How to Outsource Web Development: Costs & Tips

Iva Kozlovskaya
Managing Partner

Updated – 23 May 2024

Online presence has become a must-have for businesses of all scopes. Large enterprises and lean start-ups should leverage advanced technologies and cost-effective solutions to stay on top of the game. However, not all companies have enough bandwidth and specialized teams to handle all the tasks. This is where outsourcing web development comes into play. Outsourcing is cost-effective for 70% of businesses since it saves money on recruiting in-house employees. Besides, many large and small companies outsource their operations to improve efficiency.

However, many firms have concerns about missed deadlines, misplaced trust, and shady vendors. To debunk these myths, Qubit Labs has conducted a thorough research regarding the main reasons for outsourcing and elaborated an algorithm for selecting a reliable vendor to outsource web development. Qubit Labs started as an outsourcing company, but we currently provide outstaffing services. They include recruiting carefully selected candidates, onboarding recruits, retaining dedicated technical teams worldwide, running back-office, and managing accounting and legal issues. Our company has ten years of expertise in various verticals and has over 37 satisfied customers across the globe. Therefore, we will share relevant information and valuable insights based on our experience and explain how to outsource web development.

 

Table of Contents

Reasons to Outsource Web Development Services

Reasons to Outsource Web Development Services

Many companies are delegating various duties to outsourcing companies to scale and focus on core tasks. Based on our company’s experience, outsourcing can save costs and time and speed up custom web development. However, why do startups and large enterprises outsource web development services? We’ve compiled them below.

For Startups

Qubit Labs collaborated with various startups to facilitate their growth. For instance, we worked with VentureRock, a venture-building and venture-investment platform. We matched the company with a professional, dedicated team, and the platform gained more control over the development process, necessary analytics, and improved budget control.

venture rock case studies

Lack of in-house web specialists

It is crucial to use outsourcing web development to expand human resources. The startup will gain access to experienced professionals and close the talent gap, increase its time to market, and improve its scaling process in the future.

Lack of time & money

Capital efficiency is paramount for early-stage startups operating on seed or Series A funding. The outsourced web development eliminates the need for an in-house team and reduces overhead costs (taxation, office space rental, etc.). For instance, companies in Asia and Eastern Europe can still provide immediate cost savings of up to 75%. Thus, when every dollar counts, it is a significant savings. The company can invest its capital in other tasks.

Lack of tech expertise 

Many startups at the beginning of their journey need greater access to qualified professionals. Therefore, outsourced web development provides an opportunity to collaborate with specialists from all over the world. They, in turn, will help implement the most effective tools and methods that will shorten the startup’s time to market and increase profits.

For Established Companies

Scalability and flexibility are key for established enterprises. Qubit Labs collaborated with Roomeze, a full-service room rental company. Our cooperation has resulted in significant expansion and stable growth of the company.

Roomeze

Need to expand an in-house web team

Some large companies prefer to hire a separate specialist with the necessary skill set. It reduces costs and allows the company to focus on future goals or ongoing tasks.

Launching a side project

Large corporations are constantly evolving to be competitive. They are continually hunting for innovative solutions to existing issues or testing new concepts. An outsourcing company is best suited to improve a current solution or test a future one. Your web development team can focus on significant tasks, while outsourced employees can be involved in another project.

Looking for advisors

Top players in the IT industry embrace outsourced web development services and opt for cooperation with advisors for several reasons. Skilled subject matter experts (SME) help clients adopt new technologies, increase user experience (UX), cut project costs, and meet security regulations. Other primary reasons for outsourcing are emphasis on process standardization and efficiency, capability development, and delivering business value.

 

Benefits of Outsourcing Web Development

The software outsourcing industry will grow further in 2024, owing to increased demand for web, app development, and software solutions. The worldwide market for IT outsourcing is expected to reach 777.74 billion US dollars in 2028. So, if you are considering outsourcing web development, now is the right time. You can contact Qubit Labs and share your ideas with us. We can recruit talented experts in various locations worldwide (Ukraine, Poland, Romania, Bulgaria, Moldova, Georgia, Azerbaijan, Portugal, Mexico, and Brazil) specifically for your business needs.

