How to Hire App Developers for Your Startup? A 2024 Guide

How do you find an app developer who perfectly fits your project? It's a tricky question many startup founders and business owners face today. The challenge lies in finding the right app developer who can turn your vision into reality. With so many options — ranging from in-house teams to freelancers and outsourcing mobile app development — it’s essential to navigate the hiring process effectively. 

In this article, I’ll guide you through the process of hiring app developers, comparing costs across regions, and offering tips to make the hiring process smoother. Let’s dive in!

Why Do Startups Need Developers?

It is no secret that technology plays a major role in startups' success, which is why developers are crucial to their growth. Early-stage startups can use technology in many ways—it could be a marketplace for their new product, a part of a marketing strategy, or a way to stand out in a crowded global market.

With their technical expertise and coding abilities, developers bring to life the ideas that startups are built upon. Without them, startups would lack the technical foundation to succeed in today's competitive market.

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From building websites to creating apps, developers are the backbone of a startup's digital structure.

Interestingly, while tech-related startups are vital to global technology development, 70% of startups founded before June 2022 weren’t in the tech industry. Often, founders specialize in their product’s core niche, which isn’t technology. 

This is why many of the startups don't have developers on board at an early stage and look for outsourcing. Some of them might already have a technical co-founder, but they are too small to build an in-house team. That's why founders often consider hiring developers for startups externally. 

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On the other hand, the statistics show that almost 76% of big businesses  outsource their IT services to full-time developers instead of building their teams. This highlights the significant impact outsourcing has on the tech market.

How to Hire an App Developer: A Step-By-Step Guide

Hiring an app developer can feel overwhelming if you don’t know where to start. To make the process smoother, follow these 7 steps to guide your search and ensure you find the perfect developer for your startup:

Step 1. Define Your Project Requirements

Before you start searching for a developer, it’s crucial to have a clear understanding of your project. What features does your app need? Which platforms will it be available on — iOS, Android, or both? What is your budget and timeline? By answering these questions, you can create a detailed project brief that will guide the hiring process and help you communicate your needs effectively to potential developers.

Step 2. Choose the Right Hiring Model

When it comes to hiring an app developer, you have three main options: in-house development, outsourcing, and freelancers. Your choice will depend on factors like your budget, the complexity of your project, and the level of control you want to maintain. Each option has its pros and cons.

Step 3. Find Potential Candidates

Once you’ve decided on a hiring model, the next step is to find potential candidates. For in-house roles, traditional job boards like LinkedIn or Indeed may be helpful. For freelancers and outsourcing, platforms like Upwork, Clutch, and GoodFirms are excellent resources. When searching, look for developers with experience in your industry and a strong portfolio that showcases their skills.

Step 4. Assess and Interview Candidates

After shortlisting candidates, assess their skills and experience by reviewing their portfolios and conducting technical interviews or coding tests. This step will help you evaluate their proficiency in relevant coding languages, frameworks, and tools. Additionally, checking references from previous clients will provide insights into their reliability and ability to deliver quality work on time.

During interviews, focus on understanding their problem-solving abilities, communication skills, and cultural fit within your startup. It’s also essential to discuss how they align with your company’s goals and values, as this can significantly impact the overall success of your project.

Step 5. Finalize the Contract

Finalize the contract before development begins to ensure a smooth working relationship. The contract should clearly outline payment terms, deadlines, intellectual property rights, and any other key elements. Establishing clear expectations from the outset will help prevent misunderstandings and keep the project on track.

Step 6. Make Your Goals Clear

Once you’ve chosen a developer, it’s time to kick off the development process. At this stage:

• Clearly outline your goals and objectives.
• Share your specific requirements with the development team.
• Set up communication channels to ensure seamless collaboration.
• Transfer all necessary documentation and knowledge to the team.

These steps may seem simple, but they are essential for an effective product development process. Setting up regular performance review calls with the team can help you track progress, identify areas for improvement, and celebrate small wins along the way.

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To better understand the app development process, check out our detailed guide on app development stages and the time it takes to make an app.

Step 7. Plan the Post-Development Process

The post-development phase is critical for maintaining and updating your app after it’s launched. This stage typically involves fixing bugs, releasing updates, and adding new features. Ongoing maintenance ensures that your app stays competitive in a rapidly changing market.

It’s important to have a dedicated team that regularly checks in and makes updates to keep your app running smoothly. By continually improving and tweaking the app, you ensure it stays ahead of new challenges and meets your users' changing needs.

In-House vs Outsourcing vs Freelancer: Which Is Better for Mobile App Development?

Choosing the right development model is one of the most critical decisions you’ll make. Each option has its advantages and drawbacks, depending on your specific needs

In-House Software Development

Opting for in-house development involves hiring developers directly as part of your company. This choice offers the advantage of complete control over the development process, ensuring seamless communication and alignment with your company’s goals and values. 

However, this approach can be costly, considering the expenses related to salaries, benefits, and overhead. Additionally, if your startup isn't located in a tech hub, finding and retaining skilled developers can be particularly challenging, as the talent pool may be limited.

