In-House VS Outsourcing Software Development

In-House VS Outsourcing Software Development

More and more companies and businesses are now considering having their software projects outsourced with the sudden popularity of outsourcing in competition with in-house software development. There are certain factors that are probable to drive companies to prefer outsourcing; strict deadlines, lack of skill, cost issues, etc. If you consider outsourcing, then you can direct your focus towards the core operations. However, with in-house development, you will have to put in a significant amount of time and effort. Let’s take a closer look at the pros and cons of in-house vs outsourcing software development.

Pros of In-House Software Development

1. Shorter Improvement Time

While working with an in-house team, you are in full control and can monitor all the steps. This way, if a problem occurs, it can be spotted and corrected immediately.

2. Long-term Commitment

Long-term commitment is a good thing if you are looking to work on a long-term project. Having an in-house team that’s fully committed to the project is bound to yield exceptional results.

3. Cultural Similarity

When working with people, it is often beneficial to share the same culture. This is why working with an in-house team will prove more productive.

4. Aligned Interests

All employees of a company have the same interests and goals in mind. This shows that they are committed to giving their all in any work they are assigned.

Cons of In-House Software Development

1. Unavailability of In-House Resources

It may be the case that you are assigned the duty of a software project that is the core of your company’s work. In this case, it is common to end up exhausting the company’s resources.

2. Time Is Money

You can end up wasting a lot of time in trying to find the right candidates and having to negotiate to get them into your team.

3. Budget Issues

Hiring skilled people can cost you a lot of money. You need to make sure if you even require someone to fill a full-time position. Outsourcing a project will only be a one-time cost.

4. Side Costs

With an in-house team, you will have to pay all your full-time team members their annual salaries, benefit packages, overhead costs, etc.

Pros of Outsourcing Software Development

1. Flexibility

With outsourcing, you can hire professional developers for a limited amount of time and in conformity with your project needs.

2. Proper Use of Resources

Specialized vendors can save you time and prepare a highly skilled team for you, ensuring quality work.

3. Short-Term Commitment

It is mostly the case that your project does not require a full-time professional. Hence, outsourcing allows you to make short-time commitments.

4. High Productivity for Lower Costs

Outsourcing can guarantee a high level of productivity at relatively low costs. Studies have shown that with outsourcing, one can save up to 60% on overhead costs.

Cons of Outsourcing Software Development

1. Lack of Control

Most of the time, it is not feasible to actively approach external developers. You can’t keep a check over every little detail, and the final product is all on them.

2. Difficulty in Collaboration

Hiring external developers that tend to have different cultural backgrounds can sometimes affect the work and cause problems due to language barriers.

3. Time Difference

Outsourcing from different countries can lead to mismatched timing and messing up your work schedule.


Outsourced vs in-house software development is a dispute that has been going on with the advent of the software market. The reality is that both methods have their ups and downs. What a company chooses to do, directly reflects on its budget, priorities, and numerous other factors. 

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