Should you bring software development in-house or outsource

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At the start of any new project, you will be faced with the most basic question – how to turn your ideas into reality. This question could lead to more questions, like how to find the right people and assemble a team for development? When it comes to building apps or software, you must choose how to get your software development team: in-house or outsource? 

software develpment

To choose the right one, you need to breakdown each option, along with their advantages and disadvantages. 


What’s in in-house development?


In-house or in-sourcing means hiring software experts within your company. They are employed by you and are performing their tasks for you. They’re your hand-picked choice and every member of this team must serve a definite purpose; whether a team leader who will oversee all the members or a specialist who has all the expertise you need. 


The success and failure of this team rely heavily on you. This also means they’re also using other resources in your company.


Assembling this team can be a tedious process, grueling even. However, if you get the right people, you will end up with the best team who are all loyal and dependable in the long run. 


Advantages of Having an In-House Software Development Team

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You’re in full control


You get to train your team from the ground up and make sure they know exactly what you want, use your tools and resources. Since they are part of your team, they are more aware of your company’s needs and can adapt to your demands faster. Also, they’re integrated into your company’s culture.


Direct face-to-face communication


Since they work directly in your company’s headquarters, face-to-face communication is easy. This means communication will be faster, more efficient, and seamless. Specific instructions are sent directly, eliminating mistakes due to miscommunication.


Hand-pick your team


Since they’re part of the company, they are more committed to your company’s success compared to an outsourced team. 


Make quick changes


Having an in-house software development team allows you to make quick changes to specific areas of your apps or software, add or remove features, and more. Also, they can fix any issues in a prompt manner.

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Disadvantages of Having an In-House Software Development Team




The high cost can be a game changer for many companies, putting this out of reach of many small companies. Obviously, with an in-house team, you must provide them with resources and tools, spend money for their development, training, and invest in hardware and software in addition to paying increasingly high salaries for a developer. 


Limited pool of talent 


With in-house, you will need to hire in the marketplace and there are shortages in some areas for full-time developers. You will also be limited to the current members of your team. This means you may be missing out on some highly skilled developers out there. 


Advantages of Having an Outsourced Development Team


Pre-assembled team of experts


Outsourcing will give you access to experts in software development rather than having to train people to work on your project. The ability to access expert talent is what is most advantageous about this particular option. As long as you choose the right professional/s to outsource to, then you can expect quality in service that is up to par with industry standards. 


Flexibility of cost


There are many software development services to choose from across the web, with a high range of price selection. Some of the most popular regions for outsourcing include Scandinavia, The Baltics, and The Balkans, along with Eastern Europe due to the large pool of highly skilled talent, relatively lower wages, increasing government support, and low taxes.


Faster delivery of projects


Since you don’t have to go through the tedious process of recruiting, you can find a specialist to start and finish your projects quickly. 




Since you don’t hire them permanently, you have the flexibility to scale your team up or down. Meaning, you can expand or decrease your team based on the demand for your project.



More tech to choose from


More and more businesses these days depend on external teams to do their specific tasks or even whole projects, all without spending a lot on tools and resources. Most software development services are equipped with advanced tools, knowledge and the latest technology to deliver the highest quality of service. Outsourced teams allow for rapid scalability and the opposite if you need to close a project down, there are no permanent staff concerns to deal with. 


Disadvantages of Having an Outsourced Development Team


Gap in communication


Since you’re not facing each other when communicating, there will always be a risk for miscommunication. Also, the language barrier can be an issue. Fortunately, though, more IT experts around the world, even in non-English speaking countries, are becoming more fluent in the language.


Security risks


Security Risks are Another problem when not facing your team in flesh is that you may not have full control of the whole development process. Also, you will be sharing some sensitive information about yourself and your company; thus, a non-disclosure agreement is an absolute must when outsourcing. But that’s not always a guarantee.


This is why it’s extremely important to do your homework and research the most trustworthy companies and professionals. 


What’s the right one for you?


With all the different variables considered there are no hard and fast rules for everyone. The answer depends on you. Whichever you choose, your IT staff should be able to get things right – from web development to maintenance. 


However, with all the flexibility and efficiency outsourcing can offer, it will be smarter to outsource your software development needs if you have a limited budget. This is especially true if your project requires experts in a specific niche. With all the tech and resources they have at their disposal, these pros can make your company more competitive.