offshoring application development rates and benefits in 2024

Key Takeaways

  • Offshoring development tasks allows businesses to focus on core activities while delegating app creation to experts.
  • This outsourcing model reduces time-to-market and minimizes operational distractions, letting companies prioritize strategic goals over technical details.
  • Businesses can choose between offshore, nearshore, and onshore models based on needs like cost efficiency, time zone alignment, and cultural compatibility.
  • Offshoring application development typically offers the greatest savings, while nearshore and onshore are more suited to projects requiring real-time collaboration.
  • Acropolium clients report a 30% increase in operational efficiency through offshore cooperation.

As the number of global smartphone users is about to reach 7.34 billion in 2025, businesses are actively investing in custom apps to remain competitive. With user satisfaction and broad functionality remaining critical priorities, companies like Google, Amazon, and Facebook choose offshore application development to optimize costs while maintaining business focus.

The best thing is that this outsourcing strategy is not solely exclusive to giant brands and providers — it’s a cost-effective way for anything from startups to large enterprises.

Moreover, about 72.6% of people worldwide are expected to go online only through their phones. So no wonder why you’re considering building an application to address the modern user needs. Recognized by Goodfirms for our app development services, Acropolium will assist you on all things outsourcing and budget-friendly app development.

Let’s explore the benefits of offshore mobile application development, along with the rates of dedicated teams by region and our clients’ success stories.

What is Offshore App Development?

offshore application development market projections for 2024

Offshore mobile app development offers a cost-effective solution for businesses and startups looking to launch an app by outsourcing its creation to remote providers. This approach provides access to comprehensive development services at competitive rates, with the added flexibility of choosing developers from any location worldwide, unrestricted by geographic boundaries.

This cooperation model gives businesses access to skilled talent at lower costs, letting them focus on what they do best while moving projects along faster. These teams cover everything from design to coding, testing, and maintenance, working closely with in-house teams to build the right product.

For that reason, the global offshore software development market expects steady growth from $122B in 2024 to $283B by 2031, with businesses striving to achieve low-cost but high-quality products.

Onshore vs. Nearshore Development vs. Offshore App Development: Comparison

nearshore, onshore, and offshore mobile application development comparison

When deciding between offshore, onshore, and nearshore outsourcing models, it’s essential to understand the distinctions in cost, access to talent, and collaboration ease. The thing is, each model offers unique advantages suited to different business needs, so you should navigate the differences with your objectives in mind.

Nearshore development

Nearshoring involves IT outsourcing to neighboring countries, typically within the same or adjacent time zones. It’s a middle ground between the high cost of onshore and the time-zone gap of offshore.

Pros:

  • Nearshoring offers more competitive rates than onshore services, especially in regions like Central and Eastern Europe.
  • Similar time zones enable easier communication and timely project updates.
  • Close geographic proximity often means cultural similarities, making collaboration more seamless.

Cons:

  • While cheaper than onshore, nearshoring is often more costly than hiring offshore app developers.
  • Depending on the country, certain specialized skills may be less available compared to offshore destinations.

Best for:

Companies seeking a balance between cost and collaboration ease, especially when timely communication and cultural compatibility are important.

Offshore development

Offshore application development refers to outsourcing app creation to teams located in distant countries, typically offering the greatest cost savings due to significant wage differences.

Pros:

  • Locations like Asia and parts of Latin America often provide the most cost-effective solutions.
  • Offshore destinations boast expansive talent pools, especially in IT and tech, making it easier to find specialized skills.
  • Due to lower costs, companies can easily scale their offshore teams.

Cons:

  • Significant time gaps can delay responses and complicate real-time collaboration.
  • Differences in language and cultural norms can sometimes lead to miscommunication or misunderstandings.
  • With variations in regulatory and quality standards, ensuring consistent quality may require additional oversight.

Best for:

Businesses focused on cost savings and large-scale projects requiring 24/7 development cycles or those needing niche technical expertise at a lower price.

Onshore development

In onshore development, companies partner with local teams within the same country, ensuring straightforward communication due to the same time zone and cultural alignment.

Pros:

  • Cooperating within the same time zone facilitates live and prompt communication, simplifying project management.
  • Local customs and language fluency reduce miscommunication and enhance teamwork.
  • Developers from the same area are often familiar with country-specific compliance standards, helping ensure legal and regulatory alignment.