Benefits of Outsourcing Web Development

Cost Savings

Instead of hiring an in-house team of web developers, companies opt for web development outsourcing or outstaffing services. As a reliable outstaffing partner, Qubit Labs will find the best team to fulfill your business needs. It will maximize your resources and allow you to create a top-notch product. With outsourcing, you can adjust your scalability and manage your project budget. For instance, recruiting engineers in Eastern Europe may be more cost-effective: the average hourly rate is $66 compared to $182 in the US.

Access to Expertise

If you need professional expertise, then you should outsource web development. Businesses can utilize outsourcing to tap into a vast pool of specialized expertise and advanced technology that would otherwise be unavailable in-house. This involves experience with current programming languages, frameworks, and tools. This enables businesses to gain new perspectives on their project and leverage unique skill sets for cutting-edge solutions. Qubit Labs has access to an extensive talent pool, and we hire teams in various countries: Ukraine, Poland, Bulgaria, Romania, Georgia, Moldova, Portugal, Azerbaijan, Brazil, and Mexico.

Increased Efficiency

Outsourcing web development is a win-win option if a company has frequently changing project requirements, as it allows scaling resources up or down when needed. Outsourcing companies offer effective project management solutions. Hence, the superior quality of the product, efficient workflows, and adherence to deadlines should not be doubted. 

Based on our experience, remote teams can better meet all business needs than an outsourcing model. Therefore, we provide outstaffing services. Our company ensures reliable cooperation, transparent communication, full engagement, and seamless workflow. You can check out our clients’ reviews here.

Flexibility

Outsourcing web development is an excellent solution for companies that want to scale up or down. You can hire as many employees as you need. In addition, new players on the team can expand your horizon, improve your performance, or bring in new, innovative ideas. Furthermore, outsourced web development allows you to react quickly to shifting project requirements without sacrificing quality or financial resources. 

On top of that, outsourced web development services enable companies to take on complex projects that require a unique set of core competencies. With access to an international pool of highly skilled experts, you will always remain competitive in this dynamic industry. 

Focus on Core Business Activities

Outsourcing web development allows businesses to focus on their primary business operations while leaving technical issues to skilled experts. They include various financial operations, customer support, sales and marketing, and human resources. This strategic focus will help companies improve their performance and ensure holistic growth.

 

How to Outsource Web Development

How do you outsource web development successfully? Based on our experience, we’ve created a step-by-step guide for you to get a grasp of how outsourced web development works and how to avoid making hasty decisions.

Here is a breakdown of how to outsource web development.

How to Outsource Web Development_

Determine Your Goals

Before deciding on outsourcing web development, you must clearly define your target audience, expectations, and specific goals for your project. A clear goal statement at the beginning will help you avoid wasting time and minimize the chance of budget overruns.

Define the Project Scope

A clearly defined project scope will help you properly determine the project budget, required scope of functions, tech stack, and timeline. It is imperative to decide on the technology needed to implement the project. This will help you find professionals who can do the job well and on time.

Estimate Budget and Timeline

Determining the budget you will be working with and the project schedule is paramount. Be sure to define milestones, deliverables, and payment terms. This will help ensure clarity and transparency throughout the outsourced web development project.

Select Outsourcing Model

Do you want to know how to outsource web development? Choosing an outsourcing type is vital. Here are the main models of web development outsourcing.

Onshore outsourcing

The onshore approach (local outsourcing) involves outsourcing custom software development teams located in the same country or region.

Pros

  • There are no cultural or language barriers.
  • The time zone is the same.
  • Local outsourced web development companies understand the market and its needs and easily customize services according to customers’ requirements. This significantly saves your resources, as the company spends little time on research.
  • You and a web development outsourcing company are in the same country, so you comply with the same law regarding intellectual property protection.

Cons

  • Costs are higher than in nearshore/offshore models as domestic companies are tied to the client’s economic environment.
  • The choice of experts is limited, so in some cases, you may not find the talents you need for your project.

Nearshore outsourcing

Nearshore means that an outsourcing web development company can be located in a neighboring country.

