In-House vs. Outsourced Software Developers: Part Two

Dean Beard • 2 months ago

The world is a big place, so limiting your development team to your specific geographic area can have quite a few drawbacks. In-house development has its benefits, as discussed in Part One of this blog. Still, there’s a reason more and more companies are looking into outsourcing software development. 

Outsourcing to a software consultant or agency has become far more popular in recent years. Here’s what you need to know about looking outside your organization for help.

Top 4 Benefits of Outsourcing Application Development

Cost

A significant benefit of outsourcing used to be the cost. It’s still a considerable benefit, don’t get us wrong, but it’s no longer the top priority for businesses. Outsourcing means you’re only hiring the team for as long as required to build the product. It also means you reduce the overhead of onboarding, salaries, benefits, and having office space for each member of the team. 

Scalability

With an in-house team, you’ll need to post job ads, have interviews, train, and onboard new employees any time you need to scale or grow your business. An outsourced team takes care of scaling your team more or less, depending on your needs. This can take the pressure off of hiring and firing employees.

Experience

A significant benefit to an outsourced software consultant is the experience. They do this all day every day for numerous businesses. Plus, they’ve developed many applications and products before that can help them spot things you may have missed. 

Talent

When you have an in-house team, you’re limited to your geographical labour pool. An outsourced team can pull from all over the globe thanks to their offshore and nearshore nature. Some of the best software consultants have locations around the world to tap into the best labour pools. Many of the top full-stack developers, engineers, and software developers will look specifically for software development firms for employment. 

Potential Risks of Outsourcing to a Software Consultant Team

Communication Delays

Yes, it’s easier to go down the hallway to ask a question. The idea of delayed or limited communication with an outsourced team is a hurdle for some. This lack of communication can sometimes be scarier because it’s a perceived lack of control over the development process. 

Solution: Find a software consultant with offices in multiple time zones and with extensive experience working with distributed teams across timezones. Look for companies that have demonstrated their ability to leverage collaboration tools effectively and that schedule their team to overlap according to the client’s timezone and workday. 

Business Changes

The big fear with outsourcing is that this is another business you’re relying on. The company has the same hurdles as any other business. They may end up dealing with high employee turnover, delinquent accounts, or a loss of office space. The fear here is that halfway through a project, the software consultant you choose may go out of business or change their processes drastically. 

Solution: Look for a company with a lot of experience. Companies that have been successfully operating for a while know how to accommodate any unforeseen changes. They’re often more established within the industry as well. 

Different Work Ethic and Process

There can be a notion related to outsourcing product development that companies from other countries lack the critical thinking and innovative mindset. 

Solution: Look for a business that hires application developers and strategists based on critical reasoning skillsets. At IntuitioLabs we pride ourselves on hiring developers with outstanding critical reasoning skills as well as a product development mindset instead of a BPO (business process outsourcing) mindset. 

What’s Better: In-House or Outsourced Software Development?

Ultimately, this will depend on your business and your preferences. For some entrepreneurs and business owners, the idea of having a perceived lack of control over the development team will push them towards an in-house team. However, for many businesses, outsourcing makes the most sense. More and more companies are choosing to outsource their product and application development to software consultant agencies, and for good reasons. You expand your reach into a talented labour pool, you increase your potential for innovation, and you enjoy a lower cost.
If you believe outsourcing is the right choice for your business, IntuitioLabs is a globally based company of experts, and we want to help you succeed. Get in touch today.