Pros:

✅ Complete control over the development process

✅ Seamless communication and quick iterations

✅ Developers are more likely to be aligned with your company’s goals and values

Cons:

❌ Higher costs, including salaries, benefits, and overhead

❌ Recruiting and retaining skilled developers can be challenging

❌ Limited talent pool if your startup is not in a tech hub

App Development Outsourcing

Outsourcing can be a cost-effective way to tap into a global talent pool. It offers scalability and access to specialized skills but may present challenges with communication, control, and trust, especially if you’re working with a new or remote vendor. There are different ways to outsource:

• Traditional outsourcing. Rent a team of developers for a specific number of working hours or services. Your company provides the necessary equipment and workspace, and the outsourced team handles the entire development cycle.
• Body leasing. This model fills gaps in your existing team by temporarily hiring specialists for specific stages of development, like a tester.
• Managed services. This takes outsourcing further by not just saving costs but adding value. A managed services team is responsible for the entire project, including expertise, technology, and workspace. You only pay for the hours needed to complete the service, and the team often brings innovative ideas to the table.

Pros:

✅ Cost-effective, especially if you outsource to regions with lower labor costs

✅ Access to a global talent pool with specialized skills

✅ Scalability to meet changing project needs

Cons:

❌ Communication challenges, especially if there are language barriers or significant time zone differences

❌ Less control over the development process

❌ Potential trust issues, especially if you’re working with a new or unknown vendor

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For a deeper dive into this topic, take a look at our article that explores the pros and cons of outsourcing mobile app development.

Pros & Cons of Outsourcing Mobile App Development in 2024

Freelance App Developers

Freelancers offer flexibility and are typically more affordable, especially for short-term or specialized tasks. You gain access to niche expertise without the long-term commitment of a full-time hire. However, freelancers may not be as committed to your project as in-house employees, and managing multiple freelancers can become cumbersome.

Pros:

✅ Flexibility in hiring and project scope

✅ Cost-effective, particularly for short-term or specialized tasks

✅ Access to niche skills and expertise

Cons:

❌ Less commitment to the project compared to full-time employees

❌ Managing multiple freelancers can become cumbersome

❌ Reliability issues, as freelancers may have other clients or priorities

Which Model Should I Choose?

There’s no one-size-fits-all answer. If you need long-term development and can afford it, an in-house team might be the best choice. For startups with tighter budgets or short-term projects, outsourcing or freelancers could offer more flexibility and cost savings. In some cases, a hybrid approach, combining in-house and outsourced teams, may provide the best of both worlds.

For more information, check out our article, where we discuss in more detail mobile app outsourcing:

How To Smartly Outsource Mobile App Development in 2024

What Are the Challenges When You Hire Mobile App Developers?

Hiring an app developer is just the beginning. Several challenges can arise during and after the development process:

1. Finding the right fit. The biggest challenge is often finding a developer who not only has the technical skills but also understands your vision and can work within your startup’s culture. Misalignment here can lead to misunderstandings, delays, and subpar results.
2. Managing remote teams. If you opt for outsourcing or freelancers, managing remote teams can be tricky. Effective communication, coordination, and maintaining productivity across different time zones can be challenging.
3. Ensuring quality and security. Your app’s quality and security are paramount. Ensuring that your developer follows best practices in coding, testing, and data security is essential to prevent issues down the line.
4. Staying within budget. Budget overruns are common in app development. Changes in project scope, unforeseen technical challenges, or delays can all contribute to higher costs. It’s crucial to have a clear budget and contingency plan.
5. Long-term maintenance. After the app is launched, ongoing support and updates are necessary to keep it functioning smoothly. If the developer leaves mid-project or after launch, it can be difficult to find someone to pick up where they left off.

Pros of External Hiring

Working with outsourced developers has its perks, too. While it might seem challenging at first, there are plenty of benefits to hiring developers externally.

When you hire external developers by outsourcing or body leasing, you don't have to worry about all the organizational work connected to management, HR, building a work culture, and so on. You don't have to hire another person to take care of payrolls or holidays.

It also comes with additional savings on computers, technical equipment, and even the costs of renting and maintaining the office in case of hybrid or remote work.

Outsourcing allows you to scale your team up or down based on your needs without long-term commitments. You can hire specific experts for short-term projects and avoid the overhead of a full-time team.

Last but not least, for early-stage startups, it’s crucial to focus on the product and its vision. External hiring lets you concentrate on business development and strategy while the app development work is handled by experts.

When to Go In-House?

Deciding when to bring app development in-house often depends on your startup's financial stability, organizational readiness, and product maturity.

Financially, if your product is generating stable, predictable revenue and you have resources for long-term planning, it may be time to shift from outsourcing to building your own team.

Organizationally, having the right structures, such as HR and administration, allows you to manage your developers internally, without relying on external resources.

From a product perspective, when your product is mature, well-recognized, and has a stable user base, going in-house can help you build a cohesive team that aligns with your company’s vision and culture. It also allows for deeper integration between product development and organizational culture, such as pursuing research and development or building open-source solutions.

