Mobile apps are critical for smart products, but building them in-house often leads to costly mistakes, missed deadlines, and poor user experiences. Here’s why outsourcing is a smarter choice:
- High Costs: Developing an app in-house can cost $100,000–$500,000, plus ongoing maintenance expenses.
- Complexity: IoT apps require expertise in areas like Bluetooth, secure networking, and cross-platform development – skills most in-house teams lack.
- Delays: Internal projects often take over 18 months, delaying product launches and hurting competitiveness.
- Risks: Security vulnerabilities and technical debt can damage user trust and increase costs.
Outsourcing Benefits:
- Lower long-term costs through efficient workflows.
- Access to specialized skills for IoT, security, and cross-platform performance.
- Faster time-to-market, avoiding delays and resource strain.
In short, outsourcing ensures better quality, faster delivery, and reduced costs, letting manufacturers focus on their core strengths.
When Should You Outsource App Development?
True Costs and Risks of Internal App Development
Building apps in-house often comes with hidden challenges that go beyond the initial budget. Let’s break down the key areas where costs and risks tend to pile up.
Development and Support Expenses
The price tag for developing an app internally isn’t limited to the coding phase. Long-term support, updates, and maintenance can add significant costs. Developing a mobile app typically ranges from $100,000 to $500,000, and ongoing maintenance only drives up the total further. While app store fees are relatively minor, the real financial burden comes from maintaining technical support, ensuring platform compliance, and rolling out updates. Ralph Wasner, Chief Technology Officer at FNTS, puts it bluntly:
"Mobile development is never cheap, it sounds like it should be because we are talking mobile which is in theory lighter than other development efforts. The challenge is mobile development is not a single development effort it can be 4 to 10 parallel development for different devices that need to look the same on all the devices."
These ongoing costs often catch businesses off guard and highlight the need for specialized expertise.
Technical Expertise Requirements
Developing apps for IoT-enabled devices introduces an entirely new level of complexity. Expertise in areas like BLE (Bluetooth Low Energy), zero-configuration networking, and secure IoT integration is essential. According to SpinDance:
"If a traditional app development company lists IoT as just one of their many mobile capabilities, that should be a warning flag. Doing IoT right takes expertise that only comes with a focus on IoT over an extended period of time."
Without this specialized knowledge, businesses risk costly mistakes and subpar products.
Product Launch Delays
The financial and technical challenges often lead to significant delays, which can hurt a product’s success in the market. Consider these statistics:
- Time to market for IoT products has increased from 23 to 41 months between 2020 and 2023.
- The average time from project kickoff to proof of concept is 18.5 months.
- Securing the first paying customer takes about 22.8 months.
Delays like these can be detrimental. For example, Nike’s FuelBand faced a six-month delay in 2010, allowing competitors to gain market share and contributing to its eventual discontinuation in 2014. Brad Waller, COO of EPage Mobile App Development, highlights another often-overlooked factor:
"The biggest hidden cost I see is marketing. As a developer I find that my client businesses only consider the cost of development. They don’t allocate money for marketing and promotion. If you do not budget somewhere on the same order of magnitude dollars for marketing that you spent on development, chances are you will be throwing your development money away."
In short, delays and insufficient marketing budgets can quickly turn a promising app project into a costly misstep.
Benefits of Working with App Development Experts
Lower Total Development Costs
While outsourcing might seem more expensive upfront, experienced teams can actually save money in the long run. Their well-organized workflows and pre-built solutions help avoid the common pitfalls of in-house development, like unnecessary rework. This efficiency directly translates to lower overall implementation costs, alongside the advanced skills these teams bring to the table.
Advanced Technical Skills
Expert app developers handle everything from integrating IoT devices with zero-configuration networking and cloud services to implementing strong security measures like authentication, encryption, and over-the-air (OTA) updates. They also specialize in cross-platform development using tools like React Native and Flutter. This broad expertise ensures apps perform reliably across platforms, streamlining the entire development process.
Faster Development Timelines
External teams speed up delivery by using proven methods that minimize delays and adjust team sizes based on project needs. Since they focus solely on app development, manufacturers can stick to their core strengths without sacrificing progress. This targeted approach helps avoid the typical delays and resource issues that often slow down in-house projects, getting apps to market much faster.
