In-House vs Outsourcing Software Development: Which One to Choose?
Daria Lymanska
CEO & Founder
February 13, 2025
2
min read
According to a recent Deloitte study, 76% of American companies outsource their IT functions. What drives this trend? Does outsourcing truly win the in-house vs outsourcing development battle? In this article, we will explore both strategies, evaluate their advantages and disadvantages, and help you choose the approach that best suits your project.
What Is In-House and Outsourcing Software Development?
In-house development refers to the process in which a company independently creates its digital products. In this case, only the internal team is involved in development, without hiring external specialists.
Do you think this approach is ideal because all IT functions will be handled by a reliable development team that you assemble yourself? In some ways, you’re right. However, it also comes with significant responsibility and high costs. After all, you will need to hire and manage developers, designers, product and project managers, and other personnel. But we will discuss the pros and cons of this strategy in more detail later.
Outsourcing software development implies hiring an external team or individual remote specialists to work on a software solution. Depending on the budget size, required technology stack, and other project specifics, you can choose between nearshoring, offshoring, and onshoring. What do these terms mean?
Offshoring refers to delegating processes to a distant country, often on another continent. This is considered the most cost-effective outsourcing option, as service rates vary significantly across countries. However, such price differences do not always affect the quality of the final product.
Take a look at these impressive figures: In Switzerland, developers earn around $100,000 per year, whereas in Norway, Australia, and several other countries, this amount is nearly half as much. Does this mean that specialists in those regions are less qualified? Hardly.
Nearshoring—outsourcing to a neighboring country. Preferably one that borders yours or is at least located on the same continent. The goal is usually the same—to save on IT services.
Onshoring—hiring external specialists from your own country. What is the point? It’s simple. Even within the same state, the cost of creating an identical digital solution can vary significantly.
As an example, take a look at the salary range in major USA cities (data provided by Indeed):
Columbus, OH – $142,605 per year
Bellevue, WA – $137,206 per year
San Jose, CA – $120,751 per year
San Diego, CA – $118,932 per year
Houston, TX – $98,751 per year
So, we have figured out the definitions of in-house and outsourced software development and also discussed the types of the latter. What are the key differences between these strategies?
In-House vs Outsourcing: Key Differences
In-house vs outsourcing development is a choice that many teams face. The fact is that there are several fundamental differences between these approaches. They should be taken into account when organizing the development process in a company.
This comparison highlights the strengths and weaknesses of both approaches to software development. However, to make these differences even clearer, let's take a closer look at the pros and cons of outsourcing and in-house development.
Outsourcing Software Development: Pros and Cons
Let’s start by looking at outsourcing software development – the pros and cons of this approach allow the global outsourcing market to grow at an impressive rate. This suggests that the cons of this approach are not so significant, right?
If in 2024 it was valued at $611.8 billion, it is projected to grow to $1,345.5 billion in the next 10 years.
Outsourced Development Pros
Teams that opt for outsourcing digital solution development can expect the following benefits:
1. Cost Savings. We’ve already mentioned that companies can save by outsourcing to regions with cheaper labor.
However, that’s not all. Toptal has created a calculator to estimate the actual costs of hiring in-house developers and remote specialists. According to the calculations, even with the same hourly rate, outsourcing will cost the company 1.5 times less:
This is explained by additional expenses for office rent, employee training, providing necessary infrastructure, and so on.
2. Access to the global talent pool. Finding a developer with the necessary skills can be challenging, especially in regions where the number of specialists is not very large.
Take a look at how the number of IT specialists differs in various countries:
Access to the global talent pool allows you to use the latest technologies that may not be widely available in your region.
3. Flexibility and scalability. According to Indeed, the hiring process can take anywhere from a week to a month or more! Therefore, if you anticipate the need to expand or reduce your team, it is wiser to consider outsourcing.
It also makes more sense to consider a remotecandidate for short-term projects if there is no further collaboration planned after the project ends.
4. Accelerating Time to Market. Outsourcing allows you to reduce the time spent on recruiting and hiring specialists. Additionally, there is no need for training and onboarding the development team, which, as you’d agree, is also a lengthy process.
Moreover, you can engage several teams to work on the project. They will work on different aspects of the application simultaneously, bringing its release closer. An additional benefit is the ability to work around the clock due to time zone differences.
5. Optimization of company operations. Outsourcing IT functions will allow you to focus on other activities, such as marketing, customer service, implementing financial strategies, and more.
Furthermore, outsourcing makes sense even if you have an in-house development team. Engaging external specialists will reduce the load on your team and allow you to implement innovative technologies that your developers may not be proficient in.
Outsourced Development Cons
Along with the benefits for a company, turning to IT outsourcing can lead to certain challenges:
1. Communication problems. This issue is especially relevant with offshoring, when specialists are located in different time zones. Just imagine: you need to urgently address an issue, but it's outside your team's working hours. This can seriously affect the efficiency of development.
Another possible barrier to productive collaboration is different languages and cultural differences. Wouldn't it be difficult to understand your counterpart if their vocabulary is unfamiliar to you, or if they adhere to values and traditions that differ from yours?
2. Quality control challenges. When an in-house team is working on a software product, they are clearly aware of the standards they need to follow. This enables them to create solutions that meet the needs of the audience and business expectations.
In the case of outsourced development, there is a risk of discrepancies in quality standards between internal and external teams, especially when communication gaps exist.
The result is an unsatisfactory final product, which may lead to another outsourcing drawback—as we'll discuss next.
3. Hidden costs. If the final product quality is lacking, you’ll have to hire other specialists to fix defects. However, this problem can be avoided by working only with trusted providers.
Still, there is the risk of additional costs for managing remote specialists and the possibility of project expansion due to control issues.
4. Data and intellectual property (IP) security. Collaborating with third parties on development involves sharing confidential information about your business and clients.
Again, only work with reliable partners to ensure they won’t misuse your data or share it with unauthorized individuals.
We’ve discussed the pros and cons of outsourcing software development. How does the situation look with the advantages and disadvantages of creating an in-house team?
In-House Development: Pros and Cons
Despite the growing popularity of outsourcing, many companies still prefer to develop software in-house. This approach also has its own pros and cons.
In-house Development Pros
Developing software internally offers the following advantages:
1. Full control over the development process. The decision to hire an in-house team is a step towards complete control over the development process.
