Outsource Ruby on Rails Development Agency: A Smart Strategy for Success

How to Outsource Ruby on Rails Development Agency: A Smart Strategy for Success

Kaja Grzybowska

Businesses face mounting pressure to innovate and adapt quickly. For many, building and maintaining an in-house team with all the necessary skills to stay competitive is not just challenging—it’s often impractical. This is especially true when working with powerful but specialized frameworks like Ruby on Rails, a go-to choice for web development due to its efficiency, scalability, and robust ecosystem.

To overcome these hurdles, you might want to outsource Ruby on Rails development, which has become an increasingly popular solution. Outsourcing offers businesses access to experienced developers, cost-effective solutions, and the flexibility to scale teams as needed. More importantly, it addresses some of the most pressing challenges in software development, such as resource constraints, tight timelines, and the need for cutting-edge expertise.

The real question, then, isn’t whether outsourcing is worth considering—it’s how to do it right to maximize its benefits. And this article will provide you with a guide on how to hire a Ruby on Rails development agency the smart way.

Why Work With an External Ruby on Rails Development Agency?

Working with an external Ruby on Rails development agency is not just about saving money or speeding up development—it’s about addressing core challenges that in-house teams often struggle to overcome. Here’s why outsourcing to a specialized agency makes sense:

Access to Specialized Expertise

Ruby on Rails is a robust framework, but not every development team has the specialized knowledge to leverage it fully. External Ruby on Rails development agencies often consist of seasoned RoR developers with deep expertise in building scalable, high-performance applications. These developers stay updated on the latest RoR trends, design patterns, and best practices, ensuring that your project benefits from cutting-edge knowledge that may not be available in-house. Outsourcing is often the best route, but if you’re looking to deliver tailored solutions for your project, a custom Ruby on Rails agency would be a good fit.

Hiring developers is extremely time-consuming and cost-consuming. Second, it is difficult for the organization to retain and keep the greatest talents. Third, you may have to switch your current technology to a more compatible one anytime soon, and this is something an expert Ruby on Rails development agency can easily manage.

Scalability Without Long-Term Commitments

One of the biggest challenges businesses face is balancing workload fluctuations. Building an in-house team capable of scaling up or down based on project needs can be inefficient and costly. With a Ruby on Rails agency, you can adjust the size of your development team as your project evolves.

Faster Problem Resolution

In-house teams often focus on multiple tasks, from maintaining existing systems to supporting internal operations. This can slow down problem resolution and impact project timelines. A Rails development agency, on the other hand, focuses entirely on your project. A dedicated Ruby on Rails web development agency, on the other hand, focuses exclusively on your project.

With specialized tools, processes, and experience in delivering Ruby on Rails solutions, external developers can identify and resolve issues much faster than generalist in-house teams.

Cost Predictability

Hiring and retaining in-house developers can be expensive, especially for startups or small-to-medium-sized businesses. Salaries, benefits, infrastructure, and ongoing training all add up. Hiring specialized talent—such as Ruby on Rails experts—often comes with high recruitment costs and the risk of employee turnover. Meanwhile,  outsourcing to a Ruby on Rails agency eliminates many of these costs while ensuring access to top-tier talent.

Mitigating Technological Risks

The technology landscape evolves rapidly, and using outdated tools or approaches can hinder your project’s success. If your technology stack is incompatible with your goals, you may need to switch frameworks or upgrade existing systems. However, such transitions require expertise that many in-house teams lack.

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The Benefits of Outsourcing Ruby on Rails Development

When agility and innovation determine success, businesses increasingly turn to outsourcing as a strategy to optimize their operations. Outsourcing Ruby on Rails projects has become popular regarding web development, offering many benefits beyond cost savings. Partnering with a Ruby on Rails app development agency can be a game-changer for businesses looking to stay ahead in competitive markets. We’ve already posted an article on the benefits of outsourcing software development, so here, we will focus on the key ones that can help you transform your Ruby on Rails projects. 

Access to Expertise

One of the most compelling reasons to outsource Ruby on Rails development is the unparalleled access to specialized expertise it provides. RoR is a powerful and versatile framework, but building a high-quality application requires more than basic familiarity—it demands deep technical knowledge, experience with best practices, and an understanding of cutting-edge techniques.

Ruby on Rails development agencies and freelance developers who specialize in RoR precisely bring this expertise to the table. They have likely worked on multiple projects across various industries, giving them insights into common pitfalls and effective solutions. These seasoned professionals are also well-versed in the latest updates to the framework, ensuring your application is built using the most efficient and secure methods available. Outsourcing gives you access to a team of experts who can deliver high-quality results while minimizing errors and inefficiencies, helping your project succeed from day one.

