The question of choosing in-house development vs. outsourcing has been prevalent in the software market for many years. The reality is that both of these options have significant advantages and choosing either of the two strictly depends upon the kind of business or situations that rule the business.
Hiring a developer is a lot more about the expertise, skill, and passion of the individual or the team rather than other factors. We are not saying that the other factors don’t count but the main thing is to look for a person who has the ability to create something beneficial for a business.
Before you decide which option suits best for you, let us have a look at some factors that are included in each of them to understand the comparison better.
PRICING FACTOR: It goes without saying that the cost of labor is much cheaper overseas. There is no need to spend a hefty sum of money to a local developer when you can get the same or in some cases even better work done for a significantly lesser cost.
The money that you save can actually be used for many other things that can help in building an interactive and feature-rich application. The pricing factors are considered as one of the best benefits of outsourcing overseas.
If you have the option for getting more value for the money that you spend then it does not make any sense to pay more for someone who is local. Additionally, outsourcing overseas means paying on the basis of the performance of a professional. This is not true in the case of an in house developer.
When you hire an in-house professional, you are required to pay regardless of the performance is up to the mark or not. In the case of outsourcing overseas, if you are not satisfied with the work, there is no need to bear the expenses.
SHORT TERM CONTRACTS: One of the most important yet underrated benefits of outsourcing is being able to use the skills of a developer on a project basis without any long term commitment.
There are times when a company might need someone with one skill set for a project but need someone with an entirely different skill set in a few months. Outsourcing overseas allows doing the same efficiently. Companies can hire based on their requirements and relieve accordingly.
MINIMAL DISTRACTIONS: This might sound a little off at first but there is no doubt in the fact that many office environments turn out to be big distractions for the developers. There is a consistent noise in the offices and it gets difficult for the in-house developers to perform efficiently while doing their best.
This distraction demands increased work from the in-house developers than it is necessary which also affects the working culture. In contrast to this, when you outsource a software developer from overseas, you can rest assured that the developer is fully committed to doing your work by all means.
In case you want to go above and beyond, you can specify the details of what you expect from the project in absolute clarity. This will assure maximum output from the project.
TALENTED PROFESSIONALS: Outsourcing overseas can be a great option because it allows you to work with a talented team of software developers. Since offshore development companies have the experience to work with many clients, they have much more industry knowledge.
These companies also ensure that their software developer stays up to date. The business depends on keeping up with the latest technology. On the other hand, the in-house developers have a tendency to get stuck in whatever project that they are doing.
There is less scope for the in-house developers to be exposed to a diverse range of projects. The maximum experience that the in-house developers gain is limited to a specific project or an industry.
SKILLS AND EXPERIENCES: Outsourcing from the best software development companies means that you have access to unlimited skills and experiences. Irrespective of whatever the requirement might be, you have the option to hire app developers right away.
All those tasks that need only a little experience can be taken over by junior developers and the senior software professionals can look after many complex requirements. Opposite to this, with the in-house staff, there is a limited choice.
Naturally, there is no sense to hire in-house developers for all the skills and technologies. Therefore, outsourcing offers never-ending access to all kinds of resources without any extra attention.
RESOURCE SCALABILITY: Outsourcing software development also assists in uplifting the results quickly. Scaling new heights with the in-house development team attributes to going through the HR process all over again.
If you hire in-house then it means that you will repeat the entire process of looking for finalizing a new resource. In addition to being time-consuming and wasting all the resources, there is a chance of not getting the desired result. There are many situations when there is no extra time at your disposal and this is where IT outsourcing works very well.
You can get in touch with the offshore software development company and ask them to work for you and get the job done. Chances are they will have a suitable person available or even if they do not have it, they will know the right place to get it from.
This can save your company the energy and time of going through the hiring process. Outsourcing software development means quick and easy scalability. You have the ability to hire as many dedicated professionals as you want without any tension.
GOOD INVESTMENT: The software developers who work for you on a full-time basis have committed to working for you long term. They have high opportunity costs for working with companies. In addition to investing a considerable amount of time and energy, they are a lot more focused on the final outcome of the project.
This is something huge to consider in this comparison. Plus, they are a lot less likely to bail out for multiple reasons and in case the fit seems good then they can very well be long term players for the company.
HIGH RELEVANCY: The full-time developers who sit right next to you know everything that is going on and they can change directions pretty easily. You can hold regular meetings with them and introduce new features in the software development projects effectively.
They are also aware of all the challenges that the business might be facing in other areas like sales and marketing. This leads them to offer great solutions for the betterment of the project.
ALIGNED MUTUAL INTERESTS: The meaning of success for freelancers or the companies you outsource from is limited to securing clients and delivering the best results on projects at the right time.
On the other hand, entrepreneurs are focussed on building businesses for generating revenue and reaching a good place in the markets. This can take a long time but it leads to working for aligned mutual interests.
WORK SHARING AND ALLOCATION OF TASKS: When you are working with an in-house team of developers, you are aware of the skill set of all the team members. This allows you to assign the work right away and to the right person.
While in the process of outsourcing overseas, you have to rely on the companies to allocate the work to the software developers. This can turn out to be positive or negative. The offshore software developing company that does not know your requirements on a clear note will not be able to deliver effective results.
EFFICIENT QUALITY CONTROL: With an in-house development team, you can have efficient control over the quality of the work. You have the ability to manage development and quality at the right time.
Whereas, outsourcing overseas means you only get to manage the work when the team of the outsourcing company shows the work to you. Quality control is much more flexible while you employ an in-house software development team.
INCREASED COLLABORATION: It is much simpler to collaborate with your own team as compared to collaborating with the outsourcing team. It is much easier to communicate with the people who work with you.
The employer and the employee are in a way better position to understand the explicit requirements of each other. With the assistance of IT outsourcing, collaboration can become a hassle. Communication and cultural barriers can create problems thereby decreasing the overall quality and effectiveness of the work.
Irrespective of whether you choose to hire in-house software developers or go for outsourced software developers, the option that will suit you the best depends highly on specific requirements. Working with an in-house team can be costly and limiting while outsourcing can bring up communication barriers in case you do not choose the right professional or company.
With that being stated, the overall weighing of important points and considering the comprehensive experience, outsourcing software development can prove to be a much better option. The challenges that are as such associated with outsourcing can be handled with an appropriate investment of time and money.
Additionally, the various project management tools and techniques used by the offshore software developers can be used to stay right on track in real-time. This is the reason why the option of software development outsourcing is becoming increasingly popular. Unless the work needs a big-time in-house development team on guard, it will always be smart to go for the option of outsourcing your needs.