October 28, 2024

How to Outsource Java Development: Costs, Models and Best Practices in 2024

Alena Arsionava

Technology Evangelist

Outsourcing

Java Development Outsourcing: Costs & Best Practices [2024]

Alena Arsionava

Technology Evangelist

Outsourcing

Java Development Outsourcing: Costs & Best Practices [2024]

Outsourcing Java development isn’t always easy. Why so? Well, even though Java is among the most popular programming languages, most Java-based solutions are long-term and involve DevOps, AI, VR, Big Data, CI, analytics, and other narrow niches. This means if you aim to outsource your Java project, you’ll need more than just Java expertise — you need someone with the right domain knowledge. Someone who blends with your processes and fits the team. And finding the right fit can be a task of high complexity.

In our guide, we’ll cover all essential aspects of Java outsourcing. Whether you’re a business owner looking to launch an app or an established company seeking to scale up your project, you’ll find a bunch of insights into how to outsource your Java development. 

Key Takeaways

  • Outsourcing Java development can be a smart move for creating a wide range of applications, from dynamic web platforms and mobile apps to complex enterprise solutions and microservices.
  • By outsourcing your Java project, you can cut down expenses by 20-40%. You gain access to a vast global talent pool, all while managing your project costs more effectively.
  • At NEKLO, we specialize in custom Java development services, helping you create scalable web and enterprise software tailored to your specific needs. We offer free tech consultations and non-binding estimates, making it easier for you to explore your options and find the right fit for your project.

Java remains among the most popular programming languages in the world, accounting for 30% of the usage share in 2024. Its versatility, scalability, and robust performance are just a few reasons why you may consider using it to implement your software. 

Most used programming languages among developers worldwide
Popular Programming Languages in 2024. Source

As the demand for digital solutions grows, so does the need for skilled Java specialists. Java outsourcing development addresses this need, allowing you to hire top talents who can bring value and expertise to your projects. Let’s explore the benefits of choosing this path and how it can elevate your business.

Why Outsource Java Development?

Outsourcing your software development comes with commonly known pros as well as a range of challenges. When it comes to Java outsourcing in particular, most businesses seek to gain the following advantages.

Java Outsourcing Advantages

  • Cut down project costs: Outsourcing suggests mere payment for development hours. Due to differences in salaries across regions and savings on operational and HR expenses, outsourcing can reduce your Java project costs by an average of 30%.
  • Launch faster: With access to experienced developers and established workflows, outsourcing accelerates the development process and shortens time-to-market.
  • Hire top talent from the global pool: If you need Java developers with specialized skills or senior-level expertise, outsourcing helps you access talent beyond local limitations.
  • Focus on business strategy: Delegating development tasks allows your internal team to concentrate on core strategic activities and business growth.
  • Stay flexible on priorities: You can adjust the size of your teams depending on your project requirements.
  • Manage and plan project budget accurately: Outsourcing provides better control over expenses with transparent pricing models, helping you plan budgets more effectively.

Still, there are two sides to every coin, and outsourcing is no exception. Here are the common pitfalls you should be aware of before you decide to outsource your Java project.

Risks and How to Mitigate Them

  • Communication Gaps: Proper communication drives work forward while ineffective one puts the project at risk. Make sure to set clear workflows, communication channels, reporting flow, and keep direct contact with your team from day one.
  • Data Security Concerns: Partner with a company who applies highest security measures and best practices — from a legal standpoint like sound NDA and SLA to development ones like best security software practices. 
  • Quality Issues: Your Java project development should go hand in hand with proper testing and code reviews since only then you can achieve high quality software product.

Types of Java Projects a Business Can Outsource

Types of Hava projects: Web app development, enterprose software, e-commerce solutions, IoT applications, healthcare software

Java lets you build powerful and stable applications with scalable architecture. It’s a top choice for most enterprise applications that require high performance, reliability, and long-term maintainability. Here’s a list of Java projects a business can outsource:

  • Web Application Development: E-commerce platforms (e.g., online stores), Content management systems (CMS), SaaS platforms using Java frameworks (Spring, Struts).
  • Enterprise Software: ERP (Enterprise Resource Planning) systems, CRM (Customer Relationship Management) solutions, HR management systems, Marketing automation platforms, Supply chain management tools, eес.
  • Banking & Financial Systems: Core banking platforms, payment processing, and loan management, trading and investment applications.
  • E-commerce Solutions: Inventory management, order processing, and personalized marketing.
  • Healthcare software: Patient portals, hospital data management and information systems, pharmacy software.
  • Government: Tax collection systems, citizen portals, and regulatory platforms.
  • DevOps and Automation Tools: CI/CD pipelines (Jenkins, Docker, Kubernetes), monitoring and alerting systems, configuration management solutions.
  • IoT Applications: Backend systems for IoT device management, smart city solutions, connected communication systems.
  • Big Data and Analytics Applications: Data processing platforms, real-time analytics systems, AI/ML pipelines for business intelligence.
  • Integration Projects: API development and integration, middleware development for system connectivity, legacy system modernization and migration tools.
  • Cloud-Based Applications: Microservices-based apps, cloud-native apps deployed on AWS, Azure, or GCP, Serverless applications.

As you see, Java development covers a wide range of business needs and domains. Whether you're building scalable platforms, streamlining operations, or launching new products, Java outsourcing is a feasible way to achieve flexibility, power, and cost-efficiency. 

Outsourcing Models for Java Development

Depending on your Java project type, timeframe, and complexity, you can consider different outsourcing models: 

Dedicated Development Team

Dedicated development team model provides a full team — developers, QA engineers, project managers — dedicated exclusively to your project. It’s ideal for long-term, complex initiatives requiring deep involvement and close collaboration with your in-house team.

Staff Augmentation

If you need to fill specific skill gaps, you can consider the IT Staff Augmentation model, when you hire individual Java developers to extend your team’s capabilities. This model offers flexibility, allowing you to scale resources up or down based on project demands.

Project-Based Outsourcing

This approach entrusts the entire project, from planning to delivery, to an external team. It’s perfect for companies looking for end-to-end development without managing the day-to-day process.

Managed Services

For businesses needing long-term maintenance and upgrades, managed services provide ongoing support for Java systems. This ensures your software stays secure, optimized, and aligned with evolving business needs.

Java Technology Stack and Developers’ Level 

If you're outsourcing a Java project, you need an expert who can jump in and keep things moving — no lengthy training or onboarding required. That’s where Java Full Stack Development comes in, with developers skilled in both frontend and backend to get the job done right. Here’s a roadmap of the essential technologies they bring to the table.

Java Stack

  • Backend Frameworks: Spring, Hibernate, Java EE
  • Frontend Integration: Angular, React, or Vue.js with Java-based APIs
  • Mobile Development: Java for Android
  • Microservices & Cloud: Spring Boot, Docker, Kubernetes
  • Big Data and Machine Learning: Apache Kafka, Apache Spark

Technology Proficiency Breakdown

Java developers take on different tasks based on their expertise. Consider the following breakdown of seniority levels and key responsibilities to identify the right fit for your Java project.

Expertise Years of Experience Technology Stack Proficiency Key Responsibilities
Junior Java Developer 0-2 years Java SE, Spring Boot, Hibernate - Write and maintain code
- Fix bugs and assist in testing
- Collaborate with senior developers on tasks
Intermediate Java Developer 2-5 years Java EE, Spring Framework (Core, MVC), JPA, RESTful APIs - Develop new features
- Optimize existing code
- Participate in design discussions
- Mentor junior developers
Senior Java Developer 5+ years Advanced Java, Microservices, Cloud Platforms (AWS, Azure, GCP), Kafka, Docker - Lead complex feature development
- Ensure code quality and performance
- Collaborate with cross-functional teams
- Review and optimize system architecture
Java Architect / Lead 8+ years System Design, Microservices, Enterprise Architecture, DevOps (Kubernetes), CI/CD - Define and design system architecture
- Oversee technology stack selection
- Provide technical leadership to the team
- Ensure scalability, security, and reliability
- Align development with business goals

Naturally, a developer's proficiency directly affects costs, with hourly rates varying based on their skill set and experience. You need to keep in mind other factors too when planning your Java outsourcing costs like destination, project complexity, and business model also play a role — let’s take a closer look.

Cost of Outsourcing Java Development

When deciding whether to outsource,the first step you may take is to analyze if it makes sense from a business and cost-efficiency perspective: Will it be faster, easier, or cheaper? This process should begin by calculating the costs for Java development outsourcing, factoring in developer’s location, expertise level, your project specifics, and other overheads. 

