Proven Ways to Cut Outsourced App Development Costs

Outsourcing app development can bring huge benefits only if you know how to avoid the traps. Here are a few cases which can serve as eye openers.

Lured by the fixed-price model, an enterprise delegated its app development task to an offshore vendor. By the time the project was half complete, the vendor had already charged them 115% of the original fixed-price budget. The enterprise found itself stranded as backing out and starting all over again would have proved as costly as continuing with the vendor.

In yet another case, an enterprise entrusted its task to a company without enquiring much about its history. It soon discovered that the company had an abnormally high rate of attrition. While the project was on, four key developers quit the company for a competitive company. Consequently, the developers had to be replaced with new ones who were all at seas trying to understand the requirements and the coding completed by those who had quit. In this case, the enterprise had to put with a huge delay which cost it big money.

When a startup approached a reputed vendor for an app, they were made to sign a deal which kept them out of the development process. When the app was finally delivered, it was found wanting in all respects.

If you are planning to outsource app development, you may well find yourself caught in inescapable and cost wrenching situations like this. In this blog, we will be talking about ways to check costs from spiraling out of control.

Give Wide-Berth to the Fixed-Price Model

In most cases, a fixed price model is a trap which makes you shell out more money by way of additional charges. Such models are tailored keeping essential features out of the required list. As you cannot do away with the needed features, trying to introduce them after the agreement will push up the costs.

Evaluate Your Vendor

Remember, only vendors who comprehend your business can do a good job for you. Listen to the vendor and take note of the questions they ask. The more interested he is about your market, your competitors and your objectives, the better are the chances of getting your work properly done.

Investigate Vendor Turnover Rates

Ask the company to guarantee that the people who started the project will see it through. Speak to all the developers working on your task on a weekly basis. This way you ensure you have no fresher in your project. Also, make sure the vendor provides you with developers who have worked on similar projects before.

Push for Important Features First

Make sure your vendor develops features that are most important to the end-user first. This way you will have more time in hand to dabble with the critical features and also have a working product in the shortest possible time.

Following these tips stedfastly, will help you keep outsourced application development costs under strict control.