Pros

  • There is no significant difference in time zones.
  • The cost of services is often less than in the onshore model due to lower living costs. For instance, a single individual’s monthly cost of living in Argentina is around $441 (without rent), compared to roughly $1,166 in the United States. 
  • Cultural and linguistic similarities ensure an effective workflow.

Cons

  • It offers a slightly limited talent pool compared to Eastern Europe, a hot spot for outsourcing. According to Clutch, there are 3629 software development firms in this region.
  • Compared to offshore outsourcing, the rates are higher.

Offshore outsourcing

This approach entails hiring a web development team in another country with a different time zone.

Pros

  • Offshore companies offer tax benefits as they are tax-exempt in some countries. This affects the cost of services.
  • They offer an extensive choice of talents with solid tech skills.
  • Offshoring may significantly cut operating costs due to cheaper wages and living expenses in some remote locations. 

Cons

  • There may be cultural differences as well as language barriers.
  • Different time zones may cause feedback issues.
  • The offshore crew may function under various regulatory frameworks.

Which model of cooperation is better? Qubit Labs recommends considering the primary business goals, evaluating the budget, and the needed tech stack. Our company has access to a global talent pool, and we hire specialists in Europe, Portugal, Mexico, and Brazil. Thus, we will always find the best option to meet your needs.

Research Vendors

If you’ve decided to outsource web development services, compile a list of essential requirements. It can be the company’s location, experience, expertise required, hourly rate, reputation, successful cases relevant to your business, and the company’s values. You can search for the best firms in the location you need on Clutch. Check out their portfolios and reviews. Then, list the top 10 vendors and do a more thorough analysis.

A great solution is to contact one of the company’s previous clients and set up a brief call to clarify the details you’re interested in. In some cases, a substantive conversation with one company can replace hours of independent research.

You can also evaluate their case studies and assess their culture. To do this, you can request an introductory call.

How to Outsource Web Development: Interview Potential Vendors

If you wonder how to outsource web development, our pro tip is to conduct an in-depth interview. You should ask the right questions to gain a deep understanding of how the workflow will function. Iva Kozlovska, Managing Partner at Qubit Labs, decided to share some useful tips for interviewing a potential vendor.

  • Has the company worked with projects similar in scale and complexity to my project?
  • What companies have you collaborated with? What were the deliverables? Do you continue to cooperate with them now? (This question will help you understand how interesting, influential, and unique the outsourcing company’s clients are).
  • What are the criteria for hiring employees? What are the A players you work with? (This question will shed light on the company’s requirements for applicants, their hiring process, how carefully they select the best match for projects, and what necessary hard and soft skills the specialists possess).
  • Where is your company located?  (This is important for understanding work style, talent selection and cost, time zone differences, and general data protection rules. For example, if a US client will be working with a partner in Europe, it is essential to understand how GDPR applies. For instance, various laws apply to data transfers in the United States). 
  • Do you have a ready-made team for my project? (This question gives you insight into who will work on the project. If the company needs to recruit, then they should specify a timeframe, and it should meet your requirements and expectations).
  • Will there be budget changes and rate increases? (This point is vital if you have a restricted budget).
  • Understanding the nature of the collaboration is key for my project. Could you please provide details on the minimum collaboration period and the scope of work? (If you need one person to perform specific tasks several times a month, then it is better to consider cooperation with freelancers).

Select a Vendor

Here are some interesting tidbits on how to outsource web development after selecting a vendor.

  • Sign an NDA agreement to avoid data leakage.
  • Prepare a contract statement listing the required scope of services, terms and conditions, milestones, deliverables, timeline of services, and payment procedure.
  • We recommend adding a clause about the outsourcing company’s liability in case of non-performance, partial performance, or poor quality of services. This clause may take the form of a financial penalty.

Got a Project in Mind? Tell Us More.

How to Outsource Web Development: Maintain Clear Communication

Experienced teams always organize effective communication despite time differences. Various tools such as Zoom, Slack, and WhatsApp are used for communication. In addition, a project manager (PM) oversees the workflow. This person is supposed to provide you with regular updates, deliverables, and workflow details. The frequency and timing of the meetings are negotiated individually.

 

A Typical Team for Web Development Outsourcing

Project Manager

Project managers ensure quality project delivery as required, within budget, and on time.

