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In-house vs outsource: how to make the right choice

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Table of Content
FAQ

It seems like the dilemma between outsourcing and in-house software development is here to stay. Choosing between in-house development and outsourcing requires consideration of the following:

  • project scope;
  • deadline;
  • budget.

Why In-House Teams Still Have an Edge

Your in-house team has a deep knowledge of your company’s business and product. This is a great advantage that often saves time when dealing with core technology and daily operations. 
Facing a need for a particular skill set for certain projects, the in-house team has fewer advantages in comparison with outsourced team and sometimes even can be opposite. For example, if you are looking for Android or iOS app development, companies often have no such experts in-house.

When Outsourcing Makes Sense

Outsourced tech teams may lack the firsthand overview of your business. However, they have a broader view given their experience while serving many different customers. You can often count on the fact that they come with a range of skills to address your immediate needs.

If you’re a new startup with great potential and limited budget, that needs to reach a milestone in order to raise money, so if you are looking for an outsource development partner to take you safely to this milestone will be the best choice. 

The other option is mostly beyond your budget and takes more time. But once you’ve reached that milestone and scored your first significant round of funding, this is the time to take your core development team in-house. So that you and your team will be under one roof, and share the same passion and vision, and whenever needed,d change the direction of the product based on the immediate needs of the business.

Outsourcing development services is not only for startups; it also fits for big companies, and they often face situations where outsourcing is not only an option but the only way to go. 
For example, over the last few years, many companies hired an outsourced team to check their GDPR compliance. Outsourcing this effort was the right decision rather than hiring and training new people for the job or using existing teams for that.

The Pros of Outsourcing Software Development

There are many pros in hiring outsourced software web development companies, like:

  • saving cost on office space, workstation, hardware, and software.
  • No need to recruit and train a skilled team.
  • Immediate project kick-off with experienced engineers.

Taking the budget issue off the table, there is no doubt that a highly-skilled, trained, and experienced in-house team that can handle any project is the best. 

But the question is: How long does it take to get there? Whether the alternative or a hybrid development approach gets you closer to your business goal in a shorter time and with less effort.

A mix of an in-house team that handles the core development, which is led by a skilled outsource team, complements the missing skills and experience.

FAQs

In-house development involves building a software team within your company, while outsourcing means hiring an external agency or developers to complete projects. In-house teams offer more control and alignment with business goals, while outsourcing provides specialized skills, flexibility, and faster scaling.
Yes, a hybrid approach often works best. An in-house team can manage core development and strategic direction, while outsourced teams bring in specialized skills, speeding up delivery and reducing costs without sacrificing quality.


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