Software Development Outsourcing or In-house development: Pros and Cons
What is Outsourcing?
- In-house development
- Benefits of in-house software development
- Disadvantages of maintaining in-house software developers
OffshoreOffshore outsourcing refers to exporting the task accomplishment to the company from the another country that is why it is usually called overseas outsourcing. Usually, companies prefer to hire offshore app development companies from the world areas with lower labor costs and tax savings. For example, U.S. companies pretty often outsource Indian software programmers expecting lower rates. Unfortunately, such experience can result in disappointed expectations, waste of money and time due to the poor quality of the delivered software solution.
In-house developmentIn-house software development, unlike onshore outsourcing, implies conducting an operation and perform a task within the company using company’s own resources including assets and employees. Companies resort to in-house task performance after analyzing the costs and associated risks. For instance, if your company is a web service provider and you daily need IT specialist to maintain the website, update it and integrate additional functionality there are high chances that in-house development team will be much more efficient than outsourced one. Depending on the size and the core activity of your business, its needs in software specialists, app developers, and web programmers will vary requiring either outsourced specialists or in-house employees.
Benefits of in-house software developmentBesides the departments responsible for the primary business activity related to the core company activity, its service or product, firms can maintain other in-house departments if it is profitable.
- In-house services maintenance can make a firm more flexible in its performance;
- It also has another functional benefit helping company to raise the level of control over the operations and task accomplishments;
- This option has fewer security risks as all the corporate data doesn’t leave the company.
- Finally, in-house employees will always see how your business work and hence they will obtain the better understanding of it.
Disadvantages of maintaining in-house software developersSoftware development, whether it is a mobile application or web systems, requires collective work of multiple specialists in different IT aspects from business analysis and idea verification, to design, coding and QA testing. As far as technologies keep advancing in functionality and design criteria, these IT experts should keep up with the time attending different programming training, conferences, and meetings, otherwise, you risk to get an obsolete application which doesn’t meet your business needs and customers’ expectations. Here are some challenges you should consider before recruiting in-house programmers:
- First of all, you should consider in-house software development only if you will regularly need this service in long term prospects, otherwise, it will cost much more with all the expenses you are going to bear comparing to the outsourcing. The in-house programming department will be costly considering the overhead cost related to a working space, salaries, benefits, regular training, and hiring a person to put in charge of this department.
- Secondly, if you prioritize quick time-to-market strategy this option won’t be suitable as it requires a lot of time on recruiting new staff, teaming them up, and getting them acquainted with the company work and needs.
- Finally, the other side of the full control over the development is an ability to estimate the results and the quality of the software product. And here you have two options, either you have enough qualification in IT sphere that lets you check the code and conduct QA testing, or you hire a highly-paid specialist responsible for the quality assurance.
Why outsource software development?
- Short-term commitment
- Focus on the primary company activity
- Quick time to market
Cost-effectivenessComparing the cost of outsourcing and in-house software development in long-term prospects, the second option has a considerable advantage as you need to pay only for the work done without investing in the equipment, recruitment, training and other associated expenses. Offshore outsourcing can even significantly reduce the project budget due to the lower labor cost. But preferring overseas outsourcing, make sure you are ready to bear the risks of poor code quality and carefully select the partner company.
Short-term commitmentIf your company needs someone with a particular skillset for a temporary work, outsourcing is a perfect option which lets bring an expert on a project basis and not bearing the expenses associated with a long-term commitment. In the case, when your company needs one specialist for one job done and then requires someone with a different skillset to accomplish another task, short-term commitment becomes an obvious advantage of outsourcing professional IT experts.
Focus on the primary company activityWhen you outsource the application development services, you don’t need to dive into new project forgetting about company core activity. It is enough to talk with a professional project manager from the outsourced company to describe him your needs and requirements. Since the time all the specifications of the application are determined and papers are signed you just get the results. You don’t need to worry about the development process but estimate the results and provide the feedback on the working program. All the other worries the outsourced company takes for itself reducing your workload.
Quick time to marketWhen you outsource software company, you hire a teamed up group of professionals who cover all aspects of the application development process with their combined expertise. People who have experience of collaborative work and obtain mutual understanding will work faster reducing the program time to market. Outsourcing doesn’t require time for recruiting and training of each member of a team needed for a qualitative app creation. Software companies collect specialists of all directions in software development so hiring a company you get business analysts, designers, programmers, and testers.
What you should remember about outsourcing software development
Control and Security
Outsource our company!
- Our team implements agile methods and philosophy ensuring transparent, responsive, and flexible app development process.
- Outsourcing our company you hire a dedicated team of programmers who realize the project ideas in accordance with the requirements and help you achieve desirable business objectives.
- We have experience of work on a range of exciting software projects for our customers from different industry sectors and different countries gaining priceless expertise.
- Our team has built a reliable app development process model which ensures that wherever is our customer, we will deliver a software solution which exceeds any expectations within the budget and on time.