In product development, speed and accuracy are core elements to consider. Imagine developing a product only to realize it doesn’t meet user needs or it lacks specific features and functionalities. It can be costly to amend the issues in the later stages of development, and that is where an MVP – minimum viable product comes in.

If you have a viable idea but don’t know how to actualize it, building an MVP is the solution. While you may lack adequate skills and knowledge on MVP development, that shouldn’t be an issue because you can always outsource an MVP to Aalpha Information Systems. But then, how do you process everything? What should you consider before outsourcing an MVP? For these and more insights on MVP outsourcing, keep reading this guide.

What is an MVP?

An MVP, better known as a minimum viable product, is a simple form of a product that shows your concept or idea before the actual development process. The purpose of an MVP is to validate your idea to concept before investing a lot of time and resources in developing a product that won’t match your goals and objectives.

The term was popularized by Eric Ries in The Lean Startup, where he defined MVP as “that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.”

Unlike prototypes or proof-of-concept models, an MVP is built for real users. It is not an internal tool or mock-up. It is deployed, used, and assessed under real-world conditions.

Examples:

• Airbnb’s MVP: A simple website with photos of the founders’ apartment.
  
• Dropbox’s MVP: A demo video explaining how the product would work.
  
• Twitter’s MVP: An internal messaging platform used at a hackathon.
  

An effective MVP is not a “cheap version” of the final product—it is a targeted version that captures the essence of your product idea and delivers real value from day one.

Global Market Size, Growth & Trends in MVP Development Outsourcing

Outsourcing MVP development is not an isolated practice—it is part of the larger global software development outsourcing ecosystem, which has grown into a multibillion-dollar industry. Understanding the scope, regional distribution, cost dynamics, and industry-specific trends helps founders and technology leaders make better decisions when selecting development partners.

Market Size of Software Development Outsourcing

According to Statista, the global market for IT outsourcing services was valued at approximately $430 billion in 2023, and is projected to reach over $777 billion by 2028, growing at a compound annual growth rate (CAGR) of 7.7% during the forecast period.
(Source: Statista IT Outsourcing Market)

A significant portion of this market includes application development services, where MVP development fits in. As more startups adopt lean methodologies, the demand for short-term, focused software builds—like MVPs—has increased proportionally.

In parallel, Gartner notes that over 60% of organizations worldwide now outsource at least part of their software development needs. This is expected to rise further as distributed work becomes normalized and the global talent gap widens.

Growth Trends and Projections

Several macro and micro trends are fueling the rise of MVP development outsourcing:

1. Surge in Startup Formation

Post-pandemic, startup creation rebounded globally. According to the OECD, new business formations increased across the U.S., U.K., India, and Europe from 2021–2023, with a strong uptick in digital-first ventures. Most of these startups prefer leaner operations with outsourced technical teams.

2. Shorter Product Development Cycles

Startups are under pressure to validate ideas quickly, especially in competitive sectors like AI, fintech, and healthtech. This pushes MVP timelines to 3–4 months or less—requiring execution-ready teams that outsourcing provides.

3. Shortage of Skilled Developers

The World Economic Forum estimates a global shortfall of over 85 million tech workers by 2030. Many startups, especially in high-cost geographies, cannot compete with large tech firms for local talent. Outsourcing fills the gap with qualified developers from talent-rich regions.

4. Normalization of Remote Collaboration

Thanks to tools like GitHub, Jira, Slack, and Zoom, distributed development is now a default practice—even for early-stage teams. This removes the operational barriers that once restricted outsourcing to larger enterprises.

Regions Dominating Outsourced MVP Development

While outsourcing is global, certain destinations consistently lead the market for MVP and startup-focused development due to their talent availability, cost-efficiency, and language proficiency.

India

India remains the world’s largest software outsourcing hub. With over 5 million developers, widespread English proficiency, and robust engineering education infrastructure, India provides cost-effective access to full-stack developers, mobile engineers, and cloud specialists.

• Hourly Rate: $20–$40 (mid to senior-level)
  
• Strengths: Backend, frontend, mobile, AI/ML, cloud-native MVPs
  
• Weaknesses: Some firms may overpromise or lack product design maturity
  

Eastern Europe (Ukraine, Poland, Romania, etc.)

Eastern Europe is a preferred region for product-quality outsourcing. Many firms here specialize in MVP builds for startups, combining strong technical acumen with product-oriented thinking.

