Outsourcing vs In-house Development

The revenue of outsourcing development services globally exceeds $85.6 billion according to Statista and continues to grow.

7 min read, Oct 14
outsource-vs-inhouse

Let’s reveal what cooperation features allow the option to be a powerful competitor of in-house implementation of digital solutions.

Whether you have a one-time project in mind or it’s only one from your everyday routine and you realize that you lack the workforce partly or entirely you have three options available:

  • hiring local talents or specialists who are willing to relocate for in-house enforcement,
  • requesting outstaffing support on in-house or remote basis on the project time,
  • outsourcing a required task to telecommute developers or remote team companies.

    The task can become very challenging if you have limited time for search, strict deadlines and budgets. Searching, interviewing and other recruitment formalities can take weeks not to mention the integration process. The entering stage is non-optional even for the best from experienced individuals from your area.

The most evident difference that distinguishes the options from each other is a search range. Even with candidates who are willing to relocate you have initially more limited search than if you put into consideration developers who are used to working on projects independently on a remote basis or as a part of distributed teams.

Such staffing platforms as Upwork show the tremendous size of remote development market by giving access to a wide selection of professionals with a wide range of rates and duration availability. However this approach also comes with its pitfalls.

Outsourcing development advantages, disadvantages and conditions extremely vary from internal process organization. To decide which part outweigh the other in your situation let’s explore them consistently.

In-house development

When you find a developer that will contribute to your current projects you receive a team member who:

Locally adjusted

With English leadership in spoken languages and openness of social networks, cultural differences diminish on the professional level. However, building an efficient solid team is easier when devs share not just communication remedies but the train of thought.

Actually present

Efficient interaction between team members from developers to CTO is easier to establish when a team has some background established leastways by the constant presence in the same room and regular attendance of face-to-face meetings.

Highly focused

Unlike dealing with remote team management you'll see the selected person every workday and be able to directly communicate, influence and control on a long-term basis giving him or her the possibilities for further growth and motivation to stay concentrated on your company needs.

Reasonably flexible

Some project changes might have immediate-to-implement status. Such alternation is easier to integrate when you have quicker access to a developer even during not-working hours without having to take into account time differences.

Take into account that for such benefits, you need to put in efforts and contributions to some aspects. It results in changes in the company/project fundamentals.

High budget

A salary for a local talent it’s not the only expense that one of the clauses on your accounting documentation. You should add to it also taxes, hardware and software solutions, office rent, utilities and snacks, sick leaves, gym, medical insurance and other benefits that you offer to attract the best candidates. By outsourcing product development the majority of them are handled by other parties.

Staff instability

Millennials don't tend to stay in one place for a long time, especially on the professional level. The IT market opens a lot of opportunities for young and talented leaving them lesser reasons to engage in a particular team. Regular staff changes are quite pricey not to mention the influence of these changes on the workflow and its results.

Such big players like Amazon and Salesforce are satisfied with in-house teams. But considering their status it’s an affordable staffing solution for them and they can hire the best candidates available in the worldwide area. However, for the SME sector, things aren’t so simple.

Outstaffing/outsourcing

Hiring best developers in by selecting options of outsourcing or outstaffing in Ukraine, Germany, USA or anywhere around the world opens more opportunities for achieving goals than the local workforce market.

Review what outsourcing software development pros and cons and learn what you’ll get if you decide to entrust your tasks to a remote independent or on-contract developer (outstaffing) or a team who are a part of an international outsourcing development company.

Flexible rates

Depending on the location, initial salary expectations even of junior developers can be quite high leaving even a smaller choice. But there are regions like Eastern Europe where can you find talents that can show quality performance for an affordable price.

Scalable staff

When you have multiple projects all the time you can’t always predict your staffing needs. When you have a reliable partnership you can request whether additional developers or reduce a hired outsourcing development team whenever you need without extra complications.

Lesser expenses

In this situation all operational needs and even if required project management are covered by a software development provider. Basically, you pay only a stipulated amount and fees established by the platform you use to make an agreement.

Wider tech choice

Agreeing to short or long-term cooperation you get access not just for the technology experts you currently need. Such teams are usually well-versed around wide tech stack. If the case of initial success you have a trusted source to satisfy your diverse staffing needs.

More control

Agencies providing outsourcing app development are as well interested in the success of your project as you 're. That's why you can expect additional control of meeting project requirements and providing all requested resources for the appropriate solution implementation.

However, in the maintenance of cooperation with a remote developer or a concentrated or even distributed team there are some challenges and namely:

Security gaps

Ensuring timely and quality delivery, as well as the lack of copyright violation, requires efforts for arrangement and management. That can be established by issuing a non-disclosure agreement, stipulating time-tracking and using enforcing outsourcing agile development using methodologies like Scrum to set an efficient workflow.

No solid contact

Miles between even if working schedules are synchronized can become a breaking issue for cooperation. That’s why it’s better to verify the connection stability in the early stages and ensure that such a tendency will continue during the whole project duration.

World-leading companies like Google and a promising solution Slack proved outsourcing development startup and enterprise applicability by basing their success on this approach. The ability to decentralize management and tasks gives wider possibilities for growth and complex project development.

How to choose a reliable remote team/developer

One of the rarest qualities to find in any service provider is trustworthiness. That’s why it’s important to put candidates through a thorough screening process that includes:

  1. Scrupulous market research to define the selection range.
  2. Open-source and in-person reviews and recommendation evaluation.
  3. Qualification assurance through testing, interviewing, communication.
  4. Establishing appropriate security including the legal background to agree.
  5. Ensuring that for the project agreed schedule is suitable.

To find the best options you can explore charts by Upwork, Clutch, etc. or invoke your network to see closer the results of outsourced development best practices from the real-life shared by trusted advisors and partners.

Whether in-house staffing or outstaffing/outsourcing can give remedies for successful project development and delivery. That’s why the decisive point here - which cooperation model fits in your business strategy and particular project.

Springs experience as a web&mobile solution provider proves that using remote developers can be efficient options for filing staff gaps on a short- or long-term basis without harming the product quality and extending the delivery budget and deadlines.

The recent appreciation of such platforms as Clutch and Designrush proves that we are the tech partner you’re looking for outsourcing web development or building mobile apps.

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