In-house Development Vs Outsourcing – Which One is Better?

in-house vs outsourcing software development

Are you also debating whether to contact that outsourcing company that looks as promising as ever or start your recruitment campaign? If so, then look no further because we have compiled a comprehensive list of the staffing models’ benefits and drawbacks.

Nowadays, outsourcing is all the rage, and every other business, especially in the IT sector, is outsourcing software development. The advantages of outsourcing cannot be denied, but traditional in-house staffing also has multiple benefits you can’t ignore. Whichever methodology you select to complete your software development depends on factors such as your budget or type of project.

To avoid making any rash decisions, get prepared to equip yourself with in-depth knowledge about in-house vs. outsourcing software development.

What is In-house development?

Inhouse software development refers to building and organizing your team from scratch that comprises all the necessary roles to carry out the development process in the company. To put it simply, the group of professionals you employ is responsible for developing the software.

Choosing the right individuals to be a part of this team is a lengthy process that requires careful consideration of their personalities and skill sets. It is only sometimes necessary to hire new employees, though, as your company may already have resources available that could join the in-house development team.

The team may consist of a variety of individuals with unique expertise, and if chosen right, you might end up building the ideal team. The recruiting, interviewing, and onboarding processes are the same for choosing suitable candidates as they are for hiring permanent employees for your company.

The in-house development approach is generally preferred due to the authority and control it provides the owner over the project relative to other development procedures. Additionally, there are several other benefits of in-house development that lead people to choose it over other alternatives.

Benefits of in-house development

Grants more control over the development process

As stated above, this is one main reason why companies still prefer building an in-house team that directly falls under their management and works on the company’s payroll. This allows the organization to utilize the workforce efficiently while also tracking everyone’s performance individually.

Moreover, it also allows the business to monitor the software development process in great depth, ensuring that it follows the company standards and policies. The company’s heightened sense of authority allows it to identify errors quickly and implement corrective measures if they occur.

Enhanced team engagement and communication

Having an in-house team allows more direct and transparent communication, which affects the software development process. Enhanced team engagement leads to rapid solution development and error resolution without any useless delay.

That instant connection also makes it possible to provide feedback right away and gain a deeper comprehension of various perspectives. It can significantly speed up decision-making processes and ensure that everyone is on the same page regarding the project requirements. Additionally, it eliminates the need to exchange numerous emails back and forth.

Extensive in-house expertise

An in-house team of skilled professionals gives the company access to a deep pool of knowledge and expertise. It signifies that the company has a team of individuals who excel in their respective roles and possess a wealth of experience, allowing them to handle various tasks and challenges efficiently without needing to seek external help or outsourcing. This internal proficiency often leads to faster problem-solving, innovation, and the ability to tackle complex projects effectively.

Ideal conformity to company standards

An in-house software development team is in an exceptional position to follow and conform to the particular standards and processes established by the business. These standards might include coding conventions, security protocols, design principles, or project management methodologies unique to the organization.

It allows the company to ensure that the end product perfectly aligns with its vision and fulfills all the requirements. Only when using an internal development approach is this degree of adherence to company standards and protocols apparent; it lacks from other methodologies like outsourcing.

Drawbacks of in-house development


Many companies are increasingly hesitant to establish an in-house development team due to the cost factor. Often, these teams might not cover all project requirements comprehensively. If the expense of hiring individual talents for an in-house team doesn’t guarantee all-encompassing services, why bear the high cost without having everything you need in one place?

Moreover, maintaining an in-house team involves various expenses like salaries, infrastructure, training, and software/hardware costs. These expenditures can significantly impact the company’s budget, especially for smaller businesses or startups.

Limited adaptability

Teams within a company typically have a hard time shifting to meet the changing requirements of the development process. Occasionally, the company’s in-house developers lack the necessary skill set to finish the project. The responsibility of upskilling the employees also falls on the company, which is an added headache. Moreover, the organization may suffer losses if its in-house team fails to complete the project within the deadline.

What is software development outsourcing?

Outsourcing means giving specific jobs to experts or companies who are good at them. It’s nothing new; it has been assisting many developing nations in expanding their economies for a long time.

When a company decides to outsource software development, they pick another company or person after doing much research. This chosen group takes charge of the project and does the work well, often at a lower cost. This helps the first company save money and get the job done by skilled professionals.

Because it’s straightforward, outsourcing IT work is becoming more and more common. Companies look for partners who can assist with various tasks, such as ensuring high quality, developing software, running online ads, or developing apps.

To better understand, imagine a company that wants to create a mobile application. When they decide to outsource this task, they reach out to an outsourcing company specializing in software development. Let’s assume this app needs to be built using a specific framework like React Native.