• Hourly Rate: $30–$70
  
• Strengths: Design thinking, UX/UI, scalable architecture, agile delivery
  
• Weaknesses: Higher costs compared to Asia; time zone overlaps can vary
  

Latin America (Brazil, Argentina, Colombia, Mexico)

LATAM has emerged as a strong outsourcing region for North American startups due to time zone compatibility and growing tech ecosystems.

• Hourly Rate: $35–$60
  
• Strengths: Time zone alignment with U.S., English proficiency, strong engineering base
  
• Weaknesses: Talent pool still maturing; pricing closer to U.S. standards
  

Southeast Asia (Philippines, Vietnam, Indonesia)

These regions are gaining traction for cost-sensitive MVPs and frontend-heavy applications.

• Hourly Rate: $15–$35
  
• Strengths: Affordable talent, growing skill base, flexible work culture
  

Weaknesses: Limited specialization in complex product architectures

Common Industries Outsourcing MVPs

Certain sectors are more reliant on outsourced MVPs due to the pace of innovation, regulatory complexity, or technical depth.

1. Fintech

Fintech MVPs often involve payment integrations, KYC/AML, and compliance layers. Outsourced teams with domain experience can build prototypes while navigating security and data privacy needs.

2. SaaS Products

B2B SaaS MVPs are among the most commonly outsourced due to clear feature sets (dashboard, analytics, auth, CRUD) and the demand for rapid go-to-market cycles.

3. eCommerce & Marketplaces

Outsourced teams can quickly develop eCommerce MVPs with storefronts, admin panels, payment gateways, and user flows using Shopify, WooCommerce, or custom stacks.

4. Healthtech

Health-focused startups outsource MVPs to access HIPAA-compliant architecture, EHR integrations, and secure mobile/web apps for patient interaction.

5. EdTech

EdTech MVPs often involve video streaming, quizzes, progress tracking, and gamification—making them ideal for outsourcing to teams with full-stack and design experience.

Benefits of Building an MVP

An MVP in product development has a various benefits, here are the following:

• Allows customer participation

An MVP in product development creates room for customer involvement, which is a strategic plan to create a product that will fit the end users. For this reason, the MVP development team must first of all define the target audience and what they anticipate.

During the planning phase, product owners must put aside some resources and dedicate extra time to reaching out to users in the early stages of product development. In the end, the MVP development team creates a product that not only meets the business goals and objectives but a product that also satisfies end-user requirements.

Again, involving end users in MVP development shapes a better relationship between the product and users, thus ensuring the product penetrates the market in a seamless manner.

• Reduces or eliminates reworking

In product development, integrating the necessary features that will help users solve existing problems is a key aspect. That is why adding extra features can, in one way or the other affect existing users who are already using the product.

While doing research and implementing the best design can help you determine the key features to add, it doesn’t have a way of testing the product in the market. Customers may not be impressed with the outcome, however much time and resources you dedicate to the product development. This means reworking the entire product development or changing some features and functionalities, which can be daunting.

However, with MVP, it is easy to test and measure the viability of the concept or product idea, thus accelerating the final product acceptance in the market.

• Allows the teams to focus on core business functionalities

Releasing the product to the market earlier enough gives the development team an easy time to test and strategize marketing and sales processes. Of course, poor marketing may not attract a positive reception to the market however good the product might be.

MVP development allows smooth testing of the product viability in relation to customer value in the long run. This means testing the product as a whole instead of specific features and functionalities. In the long run, the product development team has adequate time to keep their focus on valuable business functionalities by working on the weak areas to modify the overall product.

• Accelerates product development process

An MVP gives the development team an idea of what to focus on during the development process. MVP feature prioritization helps in avoiding unnecessary features and functionalities for the product, thus accelerating the product development process and product release.

With the first release of the product’s version, it is easy to carry out tests as you collect feedback from the target audience. Throughout this process, you get valuable insights into the features and functionalities that will make the product viable, thus not wasting time on unnecessary features or reworking the product later on.

Again, the market can be competitive. What if another person is working on the exact product? Releasing it before you mean your product won’t attract a large user base since they already have a solution. For these reasons, an MVP will help you gain momentum in the market.

• Minimizes risks

Product development comes with a set of risks, and these risks would lead to loss of time, money, and other valuable resources that would have played a big role in scaling and growing the business.

Creating an MVP minimizes such risks. By releasing an MVP, as you collect insights, you get to understand the key features of a specific product. Examples of apps that were developed as MVP first and have succeeded over the years include Uber, Airbnb, Dropbox, Spotify, Facebook, Spotify, and Instagram, among many others.