Cost Efficiency

Hiring an in-house team for Ruby on Rails development can be a costly endeavor. Beyond salaries, you’ll need to account for recruitment expenses, onboarding, training, benefits, and workspace infrastructure. This financial commitment can be especially burdensome for startups or small-to-medium-sized businesses that may not require full-time developers year-round.

Ruby on Rails developer outsourcing offers a more cost-effective alternative. By partnering with a Rails development agency or hiring freelancers, you can avoid the overhead costs of maintaining an in-house team. Additionally, outsourcing allows you to tailor your expenses to the scope of your project—whether it’s a short-term assignment or a long-term collaboration. You pay only for the work you need when you need it, making it a highly efficient use of your budget.

Faster Time-to-Market

In today’s competitive markets, speed matters. The faster you can develop and launch your web application, the better positioned you’ll be to seize market opportunities and gain a competitive edge. Outsourcing Ruby on Rails development agency allows you to work with ready-to-deploy teams who can hit the ground running.

These teams already have the tools, workflows, and expertise to accelerate your project. Unlike in-house hiring, which can take weeks or even months to assemble the right team, Rails outsourcing eliminates the delays associated with recruitment and onboarding. This means your project can move forward almost immediately, helping you deliver your product to market faster than your competitors.

Flexibility and Scalability

Another significant benefit of outsourcing Ruby on Rails development is its flexibility. Businesses often experience fluctuations in their development needs—sometimes requiring a large team for an intensive project and others needing only minimal maintenance or updates support. Building an in-house team capable of handling such variability can be impractical and expensive.

Rails outsourcing solves this problem by allowing you to scale your development team up or down as needed. Whether you need a full-fledged team for a complex project or a single developer for a short-term engagement, outsourced Ruby on Rails development offers the agility to adapt to your unique requirements. Many Ruby on Rails outsourcing companies and freelancers also provide flexible engagement models, from project-based contracts to hourly or monthly retainers, ensuring you only pay for what you need.

Focus on Core Business Activities

Perhaps one of the most underrated benefits of outsourcing Ruby on Rails development is the freedom it gives your internal team to focus on what they do best. Building a Ruby on Rails application requires significant time and attention, which can divert your resources away from strategic priorities like business development, marketing, and customer engagement.

By working with a Ruby on Rails development agency, you can delegate these responsibilities to professionals while your in-house team drives growth and innovation. For example, while the Rails outsourcing team handles the development of your web application, your internal staff can focus on perfecting your business strategy, building partnerships, or expanding your customer base. This division of labor ensures that all aspects of your business receive the attention they deserve, leading to more balanced and sustainable growth.

When Should You Consider Outsourcing Ruby on Rails Agency?

Outsourcing Ruby on Rails development has become a common strategy for businesses of all sizes. But is it the right approach for your specific needs? While outsourcing offers many advantages, its value depends on timing and context. Whether you’re a startup racing to build an MVP, an established company scaling operations, or a business grappling with resource constraints, knowing when and how to hire a Ruby on Rails development agency can make or break your development efforts. Here are the key scenarios where outsourcing Ruby on Rails development makes the most sense.

Startups Needing to Build an MVP Quickly

For startups, speed and efficiency are critical to success. Launching a Minimum Viable Product (MVP) quickly allows you to test your idea in the market, gather feedback from early adopters, and make data-driven decisions about your product’s future direction. However, assembling an in-house development team from scratch can be both time-consuming and expensive—two resources that startups rarely have in abundance.

This is where outsourcing Ruby on Rails development shines. Rails is a framework specifically designed to enable rapid development, and outsourcing to experienced RoR developers can fast-track your MVP launch. The professionals at Ruby on Rails agencies are already familiar with best practices, efficient workflows, and scalable architectures, so you can save precious time and focus your internal resources on other aspects of your startup, such as marketing, fundraising, or customer acquisition.

Established Businesses Scaling Their Tech Teams

Even established businesses with in-house development teams sometimes need additional capacity. Perhaps your business is taking on a large project, like developing a new feature-rich application, or maybe you’re experiencing a surge in customer demand that requires scaling your tech capabilities quickly.

Ruby on Rails outsourcing is an excellent way to bridge the gap during periods of rapid growth. By partnering with one of the top Ruby on Rails agencies, you can augment your team without the long-term commitments and overhead of hiring full-time employees. This approach accelerates project timelines and ensures your in-house team remains focused on their core responsibilities.

Budget Constraints or Talent Shortages

In some cases, Rails outsourcing isn’t just a convenience—it’s a necessity. Many businesses face budget constraints that make hiring full-time developers unaffordable. Others struggle with talent shortages in their local market, particularly regarding specialized skills like Ruby on Rails development.