Skills

  • Excellent communication skills
  • Strong logic and consistency in decision-making
  • Ability to think outside the box
  • Solid analytical and self-discipline skills

Responsibilities

  • Creating a plan
  • Implementing the plan
  • Tracking/reporting
  • Completing the project
  • Establishing the timeline, budget, and staffing requirements of a project.
  • Monitoring and controlling workflows, resolving conflicts, and adapting the plan to changing requirements using various project management tools.
  • Timely reporting of project KPIs, budget, and resource management.
  • Ensuring quality project delivery: obtaining feedback on whether all requirements have been met or information on problems that must be resolved.

Business Analyst

This professional conducts thorough data analysis, identifies challenges and new opportunities, working closely with all stakeholders.

Skills 

  • Impeccable communication skills
  • Analytical thinking
  • Great organizational skills
  • Consultative skills
  • A deep understanding of networks, databases, and other relevant technology

Responsibilities

  • Putting together business requirements
  • Developing and tracking requirements
  • Conducting acceptance testing
  • Accepting change requests
  • Conducting interviews with parties to identify functional and non-functional requirements.
  • Analysis of software compliance with industry standards (e.g., DSS, HIPAA).
  • Drafting software requirements (functional and non-functional requirements, budget, and schedule).

Project Architect

The main task is to control and guarantee that the product will be developed in compliance with all necessary criteria: safety, scalability, and maintainability.

Skills

  • Knowledge of software development principles (e.g., SOLID, DRY)
  • Excellent analytical skills
  • Strong communication skills (ability to clearly explain technical requirements)

Responsibilities

  • Leading the technical direction of projects.
  • Collaborating with PMs to determine project timelines and budgets.
  • Documentation of data models, APIs, and web architecture.
  • Identifying performance, security, and scalability risks and eliminating them.
  • Collaborating with quality assurance (QA) teams to ensure the product meets all requirements.

Web Developers

Web developers create secure, functional, and user-friendly websites and web applications.

Skills

  • HTML/CSS skills
  • Analytical skills
  • Knowledge of JavaScript
  • Knowledge of APIs, SQL, and databases
  • Interpersonal skills

Responsibilities

Back-end developers
  • Server-side development.
  • Creating APIs, databases, and their integration.
  • Performance optimization and troubleshooting.
Front-end developers
  • Developing custom features and functionality of high-quality web solutions.
  • UI/UX optimization.
  • Maintaining the structure and design of the solution and troubleshooting based on user feedback.

Testing and QA Specialists

They ensure the smooth functioning of digital solutions.

Skills

  • Accuracy
  • Great analytical thinking
  • Flexibility and time-management skills
  • Strong attention to detail and problem-solving skills
  • A solid knowledge of various testing techniques and tools
  • A strong understanding of web development practices

Responsibilities

  • Creating test plans to ensure quality control.
  • Conducting various types of testing.
  • Reporting.
  • Identifying bugs and eliminating them.

 

Top Countries for Web Development Outsourcing

LATAM vs Eastern Europe
for Web Development Outsourcing

Eastern Europe

Eastern Europe offers reasonable prices and a vast selection of specialists with excellent technical expertise and a decent command of English.

IT Outsourcing in Ukraine

Rates: $25-$80 for devs

In Ukraine, the IT Services industry’s revenue will reach $3.42 billion by 2024, according to Statista. It’s one of the best destinations to outsource web development. With IT hubs in Kyiv, Lviv, Dnipro, Kharkiv, and Odesa, Ukraine offers the best specialists who are proficient in popular programming languages (Kotlin, Ruby, Swift, C++, TypeScript, Python) and are at the forefront of new technologies (machine learning and AI). Hence, Ukraine offers excellent expertise, solid English skills, and reasonable rates.

Poland

Rates: $30-$95 for devs

According to Clutch, there are 794 outsourcing companies in Poland. These firms offer an extensive pool of talents with excellent hard and soft skills. However, due to the high demand for specialists, Poland has high rates for outsourcing services.

Romania

Rates: $30-$95 for devs

With over 120,000 diligent IT specialists in Romania, the country offers an abundance of experienced tech professionals capable of solving even the most complex technological issues.