Cons:

  • Onshoring typically incurs the highest costs compared to nearshore and offshore app development due to local wage standards.
  • Companies are restricted to a national talent pool, which can limit access to specialized skills, especially in niche areas.

Best for:

Businesses with substantial budgets requiring close collaboration or those in regulated industries with unique compliance needs.

Advantages of Offshore App Development

offshore mobile development benefits

Although cost savings are the core benefit of subscribing to offshore application development services, hiring a dedicated team from abroad can bring way more opportunities for growth.

Lower development costs

Opting for a local software provider may come with high development costs. To manage expenses more efficiently, offshore app development offers a viable solution. In regions such as Central and Eastern Europe, for instance, developer rates are often lower due to strong governmental support for the IT sector.

Access to a larger talent pool

Developing applications, especially for emerging technologies like NFTs or AR/VR, often requires specialized skills that may be hard to find locally. By cooperating with offshore mobile developers, you gain access to a broader pool of tech experts with specific skills.

Faster time-to-launch

Building an app requires assembling a team of skilled professionals, which can be a lengthy process if done in-house, delaying your product launch. An offshore app development company will help you reduce time-to-market by providing access to a ready team that can begin working on your project immediately.

Sharper business focus

Creating an in-house mobile solution requires extensive time and resources dedicated to research, hiring, and technical management. This, in turn, may divert attention from essential business tasks. Offshoring allows you to entrust the technical aspects to professionals, enabling you to concentrate on your primary business goals.

Lower maintenance costs

After the app is launched, maintaining a full-time team of developers may not be practical, as their work is needed only intermittently. Offshore mobile developers from IT outsourcing agencies offer on-demand support, providing the necessary expertise for updates and maintenance as needed.

This approach ensures a smooth and cost-effective maintenance process without the expense of keeping full-time staff on payroll.

Top Regions for Offshore App Development

offshore mobile app developers rates by region for 2024

The cost of developing an application — whether partly or fully from scratch — depends on the region where your vendor operates.

Central and Eastern Europe (CEE Region)

Companies worldwide frequently turn to this region for offshore mobile app development due to a high concentration of skilled professionals, favorable tax policies, and strong governmental support for the IT sector. This combination enables businesses to access excellent service quality at competitive rates.

Western Europe

Western Europe is also a popular choice, often favored for its minor time zone difference with many business hubs. However, offshore development costs in this region are typically higher due to increased taxes and operational expenses.

North America & Australia

The talent pool in these areas is well-versed in the latest technologies, but the cost of development services is typically higher due to elevated living standards and operational expenses. US businesses choose these regions for their innovative approaches and strong support structures, as well as due to time zone alignment and cultural understanding.

Latin America

This region is particularly appealing to US companies as the minimal time zone difference enhances communication and coordination. Additionally, South American offshore mobile developers often offer competitive pricing, although finding a reliable partner may take time.

Scandinavia

Scandinavia is recognized for its robust technological landscape and high standards of living, contributing to its appeal as an offshore app development destination. The region boasts a skilled workforce adept in innovative technologies and methodologies, ensuring high-quality outputs.

While the costs of offshore development in Scandinavia can be higher compared to Eastern European options, businesses often find that the investment yields substantial returns due to the exceptional quality of service and expertise provided.

Asia Pacific

Asian countries have become significant players in offshore application development, primarily due to lower pricing structures. However, locating a highly qualified provider may require additional effort, as service quality can vary.

Based on the latest data from Scrum report, Upwork, and Indeed, we’ve compiled a table with relevant rates of offshore app developers in key outsourcing destinations.

