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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 Ruby on Rails development 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.

Ruby on Rails in Tech Landscape

While some speculate that Ruby on Rails (RoR) is declining, it would be a mistake to believe those rumors. Certainly, it is no longer the darling of developers, but its position seems to be quite stable.

This language defends its position even as more modern solutions, such as Node.js, steal the spotlight. Today, many developers continue to favor RoR for their projects, praising its practicality and efficiency. It's no wonder that RoR is used on a large number of websites. Data shows that there are over 763,418 live websites, including major ones like GitHub, Airbnb, Zendesk, Shopify, Basecamp, Twitch, and Cookpad, which speaks to its reliability and scalability.

Deciding whether RoR is a go-to direction should consider the robust and active Ruby on Rails development community. The community has a significant presence on GitHub and continuously contributes to maintaining the framework. Regular updates, such as the introduction of new gems and improvements to existing ones, prove the framework's relevance.

Rails grew to be mature technology, and as such, it can serve as a foundational element for creating proofs of concept (PoC), minimum viable products (MVP), commerce platforms, and content management systems.

Outsourcing in Software Development

Generally, IT outsourcing allows companies to delegate control of a specific development process or project to an external partner, aiming to reduce costs, improve efficiency, and accelerate time to value.

Some time ago, this approach might have seemed reckless given the common belief that the in-house department is a company's 'heart and soul'. Now, however, it has become a necessity. Why? Given the breakneck pace of the technology arms race, it is nearly impossible, extremely difficult, and costly to gather all the needed talents under one roof at the right time.

Indeed, the recent significant layoffs in the tech industry may suggest that developers' skills have stopped being considered priceless, yet that doesn't mean they are affordable now. Moreover, this harsh situation has only proven that flexibility is crucial in staying competitive in the market.

According to data compiled by Layoffs.fyi, the online tracker keeping tabs on job losses in the technology sector, 1,186 tech companies laid off about 262,682 staff in 2023, compared to 164,969 layoffs in 2022. In 2024, 35 tech companies have already laid off 5,586 employees.

Why Outsourcing to a Ruby on Rails Agency Makes Sense

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. Ruby developer outsourcing offers access to expert developers who stay updated on the latest trends, design patterns, and best practices.

Building an in-house RoR team can be costly and time-consuming, with challenges in hiring developers, retention, and adapting to evolving technologies. Ruby on Rails outsourcing companies provide scalability without long-term commitments. They allow businesses to adjust their team size as needed while ensuring faster problem resolution as dedicated experts focus solely on the project. 

Additionally, outsourced Ruby on Rails development enhances cost predictability by eliminating expenses related to recruitment, salaries, and infrastructure. It also mitigates technological risks, ensuring that projects remain compatible with modern frameworks and industry advancements.

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The Benefits of Outsourcing Ruby on Rails Development

When agility and innovation determine success, businesses increasingly turn to Ruby on Rails outsourcing to optimize their operations. Outsourcing Ruby on Rails development has become popular in web development, offering many benefits beyond cost savings. Partnering with a Ruby on Rails 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 teams 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 outsourcing companies offer 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. Outsource Ruby on Rails development 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 Ruby on Rails outsourcing 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.

Outsourcing Ruby on Rails development 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.

Focus on Core Business Activities

Perhaps one of the most underrated benefits of Ruby on Rails outsourcing 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 Development Agency?

Ruby on Rails outsourcing 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.

When Building an MVP

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 Ruby on Rails development team from scratch can be both time-consuming and expensive—two resources that startups rarely have in abundance.

RoR is an ideal solution for building a Minimum Viable Product (MVP) because of its readable structure and relatively simple syntax. This is why it has become popular among startups trying to carve out their market niche and and established companies looking to expand their product offerings.

But let's dive into the details.

Its philosophy of 'convention over configuration,' vast amounts of predefined configurations, and extensive ecosystem reduce the decisions developers need to make. This speeds up the development process and allows them to operate within limited budgets and with reduced risk. This approach is safe in business and fosters an R&D culture within organizations by enabling managers to test their ideas in practice quickly and correct assumptions if needed.

RoR includes a built-in testing framework, enabling developers to write tests alongside their code, which helps maintain a robust PoC with fewer bugs. And, if the general ideas prove to be solid, RoR is easy to scale up. The community provides a vast library of gems, reusable code packages that can speed up development and add functionality without the need to build everything from scratch. With RoR's support for RESTful architecture, it is easy to develop APIs and services that can interact with other applications or services.

It is worth noting that Ruby on Rails (RoR) has proven itself a good starting point for e-commerce platforms and social media apps handling multiple transactions, high traffic, and complex data operations simultaneously, even though their workloads are not steady. RoR often serves as a Kickstarter, and later, when the time is right from a business point of view, companies decide to extend their tech stack and go beyond RoR by adding other technologies.

RoR doesn't limit the business; it is a technology capable of growing with it, thanks to its flexibility, comprehensive library, streamlined codebase, and community support.

When Scaling Your 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 a Ruby on Rails agency, you can augment your team without the long-term commitments and overhead costs of hiring full-time employees. This approach accelerates project timelines and ensures your in-house team remains focused on their core responsibilities.

When Facing 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.

When Your Project Needs 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 development teams 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 Ruby on Rails can provide the expertise and fresh perspective required to turn things around.

Key Considerations When Outsourcing Ruby on Rails Development Agency

Outsource Ruby on Rails development strategically to 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 development 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 Ruby on Rails Outsourcing Companies

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 a Ruby on Rails development agency:

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 Development 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 development team.

  • 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 Development Agency. How to outsource ruby on rails development agency

Practical Tips for Outsourcing Ruby on Rails Agency

When choosing to outsource 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 agency by following these key strategies.

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 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

Assign a single point of contact, such as a project manager or a technical lead, to communicate with your Ruby on Rails development agency. This ensures smooth coordination, feedback gathering, and workflow monitoring. Establish communication tools (Slack, Zoom, Trello) and agree on working hours, especially if you work across different time zones.

Avoid  Micromanagement

During the product development process, there is no space for micromanaging. The Ruby on Rails 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 is transparent, and understanding is 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. Outsource Rails development wisely by setting realistic expectations. If you face tough deadlines from investors, communicate this to your Ruby on Rails outsourcing company and establish clear project timelines.

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

When considering outsourcing a Ruby on Rails development agency, 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 an experienced Ruby on Rails development team.

Team extension case study

SuitePad, a digital platform for the hospitality industry, struggled with tech-talent shortages during the post-pandemic peak and sought a partner to provide its expertise. The main challenge was to manage the backend integration and coordinate the process with the PMS vendors. Since this was a core business function, the company opted for a team extension collaboration model.

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.

Ultimately, what started as a simple outsourced Ruby on Rails development initiative evolved into an engagement that significantly improved overall product quality.

Read more about this team extension case study.

Project outsourcing

Another example of outsourcing Ruby on Rails development is Merck DORA, a web-based healthcare application designed to 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

IT outsourcing is no longer just about cutting costs—it’s about boosting growth. Ruby on Rails outsourcing enables businesses to focus on their core objectives while leveraging top-tier expertise 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.