A Comprehensive Guide to Outsource Web Development

Web development outsourcing is the process of hiring an external vendor to build your website and web application projects rather than using an in-house team.

Startups, enterprises, and businesses often outsource web development because of these reasons:

• Lack of funds required to establish an in-house web development team.
• Get access to specialized skills that may not be available with an in-house team.
• Don’t have the technical understanding of web development.
• Require a scalable web development team.

If you too want to develop a website for your business and facing similar problems, you have landed on the right blog.

At Space-O Technologies, we have experience in offering outsourcing services to over 1200 clients and building over 350 web applications. We have outsourced web development for businesses from all across the globe.

We are well-versed with what works and what doesn’t work in web outsourcing. We have used this information to help you understand why, when, and how outsourcing web development services can be a great choice for your project.

Market Statistics of Development Outsourcing

• As per a Statista report on IT outsourcing, the revenue for global IT outsourcing is expected to reach USD 512.50 billion by the end of 2024. This figure is expected to reach USD 777.70 by 2028.
• Another Statista report states that the market for IT outsourcing in the USA is projected to reach USD 185.50 billion by the end of 2024.
• A Deloitte study suggests that 70% of businesses that outsource IT services do so to save costs.
• Another Deloitte survey showed that 40% of companies that avail outsourced services were able to save up to 40% on costs.

The above-mentioned statistical data shows that outsourcing is a time-tested approach to software development. Moving forward, let’s take a look at the benefits of outsourcing website development.

6 Key Benefits of Outsourcing Website Development

With web development outsourcing, it is easy to make your web development process fast, cost-efficient, and goal-oriented. Wondering how? Here are some convincing benefits of outsourcing to help you understand better.

1. Reduces Time and Capital Investment

   Hiring an in-house web development team means bearing numerous expenses related to recruitment, hiring, salaries, taxes, pensions, and training. The costs associated with hiring and maintaining an in-house web development can be out of budget. Moreover, for high-complexity websites, the development can take months, if not years, to finish, with limited team members.

   On the contrary, web development outsourcing is excellent in terms of time and cost efficiency. As per Upwork, the starting rate for hiring a web developer in India is $15/hour. Another report by Ukraine Outsourcing suggests that you can hire web developers from Ukraine for as low as $35/hour.

   In addition, with outsourcing, you can add as many web developers to your team as you want to. This approach helps you escalate the web development process and bring down the launch time.

2. Diversifies Talent Pool

   The scarcity of suitable web development talent can be a major setback for your web development project. By remaining stringent on in-house development, you limit your talent pool to locally available web developers.

   Web development outsourcing, on the other hand, gives you access to global web development talent. You can find and hire web developers from anywhere in the world, including technology hotspots like the USA, Canada, the UK, and India.

3. Improves Project Scalability

   If you are a startup business, your requirements for web development will change from time to time. This change is often in the size or complexity of the web product. In this case, you may require more or fewer developers in your time at different points of the project.

   Hiring an outsourcing partner to build your website is an excellent option in terms of scalability. By outsourcing web development, you can easily add or remove members from your team, ensuring that the development process is aligned with your business goals.

4. Easy Risk Management

   Getting your website developed by an in-house web development team places all business risks in one location. Outsourcing web development services, on the other hand, mitigates and splits risk among different vendors.

   The idea here is to split your web development projects between different web development companies. This way, you can stay assured that no single vendor excessively impacts the overall project.

5. More Time for Business Growth

   By opting for in-house website development, you are likely to spend a lot of time supervising the web development process. However, doing so can be detrimental to your business, especially if you are at the foundation stage.

   By outsourcing web development, you get access to a team that takes care of your website’s development. This way, you will be left with more time to focus on your core business activities, without compromising on the website’s quality.

6. Reduces the Need for Technical Expertise

   Undoubtedly, developing a website is not an easy task. There are technical aspects of web development like selecting features, crafting a technology stack, and, most importantly, programming the website.

   By availing website development services from an outsourcing company, you don’t need to know anything about creating a website and still get a high-end web product for your business. The outsourcing vendor takes care of all the technical parts of website development for you.

Now you know about the benefits of outsourcing web development, let’s take a look at the process of web outsourcing.

5-step Process of Outsourcing Web Development

Finding the right partner to outsource web development is essential for success in web development. This section will walk you through the step-by-step hiring process to help you choose the right vendor for your web development project.

1. Define Your Requirements

   Before looking for a development partner, articulate a clear vision for your project. This includes:

   • Purpose: Identify what you want to achieve with your site (e.g., increase sales, improve customer service, launch a new product).
   • Features and Functionality: List essential features (e.g., eCommerce capabilities, user registration, interactive elements).
   • Target Launch Date: Set a realistic deadline for when you want the site live.
   • Budget: Determine your financial limits to guide proposals and negotiations.
   • Design and User Experience: Outline any design preferences and user experience goals.
   • Technical Needs: Specify any required technologies, platforms, or integrations (e.g., CMS choice, API integrations).
   • Maintenance Expectations: Consider long-term support and updates.