You can select the optimal tech stack, implement methodologies that you deem suitable, and track every stage of the SDLC and its duration.
2. Intellectual property security. According to ABI Research, U.S. companies lose between $180 billion and $540 billion annually due to intellectual property theft.
In-house development minimizes the likelihood of this issue, as the company will be the sole owner, and there is no need to share data with third parties.
3. Improved communication on the project. Teams working in a shared workspace experience fewer communication challenges. They are not hindered by cultural and language differences or time zone discrepancies.
This, in turn, helps avoid several problems. According to recent statistics, poor communication methods can lead to a number of losses for a company. Among these, 68% of work time is wasted, 42% of employees face stress and burnout, and 12% of customers leave for competitors:
4. Team engagement and a deep understanding of business nuances. An internal development team is likely to be better informed about the company's values, culture, and target audience. This enables them to create a tailored solution that aligns with the client’s vision.
Additionally, in-house developers are more invested in the success of the project, as they are part of the business.
In-house Development Cons
If you are an advocate of in-house development, be prepared for some challenges along with the benefits. Here are a few of them:
1. High costs. With outsourcing, the company only spends money on the developer’s rate. The situation is completely different with an in-house team.
We present a list of expenses to consider:
hiring costs;
total salary of the team;
provision of necessary infrastructure;
training fees for technologies;
bonuses and benefits;
software license purchases;
overhead costs.
Overall, the difference between in-house vs outsourcing development can amount to hundreds of thousands of dollars. And as you can see, it is not in favor of the in-house team.
2. Limited resources. In-house specialists may have limited experience and knowledge in specific areas needed for the project. There are two solutions to this issue: employee training, which again incurs additional costs and time, or opting for familiar technologies that are unlikely to yield the desired results.
Moreover, the lack of resources may become noticeable when scaling the project significantly. Hiring an in-house specialist is a lengthy and complicated process.
3. Hiring issues and employee turnover. According to Statista's analytics, in 2023, 54% of organizations experienced a shortage of tech talent. And this is not the peak — two years ago, this figure was at a record-high 70%.
However, even if you manage to hire the best talents, don’t rush to celebrate your victory. You still need to retain them. And here’s where the real challenge begins. To attract a developer to work specifically for your company, you will need to offer a high salary (higher than your competitors), social benefits, bonuses, etc. In other words, you will be committing yourself to unforeseen expenses. Whether this is justified is up to you to decide.
So, we’ve thoroughly discussed the advantages and disadvantages of in-house development and outsourcing. Now, it’s time to determine which strategy is best suited for you.
In-House vs Outsourcing: How to Make the Right Choice?
Long-term projects. If a project requires constant development, support, and close collaboration, it makes sense to build an internal team. This is especially relevant for complex systems that are continuously evolving and require in-depth knowledge of their architecture.
Projects involving confidential data. If you are dealing with confidential data, in-house development can guarantee its complete security. This is facilitated by better control over work processes and the absence of the need to share data with third parties.
However, as an alternative, you can turn to a reliable outsourcing provider who guarantees the security of confidential data on par with an in-house team.
Projects that are critical for the business. These are projects that involve creating products that must fully reflect the vision, culture, and strategy of the company. If you are not sure that you can achieve this with external developers, it is better to opt for an in-house team.
For outsourced development:
Projects with a limited budget. Outsourcing allows savings on developer salaries and related expenses.
Short-term projects. If the team is only required to create a product without further updates and support, hiring in-house specialists is not advisable.
Projects where quick time-to-market is a priority. Time savings on hiring and adaptation, the ability for round-the-clock work, and involving multiple teams contribute to faster releases.
Projects with changing resource needs. Here, the ability of remote teams to scale quickly is key.
Innovative projects. Access to a global talent pool enables the use of cutting-edge technologies that may not be well-developed in your region.
Thus, if you are looking to save costs, use an innovative tech stack, and outpace competitors, outsourced development will be the best choice for your company.
Darly Solutions—Your Reliable Partner in Outsourced Software Development
The Darly Solutions team is ready to be your guide in the world of creating high-quality digital solutions. We provide comprehensive services, including web and mobile development, UI/UX design, MVP development, QA and testing, and much more.
By outsourcing your project to us, you can be confident in our full immersion in your product vision, data and intellectual property security, and guaranteed adherence to project deadlines.
Contact a Darly Solutions manager, calculate the estimated costs, and start your journey to digitalization today!
COVID-19 marked a turning point for digital health. In fact, it made mobile medical apps mainstream in healthcare. According to Statista, as of 2025, the Google Play Store had over 36K healthcare apps, and the Apple App Store had over 35K. These apps cover telemedicine, fitness, wellness, mental health, nutrition, and pharmacy delivery, competing for users' attention and digitalizing the traditional healthcare industry.
Since development isn't just about coding, it requires complex regulatory navigation, technological and market demands, and strategic investment.
The cost of developing a health app will vary depending on what kind of app you want to launch. In fact, all types of eHealth apps, from telemedicine, fitness and wellness, mental health, and nutrition planning to pharmacy delivery apps — are getting great traction in the market today.
In this article, you will learn what affects the cost of developing a healthcare mobile app.
Healthcare Apps Market Overview
The mHealth app sector demonstrates skyrocketing growth driven by evolving healthcare delivery models. According to Grand View Research, the global healthcare app market will grow at a 14.9% CAGR through 2030. This growth is due to increased smartphone use for health tracking, the rise of AI assistants, and a demand for remote, patient-centered care.
Advantages of Developing a Healthcare App
Digitalization and automatization run the world, and healthcare thrives here the most. Since patients can now reach doctors with a few clicks, digital monitoring and telemedicine cut care costs by 25%.
About 63.4% of U.S. adults use mobile health apps, with many relying on them daily for fitness and wellness tracking. Additionally, a survey showed that 59% of participants have 1-3 health-related apps, which highlights even more significance of healthcare apps.
And the benefits don't end here. Dive with us into some of the other top benefits of healthcare apps:
Improved Patient Engagement
mHealth apps lead to better patient outcomes. With remote monitoring and reminders, they provide direct communication with providers and offer personalized health management tools.
Patient Customization and Tailored Treatments
Custom mobile apps streamline access to patient records. They help doctors create personalized treatment plans, improving outcomes and patient-provider relationships.
Medication Adherence Support
Medication reminders and tracking tools within these apps promote adherence, empower patients, enable timely provider intervention, and improve the management of chronic conditions.