The outsourcing company then assigns this project to a team or an individual who is an expert in React Native. These experts understand the framework intricately, allowing them to write efficient code, design the app interface, and ensure it works flawlessly on various devices. They handle the entire development process, from the initial planning stages to the final testing phase.

Outsourcing is beneficial because it allows companies to focus on what they’re best at while experts handle the other essential tasks. This way, both companies benefit and get their work done efficiently.

Benefits of software outsourcing

Enhanced flexibility

Bringing a reliable third party into your business operations offers the advantage of adapting swiftly to challenges and addressing issues without delay.

When you decide to outsource IT projects, you commit to a more adaptable and responsive way of working. This flexibility means that once the project is outsourced, your company can redirect its attention to other critical tasks, alleviating the workload on in-house teams.

Furthermore, outsourcing ensures optimal utilization of resources. Dedicated employees focus on specific tasks, ensuring a streamlined process. This shift often prompts the adoption of more agile practices in operational methods, prioritizing the delivery of high-quality results, especially in development projects.

Save up on costs

By saving money on recruiting, onboarding, and training new employees, as well as the costs of establishing specialized infrastructure, outsourcing offers your business a significant financial advantage.

While it may appear to be an added expense since you’re still engaging someone to work for you, the benefit lies in avoiding costs related to extensive recruitment campaigns. Instead, you can rely on specialists in their respective fields to handle the tasks efficiently.

However, the extent of cost reduction your business achieves hinges largely on the pricing structure of the outsourcing company you select. If their service fees are high, you might need assistance in demonstrating the overall cost savings.

Benefit from extra resources

Outsourcing gives you an edge in the sense that once you onboard an outsider in your business dealings, you are in a position to leverage their skills, whether they are problem-solving or management.

These external resources often bring a wealth of experience, innovative approaches, and advanced tools that might not exist in-house. This access to vast knowledge allows your business to benefit from a broader spectrum of capabilities, enabling you to execute projects more efficiently and build products of enhanced quality.

Improved security and support

Enhanced security and support stand as crucial benefits of outsourcing IT projects. Despite concerns about data vulnerability, outsourcing companies typically prioritize stringent security measures, safeguarding the integrity of your data.

These companies often have robust security protocols surpassing those of many businesses, thereby elevating the system’s overall security standards. Your business can also hold the outsourcing company accountable in case of any security breach, ensuring added layers of protection for your data. Moreover, outsourcing often includes access to round-the-clock support, which is essential in managing time zone differences.

Drawbacks of software outsourcing

Lack of control

Many people have come forward to express their fear of outsourcing, citing concerns about losing ownership of their product and the inability to trust someone else with their project. It’s true that if your project is outsourced, you could find yourself becoming disengaged from it and paying less attention to it., but losing ownership of your software product is out of the question.

However, with an outsourced team, the process of identifying and rectifying issues could be delayed due to the team’s other commitments or differences in time zones, leading to potential setbacks in the project timeline.

Communication issues

One of the major challenges that companies face is a lack of good communication with their outsourcing partner. Communication is key in these processes, and if it is not prioritized at the right time, it could lead to disastrous consequences.

Additionally, the outsourcing company will have difficulty integrating with the organization and understanding its workflow if appropriate communication is not established, which will lead to further inconsistencies in the software being developed.

In-house vs. outsourcing software development

It is difficult to determine which one is better, in-house development or outsourcing, as the choice of each depends on certain variables that vary from project to project and organization to organization.

However, there are cases where outsourcing software development shines brighter than the other methodologies. You must consider outsourcing if you don’t have access to relevant expertise in your current in-house team or if you are looking for rare skills. You can also choose outsourcing if you require work to be done on a tight schedule and would benefit from extra hands at work.

On the other hand, in-house development is most effective when the organization needs to be in complete control of the software being developed and must oversee the process personally. Companies that are not financially bound also benefit from building their personal in-house development team.

Ultimately, the choice is yours to make, and whichever option you choose will be the best one, depending on the project and company policies.

What makes Codesy a dependable choice for outsourcing?

Codesy boasts an extensive experience of over ten years in the IT field. When it comes to developing mobile apps and integrating marketing strategies, Codesy has experts in every field ready to help. At Codesy, we foster a collaborative environment in addition to having highly skilled workers, which sets our development process apart.

While choosing us as your IT outsourcing partner, you will not have to worry about issues related to project ownership or lack of communication, as we prioritize the satisfaction of our clients above anything else. So, what are you waiting for? Get in touch with Codesy Consulting today and hire a dev for your IT project!