Can an Outsourcing Company Support In-House Transition?

A good software house partner can be invaluable in helping you find the best in-house developers for your startup. They can handle the recruitment process since they understand the tech stack of your product and know exactly what skills are needed. Once they find the right candidates, they can seamlessly integrate them into your team, ensuring they fit well and contribute effectively.

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The whole process of exchanging team members can take months or even years. With constant product development, the involvement and technological field of in-house hired developers are rising.

At the same time, outsourced developers can take care of significant additional features that are developed over the minimum viable product. 

They can also hyperfocus on one technology or specialization, like product design or machine learning. There are numerous ways to separate in-house services from outsourced ones, but it can also be a good idea to mix the teams to speed up knowledge sharing and transition. 

Startup Checklist: Preparing Before Contacting a Software House

Before reaching out to a software house for your project, it's important to have a clear plan in place. This preparation will streamline negotiations and help ensure that the development process aligns with your business goals. Here's what you should consider:

• Define your product requirements. Start by clearly identifying the problem your product aims to solve and the value it will bring to your target market. Outline the core features and functionalities you envision for your solution. Having a well-defined concept will help the development team understand your vision and provide accurate estimates and suggestions. For guidance on refining your idea, refer to our article on product discovery.
• Secure your funding. Develop a comprehensive financial plan that covers all aspects of development, including potential unforeseen expenses. Understand the pricing models offered by software houses and determine which aligns best with your budget. Additionally, explore funding options such as government grants, venture capital, or angel investors to ensure you have adequate resources to support your project from development through launch and beyond.
• Choose the right platform. Decide whether your product will be a mobile app, web application, cross-platform solution, or desktop application. Consider where your target audience is most active and which platform best suits your product's functionality. Each platform has its own development requirements and timelines, so having a clear preference will help the software house propose the most effective solutions.
• Select your tech stack. Choosing the appropriate technology stack is crucial for your product's performance, scalability, and maintenance. Research different programming languages, frameworks, and tools to identify which ones best meet your project's needs. If you're unsure, reputable software houses can provide expert advice and recommendations. Keep in mind that changing the tech stack mid-development can be costly and time-consuming, so make this decision carefully.
• Determine your time to market. Establish a realistic timeline for when you want your product to be launched. Discuss this timeframe with the software house to set clear milestones and deadlines. If you aim for a swift market entry, consider utilizing existing libraries or low-code/no-code solutions to accelerate development without compromising quality.
• Plan for scalability. Anticipate your product's future growth and ensure that the chosen tech stack and architecture can handle increased user demand and feature expansions. Scalable solutions will save you time and resources in the long run, allowing your product to evolve alongside your business.
• Prioritize security.  Integrate robust security measures from the outset to protect user data and maintain trust. Work with the software house to develop and implement comprehensive security strategies that adhere to industry best practices and compliance standards. Prioritizing security early in the development process helps mitigate risks and prevents costly issues down the line.

How Much Does It Cost to Hire an App Developer?

The cost of hiring an app developer can vary quite a bit depending on a few key factors:

• Location. Developers in places like North America and Western Europe usually charge more compared to those in regions like Eastern Europe, Asia, or Latin America.
• Project complexity. A simple app with basic features will cost less than a complex one with advanced functionalities, like AI integration.
• Experience level. Developers with more experience or specialized skills often come with a higher price tag.

Average Costs of Hiring App Developers

In-House Developers: The average salary for an app developer in the US ranges from $90,000 to $150,000 annually, depending on experience and location. Additional costs include benefits, equipment, and office space.

Outsourcing: Rates can vary from $20 to $150 per hour, depending on the developer’s location and expertise. For example, Eastern European developers might charge $30-$80 per hour, while North American developers might charge $100-$150 per hour.

Freelancers: Freelance rates generally range from $25 to $150 per hour. The variability depends on the platform, the developer’s experience, and the project’s requirements.

Cost-Saving Tips

• Start with an MVP (Minimum Viable Product). Focusing on essential features first can reduce development time and cost.
• Use off-the-shelf solutions. Leveraging existing frameworks or platforms can significantly cut down on custom development costs.
• Consider hybrid developers. Developers who can work across multiple platforms (e.g., both iOS and Android) can save you from hiring multiple specialists. 

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Check out our article on cross-platform app development for more insights into this approach.

Cross-Platform App Development Trends & Frameworks 2024

Conclusion

Hiring the right app developer is crucial for your startup’s success. By following this guide, you'll be well-prepared to navigate the hiring process, choose the best development model, and overcome common challenges. Whether you opt for in-house development, outsourcing, or freelancers, finding a partner who understands your vision and can bring it to life is key.

Consider Memory2, a Kraków-based software house, for your mobile app development needs. We address the typical challenges by ensuring knowledge retention, maintaining high-quality standards, and offering flexible cross-platform development. Memory2 can help turn your startup's app into a powerful tool for growth.

FAQs on Hiring App Developers for Your Startup