Health and Fitness Tracking
Real-time data fosters proactive wellness and motivates users to achieve their health goals. Sharing this data with healthcare providers facilitates personalized care and timely interventions.
Analysis of Patient Behavior
These apps track patient behavior, including mood, medication use, and lifestyle choices. Real-time feedback lets doctors adjust their plans. Improved communication boosts patient engagement and outcomes.
Real-Time Global Collaboration
These apps break down geographical barriers and enable global healthcare teams to collaborate on personalized treatments. Continuous patient monitoring enables prompt intervention, fosters proactive healthcare, and raises global care standards.
Emergency Services Integration:
Healthcare apps with emergency services let users quickly contact help, share their location, and get help in emergencies. This approach improves response times and can save lives.
Reduced Diagnostic Errors
mHealth apps enhance diagnostic accuracy and patient safety. Intelligent tools support better decision-making, while predictive features help identify potential drug interactions and other adverse events.
Secure and Convenient Payment Options
Integrated payment gateways enable seamless transactions via credit/debit cards or PayPal. Automated notifications and easy access to payment history streamline billing and enhance patient satisfaction.
Efficient Data Management
Using AI and blockchain in mobile health apps improves data management, streamlines processes, and enhances doctor-patient communication. This approach leads to more personalized treatment and better health outcomes.
Types of Healthcare Apps and Their Development Cost
In this section, we'll look at the average cost to build a healthcare app across various categories.
Telemedicine App
Telemedicine is a synonym for modern healthcare. Now, healthcare professionals are at the fingertips and available from the comfort of home. From virtual consultations to video calls, the possibilities are vast.
Check for key components, cost, and timeline of the app deployment below:
Health and Wellness Tracking App
Given the vast and growing market, launching a wellness app is a promising venture. Look at the success of Headspace and Calm. They help many users find a sense of calm every day. Wellness apps typically include features like meditation, mindfulness practices, and productivity tools. With AI-powered nudges, you can help users stay mindful and re-energized.
Inspect the key aspects, budget requirements, and timeline for deploying the app below:
Medical Networking App
These platforms harness the power of the Internet to foster connections and collaboration. Healthcare providers can use these apps to expand their knowledge and share important information with respected colleagues.
Below, we've listed the app's features, financial estimates, and launch timeline:
E-prescription Apps
E-prescription apps are reshaping the prescription process, blending security with efficiency. They allow healthcare professionals to prescribe precise dosages, which pharmacies receive in real-time. This seamless flow ensures that medications are delivered right to patients' homes, making healthcare as easy as a tap on the screen.
Here's a detailed look at the app's features, cost projections, and expected timeline.
Hospital & Clinics Management Apps
Hospital and clinic management apps simplify administrative tasks, improve resource allocation, and boost overall efficiency in healthcare settings.
Below, we've detailed the app's features, pricing estimates, and launch schedule.
Chronic Disease Management Apps
Chronic disease management apps help users track symptoms, manage medications, and communicate with healthcare providers.
Take a closer look at the app's features, estimated costs, and projected timeline.
Appointment Scheduling Apps
Healthcare appointment scheduling apps make booking and modifying appointments easier, which improves patient satisfaction.
The app's primary functions, projected costs, and deployment timeline are listed below.
EHR/EMR Systems
Modern healthcare demands secure digital record systems. Blockchain EHR platforms protect sensitive patient data while facilitating doctor-patient communication. Smart contract automation streamlines medical workflows.
Check the app's core functionalities, expected expenses, and rollout schedule below.
Remote Monitoring Apps
Remote monitoring apps provide real-time insights into patients' health metrics, empowering healthcare professionals to act swiftly. This seamless connection ensures timely interventions, making healthcare more responsive and effective.
See the app's features, financial estimates, and launch timeline below.
Medical billing and coding
Medical Billing means submitting and following up on claims with health insurers to get paid for services by healthcare providers. It also includes verifying patient insurance, processing payments, and managing accounts receivable.
Medical Coding turns healthcare diagnoses, procedures, and services into universal alphanumeric codes. Accurate coding is crucial; it directly impacts billing accuracy and claim approvals.
If speaking to the real-world case, the hospital tracked underpayments and payer performance by implementing the billing system, boosting patient collections from 5% to 22-26%.
Key Features of Medical Billing Software
Patient Record Management.
Efficient management of patient records eliminates manual filing and ensures quick access to necessary information.
Medical Coding Automation.
The software supports standardized coding systems like ICD-10 and CPT to automate the coding process and reduce claim denials due to errors.
Payment Processing Integration.
Integrated payment processing capabilities allow secure online payments via various methods, enhancing patient convenience.
Financial Performance Analytics.
Tools for generating reports on collections, rejections, and overall financial performance help healthcare providers analyze their revenue cycle.
Electronic Health Record Synchronization.
Seamless integration with Electronic Health Records (EHR) systems consolidates data accurately, improving workflow efficiency and reducing billing errors.
Steps in Developing Medical Billing Software
Developing medical billing software requires a strategic approach. It must balance technical complexity, compliance with regulations, and a user-centric design. This process involves planning, skilled development, and rigorous testing to meet healthcare standards.
Define Requirements.
Clearly outline the functionalities needed based on user feedback and technical specifications.
Software Development.
Engage a team of developers to create the software, focusing on design specifications, security considerations, and compliance with regulations like HIPAA.
Testing.
Conduct thorough testing to ensure functionality meets compliance standards and is free from technical issues before deployment.
Formula to Calculate Medical App Development Cost
The final estimate of your healthcare mobile app development cost relies on the duration of your project. However, you can calculate the approximate cost using the formula for the healthcare app development cost:
The hourly rate is the cost charged per hour of work, and development hours account for the total time used in the process.
Note!
The hourly rates depend on the skills and location of the app developers. If you have an offshore team, you might gain some cost advantages. Yet, skilled professionals might charge higher fixed prices. You must balance expertise and budget to get the best app development value.
Cost Per Feature in Healthcare App Development
The cost of healthcare app development is the cornerstone. Each added feature impacts the overall budget. For instance, user authentication can cost $2,000 to $5,000. Telemedicine features may cost $10,000 to $15,000. User-centric options, like appointment scheduling, cost $1,000 to $3,000 each. Strategic planning is essential to manage costs effectively.