   The clearer your requirements will be, the easier it will become for vendors to provide an estimation.

2. Search for Web Development Companies

   After defining your requirements, the next step is to find suitable companies that match your requirements. In our experience as a leading web development company, we have seen that many businesses fail in outsourcing because they select an unfit outsourcing partner.

   We, therefore, recommend you take ample time to find web outsourcing companies. You can use platforms like Clutch or GoodFirms, or even directly contact Space-O Technologies to get reliable outsourcing services.

3. Consult and Shortlist the Companies

   Once you have a list of companies that match your criteria, you can go ahead and share your requirements with the prospective web development outsourcing companies. The companies analyze your requirements and get back to you with a quotation and feature list.

   You can use this information to compare different vendors and choose the one that fits your requirements. We recommend that you go ahead and interview the developers from these companies. In the end, you can select an agency that fits your criteria like experience, budget, and scope.

4. Choose an Engagement Model

   Once you have selected an agency, choose an engagement model for your website’s outsourcing. Fixed cost, dedicated team, and staff augmentation are three of the most common engagement models.

   • Fixed Price Model: Here the outsourcing agency will offer a fixed contract price for your web project. The fixed price model is excellent for projects with a defined scope.
   • Dedicated Team Model: In the dedicated team model, you can hire a team of web developers that typically includes business analysts, web designers, web programmers, and testing engineers. This model is excellent for large-scale projects that are likely to go on for a long time.
   • Staff Augmentation Model: The IT staff augmentation model is ideal for businesses that already have an in-house web development team but lack certain talent. Staff augmentation will help you amplify your web team without hiring any more talent.

5. Sign a Contract and Initiate Development

   The final part of the process is to sign an NDA with the selected web development outsourcing company. This contract will govern the terms of development like engagement model, sprint planning, and delivery plan.

   Once you have signed the contract with the selected web development company, the agency initiates development and provides timely updates on the progress. At this point, all you have to do is communicate with the development team or an assigned project manager to know the progress of web development.

   At Space-O Technologies, we use project management tools like Slack, JIRA, Basecamp, and Trello to help our clients track their projects. These tools are excellent for keeping a track of the project’s progress.

We understand that the process of finding a web development outsourcing company can be tedious and time-consuming. To save you the trouble, here we have compiled a list of the top 5 web development companies.

Top 5 Web Development Outsourcing Companies

These web development outsourcing companies provide cutting-edge web development services. We have created this list after thoroughly analyzing hundreds of firms across the globe. Let’s take a look at these companies.

Company	Clutch Rating & Reviews	Core Expertise	Hourly Rates	Location
	4.8 (61 Reviews)	Custom Website Development Web App Development Software Development Mobile App Development	$25 – $49/hour	Space-O Technologies
	4.8 (37 Reviews)	Web Development Consulting Web Development Outsourcing	$50 – $99/hour	ScienceSoft
	4.9 (60 Reviews)	Custom Website Development Custom Web Design Custom Web App Development Hosting and Server Management	$25 – $49/hour	ScopicSoftware
	5.0 (24 Reviews)	Full-stack Web Development Front-end Development Back-end Development Custom Web App UI/UX Web Design	$50 – $99/hour	Flatirons
	4.8 (50 Reviews)	Website Design Website Redesign Website Support Website Development Conversion Rate Optimization	$150 – $199/hour	Huemor

This list has provided extensive information on the top 5 web development companies. Or, if you want to check the list of more web development companies, here is a blog of top web development companies to refer to. You can pick a web development partner from this list or even find another partner based on your requirements.

Looking to Hire the Best Web Developers for Your Project?

With 14+ years of web development experience and a team of 50+ web developers, Space-O Technologies is the leading destination for outsourcing web development.

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Moving forward, let’s take a look at the most common web development services you can outsource.

Common Web Development Services You Can Outsource

When planning to outsource web development, you can either outsource your project completely or in parts. If you decide to go with the latter, here are the most commonly outsourced web development services.

These were the most commonly outsourced web development services. Do note, that to efficiently outsource web development services, you need to select the right location for web outsourcing. Keep on reading to find out how.

Top 5 Locations to Outsource Web Development

By choosing to outsource website design and development, you get access to a global technology talent pool. However, not all locations across the globe are equally great for outsourcing web projects.

Here we have created a list of the top 5 web outsourcing destinations based on factors like cost efficiency, technology talent, legal frameworks, time zone overlap, and market preference. Let’s take a look at the list.

1. USA

   As per Statista’s research, the market of IT outsourcing in the USA is estimated to reach USD 185.50 billion by the end of 2024. Owing to its growing tech advancements, solid IPR framework, and top-notch legal compliance record, the USA has become an iconic destination for outsourcing web development projects.

2. UK

   The United Kingdom is another popular IT outsourcing destination. Businesses prefer outsourcing web development to UK-based web development companies for their commitment to quality and adherence to strong legal frameworks like GDPR.