  • Developer Location: Rates vary significantly by region, with Eastern Europe, Asia, and Latin America often offering more competitive pricing.
  • Experience Level: Junior developers cost less but may require more supervision, while senior developers bring expertise at a higher rate.
  • Project Scope and Complexity: Larger, more complex projects demand advanced skills and more development hours, raising costs.
  • Additional Costs to Consider: Beyond hourly rates, factor in costs for onboarding, knowledge transfer, and potential communication challenges that may impact timelines and productivity.

Java Outsourcing Rates Breakdown

Level US (Hourly Rate) Eastern Europe (Hourly Rate) India (Hourly Rate)
Junior Java Developer $40 - $70 $20 - $40 $10 - $25
Intermediate Java Developer $60 - $100 $35 - $60 $20 - $40
Senior Java Developer $80 - $150 $50 - $80 $30 - $60
Java Architect / Lead $120 - $200 $70 - $100 $40 - $80
  • US, Europe

If you seek a local outsourcing service provider based in the US or Europe, be ready for the highest rates. It offers direct collaboration and alignment with Western business practices.

  • Eastern Europe

Competitive rates with high technical expertise, making it a popular outsourcing destination. It balances cost and quality, with developers skilled in Java frameworks and modern technologies.

  • Asia

Offers the lowest rates due to lower labor costs, with a large talent pool experienced in outsourcing projects. It provides the most cost-effective solution, though managing time zone differences and communication may be challenging.

How to Choose the Right Java Outsourcing Partner

Finding the right Java outsourcing partner can be challenging, but it's crucial for the success of your project. Here are some tips to help you identify the ideal team:

Technical Experience

Experience is vital in any development project. Ensure your potential partner has extensive expertise in Java by asking about their background and previous projects. This will give you insight into their capabilities and help you determine if they can meet your project's specific needs.

Domain Knowledge

As we mentioned above, general technical expertise is not the only factor determining the provider's suitability for the project. Experience in relevant industries (e.g., healthcare, fintech) also matters. 

Portfolio and References

Testimonials from Complete Solar, NEKLO client

Analyze past projects and get references from potential partners. Reach out to past clients to learn about their experiences working with the team. This feedback can provide valuable insights into the partner's reliability, communication style, and overall performance, helping you make a more informed decision.

Communication and Collaboration Tools

Proper communication plays a vital role in project success. It's made up of daily routines like meetings and reporting, the tools you share, and the ultimate goal you and your team pursue. Check how your potential services provider manages remote teams, their tool stack, and whether they feel comfortable sharing your infrastructure and channels. On top of that, even if you manage your team directly, make sure the provider applies internal management — this will minimize the risks and ensure your remote team's efficiency.

Security Practices and Legal Protection

Data security is pivotal. Make sure the provider you choose implements comprehensive data protection measures and adheres to compliance standards such as GDPR and ISO. This way, you mitigate risks associated with software outsourcing.

Why Outsource Your Java Project to NEKLO

NEKLO provides custom software development services to global brands with strong expertise in Java technologies, including Spring, Hibernate, Java EE, and microservices. We handle a wide range of Java projects, from enterprise solutions to e-commerce platforms and cloud-based applications.

Testimonials from NEKLO client

From requirement analysis and system design to development, testing, and maintenance — we’ve got you covered. Our talent pool includes developers, architects, and DevOps engineers to ensure scalable and secure applications.

  • 15+ Years of Expertise in Java Development
  • Full-Cycle Development Services
  • 150+ Talent Pool 
  • 70% Senior Level 
  • Competitive Rates and Cost-Effectiveness
  • Best security practices: GDPR, HIPAA.

We’ve successfully delivered 300+ projects across industries, including e-commerce, healthcare, finance, and education. Located in Eastern Europe, NEKLO offers competitive pricing while maintaining high development standards.

Summing up

When exploring software outsourcing options, companies often prioritize costs as a key factor in deciding to shift activities to nearshore or offshore locations. This focus on cost efficiency can lead to significant savings, but it’s essential to also consider other elements, such as quality, expertise, and communication, to ensure a successful partnership.

By choosing to outsource your Java development to NEKLO, you gain access to specialized expertise that can help you leverage the full capabilities of this versatile technology. We streamline your project and deliver customized solutions that align with your business objectives. Get in touch for a free consultation!