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BusinessConsultingCustom SoftwareMarch 24, 2021by Andika Ng0Should You Hire In-House or Outsourced Software Development?


When it comes to new projects, one of the most important aspects will be developing the software. Should you hire in-house or outsource software development? It can undoubtedly be challenging to make the right choice that is most effective for the project at hand.

In-house and outsourced options have their own pros and cons. But there is no need to worry if you are still unsure about them. Today, we will look at each type of software development and help you decide the best one.


In-House Software Development

In-house software development refers to when the process of software development is run by an internal team inside the company. The software itself may be a digital product or for organizational usage. This involves a team of IT people as part of the company, who are usually full-time employees. While hiring such staff will cost more, there are plenty of benefits to it too.


Advantages of In-House Software Development


  1. There are no language or cultural boundaries

One of the most obvious advantages of an in-house software development team is the lack of language or cultural boundaries. The team will most like be made up by those who come from the same culture, which will make collaboration easier and more seamless.

Not only that, the lack of social and cultural boundaries is often a great trigger for more productive work. They will also benefit from face-to-face communications and better understanding of each other, the available resources, and what is expected for the software.


2. More engagement and involvement

Another benefit of an in-house software engineering process is it allows you to optimize the team’s talent and resources for ever tech need. It’s much more easily accessible and solutions can be given in a quicker manner. Plus, it is also possible to change any detail in the development stage according to the individual project needs.


3. Deeper expertise

With an internal team who is deeply involved in a project from start to finish, they will be able to master their skills and know it inside out. This specialized expertise will reduce the risks of bugs and other issues. Moreover, support will be more instantaneous and efficient too, as your company don’t need additional workforce to maintain the digital product.


Disadvantages of In-House Software Development


  1. Expensive

Understandably, running in-house software development is much more expensive in the beginning stages. This can be a problem for extremely small or large projects, as you would need to set up a capable team and provide all necessary resources. However, in a mid-scale project where the product is an integral part of the business model, this may save costs in the long term.


2. Managing staff

Staff management poses one of the biggest problems with in-house software development. It’s often impossible to control who leaves the company and when. After investing a lot of resources to adapt the new software, staff who choose to quit can be an inconvenience. The company would then need to invest in new team members again.


Outsourced Software Development

Now that we’ve discussed the in-house option, what about outsourced software development? Perhaps this might be the better choice for your company and current project. Likewise, it has several pros and cons that you should be aware of.


Advantages of Outsourced Software Development


  1. Cost effective

It is generally cheaper to outsource software development, as you do not need to set anything up. Outsourced teams will already be an expert in their fields, which saves the time and resources of training new recruits. In some cases, this is more budget-friendly but can still provide the same results.


2. Faster time-to-market

On a similar note, you will not face any hiring or staffing issues that come with in-house software development. Whatever features you need to improve or add in the software, the external team can probably provide the needed expertise. This means every product launch can take place quicker too.


3. Streamlined process

This may be more important for smaller companies and businesses who don’t have enough resources to spare on an internal team. Specialized agencies can ensure professional development processes and experience. From planning to operation, you can be assured that it will be structured and streamlined for added efficiency.


Disadvantages of Outsourced Software Development


  1. Mutual understanding

Unlike the in-house software development process, outsourced hires may be assembled from various geographical and cultural background. This could cause communication barriers that may impede on the coherence of the experience.


2. Security risks

Of course, with all the benefits of an outsourced team comes the drawbacks too. The lack of direct contact and control means trust is harder to build. Choosing the right partner with better reputation can eliminate this risk, as well as settling on the most mutually benefitting agreement.


3. Unsupported code

Another risk to outsourcing software development is receiving unsupported code. Make sure that you are able to maintain the code independently without having to involve the contractor. This will let your business continue to run effectively even without their involvement. Again, it all comes down to choosing a reliable and trustworthy partner!


Summary: Should You Hire In-House or Outsourced Software Development?

These are some of the most essential information you should know before deciding on in-house our outsourced software development. With that said, there are benefits and drawbacks to each one. It boils down to your specific company and project, what you are currently trying to accomplish, and how large the budget is.

The general rule of thumb is if web and software development are not core to the business operations, outsourcing a team may be better. Unless it is a large and established company, setting up the ideal IT team could be a challenge. Plus, this would be a more cost-effective solution.

On the other hand, it may be a good idea to hire in-house software development for companies in the tech industry. It will turn out cheaper in the long run, and gives you better control over the development process too.


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