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How Specialists Improve App Quality
User Experience Design Impact
Specialists craft interfaces that are easy to use and enjoyable, focusing on what users need most. Using frameworks like SEEN (Support, Enable, Extend, Notify), they go beyond just functionality to deliver apps that genuinely enhance the user experience. Their approach centers on understanding how people interact with apps and designing interfaces that feel natural. Instead of overwhelming users with too many features, they create onboarding experiences that are clear and effective, catering to different learning preferences. This thoughtful design approach ensures apps perform smoothly on various devices.
Cross-Device Performance
Experts make sure apps work seamlessly across different devices. They use tools like React Native and Flutter to develop apps that deliver native-level performance without adding unnecessary development complexity. For example, when creating apps for smart home devices, they design adaptable user interfaces that automatically adjust to fit screens of all sizes – whether it’s a smartphone, tablet, or a larger display.
Regular Updates and Support
Beyond design and performance, specialists focus on keeping apps updated. With iOS and Android rolling out major updates about once a year, staying current is essential. Experts schedule updates and audits to ensure apps remain secure and compatible. Take a smart air conditioner app as an example: it starts with basic control features but evolves over time. Through regular updates, it can add advanced analytics for energy use, detailed reports, and visual data tools, helping users make smarter decisions about their energy consumption.
Examples of Successful App Partnerships
Partnerships in app development often demonstrate how well-executed collaboration can improve integration, usability, and overall business outcomes.
Improved IoT Integration
In 2017 and 2019, Vervint teamed up with Intermatic to create peer-to-peer solutions and specialized cloud platforms for smart energy and lighting systems. These efforts cut installation time by 15 minutes per device and ensured secure IoT connectivity through products like the Ascend Smart 7-Day Wi-Fi Timer and the Arista Advanced Lighting Control System. This collaboration also led to better user interfaces and made these technologies more accessible to a broader audience.
Enhanced User Satisfaction
Operating Boston Dynamics‘ robotic dog Spot originally required a laptop and gaming controller, restricting its use to trained engineers. After partnering with Rightpoint, Spot’s control system was transformed into an intuitive Android app. This app featured joystick controls and a built-in video feed, creating a user-friendly experience reminiscent of a Star Wars interface.
"Boston Dynamics came to us knowing there was a real gap in Spot’s control experience. At the time, only a few engineers within their company had the skills to operate Spot. We needed to help them create a control experience that would work for anyone."
– Ben Johnson, SVP and Global Leader of Rightpoint’s Digital Product team
This partnership not only improved technical functionality but made Spot accessible to a wider range of users.
Boosting Sales Through Outsourcing
UK-based coffee roaster IKAWA saw a sales increase after Cogniteq restructured their app into two specialized versions: IKAWA Home for basic features and IKAWA Pro for advanced users. This change addressed their app’s previous limitations and better served their diverse customer base.
"As Intermatic evolves its product line with exciting tech-forward solutions, it’s essential to have partners who can help us build on our vision and support our teams with unique technical expertise"
Conclusion: Making the Right Development Choice
Outsourcing mobile app development offers clear benefits for manufacturers of smart products. In 2023 alone, outsourcing generated $484.86 billion, and it’s expected to grow to $812.75 billion by 2029. These numbers highlight how expert partnerships can improve app performance and help businesses respond quickly to market demands.
From a financial perspective, outsourcing stands out. A significant 70% of companies cite cost reduction as the main reason for outsourcing. By working with skilled developers, businesses can save money while maintaining high-quality results.
"Outsourced software product development helps businesses focus on what they do best while cutting costs on things like office space, maintenance, and utilities. It’s a smart way to save money, especially in today’s economy, where every dollar counts." – TechMagic
But it’s not just about saving money. Outsourcing also provides access to cutting-edge technology and quicker time-to-market. Manufacturers benefit from advanced tools and specialized expertise, enabling them to adapt to changing user preferences more effectively. This approach also allows companies to optimize resources and stay focused on their core operations. Choosing the right app development strategy is a key step toward long-term success.
