empowering rural women with a mobile first avenue for information

In the era of wireless technology, where there are more mobile phones than people, mobile applications play an important role for rural women to improve their maternal health. Technology is …

Survival of the Fittest is now the Survival of the Agilest

A joint study by Forbes magazine and Scrum Alliance has found that Agile practices are gaining a lot more popularity among SME businesses and across sizes that and include startups, …

How agile will transform the organization framework?

Innovation is no longer just about new technology, it is about new models of organization. The high tech breakthroughs that do count today are not only about speed and performance …

How do Chatbots benefit Businesses and Marketers? What do your consumers expect from the bots?

According to compounded annual growth rate (CAGR), global chatbot market is projected to account for $1.23 billion by 2025. Tools designed to simplify the interaction between humans and computers have …

CONTACT US

Have an !dea or need help with your current business?

loading...
We use cookies to give you tailored experiences on our website.
Okay