ExpertiseEastern EuropeWestern EuropeNorth America & AustraliaLatin AmericaScandinaviaAsia Pacific
QA$2,300 – 3,500$4,800 – 7,700$6,500 – 12,000$1,500 – 3,000$5,500 – 6,700$580 – 1,000+
Project Manager/Scrum Master$3,000 – 4,500$4,500 – 7,900$7,700 – 10,200$2,500 – 4,000$5,500 – 7,700$1,300 – 2,700
Business Analyst$2,500 – 4,000$4,500 – 8,000$6,500 – 8,500$3,500 – 6,000$7,000 – 9,700$850 – 1,100
Software Architect$4,500 – 6,500$6,900 – 12,100$11,000 – 15,000$1,850 – 3,600$8,300 – 12,600$2,700 – 4,000

Tips for Choosing the Right Offshore App Development Partner

Partnering with an offshore mobile app development company requires careful consideration, from evaluating technical skills to ensuring a strong cultural fit. We’ve prepared some fundamental steps to choose a vendor that understands your niche and also has a proven track record of success.

1. Research and Shortlist Vendors

Begin by researching potential offshore app developers and creating a shortlist based on their portfolios, technical expertise, and relevant industry experience. Here are some tips to guide this process:

  • Review portfolios. Look through completed projects to understand the vendor’s style, quality, and range of work. Ensure their past projects align with your app’s complexity and functionality.
  • Check industry-specific experience. Choose a company experienced in your industry, as they will be more familiar with typical challenges and user expectations.
  • Consider technical expertise. Evaluate whether the dedicated team has the necessary skills, such as proficiency in required programming languages, frameworks, or emerging technologies relevant to your project.

2. Evaluate Technical and Cultural Fit

Selecting a partner that aligns both technically and culturally is essential for smooth collaboration and high-quality output. Here’s how to assess these factors when offshoring application development:

  • Assess communication skills. Clear and efficient communication is vital, especially with remote teams. Make sure the team is responsive, transparent, and comfortable with your preferred communication tools.
  • Evaluate their problem-solving approach. Choose offshore mobile developers who demonstrate proactive problem-solving skills, as this is often a good indicator of adaptability and innovation.
  • Cultural compatibility. Offshore partners come from diverse backgrounds, and understanding cultural differences can improve collaboration. Look for a partner who respects and understands your company’s values and work style.

3. Check Client Testimonials and Reviews

Finally, reviews and testimonials offer valuable insight into the company’s reputation and client satisfaction. Here’s what to look for:

  • Request references. Ask for contacts of past clients and speak to them directly to understand their experience working with the vendor.
  • Browse online reviews. Explore platforms like Clutch or GoodFirms for unbiased reviews and ratings. Regular positive feedback is a good sign of the vendor’s dependability.
  • Examine case studies. Look for case studies that detail past projects similar to yours. These can show how the vendor handles project discovery, challenges, timelines, and the quality of delivered solutions.

Why Choose Acropolium?

With over two decades of global industry experience, Acropolium’s dedicated teams have successfully delivered 450+ projects and innovative solutions. Driven by our clients’ business goals, we specialize in building scalable applications that help companies leverage cutting-edge AI, IoT, blockchain, and SaaS technologies.

Thanks to our GDPR-compliant and ISO-certified processes, you can see our name displayed among top IT outsourcing companies on Clutch, TechBehemoths, Goodfirms, and more.

Here are just a few of the many success stories from our valued partners:

  • An automotive company was looking for offshore app developers to build a CRM and mobile app for their 1,000 EV charging stations. The CRM had to aid in managing station operations and loyalty programs. As for the app, it was supposed to enable users to locate chargers, manage payments, and earn rewards. Our solution, built on AWS with IoT integration, increased loyal users by 50%, boosted revenue by 45%, and improved daily transaction efficiency by 25%.
  • A client in the pharmaceutical sector partnered with Acropolium to create an AI-powered app focused on enhancing prescription accuracy and patient engagement. Leveraging AI and ML for automation, along with cloud computing for accessibility, we delivered a solution that boosted operational efficiency by 30%. This innovation also led to a 15% increase in customer retention and reduced data breach risks by 25%.

Final Thoughts

Offshore app development, a strategy embraced by industry leaders and startups alike, enables companies to access specialized skills while keeping costs manageable. It’s a scalable, cost-effective solution suitable for any company aiming to meet modern mobile demands.

On your way to offshoring application development, you should know how to find the perfect outsourcing firm that would add value to your business. Software development is complex, but Acropolium simplifies it with a subscription-based service designed for common development needs at a transparent monthly rate.

No hidden fees, no hassle — just consistent value. Reach out to learn how this innovative pricing model can help reduce costs and elevate product quality.

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