At the beginning of any new project, you will undoubtedly face the question: how to translate your idea into reality? Where to find experienced professionals and how to organize a team for the development? We know how tiresome this choice can be, so let’s outline the biggest advantages of both these options. In this article we’ll help to further learn, which path to go when you are considering in-house software development vs outsourcing?
Team work is a key
Turning to a specialized company you get well-established development processes.
Which of the following is not true about in-house development?
In-house Software Development
What is in-house software development definition? It is a software development that is run by a corporate entity for the organizational uses. Let’s see an example to better understand the in-house software development meaning. A company, which may have or not a relation to the IT sector decides to develop their own digital product. In this case, the company should use their own workers to develop the system and needs to conduct hiring procedure. Though the cost of hiring staff is high enough, it’s getting many advantages of in-house software development.
No language/cultural boundaries. It is a team of the professionals probably from the same country/city as you are, with the same cultural and language background working within the same organization. What advantages does it give to you? Fewer boundaries and limitations, face-to-face communications and as the result better understanding of what should be done.
Deep involvement. It allows you to maximize the customization of in-house software development process for every minor need of your company. You can make appropriate changes in the development process easily to adjust the project to your business.
In-project expertise. Internal specialists master their skills in building the project you started and soon become narrowly focused professionals of the highest level. This reduces bugs and in addition, it means that the support will be straightforward and efficient, and your company will be able to maintain the product independently.
Huge price. It requires many funds to be invested at the initial stages, especially in small and large-scale projects. If the organization of the processes is lame, you’ll need to spend money even for inactivity. However, in middle-scale projects where the product is a valuable resource the scheme works well.
Staff dismissal. One of the biggest in-house software development risks is the dismissal of employees. After companies have invested significant resources in their adaptation, they can go away and you’ll need to invest in new members of the team again.
The lack of expertise in different areas. There is another classic problem with an in-house software development pool. In order to apply specific skills you’ll need to hire a specific candidate, and thus, run the hiring again. The same situation is in the case of project expanding. If the employee works in-house, you will have to pay insurance fees, premises, equipment, holidays, etc.
Outsourced Software Development
As we’ve got some knowledge on what is in-house software development praise, let’s overlook the outsourcing as well. Outsourcing is a practice when an outsourcing company builds products for your company. It also has both pros and cons to consider.
Price-wise expertise. Outsourcing price is more reasonable and teams have more development experience in different fields. If an unusual problem arises, there is no need to hire new specialists into the company. With the proper planning, you can reach the same goal with a smarter budget.
Smart time-to-market. Outsourcing allows avoiding all major hiring and staffing issues, which usually occurs if you practice in-house development. You can add features that matter to your customers at any time, no matter which skills do they require. This definitely shortens the timing of the product launch.
Easy scaling of teams. If you need to expand the team urgently or to cut staff, you do not lose money. All the people on such projects are replaceable.
Streamlined processes. Turning to a specialized company you get well-established development processes and experience. All the processes are set uprightly.
Mutual understanding. Despite the fact, that the geographical and language barriers have become a thing of the past, in outsourcing the requirements are the main source of coherence for your company and developers. The vendor will develop a product according to agreed specifications, so you have to be sure you are on the same page regarding the acceptance criteria.
Transparency and security risks. The lack of direct in-person control and communications can cause a lack of trust to have a place while a project development. Although, it depends on the specific contractor. This issue can be limited by choosing the right partner. Be sure that you agree with the way of reporting, acknowledgment, meetings schedules, which are comfortable for both parties.
Risk of receiving an unsupported code. If you outsource your strategically important product, make sure you can maintain the code without contractor involvement. Otherwise, your business will become dependent on the outsourcing team. Although, of course, the quality of the code depends on the integrity of the contractor.
What Is Your Best Choice?
Summing up the issue of outsourcing vs in-house software development options it must be said that the choice depends on the specifics of the project. The main rule: if a web application development or maintenance is not the core capability of your company it could be a huge challenge to the IT staff to get it right. They may lack the experience or understanding to get it done. Then after unsuccessful attempts to do it in-house, you can land up with an outsourced product.