Let's take a closer look at the price of each feature:
Cost Per Hour for App Development By Region
The hourly rate for healthcare app development isn't set in stone; it varies widely based on several key factors. They involve the app's complexity, the developers' expertise, their location, and the project's scope.
Here's a quick guide to typical hourly rates across different regions:
North America (USA, Canada): $100 – $250
The rates in North America are among the highest globally due to the high demand for skilled developers and the cost of living in major tech hubs like Silicon Valley. Senior full-stack developers can charge between $150 and $200 per hour.
Western Europe (UK, Germany, France): $80 – $200
This region has high rates due to a strong demand for skilled developers and a robust business environment. Countries like Germany and the UK typically charge between $22 and $90 per hour for developers, depending on their experience level. The average salary for software engineers in Western Europe ranges from $60,000 to $95,000 annually.
Eastern Europe (Poland, Ukraine, Romania): $40 – $100
Eastern Europe offers a competitive balance of cost and quality. The average hourly rate is lower than in Western Europe, with many skilled developers available between $24 and $46 per hour. With strong technical education and a growing IT workforce, Poland and Ukraine offer readily available development talent.
Asia (India, China, Philippines): $20 – $80
Asia generally offers the lowest rates for software development. However, quality can vary widely among developers. Rates typically range from $10 to $80 per hour. It is crucial to thoroughly vet developers in this region to ensure quality and reliability.
Australia and New Zealand: $80 – $150
Developers in Australia and New Zealand command higher salaries due to the high cost of living and demand for skilled labor. Average hourly rates range from approximately $50 to $150, depending on experience and specialization.
South America (Brazil, Argentina): $30 – $100
South America presents competitive rates with a growing pool of talented developers. Hourly rates typically range from $20 to $100, making it an attractive option for companies seeking cost-effective development solutions while maintaining quality.
Hidden Expenses in App Development
When planning a budget for mhealth app development, don't forget to account for these additional costs:
Project Management: Usually adds 10-20% to the overall medical app development cost.
Design: UI/UX design rates typically range from $50 to $150 per hour.
Testing and QA: Costs generally fall between $30 and $100 per hour.
Maintenance and Support: Ongoing expenses after launch are often billed at the same hourly rate as development.
Note!
These approximate figures may fluctuate based on your project's specifics and development team.
Legal and regulatory costs
Legal and regulatory healthcare app development costs can range from $5,000 to $15,000 annually. This covers compliance with key regulations like HIPAA in the U.S. and GDPR in Europe. These costs include fees for obtaining certifications, conducting privacy audits, and ensuring compliance with evolving legal standards. Developers must also consider the costs of data protection. They may need to consult lawyers to navigate complex regulations.
What Affects the Healthcare App Development Costs?
Healthcare software solutions come with different price tags. For example, an EHR system may cost $10K to $250K, while telemedicine platforms can range from $40K to $400K. What factors contribute to these costs? We're here to explain.
Scope and complexity
Healthcare app development costs hinge on project complexity. Advanced features like AI-powered decision support, analytics, and device integration drive up expenses and development timelines. Precise project scoping is critical: it minimizes unexpected costs and ensures optimal resource allocation.
Regulatory compliance
Protecting patient data via HIPAA compliance is non-negotiable, as it entails trust in healthcare services overall. However, it often comes at a cost: increased development complexity, higher expenses, and the added overhead of certifications impact both — budget and time to market.
Integration requirements
System compatibility drives up healthcare software development expenses. For compatibility and seamless data transfer, developers must invest substantial effort in connecting new software with legacy Electronic Health Record (EHR) and Electronic Medical Record (EMR) systems. The integration process becomes more complex when incorporating third-party services like payment platforms, telehealth tools, and laboratory information systems, dramatically increasing both development and testing costs.
Technology stack
Cross-platform software development multiplies costs. Creating separate codebases for web, iOS, and Android platforms can exponentially increase development expenses. Moreover, integrating cutting-edge technologies like AI and blockchain requires rare expertise, significantly inflating development costs.
Development team composition
Healthcare app development costs depend on the team structure. An in-house team may provide more control, while outsourcing to a third-party vendor can be more cost-efficient with proper management. Remember that specialized skills, such as cybersecurity experts and data scientists, are usually more expensive.
Design and user experience
Design determines healthcare software success. While a high-quality, user-friendly design may increase initial healthcare app development costs upfront, it drives better adoption and satisfaction in the long run. Features for disabled users will have higher design and development costs. Major expenses come from thorough research, testing, and iterative development.
Testing and quality assurance
The smooth operation of healthcare software depends on regular testing. In-depth testing for functionality, security, compliance, and performance raises healthcare app development costs due to the lengthy cycles involved. Feedback from real users during testing further raises the overall project expenses.
Maintenance and support
Healthcare software expenses don't end at development. Maintenance and post-launch support (e.g., bug fixes, updates, regulatory compliance changes) demand ongoing investment. Additionally, providing user support services adds to overall operational expenses.
These factors guide informed decisions on scope, technology, and resources for healthcare software development. Plus, they empower effective budgeting and cost management, often resulting in successful healthcare software development initiatives.
Best Practices for Cost-Efficient Healthcare App Development
Deployment of healthcare apps is an expensive process. Sometimes, it squishes the expenditures; software integration expenses range from $20,000 to $100,000, while regulatory compliance adds $20,000 to $80,000 to development budgets. These substantial costs necessitate strategic financial management.
Smart business owners seek smart moves to keep healthcare app development costs under control. Here are some options available in detail:
Opt For Cross-Platform Development Tools.
React Native and Flutter can cut your budget by up to 1.5 times through a shared iOS and Android codebase. In addition, source code from a cross-platform mobile app can be repurposed to create a web application.
Leverage Off-the-Shelf SDKs and Code Libraries.
Businesses can use existing solutions and customize them to fit their needs instead of building common features from scratch. Pick a ready-made option and modify it to fit your specific needs.
Consider White-Label and No-Code Solutions.
Branded and system-integrable off-the-shelf products provide a cost-effective way to roll out services like telehealth. This white-label product integrates with your digital systems, like practice management platforms. It lets clinics cost-effectively start telehealth services using no-code solutions.
Conduct Rapid Prototyping.
Before diving into full development, opt for prototyping. This stage can help validate your ideas and test the UI/UX while cutting unnecessary costs.