Ruby developer outsourcing provides a cost-effective solution to both challenges. By hiring an affordable Ruby on Rails agency, businesses can access top-tier talent at a fraction of the cost of building an in-house team. Additionally, outsourcing gives you access to a global talent pool, allowing you to find experts who might not be available in your region.

Project Recovery or Optimization

Not every development project goes according to plan. Whether due to poor initial planning, lack of expertise, or unforeseen challenges, some projects end up behind schedule, over budget, or riddled with technical issues. Outsourced Ruby on Rails development can be your business's lifeline to rescue a failing project or optimize legacy systems that are no longer performing as expected.

Experienced Ruby on Rails developers can assess your project, identify the root causes of problems, and implement effective solutions. Whether you need to refactor messy code, improve system performance, or pivot your project in a new direction, outsourcing can provide the expertise and fresh perspective required to turn things around.

Key Considerations When Outsourcing Ruby on Rails Development Agency

Outsourcing Ruby on Rails (RoR) development can streamline your projects, but its success hinges on thoughtful planning. From defining your needs to ensuring quality, understanding key considerations will help you achieve your goals effectively. Working with an external Ruby on Rails agency is similar to working with agencies specializing in other languages or technologies. The general rules are the same and involve setting down precise requirements, methodology, communication rules, mutual respect, and transparency. Nonetheless, there are some RoR-specific dos and don'ts, which we will try to mark below.

Defining Project Requirements

When considering team extension or Ruby on Rails developer outsourcing, you must establish your vision, goals, and requirements. Clear goals, timelines, and budgets are the foundation of a successful outsourced project. Define your objectives, essential features, and delivery schedule. Create a detailed project brief to align expectations and avoid misunderstandings. The more thorough you describe them, the better. Remember, you pay for devs working hours, so don't let them wonder what you expect.

When you need consultancy services, establish the problem you must resolve. Don't dive into technical details; describe what part of your operations needs improvements. To be as straightforward as possible, you might reach out to the template and adjust it for your needs.

Evaluating Outsourcing Partners

Choosing the right Ruby on Rails agency is critical. Review portfolios for similar projects, read client testimonials, and assess technical expertise. Ensure they have transparent processes and strong communication skills. Use this quick checklist:

  • Proven RoR experience

  • Positive reviews/references

  • Expertise in related technologies

  • Clear pricing and workflows

Communication and Collaboration

Smooth communication is essential for remote projects. Set clear channels (e.g., Slack, Zoom), schedule regular updates, and use project management tools like Jira or Trello. Agree on working hours, response times, and escalation protocols to keep collaboration seamless. You've got several collaboration models to choose from when it comes to working with external software houses:

pick the right collaboration model when working with a Ruby on Rails Development Agency
  • Team extension (also called Body Leasing) lets you add members to an existing IT team to support it in delivering specific milestones. It is agile, as you don't need to perform the headhunting processes, and you avoid long-term contracts. And cost-effective, especially while handling short-term projects (in the long run, it can be expensive)

  • Project Outsourcing involves hiring the whole IT team for a specific project. You get an end-to-end service covering everything from design through development and testing. All you need to do is to explain what you expect to receive. Compared to team extension, it is less agile but more convenient when you seek a comprehensive IT delivery service. Establishing the requirements within that model is crucial, as they affect the overall pricing.

  • Besides product development, IT Consultancy (Custom IT Services) means identifying the business challenge you are tackling and designing, developing, and maintaining the custom solution to respond to it.

Read more: Old Ruby Codebase - When to Update, What to Consider (Checklist)

Quality Assurance

Prioritize code quality and consistency. Work with your rails outsourcing agency to establish standards, implement automated testing (e.g., RSpec), and perform regular code reviews. Use CI/CD pipelines to ensure efficient and error-free deployment.

How to Choose the Right Ruby on Rails Outsourcing Agency

Selecting the right Ruby on Rails outsourcing company is crucial for your project’s success. You can identify a reliable partner by focusing on technical expertise, pricing models, and track record. Here’s how:

Evaluating Technical Expertise

Ruby on Rails is a powerful and efficient framework, but leveraging its full potential requires a specialized skill set. A qualified Ruby on Rails development agency should have deep knowledge of RoR’s ecosystem, best practices, and the ability to scale applications effectively. Specialized RoR knowledge is essential. Look for agencies with:

  • A strong portfolio of RoR projects.

  • Proven experience and involvement in the Ruby on Rails community.

  • Familiarity with complementary technologies like APIs and JavaScript frameworks.

Understanding Pricing Models

Outsourcing Ruby on Rails development agencies typically offer different pricing structures, and choosing the right one depends on your project’s requirements, budget, and timeline. Each model has advantages, but understanding nuances is key to making an informed decision. Choose a pricing structure that fits your project’s needs:

  • Fixed-Price: Best for defined projects with minimal changes.

