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.




Als u vragen heeft, vul dan onderstaand formulier in en wij nemen binnen 1 werkdag contact met u op.