Latam Region

Latam region is a relatively new destination for outsourcing. This region offers affordable services, but professionals need more technical literacy.

Mexico

Rates: $40-$190 for devs

Mexico offers affordable rates and a good selection of professionals. Outsourcing firms allow American companies to communicate without time and cultural differences.

Brazil

Rates: $50-$200 for devs

Brazil is one of the most technologically advanced countries in Latin America. It offers a wide variety of web development outsourcing services.

Argentina

Rates: $40-$180 for devs

Argentina specializes in productivity software, enterprise software, application development software, and system infrastructure software. The most popular programming languages are PHP and ASP.NET.

Where is the best place to outsource web development? Based on our experience, your decision should be tailored to your web project and budget specifications. We hire employees in different locations, including Eastern Europe, Portugal, Mexico, and Brazil. Our qualified staff will match your dream team to create customized business solutions.

 

How Much Does It Cost To Outsource Web Development?

Several factors affect the cost:

  • The scope of the web project and its complexity
  • Technologies used
  • The size of the team that will be working on the project
  • The geographical location of the team, which determines the cost
  • Timeframe for implementation

Here’s a table illustrating the approximate cost of various web development projects.

 

Type Features Approximate Costs
Basic website A minimalist web design with flat textures, a few pages, and basic functionality. $300-$5000
E-commerce development These web portals feature different categories, order management capabilities,

customer management, discount and promotions management, and store settings (delivery and payment options).

$10,000-$250,000 or more
Custom web application Sophisticated features and database integration. $100,000 – $250,000 (mid-complexity web apps), $300,000+ (complex)
Mobile app development Excellent design, great user experience, and advanced features. $5,000-$50,000 (simple apps), $50,000-$100,000 (medium complex), $100,000- $300,000 (complex)

FAQs: Outsourced Web Development

How can I ensure the quality of work when outsourcing?

Based on our unique experience, we want to share some interesting tidbits that can help you ensure superior quality work.

  • Choose your outsourcing web development counterparty responsibly. Be sure to read testimonials and conduct interviews. If you struggle to choose a web development partner, compare several companies’ techniques and styles. To do this, assign them the same project and analyze which result you like better.
  • Check out the outsourcing company’s processes to see if you will get the expected level of quality.
  • Discuss the subject of making revisions right away. Find out if they make refinements, how promptly they fix errors, and if this option is free.
  • Before the web development company starts work, discuss all the details of the cooperation, clearly explain your expectations, and outline your requirements.
  • Regular communication is essential for a productive collaboration. Discuss a schedule of meetings via Zoom or Slack to receive updates and discuss all the necessary details.
  • Always give feedback and discuss processes and performance against your expected standards when needed.

What are the disadvantages of web development outsourcing?

Based on our experience, we can highlight the following disadvantages of outsourced web development.

  • In some cases, a company’s ability to protect a client’s intellectual property from theft or leakage to competitors may be questioned.
  • Project management problems can arise due to misunderstandings about objectives, tasks, and communication.
  • Geopolitical or cultural issues can be a challenge. The time difference with the outsourcing partner should be moderate so that you can monitor the project’s progress and manage the outsourced team. Poor communication skills or language barriers often cause cultural concerns.
  • Some companies focus on quantity rather than quality. This can lead to poor results and missed deadlines.
  • Moreover, legal complications may arise if the laws of the outsourcer’s country differ significantly from those in your country.

We recommend choosing outstaffing over outsourcing for the following reasons:

  • You have full control over the development process. You can track results at every stage of development.
  • You can expand or reduce the number of employees working on the project as needed.
  • By cooperating under the outstaffing model, the service provider handles all additional costs (taxes, fees, and accounting).

Our company has over 37 clients worldwide and has found over 450 specialists for them. Qubit Labs provides reliable, transparent, and efficient cooperation. Feel free to contact us to discuss your project.

What is the best platform for finding a reliable web development agency?

Our ultimate recommendation is Clutch. You can use various search queries, for instance, “outsource website development,” “mobile development,” “outsource web app development,” “professional web development services,” or “website development services” to shortlist potential vendors.

