In-House Software Development vs. Outsourcing

In-House Software Development vs. Outsourcing

by Jeff Love

4 Feb 2021

User Experience

Software development is essential to maximizing the potential of your business. Whether you need a custom web application, new website, or enhanced web performance, an experienced software developer can make all the difference.
So which is better: in-house software development or software development outsourcing?

Benefits of In-House Software Development

When you hire in-house, your software development is done within the operations of your company. The software team is on the payroll and probably coming into the office every day alongside the rest of your employees. This offers several benefits, including:

  • Cohesive company culture: In-house developers are in the office every day, mingling with your other employees and getting to know all that your company stands for. Hence, it’s usually easier for an in-house development team to quickly adapt to your company culture and understand your core values.
  • Efficient communication Because your development team is physically in your office, communication is faster and more effective. Rather than waiting for an email response or returned phone call, you can simply pop your head in the door to chat.
  • Easy access to resources When developers need information or physical resources, they’ll be able to get them more quickly and easily when working on-site.

Drawbacks of In-House Software Development

Though there are many obvious advantages to having an in-house software development team, there are some drawbacks as well. These disadvantages may not be quite so obvious on the surface, making them all the more important to consider:

  • Higher cost: One of the biggest turn-offs to in-house development is the high cost, which many newer companies simply can’t afford.
  • Smaller talent pool: Hiring developers to work in your office means you’ll be limited to the talent available in close physical proximity.
  • Potential turnover: Onboarding new employees is costly and time-consuming, and these employees might end up leaving within a year or two, meaning you’ll have to repeat the process all over again.

Benefits of Outsourcing Development

Companies who opt for software development outsourcing hire a third-party company to handle their development needs. This company likely specializes exclusively in web development and is not part of the internal organization. So why would anyone want to outsource? Here are just a few clear benefits:

  • Much lower cost: Many companies are drawn to outsourcing because of the lower cost—and fortunately, when you hire the right developers, affordability doesn’t have to mean a sacrifice in quality. Studies have shown that outsourcing can reduce overhead costs by up to 60%.
  • Flexibility and scalability: Outsourced software development teams are far more nimble and agile than in-house teams, giving you room to grow in the future.
  • Greater talent pool: When you outsource development, physical proximity no longer puts a limitation on who you can hire.
  • Reliable expertise: Many outsourced developers have a highly specialized niche, meaning they can offer in-depth expertise in their services.

Drawbacks of Outsourcing Development

Like in-house software development, outsourcing development does have some drawbacks. These drawbacks are usually more of a concern when hiring a company that doesn’t have a strong reputation or years of experience. But still, the disadvantages are worth noting:

  • Less control: Inevitably, outsourcing development requires you to give up some control—which is why it’s essential to hire developers you trust.
  • Slower communication channels: Since your developers aren’t on-site, there will naturally be some delay in communication. (But the best developers will always be prompt to respond to client needs.)
  • Less cohesion in company culture: Not all outsourced developers understand the unique culture of your company and brand. Seek out developers who will take time to get to know what your business is all about.

Hire Software Development Experts Today

Outsourced software development is a smart choice for many of today’s companies, offering lower costs and increased flexibility as the company grows.
If you’re ready to outsource your software development needs, contact CyberLancers today. As long-standing experts in the industry, we’ll deliver a timely, highly customized final product that is sure to impress. We’re experienced in web, e-commerce, .NET development, and more. Contact us today to discuss your next software development project.