3. India

   India is the most popular destination across the globe for software development outsourcing. According to IDAP Group, India holds a remarkable 55% share of the global IT outsourcing market. Low development rates, growing tech talent, and English proficiency make India an optimal choice for web outsourcing.

4. Poland

   Poland has a skilled workforce that excels in diverse web technologies. Moreover, Poland has a time zone advantage and proximity to other time zones. This makes outsourcing web development to Poland a great choice for businesses that prioritize communication efficiency.

5. Ukraine

   Located in Eastern Europe, Ukraine is another popular destination for cost-effective and quality-oriented web development outsourcing. With a growing tech talent pool, remarkable cultural compatibility, and proven quality of work, many startup and enterprise-level businesses prefer this country for outsourcing their website development projects.

These were the top locations to outsource web development. Based on where your business is based and the location you choose, your outsourcing will either be onshore, nearshore, or offshore. Let’s understand each of these concepts in detail.

Onshore vs. Nearshore vs. Offshore Outsourcing

For web development outsourcing to be effective, you must choose the right outsourcing model. This matters because how you communicate with the outsourcing partner will vary from one approach to another. Let’s find out how.

You can use this information to choose the right approach for outsourcing website development. Next, we will take a look at what a typical outsourced web development team looks like.

Team Structure of Web Development Team

Outsourcing web development will help you create your web development team without the hassle of hiring any employees at all. Let’s take a look at how each team member contributes to the web development process.

Tip:Your outsourced team may or may not require all of these team members. This depends on your website’s size, complexity, and desired time to market.

Do note that each of these team members will have a hiring cost. Moreover, based on how many people you hire for your project, your website’s development timeline will vary. Let’s understand more about the time and cost factors for web outsourcing in the coming section.

Time and Cost Considerations of Outsourcing Web Development

When planning to outsource web development, time and cost considerations are undoubtedly the most important factors. The time and cost of developing your web application will depend on factors like:

• Website complexity
• Number of features
• Outsourcing location
• Team size
• Team’s skills and experience
• Technology stack

To save you the trouble, here we have provided a time and cost estimation of the most common types of websites:

Do note that these are just estimations. Your project’s development may take less or more time and cost to develop. Contact us today to get an estimation for your project.

So far, we have provided information on web development outsourcing from different angles. It is important to note that outsourcing web development projects is not always a sleek process and involves numerous challenges. Let’s take a look at these challenges and their solutions.

Bonus: Common Challenges in Outsourcing Web Development + Solutions

Based on our 14+ years of experience in offering web development services, we are aware of common challenges that businesses face while outsourcing website development. This section will shed light on these challenges, along with their solutions.

1. Time Zone Difference

   You are based in the USA and your web developer team is based in India. In this scenario, you can expect a time zone difference of 12-14 hours. This will create obvious challenges in communication.

   Solution: Choose a Vendor Willing to Work in Your Time Zone

   Most web development companies offer to work in their client’s time zone. You should hire an agency that offers such time-zone flexibility. This will make the whole development process efficient and streamlined.

2. Lack of Supervision

   Having a web development team working on a different premise compromises supervision. It becomes difficult to track the project’s progress and maintain development efficiency.

   Solution: Go for On-site Outsourcing

   We recommend that you hire a web development company willing to outsource with the on-site development model. This way, you can have an outsourced team that works in your office premises, hence guaranteeing proper supervision and control.

3. Threat to Idea’s Integrity

   Trusting an external vendor with your idea can be risky. This is especially the case if you are planning to introduce a new concept to the market. There are numerous cases where

   Solution: Protect Your Idea With an NDA

   A Non-disclosure Agreement (NDA) is a document that legally binds the vendor to protect your idea’s integrity. We recommend that when sharing your idea with prospective vendors, you sign a mutual NDA with them. This will safeguard your idea’s integrity.

4. Language and Cultural Barriers

   Many businesses hesitate to nearshore and offshore outsourcing due to potential language and cultural barriers. Many times, linguistic and cultural barriers can hamper communication efficiency and even impact the development process.

   Solution: Ensure Language Fluency Before Selecting a Vendor

   Before selecting a web development company for your project, we recommend you ensure optimal language efficiency. You can take steps like interviewing the developers and requesting an English proficiency score.

5. Possible Increase in Cost

   Many times web outsourcing companies add hidden costs to the contract. These hidden costs come up during the later stages of the development and are detrimental to your business. Moreover, outsourcing to North American or European companies also adds to the development costs.

   Solution: Outsource to Asia-based Companies

   We recommend you outsource web design and development to Asia-based companies, such as those based in India and Vietnam. Moreover, you must request a clear cost breakdown from prospective vendors to avoid hidden charges.

These were the common challenges and their solutions for outsourcing website development. Still have questions? Check out our FAQs section.

Are You Looking for a Reliable Outsourcing Partner for Your Web Project?

Space-O Technologies is a widely chosen web development company offering cutting-edge web development outsourcing services. We have a team of over 50 highly experienced web developers who hold expertise in the latest web technologies.

Get in touch with us today to know more about outsourcing your web project to our team.