Several factors can impact the overall cost. However, the decision on your partner should never be just based on the cost.
Scope of the project: The complexity and size of the project significantly influence costs. A simple app will cost less than a complex software system requiring sophisticated technologies and diverse expertise.
Rate of the software developers: Outsourcing rates vary based on regions. For instance, developers in North America typically charge higher rates than those in Eastern Europe or Asia.
Experience level of the team: More experienced developers and teams may charge higher rates but often deliver faster turnaround times and fewer errors.
Type of engagement model: Project-based, dedicated development team, or time & material models each have unique pricing structures and implications for project costs. I will write about these in another article.
Project duration: Longer projects generally cost more, but longer engagements may lead to reduced per-hour or per-day rates due to economies of scale.
Maintenance and support: Post-development services like system updates, bug fixes, and user support add to the total cost of outsourcing.
Additional costs: These may include project management fees, software or hardware costs not covered in developers' rates, and expenses related to compliance with regulations or certifications.