  • Hourly: Ideal for flexible, evolving requirements.

  • Dedicated Team: Suited for long-term or large-scale projects.

Reviewing Success Stories and Case Studies

An agency’s track record strongly indicates its ability to deliver results. Reviewing success stories and case studies provides insight into their experience, expertise, and challenges they’ve solved for previous clients. Assess an agency’s track record by reviewing the following:

  • Case studies relevant to your industry.

  • Tangible outcomes like faster delivery or improved performance.

  • Client testimonials highlighting reliability and communication.

Practical Tips for Outsourcing Ruby on Rails Agency. How to outsource ruby on rails development agency

Practical Tips for Outsourcing Ruby on Rails Agency

When outsourcing Ruby on Rails development, a thoughtful approach can make the difference between a smooth collaboration and potential setbacks. Get the most out of your partnership with a Ruby on Rails development agency.

Ask the Right Questions

When scanning the portfolio of a Ruby on Rails agency, you might ask some questions to ask a Ruby on Rails developer to evaluate their expertise. Examples include:

  • What are the RoR design patterns?

  • What are the libraries and frameworks that might smooth out working with RoR?

  • What are the most common Rails mistakes that interfere with the performance?

  • What are their preferred deployment tools?

  • Can you mention examples of successful RoR projects you ran?

  • Do you have specialized RoR developers or only generalists?

Set the Communication Rules

Pick the person responsible for contacting the developers, the project owner, the project manager, or any other person whose organizational skills are as good as communication. They will gather feedback, schedule improvements, monitor the course of work, and determine further development directions. Also, choose the communication tools and working hours, especially when your client works in a different time zone.

Avoid  Micromanagement

During the product development process, there is no space for micromanaging. The agency you hired wants your app to succeed as much as you do, so let them do their job. When the requirements are clear, communication transparent, and understanding - mutual, there is a chance for a successful partnership. Experienced software dev partners have all processes set down to deliver the projects much easier.

Don’t Rush the Process

Ruby on Rails is quick—way faster than its competitors, such as Python or PHP—making it perfect for developing MVPs. However, it is not a magic wand. The development process has to take some time. If you are facing tough deadlines from investors, communicate this to RoR partners and set clear timelines with them.

Showcasing the Power of Ruby on Rails Outsourcing with Real Case Studies

When considering outsourcing Ruby on Rails development, real-world examples can provide valuable insights into how businesses successfully leverage external expertise. These two distinct collaboration models—team extension and project outsourcing—demonstrate how companies in different industries addressed their challenges and achieved their goals with the help of experienced Ruby on Rails developers.

Team extension case study

SuitePad, a digital platform for the hospitality industry, struggled with tech-talent shortages during the post-pandemic peak and looked for a partner to cover them with its expertise. The main challenge was to take care of the backend integration and assist with coordinating the process with the PMS vendors. As it was a company's core business, the chosen collaboration model was team extension.

The partnership started with two senior-level experts from Monterail: a backend developer specializing in Elixir and RoR and a project manager. They both became an integral part of the team and participated in all important meetings, which allowed them to notice an opportunity for more structured testing. They then suggested adding a QA Engineer to the team.

Finally, what started as a simple team extension went beyond it and improved overall product quality.

Read more about this team extension case study.

Project outsourcing

The other example of collaboration in the project outsourcing model is with Merck DORA, a web-based healthcare application centered on helping fight diabetes in African countries.

Merck DORA needed to overhaul and improve its web-based application, emphasizing performance boosting. Monterail was picked for delivering projects as its developers are fluent in various tech stacks, and this particular job involved using both Vue.js and RoR.

The involvement with the DORA app resulted in further collaboration with Merck on three projects: Merck Unite, Merck Life Science, and the Fertility Online Risk Assessment.

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Working With an External RoR Development Agency

A long time ago, IT outsourcing stopped being a tool to cut costs and became a tool for boosting growth. Outsourcing Ruby on Rails development enables businesses to focus on their core objectives while leveraging top-tier skills in niche technologies.

Outsourcing Ruby on Rails development is no longer just about cost savings—it’s a powerful strategy for accelerating growth, accessing top-tier expertise, and allowing businesses to focus on their core objectives. By working with an experienced agency, companies can leverage specialized RoR knowledge, select the right pricing model for their needs, and benefit from proven success in similar projects.

If you’re ready to take the next step in outsourcing your Ruby on Rails development agency, don’t leave success to chance. Contact us today for a free consultation—our team is ready to help you turn your vision into reality with tailored expertise and reliable results.

Kaja Grzybowska is a journalist-turned-content marketer specializing in creating content for software houses. Drawing on her media background in research and her talent for simplifying complex technical concepts, she bridges the gap between tech and business audiences.