Employ a Multidisciplinary Team.
Hire a full-stack team that includes in-house talent in design, development, QA, etc. Clearer, more concise communication keeps mHealth app development costs under control.
Outsource Smart.
Outsourcing holds potential as a strategic solution yet demands careful evaluation before proceeding. Combining medical app development intricacies with cultural misunderstandings can produce a product that fails to fulfill expectations. The cost of healthcare app development in the USA mirrors its distinct challenges and established standards.
Involve in the Development Process From the Start.
One of the greatest mistakes is to hire an experienced team and then leave to manage themselves. Make the feedback a routine, and maintain communication with the development team throughout the process. If you lack time and material — hire a dedicated project manager. Make sure your reliable partner maintains regular updates with you.
Conduct Thorough Testing.
QA is on your development partner. Nevertheless, you can also verify stuff on your end. Early detection of bugs simplifies their resolution while keeping costs low. To prevent old errors from recurring, developers should conduct retrospective tests.
Implement DevOps Best Practices.
Without appropriate DevOps practices, developers lose valuable time. Automated DevOps systems allow developers to focus on writing code features rather than spending time on manual quality assurance and releases.
Optimize Maintenance Costs.
Long-term maintenance costs decrease when automated platforms track issues and collect user feedback.
Prioritize Features Wisely.
Start with core features before building a Minimum Viable Product (MVP), enabling market testing before further development.
Regulatory Compliance For Health Apps
Developing medical applications requires strict adherence to international data protection standards. These regulations safeguard patient information and ensure legal compliance across global markets. Here's a comprehensive breakdown of key regulatory frameworks:
1. European Union: GDPR (General Data Protection Regulation)
Coverage: Patient health records and personal data
Key Features:
Mandatory data breach reporting within 72 hours
Patient right to data access and deletion
Requires explicit consent for data collection
Fines: Up to €20M or 4% of global revenue
2. United States: HIPAA (Health Insurance Portability and Accountability Act)
Coverage: Protected health information (PHI)
Requirements:
End-to-end data encryption
Access control mechanisms
Audit trails for all data access
Regular security assessments
Penalties: Up to $1.5M per violation annually
3. Canada: PIPEDA (Personal Information Protection and Electronic Documents Act)
Coverage: Private sector data handling
Key Requirements:
Explicit consent for data collection
Purpose limitation
Data accuracy maintenance
Security safeguards
Penalties: CAD 100K per violation.
Tech Stack For Healthcare App Development
Discussing the tech stack goes first, right before answering the ultimate question of how to develop a health app. Also, will the dev work blow the budget?
Since the health app's tech affects its performance, convenience, and company expenditures. Here are some common tech stacks for mhealth app development used by the Darly Studion team:
Programming Languages:
Java, Python, C#, C++, JavaScript, PHP, and HTML5.
The choice of specific language depends on the functionality you need. If the app stores and analyzes large data or uses AI, choose Python and Java for the backend and JavaScript for the front end.
Operating Systems:
Windows, macOS, Linux, and mobile Apple iOS or Google Android.
Here, we just need to choose a trustworthy provider with great support. We choose an OS with strong security and top performance.
Databases:
MySQL, Oracle, PostgreSQL, Memcached, and MongoDB.
To select the best database or a mix, contact a development team. They will evaluate your data type, volume, and request frequency to guide you in choosing the right database size and provider.
Servers:
Apache server and NGINX.
These two options lead the market, but their HIPAA compliance is most important to us.
Other useful tools:
DevOps tools: GitHub, Jenkins, Selenium, Rollbar, or Bitbucket.
Business tools such as Slack and G Suite — for communication and management.
Tools like Google Analytics for tracking, Stripe for payments, and Elasticsearch for search enhance functionality.
Cloud storage and hosting providers such as Amazon S3, Amazon EC2, or DigitalOcean.
Now that we've covered the technology stack for healthcare apps let's break down the next practical steps.
Design for Healthcare App Development: Best Practices
Creating effective healthcare applications requires meticulous attention to design principles that balance clinical utility with user experience. Studies show that 93% of physicians believe mobile health apps can improve patient care, while 80% of users abandon healthcare apps within the first 2 weeks due to poor design.
User Interface Design
Medical professionals spend an average of 4.5 hours daily interacting with healthcare interfaces. Design must accommodate the 15-second average attention span during critical care scenarios, with interfaces allowing task completion within three clicks or less.
Visual Elements
Color schemes with a minimum 4.5:1 contrast ratio (WCAG 2.1 standards)
Typography: 16px minimum for body text, 24px for headers
Maximum of 6-8 core icons per screen to prevent cognitive overload
95% of users expect consistent branding across all touchpoints
Functionality Considerations
Critical features accessible within 0.8 seconds
The data visualization comprehension rate should exceed 90%
Forms designed to reduce error rates below 1%
99.9% uptime for offline critical functions
Security Measures
2-factor authentication reduces breaches by 99.9%
256-bit AES encryption ensures the security of data at rest and in transit
Before writing a single line of code, decode the fundamental value proposition, transforming your app from a mere download to a user's daily digital health companion.
Decode your audience's DNA.
Segment users by age, location, and average income. Analyze their needs to create a value proposition that challenges industry standards.
Conduct market research.
Identify the strengths and weaknesses of your target market. Benchmark against competitors and develop a unique value framework.
List selling points.
Create a comprehensive list of features and additional services that will appeal to your target audience and encourage them to choose your mhealth app.
Define your goals.
Clearly outline the objectives you want the app to achieve and align them with your budget for effective planning.
Step 2. Choose the monetization model
Basically, there are six monetization business models for healthcare apps, from freemium to paid-in-app. This aspect is pretty simple for healthcare providers who decided to build a healthcare app as another platform to sell their services.
Healthcare providers who use healthcare apps to sell their services will find this aspect straightforward because they don't need to generate revenue from the app, which functions as an additional tool. However, the question is a bit more complicated for owners of apps such as meditation or healthy lifestyle platforms.
Step 3. Create UI/UX design
In this development phase, UI/UX designers establish the app's functionality and visual design while managing platform branding when necessary. The most time-consuming task during this stage remains developing prototypes that include visual mockups for each app screen and user interaction.
Another crucial part of the design process is selecting fonts, color schemes, and button placement. mHealth platforms must prioritize responsive design across all devices while ensuring users can reach their goals efficiently.