Outsourcing MVP development

Outsourcing MVP development is all about contracting a team of experts from an MVP development company to carry out the process in a professional manner. Once you have your MVP development company you need to outsource the project to, you simply share the core functionalities of your product and the objectives you want to achieve. This includes the target audience and marketing strategies. The MVP development company then carries out the steps in a professional manner.

MVP Outsourcing: Step-by-step 

If you have an MVP concept but don’t know how to outsource the best MVP development company for your product, follow the steps below:

• Set your goals

Before you think of any other step, highlight the goals and objectives of your product as the first step.

Which problem or problems do you want to solve with the MVP? Think of the end users of the product. What features and functionalities will suit your MVP best, depending on the end users? How will the MVP product benefit its users? How will you determine if the MVP product is successful? These are among the many other questions that will help you set goals and objectives for your MVP.

With well-defined goals, you can determine the best company to outsource your project to.

• Select your MVP development partner

Once you have the objectives, you can now start looking for the right partner for MVP development. Get an MVP development partner whose objectives align with what you want to achieve in the end.

Start doing research until you find a suitable partner. You can consider referrals and check reviews & portfolios of the best MVP development companies. Don’t forget to conduct in-depth interviews to ensure you settle with the right partner for your MVP development.

Some of the key factors to consider while searching for your MVP development partner include communication means, language, location, culture, and time zones, among others. In the end, you need an MVP development partner who will work seamlessly with your in-house team.

• Cost and Support

Before settling with the final MVP development partner, discuss matters of post-service support and cost reduction.

Think of how your MVP development partner will help you cut costs and their general processes. After all, you need a development partner that will not only ensure timely delivery of your MVP but also help you get value for your money. You can go a step ahead and compare how other MVP development companies work and if the same can be applied to your project.

Above all, ask your MVP development partner if they offer post-service support. This will help you determine the ideal MVP development partner for your product.

• Share the Requirements

Once you settle with the right MVP development partner, you can now share all the details of your project including all the tech requirements like frameworks and technology stack. Don’t forget to mention the core features and functionalities of the MVP and what you expect in the end.

• Project planning

At this point, you have your MVP development partner, and you’ve already shared the overall concept of the project.

Now, you need to start planning how all the processes will be accomplished, including the scope, development timeline, and budget.

Determine the communication channels and frequency, assign roles and responsibilities to the teams, and set up the feedback and approval approaches, and methods of testing and verifying the required standards.

As you plan for the project completion, determine the platforms and tools you will use throughout. Don’t forget to establish strategies for monitoring and addressing performance issues.

With the right MVP development partner, procedures, and strategies to follow, you can move on with MVP development.

• Test and iterate

This is the final step of outsourcing for MVP development. It is all about testing and improving the product based on the insights collected. That is why it is crucial to involve stakeholders, customers, and target audiences when carrying out the testing process.

At this point, make sure you evaluate the results and note the strengths and weaknesses of the MVP as you compare them with the core goals and objectives you want to achieve. Based on your analysis, you may continue with the product development or adjust the product to suit specific criteria. Should you adjust the product to make improvements, repeat the testing and iterations until you get a product that fits in the market well.

Why you should outsource an MVP for your product

While you can use your in-house team model, there are more benefits and convenience when you outsource. Here is why outsourcing for MVP development is the best idea:

• Quick turnaround

The MVP development team handling your project will focus primarily on your project, with different teams handling different sections of MVP development. This will speed up the MVP development process.

While different projects have different timelines and requirements, an MVP development company can give you an accurate delivery timeline once they analyze the dynamics of your project.

• Access to specialists

With MVP outsourcing, you have the freedom to choose the most competent team to handle your work. In fact, most MVP development companies like Aalpha Information Systems have all talents under one roof. You will not only get your MVP product delivered faster, but also quality services which will save you extra time, money, and other resources.

• Cost reduction

Outsourcing for MVP development is cheaper compared to in-house teams. Once you connect with your MVP development partner, that’s all. You don’t need to incur other expenses once you pay for the services rendered.

• Technical consultation

Outsourcing MVP development means access to experts. MVP development agencies have tech experts with adequate experience in the industry. Apart from just getting your project completed, they will analyze your project and give you expert advice on how to excel in your product concept. Besides, some agencies may offer regular support, ensuring your business remains stable and competitive in the market.

• Business focus

Once you outsource an agency for your MVP development, you don’t need to worry about the project. The development teams work on the project until when they deliver, giving you enough time to focus on ideas and concepts that will see your business grow to the next level.

• Long-term partnership

An outsourced agency won’t cut off engagement once the project is over. You can opt to continue working with the same agency over and over again as you grow your business.

