The document discusses the costs associated with outsourcing iOS development. It notes that hourly rates for developers are $120-150 in the US, £60-70 in the UK, and €70-80 in Western Europe. Daily rates are slightly lower. When calculating hourly rates, factors like insurance, taxes, office space, and other costs must be considered. Examples of app costs include $12,000 for a preposition builder app and $15,000 for a tense builder app. The median cost to build an app is $7,000 at the low end and $35,000+ at the high end.

1. MY EXPERIENCE BEING AN
INDIE
Mugunth Kumar

2. Agenda

3. Agenda
• How the iOS world works?
• Calculating your hourly rates
• Hourly rates around the world

4. Agenda
• How the iOS world works?
• Calculating your hourly rates
• Hourly rates around the world
• Hiring a developer in Singapore
• Median costs of an app

5. Doing Business

6. Doing Business
• The world is changing

7. Doing Business
• The world is changing
• The way we do business is changing

8. Doing Business
• The world is changing
• The way we do business is changing
• Coping up with changes

9. Outsourcing

10. Outsourcing
• Hiring
a third party/business to completely manage one or
more processes within your company

11. Outsourcing
• Hiring
a third party/business to completely manage one or
more processes within your company
• Never done for your “secret sauce”

12. iOS development and outsourcing
• Is the iOS app the linch pin for your company?

13. Distributed teams
• iOS is a specialized skill set.
• WithH1Bs locked down severely by US, migration of skilled
workers to bay area has almost hit zero.

14. What others say?

15. tap tap tap (Camera +)
• SF based company
• Less than 10 member team
• Programmers from San Fran, New York, Austria, New
Zealand, Palo Alto, Texas and various cities around the world

16. Tapbots
• San Jose (CA), Flower Mound (TX) and Calagary(Canada)

17. Mobile Education Store
• Company incorporated in Oregon
• Three member team, Oregon, London and Singapore

18. Advantages
• Lower operations cost.
• Almost zero dollars for “Office space”
• Almost every dollar is spent on the product

19. Disadvantages
• Close to zero benefits (Healthcare)

20. Rates

21. Rates

22. Rates
• Payments are either made by hourly or daily rates

23. Rates
• Payments are either made by hourly or daily rates
• Hourly rates in UK - £60-70 (SGD 120-140)

24. Rates
• Payments are either made by hourly or daily rates
• Hourly rates in UK - £60-70 (SGD 120-140)
• Hourlyrates in Western Europe (ex Russia) - €70-€80 (SGD
110 - 130)

25. Rates
• Payments are either made by hourly or daily rates
• Hourly rates in UK - £60-70 (SGD 120-140)
• Hourlyrates in Western Europe (ex Russia) - €70-€80 (SGD
110 - 130)
• Hourly rates in United States = $120-$150 (SGD 150-190)

26. Rates
• Payments are either made by hourly or daily rates
• Hourly rates in UK - £60-70 (SGD 120-140)
• Hourlyrates in Western Europe (ex Russia) - €70-€80 (SGD
110 - 130)
• Hourly rates in United States = $120-$150 (SGD 150-190)
• Hourly rates in Australia - A$120-A$150 (SGD 150-190)

27. Daily rates are slightly lower

28. Daily rates are slightly lower
• UK - £400-450 (SGD 800-900)

29. Daily rates are slightly lower
• UK - £400-450 (SGD 800-900)
• Western Europe (ex Russia) - €500 (SGD 750)

30. Daily rates are slightly lower
• UK - £400-450 (SGD 800-900)
• Western Europe (ex Russia) - €500 (SGD 750)
• United States - $650 (SGD 800)

31. Daily rates are slightly lower
• UK - £400-450 (SGD 800-900)
• Western Europe (ex Russia) - €500 (SGD 750)
• United States - $650 (SGD 800)
• Australia - A$650 (SGD 800)

32. Calculating hourly rates - the wrong way

33. Calculating hourly rates - the wrong way
• $8000 per month Investment banker’s salary

34. Calculating hourly rates - the wrong way
• $8000 per month Investment banker’s salary
• $8000/22 days = $364 per day

35. Calculating hourly rates - the wrong way
• $8000 per month Investment banker’s salary
• $8000/22 days = $364 per day
• $364/8 hours = $45 an hour

36. Why is this wrong?

37. Why is this wrong?
• Insurance and healthcare
• CPF (+15%)
• Other perks, 13th month salary, bonus and benefits

38. Why is this wrong?
• Insurance and healthcare
• CPF (+15%)
• Other perks, 13th month salary, bonus and benefits
• Cost of office space
• Other CTC factors like hiring expenses

39. Maids

40. Maids
Full time
$800

41. Maids
Full time Weekly maid
$800 $250

42. Maids
Full time Weekly maid Spring Cleaning
$800 $250 $100

43. Maids
Full time Weekly maid Spring Cleaning
$800 $250 $100
$800/30 ($27 a day or $3 an hour)

44. Drinks

45. Drinks
$10.0 ($0.42)

46. Drinks
$10.0 ($0.42) $4.0 ($0.66)

47. Drinks
$10.0 ($0.42) $4.0 ($0.66) $1.6-$1.8

48. How much should you charge?
• Divide your yearly salary by a 1000.
•A $120k salary turns out to be around $120 /hr

49. My Rates
• By Hour US$110*
• By Day SGD 700*
• *Rates are last year’s and are due for revision

50. Sample Invoice

52. Choices for employers
• Hire a full time employee
• Hire a consultant on a daily rate
• Hire a consultant on a hourly rate

53. Hiring costs
•6 month contract with a salary of $6500 = $39000
• Hiring costs - $6500
• Office space cost + computer + software = $6000
• CPF = $5000
• Total per employee = $56500

54. Cost per year
•3 employees (1 for iOS, 1 for server and 1 for UI/UX)
• Total for the company = $250k++

55. Jobs DB

56. Jobs DB

57. So, how much does it really cost to build an app?

58. So, how much does it really cost to build an app?
• Depends on the app!

59. So, how much does it really cost to build an app?
• Depends on the app!
• It’s like buying a home

60. So, how much does it really cost to build an app?
• Depends on the app!
• It’s like buying a home
• Youcan buy a HDB for $200k or a mansion at Sentosa for
$108 million

61. So, how much does it really cost to build an app?
• Depends on the app!
• It’s like buying a home
• Youcan buy a HDB for $200k or a mansion at Sentosa for
$108 million
• Lets see some examples

62. Preposition Builder
•5 months - Approximately 20-30 hrs a month
•~ USD 12000

63. Demo of Preposition Builder

64. Tense Builder
•6 months - Approximately 20-30 hrs a month
•~ USD 15000

65. Demo of Tense Builder

66. Median price
• $7k lowest
• $35k+ highest

67. Median price

68. Median price
• Cost of making an app goes higher with iterations

69. Median price
• Cost of making an app goes higher with iterations
• Instagram - 18 iterations to get it right.

70. Median price
• Cost of making an app goes higher with iterations
• Instagram - 18 iterations to get it right.
• Today, tomake an Instagram “clone” it might cost about $50k
including server/UI/iOS dev costs

71. Median price
• Cost of making an app goes higher with iterations
• Instagram - 18 iterations to get it right.
• Today, tomake an Instagram “clone” it might cost about $50k
including server/UI/iOS dev costs
• Instagram +Path + Clear = $???

72. Questions?