Step 4. Build an MVP
Even if you lack the necessary funding to implement your ideas today, that doesn't mean you cannot begin developing your project. That's what an MVP is for.
MVP creation enables faster launch and collection of initial user feedback. As your app develops, you can raise more funding. This will help expand its capabilities. An MVP approach cuts financial risk since it requires less investment to test a product's viability before committing further.
Step 5. Collect feedback and update
Typically, at this stage, QA engineers perform another round of testing after developers deploy updates to ensure that there are no bugs and that project requirements match the results.
Timeline of Custom Healthcare Software Development Services
The timeline for custom healthcare software development varies according to the complexity, scope, and specific requirements. Let's explore the general phases involved.
Initial consultation and planning.
This phase starts by engaging stakeholders to clarify their needs and objectives. It then lays down the scope, key features, and deliverables, resulting in a high-level timeline and budget. The project team then defines roles and responsibilities. This process typically takes two to four weeks.
Research and analysis.
The research and analysis phase starts by analyzing market trends and examining competitors' healthcare software solutions. The next step is gathering insights through surveys and interviews with potential users. The technology stack, third-party integrations, and compliance requirements are evaluated at this stage to ensure thoroughness. This vital phase will take three to five weeks and lay a solid foundation for your project.
Designing phase.
The design phase usually spans four to eight weeks. At this phase, create wireframes and prototypes for key screens and user journeys to develop a user-friendly interface. Additionally, conduct a usability test. Every detail must shine.
Development phase.
This phase lasts 12 to 24 weeks. It focuses on building the software's core: the backend, the front end, and key features like patient records, scheduling, and billing. The backend includes the databases and APIs. The front end must be user-friendly. Plus, robust security measures are integrated, including HIPAA and GDPR compliance.
Testing.
Before release, the software undergoes a 6 – to 10-week testing cycle. This includes unit tests, integration tests, performance tests, security tests, and user acceptance tests, which help ensure the software performs well and is secure.
Deployment and training.
The deployment and training of your healthcare software will take three to six weeks. At this phase, developers ensure the software works well, that any early issues are fixed quickly, and that the app is user-friendly.
Must-Have Features of Healthcare Apps
The type and main function of a healthcare app dictate its features. Yet, there are the most common that mHealth apps share, whether for telemedicine, hospitals, or urgent care. Here are the essentials:
Sign-up / Sign-in. While in-app registration might require hefty user details and time to figure everything out, the sign-in process should be swift and easy. For a smooth experience, allow users to sign in with their email.
Doctors' and patients' profiles. Doctors' profiles should display their specialization, education, current workplace, and availability. Patients' profiles must include their medical history, prescribed medications, and other key health details to ensure a seamless interaction.
Appointment management. The calendar feature helps doctors track appointments and allows patients to browse available slots to book visits. A seamless experience for everyone involved!
Push notifications. Designed for both healthcare workers and patients, these features act as reminders for upcoming appointments and medication alerts.
In-app chat. With in-app chat, users can easily connect with healthcare managers or doctors. It enables faster communication, making healthcare more accessible and efficient.
Video consultations. The shift to video call appointments came as a safer alternative during the pandemic when in-person consultations posed higher risks. Now, this option saves time for doctors and patients and lowers the chance of spreading illnesses.
EHR integration. Each medical visit or procedure adds to a patient's treatment history, stored in an EHR (electronic health record) system. Including an EHR system in your app is vital for delivering the best care and streamlining the process for future healthcare providers treating the patient.
E-prescriptions. As consultations move online, doctors should also be able to prescribe medications digitally, which cuts time waiting in key and frees up doctors' time. Another benefit is that e-prescriptions are more secure and difficult to forge.
Payment gateway. Paid medical services go hand in hand with in-app payments. Thus, opt for payment gateways that accept credit and debit cards, digital wallets, crypto payments, and other alternative methods.
Ratings and reviews. Designed for patients, this feature simplifies selecting a trusted professional who fits their specific requirements.
Challenges in Healthcare App Development
Healthcare app development faces several challenges that can hinder progress.
Non-Compliance with the Law.
HIPAA and FDA regulations safeguard personal data and guarantee the safety of products. Failure to follow these rules leads to financial penalties and the erosion of trust. To ensure compliance and avoid penalties, businesses must consult legal experts.
Lack of Security.
Hackers can quickly access sensitive data, such as customer information or financial records, when business security systems fail. Businesses can suffer reputational damage and financial losses due to this. To prevent this, businesses must improve their security and work with tech experts.
Presence of Multiple Channels and Devices.
Multiple channels and devices present integration challenges since they operate on unique systems and protocols while meeting different requirements. Differences between technology standards and data formats trigger compatibility problems that need additional effort to fix.
Marketing and Launch Cost of Healthcare Application
Depending on scale and strategy, a healthcare app's marketing and launch costs can range from $5,000 to over $100,000. Key cost components include:
Market Research: $5,000 to $15,000 for analyzing market needs and competition.
Launch Campaigns: $5,000 to $100,000 based on scope and platforms.
User Acquisition Costs: Cost per install (CPI) ranges from $1.42 to $3.75, varying by advertising platform (e.g., Google Ads, Facebook Ads).
Effective budgeting is essential for a successful launch and user engagement.
Business and Monetization Models of Healthcare Apps
Since healthcare thrives on digitalization, many people have at least one app on their devices. However, the competition for user attention takes high stakes. The question arises: How can we promote and monetize mhealth apps?
Below, we have listed some of the most common business and monetization models:
Freemium Model
The freemium healthcare app offers a basic version and charges for premium features like advanced health evaluations. This model promotes rapid market penetration and attracts a large user base. In the long run, it drives sustainable revenue by converting a percentage of free users to paid tiers.
Subscription Plans
Subscription models work best for healthcare apps offering ongoing value. Tiered pricing can include basic tracking features, fitness coaching or telehealth services, access to a library of health articles, and premium telemedicine services with personalized health plans. Before enroll this model, ensure its pricing reflects the app's unique value proposition.
In-App Purchases
Even though it has a complicated deployment architecture, it is an incredibly lucrative way to monetize the app. In short, this model helps to upsell extra features or content within the app. Thus, users can purchase in-app items such as extra lives in games, extra workouts in fitness apps, or pre-paid visits and prescriptions in mhealth apps.
Also, businesses often sell branded merchandise or partner with other brands via in-app purchases to promote themselves more.