• Resource maximization

An outsourced MVP development agency has teams with adequate industry experience. They understand the concept of maximizing resource utilization, and without any doubt, they will help you leverage your resources and accomplish your project without exploiting resources, which can be costly in the long run.

• Better competitive advantage

As mentioned before, outsourcing for MVP development means working with experienced experts in the industry. By leveraging their skills and knowledge, the outsourced MVP development teams work to ensure your business vision aligns with the industry standards and future trends, too.

All these enable the business to adjust seamlessly to the changing trends, thus better scalability and a better competitive advantage.

How to select the best MVP company when outsourcing: Quick tips

As you source for the best MVP development company, use the following quick and practical tips:

• Customer testimonials

Choose an MVP development agency with positive reviews from past clients. As always, customer reviews speak volumes about the capabilities of an MVP development agency.

• Experience & knowledge

Think of how long the MVP development agency has been in operation. Experience is key in delivering top-notch MVP development services. At Aalpha, we have gained adequate experience, skills, and knowledge in MVP development for over a decade now.

• Review past projects and case studies

Check an MVP development company’s portfolio to determine its capability to deliver excellent results in relation to your project needs.

• Scalability & Future Partnership

Think of the bigger picture other than just an MVP. How well will the development agency help you after the MVP release stage? The goal is to settle with a company that will help you resolve issues post MVP development.

• Collaboration & Communication

Communication and seamless collaboration are key elements that determine the success of MVP development after outsourcing. Therefore, choose an agency whose communication and collaboration strategies align with your schedule and processes.

• Development strategies and processes

We have different development methods and techniques with different agencies. Therefore, make sure you settle with an agency whose guidelines align with your protocols.

What is the cost of outsourcing MVP development?

The costs of outsourcing MVP development vary based on the nature of the project, the location of the MVP development company, the expertise level of the MVP development team, and the MVP tech stack required, among many other factors.

In any case, the cost of MVP development outsourcing ranges between $15,000 and $150,000 or even more. It all depends on the factors mentioned in this guide.

Key Engagement Models & Pricing Structures 

Outsourcing MVP development is not just about who you hire—but how you structure the engagement. The right pricing and collaboration model will affect speed, quality, flexibility, and ultimately whether your MVP gets delivered on time and within budget.

This section breaks down the most common outsourcing models—fixed price, time and material (T&M), and dedicated teams—with real-world pricing benchmarks by region, and a comparison table to help you choose what fits best at different startup stages.

Common Engagement Models Explained

1. Fixed-Price Model

In a fixed-price engagement, the vendor agrees to deliver a clearly defined MVP scope for a fixed amount, usually broken into milestone-based payments.

When to Use:

• MVP scope is well-defined and unlikely to change
  
• You want predictable costs
  
• Time-to-market is rigid
  

Risks:

• Low flexibility for mid-project scope changes
  
• Vendors may cut corners to stay within budget
  
• Change requests often trigger delays or renegotiation
  

Use Case: Best for founders with finalized wireframes, feature specs, and clear priorities.

2. Time and Material (T&M) Model

You pay for actual hours or days worked—typically per developer, designer, or project manager involved. T&M is suited to iterative development where requirements may evolve.

When to Use:

• MVP is evolving during development (lean/Agile)
  
• You need room to explore or pivot features
  
• You want to start fast without weeks of scoping
  

Risks:

• Unclear scope can lead to budget creep
  
• Requires close involvement and milestone tracking
  
• Less cost certainty vs. fixed-price
  

Use Case: Ideal for early-stage startups working on prototypes or seeking rapid feedback loops.

3. Dedicated Team Model

You “Hire” a team (e.g., 1–3 developers, 1 designer, 1 PM) on a monthly basis. They work exclusively or semi-exclusively on your MVP.

When to Use:

• You want to scale development while retaining control
  
• Long-term roadmap beyond MVP is planned
  
• You need full ownership without hiring in-house
  

Risks:

• Higher monthly commitment than project-based work
  
• Requires ongoing product leadership on your side
  
• May underperform if not well-managed
  

Use Case: Best for funded startups needing a semi-permanent team or transitioning to in-house later.

Conclusion

Outsourcing MVP development is becoming a trend for many businesses. This is because of the convenience, flexibility, and cost-effectiveness, among many other benefits of outsourcing.

If you are a business owner with a concept you need to turn into a reality, consider creating an MVP as you scale and enhance the product’s adoption in the market.

Want to outsource MVP development? Get in touch with our offshore outsourcing company : Aalpha information systems!