You can rest assured that all reviews are authentic, as the site managers verify them after interacting with the customer. You can read testimonials about our company on Clutch or in the corresponding section on our website.

What are the red flags to avoid?

Iva Kozlovska, Managing Partner at Qubit Labs, decided to share recommendations on what red flags to watch for regarding outsourced web development.

  • Deceitful companies do not provide transparency about their operations. They will not indicate whether they are working with staff in a legally compliant manner, nor can they provide clear answers to questions about the services offered or outline the team’s expertise.

How we lead:

Qubit Labs is transparent about its processes, staff, timelines, and service costs.

  • Unscrupulous contractors do not communicate via video calls and have poor communication skills. Besides, a lack of communication can result in misunderstandings, poorly executed projects, and missed deadlines.

How we lead:

We have transparent communication channels, and all employees have excellent English language skills, so communication barriers will not be an issue.

  • An unreliable vendor will not provide a diverse portfolio of completed work or have unique expertise in your field.

How we lead:

The company provides case studies in various industry verticals: fintech, healthcare, real estate, logistics, education, media, and development.

  • Beware of low prices or steep discounts. Remember that top-notch quality never comes cheap. Besides, a dishonest company will not deliver specific estimates.

How we lead:

Our company always provides detailed information about the cost of our outstaffing services.

  • Pay attention to staff turnover. If the company has a bad corporate culture, improperly built work processes, and low pay, then constant personnel change is inevitable. A successful company always cares for its employees and encourages a positive and productive work culture.

How we lead:

At Qubit Labs, we work with many specialists on a long-term basis (four years or more).

  • If a company refuses to sign a non-disclosure agreement, it is better not to cooperate. The risk of disclosing confidential data or selling technology to a competitor is high.

How we lead:

We always sign the necessary documents to ensure the confidentiality and security of client data.

How do I protect my intellectual property when outsourcing web development?

Both parties must sign a non-disclosure agreement. The contract may also include a clause prohibiting the outsourcing provider from working on similar projects for competitors.

What should be included in a proposal from an outsourcing vendor?

The exact content of the outsourcing proposal depends on the cooperation model and approach. However, the common elements are the following:

  • Project plan (estimate, timeline, deliverables, communication schedule);
  • The technology stack used and the architecture of the solution;
  • Design;
  • Project management process;
  • Risks and solutions;
  • Options for ongoing support;
  • Company’s portfolio and client testimonials.

 

Bottom Line: Outsource Your Web Development to Qubit Labs

Thus, outsourcing web development is the way to go for startups and established enterprises. Numerous benefits of outsourcing include increased efficiency, reduced labor costs, excellent risk management, an impressive talent pool, and flexibility. However, if you want to gain more control over the development process, get trackable results, and achieve more flexibility, choose outstaffing.

Are you looking for a reliable partner to find the best remote team? With over ten years of experience and expertise in various verticals, Qubit Labs ensures smooth and prosperous cooperation. These numbers speak for us:

  • 37+ satisfied clients from all over the world in 10+ different industries.
  • 18+ countries where our clients are located.
  • 450 filled vacancies for our clients.
  • Ten hiring locations.

Our company will provide comprehensive information on costs and their optimization, the best hubs for hiring talented employees, and offer unique practices to help you achieve your goals.

Do you want to scale your software engineering team, or are you a startup and don’t know where to start? We’re happy to help. We will find the best remote team to suit your needs. You can drop us a line or book a free consultation call. We’ll be delighted to answer all your questions and share valuable insights.

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Iva Kozlovskaya
Managing Partner

Iva Kozlovskaya is a Managing Partner of Qubit Labs. Founder of social project created for women – WIT Ukraine.
Iva has been working in operations, sales and project management, started her career as a recruiter and went through all stages up to HR Director and then Founder of her own IT initiatives. Iva is experienced in working with international clients for IT outstaffing, handles complicated challenges in any field including company process, finance, marketing and administration. She is also a speaker for global tech conferences, and author of webinars and articles on tech topics.
Nowadays Iva runs her company that helps clients from the USA, Europe, and the Middle East to establish their development teams worlwide.