Telemedicine Consultations
The pandemic marked the popular era of telemedicine. Now, many apps offer video consultations with subscription plans or pay-per-consultation fees. However, the healthcare specialists' credentials and licenses are the most important. They are the foundation of brand trust and revenue.
Advertising and Sponsorships
Healthcare apps monetize through strategic sponsorships and expert content. Targeted advertising creates win-win partnerships. It lets companies reach specific audiences and generate app revenue.
Partner with medical experts to create credible content, like articles and videos. This strategy will boost the app's credibility, expand its reach, and diversify revenue.
Pay-per-usage Model
The pay-per-usage model, common in SaaS, is now being implemented in healthcare apps. This cost-effective approach allows users to access healthcare resources and pay only for their actual usage, avoiding the commitment of a subscription. Which often results in user trust and brand loyalty.
These models can be mixed and matched depending on the target audience and specific functionalities of the healthcare app. However, first things first, robust business and monetization require a consistent content publishing strategy and tools to publish high-quality medical content regularly.
Healthcare App Development in a Nutshell
Indeed, healthcare apps are transforming digital health with more accessible and intuitive tools. From telemedicine and health trackers, the healthcare app development cost varies by type, scope, team, and overall business aim.
But the truth is one. Building a successful mobile health app requires strategic planning, research, and expertise in medical software development combined with a significant investment. This is especially true since medical app development costs go beyond initial creation, including planning, regulatory compliance, and ongoing maintenance.
Effective apps demand resource management and collaboration with experienced teams. A smart approach can help businesses develop impactful solutions that benefit both patients and healthcare providers.
Partnering with Darly Solutions enables companies to create healthcare apps that meet technical standards while delivering real value in digital health.
Build Your Healthcare Application With Darly Solutions
From market analysis to launch, Darly Solutions uses a strategic 5-step process to build high-quality healthcare mobile apps tailored to your audience. Follow us:
Market & User Analysis: We help you understand your target audience (patients, doctors, etc.) and analyze existing apps to identify opportunities.
Planning & Business Analysis: We collaborate with you to define the app's concept, business goals, technology, and resources, ensuring alignment with your strategy.
Design & Prototyping: We design user-friendly interfaces and develop prototypes to validate requirements and gather feedback.
Development & Testing: Using Agile methodology, we build and rigorously test the app in iterative sprints.
Release & Support: We handle app store publication system integration and provide ongoing maintenance and support.
For now, don't settle for less. Darly Solution is here to help! Reach out today to discuss your project in detail.
In the design and operation of digital products, it is essential to detect errors and ensure that these products fully comply with specifications (both generally accepted and defined by their owners). For example, in the field of healthcare, using such solutions directly impacts the health and life of patients and the level of efficiency of medical services. So, let’s delve into this topic.
Objective of Quality Assurance in Healthcare App Development
So, let’s find out why QA is important. In general, it is one of the integral parts of software development, especially in the medical field. After all, in the field of medical services, the fate of the patient's life and health is decided every day. Digital solution that looks and operates as intended (of course, thanks to the quality assurance benefits) provides the ability to prevent all potential errors as efficiently as possible and ensures that applications meet modern medical standards.
Regarding the importance of quality assurance in healthcare applications, the following points can be distinguished:
Safety of patients: At the heart of QA in healthcare software development is patient safety. The timely testing of healthcare applications that could impact a patient's health is a critical aspect. This includes verifying medicine dosage, ensuring the accuracy of diagnostic algorithms, and the functionality of the patient monitoring system. Any malfunction, even for a brief period, can lead to serious errors, underscoring the importance of reliability assurance.
Data privacy: The guarantee of absolute protection of patients' personal data from unauthorized access. Due to their specificity, medical applications regularly process a huge amount of information, so the introduction of modern encryption methods is critical.
Compliance with regulatory requirements: A number of modern healthtech standards like HIPAA and GDPR are created for a reason. Therefore, absolutely all software should be developed to meet these requirements. Civilized countries actively implement official app development rules. If these laws are ignored, it is undoubtedly a direct path to legal accountability, with all the attendant consequences. The implementation of reliable digital solutions reduces the chances of getting a fine or a lawsuit until the loss of a license.
Optimization of regular processes: The higher the efficiency of the application, the better the performance and accuracy of work within the medical professional team. In this way, medical staff can access the necessary information, thus minimizing the time spent on data processing. This guarantees both speed and high accuracy of decision-making regarding the further treatment of patients.
Risks Associated with Poor Software Quality in Healthcare
No one will argue that some medical institutions ignore the risks of using legacy software that doesn’t meet the modern healthtech regulations. However, this is a very serious and critical topic that can significantly impact patients' safety and lives and the effectiveness of daily processes.
Numerous errors, incorrect diagnoses, and, as a result, incorrectly prescribed treatment all directly threaten the patient's life and health. Also, do not exclude the occurrence of legal and reputational problems (fines or a prominent indicator of loss of confidence on the part of the public, both patients and employees of a particular medical institution). Unreliable digital solutions automatically complicates the interaction between employees. It leads to a decrease in the productivity of daily medical practice because it complicates the possibility of uninterrupted access to all necessary data and the exchange of information between departments and specialists.
Types of Testing in Healthcare Applications Development
There are different types of healthcare application testing, but the most common and popular among them are the following types:
Performance testing: It includes analyzing the application's speed of action and navigation, taking into account different levels of load.
Regression testing: It defines how much each of the module functions meets the requirements.
Security testing: It implies checking the protection of each patient's data from illegal access by unauthorized users.
Usability testing: This example of quality assurance in healthcare is designed to evaluate how user-friendly the application is, ensuring it is convenient for both healthcare industry employees and patients of all ages.
Healthcare app testing features are primarily critical, including the need for strict compliance with regulatory requirements and safety regulations.
The Future of Quality Assurance in Healthcare
Now, knowing the answer to the question: “What is quality assurance in healthcare?”, let’s talk about its future. Specifically, today, we can define three the most sustainable trends:
Implementation of AI and ML-based solutions aimed at automating the testing process, independently identifying bugs, and preventing them in advance;
Combination of DevOps and Agile, which ensures closer interaction between development and testing teams, ultimately reducing the number of bugs and speeding up their fixing;
Using cloud-based testing platforms that provide scalability of QA healthcare scenarios without compromising the budget.
