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In-House Vs Outsourcing Software Development – Pros & Cons

In-House Vs Outsourcing Software Development – Pros & Cons

Published on: 27 Jan 2022

In-House Vs Outsourcing Software Development - Pros & Cons

Thinking about hiring a software developer but you aren’t sure whether to outsource?

The  outsourcing software development trend  continues to rise with the industry valued at $108 billion in 2021. From management to cloud services, businesses see the benefits of hiring developers outside of their own talent pool. However, some still voice concerns about using a third-party team.

This article examines the pros and cons of in-house vs outsourcing software development.

Learn about the different development roles that you need to consider. Discover the meaning of onshore, nearshore, and offshore outsourcing. See why outsourcing offers multiple opportunities outside of traditional set-ups.

Read on to learn why outsourcing your applications could save you time and money over in-house methods.

What Is Software Development?

Software development is the act of creating and maintaining a software application. Applications cover a wide range of uses from operating systems to phone apps to cloud services and websites.

Developing any successful app relies on following the software development life cycle (SDLC).

The SDLC is an international standard that software developers follow when building applications. Steps include:

  • Identifying needs through market research
  • Analysing requirements
  • Design and development
  • Testing
  • Deployment and maintenance

Part of the lifecycle includes a review and maintenance step that continues the cycle until the app is no longer needed. That means that the team you use to build the app must be available to fix bugs, etc.

Hiring the wrong team for short-term goals will lead to long-term failures.

Types of Software

Software applications usually fall into three categories: system, application, and programming languages.

In today’s connected world, Internet connectivity is a given. Most modern apps on a smartphone not only work in isolation but connect online to save and download data.

Applications should work on different platforms including Progressive Web Apps and hybrid apps. As consumer choice expands, so should the reach of the software.

Software Development Roles

A development team consists of valuable members who all contribute to the creation and maintenance of software.

A computer programmer writes, modifies, and debugs code. A QA or Quality Assurance manager ensures the projects meet the highest of standards. A database administrator monitors and improves the backend database infrastructure.

Software Development Manager

Outside of the core coding and development are the project managers. Their role is to oversee the development lifecycle and liaise between the client and the team.

Project management  is key to creating and implementing an application.

For example, Scalefocus hires only the best project managers to communicate with our clients. They act as the bridge to pass feedback and ensure that requirements are met at all times.

What Is an In-House Software Developer?

Traditional software development took place in-house or on the company’s premises.

Team members hired through a recruitment process became part of the payroll. They worked within the physical building owned or leased by the company. And they were managed by in-house personnel.

That model is slowly eroding due to the availability and quality of outsourcing. But what does that entail and should you hire software developers that you don’t have direct control over?

Outsourcing Software Development

Outsourcing simply means hiring a third party to undertake a project.

With the advent of high-speed global communications, outsourcing is now a mainstream option. Even in-house developers no longer work on a company’s premises due to the pandemic.

Onshore and Nearshore and Offshore Options

There are several outsourcing models to choose from:

  • Onshore – hire software developers within the same country
  • Nearshore – outsourcing to a neighbouring region
  • Offshore – hiring a development team in another nation
  • Hybrid – a combination of the above

Some businesses choose onshore options when they consider the potential barriers when outsourcing. Different time zones and language issues can cause concern so they select a team that is close by.

However,  nearshore outsourcing can solve many of those issues.

A neighbouring country can recruit team members at a lower cost. They are fluent in multiple languages and can offer extra resources. The same goes for offshore outsourcing.

A hybrid option can mix different teams and is a viable solution depending on how it’s managed. 

Pros and Cons of In-House Development

In-house development provides a perceived level of control and security when developing software.

Businesses can manage team members directly if their workforce resides in the same premises. There are fewer cultural barriers and you can hire individual experts to carry out specific work.

Yet, hiring an in-house team comes at a cost.

Interviewing suitable candidates, producing onboarding materials, and tending to sick leave is expensive. Once the candidate becomes embedded within the team, they’re managed by an in-house manager. That person has to go through the same process at additional expense.

The price of hiring the best team is set to rise by 22% over the next several years.

It’s an up-front investment that you’re tied to moving forward. One wrong personnel decision will push deadlines back as you need to recruit. That is if you can find the right person from a diminishing talent pool

Pros and Cons of Outsourcing

Outsourcing to a third party like Scalefocus will save you time, money, and hassle in the short to long term.

For example, when developing for a clinical solutions provider we reduced costs by 40%. Quality did not suffer as we were able to produce more QA tests than their in-house team. We also have a larger talent pool with a wide range of expertise.

Need a UI expert? We have UI and UX designers that tailor-make solutions. Require data processing and DWH? Our business intelligence staff offers consultancy and database architecture.

A fully-qualified member fluent in your cultural sensitivities will manage your project. We have offices in Europe and Washington DC and work remotely for the best outcomes.

The only disadvantage to outsourcing custom software development is the perceived stigma. Once you speak to our team you’ll discover that those barriers don’t actually exist.

Fullstack Software Development Solutions

Outsourcing software development brings lower expenses and a wider pool of specialised talent. Although in-house teams have some advantages those benefits greatly diminish over time.

Scalefocus offers digital development solutions to a global client base since 2012. Whether it’s  strategy and advice  or application coding and testing, we want to be your primary team.

Fortune 500 companies, as well as start-ups, rely on Scalefocus to develop and maintain their software. 

Contact us today  to discover why.