In-House Vs Outsourcing Development: Some Advantages and Disadvantages

The internet has enabled people to remain connected worldwide and this has given entrepreneurs to easily access various resources and create business solutions with ease. Whether you are a small or a big organization dealing with specific technology or product, there may be some time when there will be likely less hours in the day to keep up with the present and ever changing business demands. Or it might be so that you will reach a point where you may not have the desired skills or expertise that is needed to complete a job effectively. It is here that you are faced with a complicated decision of whether to hire someone in-house to run the operation or to outsource the task to some other company?

The answer to the above question may vary based on your specific requirements and preferences. There is no simple answer here. So, let’s discuss the two points in details and find out which decision is best and when.

Benefits and risks of outsourcing:

While there are always some advantages and disadvantages associated with any decision, IT decision makers can increasingly leverage outsourcing as an important function for business growth:


Adding new skills and technologies: Most businesses look for outsourcing companies when they have a project that needs special skills and usage of the latest technologies. It is when experts are not readily available and in-house capabilities are simply not feasible, that outsourcing your work to an external partner is the best option before you.

Reduce time to market: In this fast paced business environment, innovating and implementing something quick and first in the market is crucial. An outsourcing company can help you to attain the desired speed in developing your software and meet the target lines effectively.

Enhance product quality: Hiring an expert team to build a robust and scalable solution that is thoroughly tested before launch will highly increase the quality of the product and also offer a better user experience. Improving the quality will surely generate a lot of value and also help you to protect your investments.


Communication problems: This is a typical problem that often causes people to think twice whether software outsourcing is actually the best option. Geographical distance, communication problems, lack of coordination are some of the negative aspects of outsourcing.

Hidden costs and varying quality: At times, the price per hour that your outsourcing partner is changing may appear catchiest, but the price tag does not mention anything about the quality of the task that will be delivered. Low quality codes often cost a lot more in future refinements.

The joy of hiring an in-house development team:

It is really wonderful to have an experienced team working for your project in-house. Since they are right there for you every day, there are some benefits that in-house team has to offer:

Committed for a long term: Hiring an in-house team helps in long term relations as they constantly learn about the ways your apps, website and the entire business functions.

Priority: Whenever there is any emergency task, your in-house team will consider it as their top priority and will act on it instantly. They have the same objective as your and this is very difficult to achieve with any external company.

The negative side:

The positive image of an in-house team is not always a reality for all companies. There may be some big obstacles like:

The hiring process: This often includes a lengthy time period and involves many processes. Hiring experts is not an easy task as you have to have thorough knowledge before hiring someone.

Cost: For an in-house team, you have to set up a proper infrastructure and this may lead to extra cost to the company.

Varying intensity of work: It is not always that your team will give the best output to generate profitable results. Things might turn out the other way and you may not receive the output that you anticipated.

Source by Prince N

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