However, in the coming years we can expect something more revolutionary than the actualization of the above-mentioned directions since the healthtech sector is actively invested in by both governments and private institutions.
Conclusion
Now, you know the answer to the question: “What is quality assurance?” and can understand the role of QA in software testing – generally speaking, it is crucial regarding ensuring patient safety and the performance of the healthcare delivery process. Minimizing risks during the medical quality assurance process and creating reliable medical applications are possible only through the use of modern technologies and compliance with all official standards provided by a qualified service provider.
The medical field has been developing for ages, but over the past twenty years, we’ve seen the flourishing of healthtech. And it’s not surprising: this technology is a game-changer for patient care, workflow, and life-saving.
The healthcare industry includes producing portable devices to monitor vital signs and online medical consultations provided by modern digital health solutions. And, similarly, every private clinic should have a top-notch website where patients can book an appointment with a doctor.
What are the roles of a medical site?
A communication tool with patients. A site can be easily googled. Also, it contains information about available services and specialists. Thus, it makes it much easier for clients to reach out to you.
A communicational channel. Internet marketing is one of the most effective tools for attracting customers, but you need a web resource to use it. Thanks to a site, you will be able to find customers among users of search engines and social networks.
An image-maker of your organization. You need to give a good impression to make others want to collaborate.
A source of getting feedback and statistical data. Thanks to analytics systems, you can track changes in behavioral factors, perform A/B tests, and monitor the effectiveness of various traffic channels.
So, a medical website must be very comprehensive, secure, and accessible at all hours. To achieve this, it’s important to involve specialists responsible for different aspects of the work at each stage of the healthcare website development.
Key Considerations When Hiring
Before you hire a health tech development company, it’s essential to ensure their team has the necessary hard and soft skills. The task of the dev team will be to make the site appealing to users and customize traffic channels. In turn, the site owner should provide the essential information and approve tasks in time to avoid excess of the final healthcare website development cost and pauses in the work process.
What should you bear in mind while searching web development companies for healthcare?
Relevant experience. The more projects related to medicine they have, the better.
Technical knowledge. Find out if the developers know the required programming languages.
Communication skills. Website development is a team effort not just for the performers but also for the customers, so soft skills are vital here.
Ability to comply with regulatory requirements. The company must know about HIPAA compliance and other legal provisions.
Experience in HeathTech
The company you want to hire must understand your business. That’s why your healthtech development company must be experienced with medical data and technology. Look for the company that has previously worked on similar projects. They could have a background in developing electronic health record systems, medical visualization software, remote care platforms, or other products related to healthtech website development. Companies with extensive experience in this field are well prepared to meet the specific demands of healthcare software development.
Technical Expertise
The company’s tech team should have certain skills required for medical website development. First of all, they need to ensure the security of the medical website. Secondly, it must be able to scale. This will allow you to upgrade a site following current changes like adding new services, functions, categories, or sections. It will also increase functionality and optimize it based on customer requests and company interests.
Another important aspect is defining the right tech stack. The developers must be able to choose a health tech website development programming language that meets business needs. The most popular ones are HTML/CSS, PHP, Python, JavaScript, Java, Ruby, and Swift. The final choice of one or another development tool must be made according to the goal of creating responsive web design and providing a brilliant user experience. The company should also have a skilled designer who can transfer your brand identity into the website’s UX/UI design.
Regulatory Compliance
A team working on a health tech site must guarantee its security as patients leave their personal data there – this can be ensured by its knowledge of how to create a secure website for healthcare providers. Specifically, such websites must meet HIPAA regulations and other confidentiality rules in health care, such as GDPR and PCI-DSS. Make sure the company is aware of these norms and can perform HIPAA-compliant website development.
Communication and Collaboration
Healthcare website development requires ongoing communication between the client and the contractor. For example, in the beginning, you and the tech team will negotiate on choosing the right CMS for the website. Consider hiring only those who are accessible, transparent, and timely. If there are no meetings or any other forms of communication, move on to the next candidates.
Partner’s Reliability
Make sure the chosen company is trustworthy. It must be present on social media and have its website with a portfolio. Seek for clients' feedback on special resources, forums, and social networks. This way, you’ll quickly see what prior customers have said about a company's service delivery. And, if some field-specific media have published case studies about the company’s work, it’s a very good sign.
Compliance with Your Request for Proposal
Once you decide on a candidate, it’s time to write a project proposal. Health tech website development proposals include stating the project’s objective, target audience, budget, and other features specific to your project. This way, the potential company will understand your business needs better and be able to provide an individual proposal.
Impression After Personal Interviewing
A key to successful collaboration lies in communication. Interviewing health tech web developers will allow you to test their understanding of your specific demands and the concept of the website.
Crucial moments to clarify during interviews:
Ask for details about their experience. Get candidates to talk about a project related to health tech they have participated in. Go into detail to assess their role and expertise.
Ask about the development process. Give them thorough questions to test their technical knowledge and figure out the workflow. You can also provide them with a test task to evaluate their skills firsthand.
Uncover their management style. Ask if the team has worked on any cross-functional projects. Look for leadership qualities like guiding, empowering others to succeed, and handling conflicts constructively.
Find out the team membership. Alongside those who are usually present in the technical team, such as engineers, QA testers, and tech leads, there should also be a UX designer.
Ask who will own the code. It’s much better for you if the web development companies for healthcare offer a total handover. Yet, the agreement may include a clause that allows the contractor to keep the code. The worst thing that can happen might be that the company charges you more money because of the constant glitches they fix.
Question what happens if the team fails to meet the deadline. Find out how the company can repay for the lost time.
Portfolio
Ask companies included in a shortlist to demonstrate their previous projects. A voluminous portfolio is usually a sign of a company that has extensive experience. This way, you’ll wind out what they’re capable of. The portfolio will show you if the team can manage challenging projects and meet high regulatory standards. Also, it will show how good and user-friendly their software is. And, naturally, pay strong attention to websites related to the medical field.
Conclusion
Ideally, a website solves several problems of a healthcare business at once. First, it is one of the most effective tools for attracting new clients. It also acts as a channel of communication with existing patients, forms the image of your organization, and allows you to get feedback and collect your customers’ data. All this is possible if the site is developed by the pros. That’s why you should be very picky when you want to hire a health tech development company. Follow the recommendations listed above to find the perfect fit.
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