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Software Development Outsourcing vs. In-House: Which Is Right For Your Project?

Software Development Outsourcing vs. In-House: Which Is Right For Your Project?

How do you decide if you should outsource a software development project or keep it in-house? This can be a tough decision to make, especially if you don’t have experience with outsourcing. Still, more and more companies are choosing to outsource and experiencing the benefits. Often, software development outsourcing is necessary to keep up with growing market demands and expectations.

However, before you decide if this is something you want to move forward with, you should understand the advantages of both outsourcing and in-house development. That will help you determine what the right choice is for your company. Want to know how to choose the best path for your upcoming software development project? We’re here to help. Keep reading to learn about software development outsourcing vs. in-house development. 

Benefits of managing software development projects in-house 

First, let’s look at the benefits of choosing to manage a software development project in-house. If these benefits are something you want to have from the start, this might be the right method for your project. 

Full control over the project

When you choose to manage your software development project in-house, you have full control over everything that happens with the project from beginning to end. You’ll have direct access to your employees and more visibility into how the project is going. This also means that if an issue comes up, it’s likely that you’ll be able to resolve it quickly. 

Fewer communication barriers

Your existing team already knows how to communicate with each other and what’s expected of them. They know what your company policies are and how teams work together. When you outsource a software development project, there can be a bit of a learning curve when it comes to communication. This isn’t as much of a concern when everything happens in-house. 

Easy collaboration

Generally, employees can work together well. They have experience with the tools, processes, and systems your team uses. This means that collaboration is easier and faster. If you don’t have the strategies to bridge the gap between your team and contractors, in-house could be the right choice for your software development project. 

What are the drawbacks of in-house software development?

The drawbacks of this development method may be different depending on your desired outcome for the project. Usually, it takes more time, effort, and resources to work on these projects in-house. While you have more control over the process and communication, working this way typically takes longer and comes with higher costs. That’s why so many companies choose to outsource. 

Pros: Outsourcing Software Development 

Next, let’s take a closer look at the advantages that come with outsourcing software development. Outsourcing is a bit more flexible when compared to in-house work. It can benefit your organization in the following ways:

1. Access to talent 

If you already have the talent required for a software development project inside your organization, in-house may be a good fit for you. However, outsourcing is typically the best option when you don’t have the resources you need internally. According to a CIO survey by Harvey Nash and KPMG, 46% of CIOs use outsourcing to access skills. By expanding your search to include contractors and global talent, you can get the people you need on your project more quickly.

2. Cost savings 

One of the top reasons organizations choose to outsource software development is because it’s more cost-effective than developing in-house. This is certainly the case if you choose offshore outsourcing, which comes with much lower labor costs. In fact, more than half of businesses report that they see outsourcing as a way to cut costs. If budget is a concern, outsourcing may be able to help you get the quality and speed of development you need at a lower price. 

3. More time

Outsourcing software development projects to skilled developers outside of your organization also frees up time for your internal team. This means that they can spend more time on projects where their expertise is essential or required. Many organizations find that outsourcing allows them to focus on the business initiatives they need to work on, while still making progress on development projects that would be a challenge to manage in-house. According to the 2016 Global Outsourcing Survey by Deloitte, 78% of people say that they feel optimistic about the relationship they have with their outsourcing partners.

What are the drawbacks of software development outsourcing?

In contrast to outsourcing software development benefits, outsourcing software development can present challenges around project management, communication, and collaboration. If you plan to outsource, you need to ensure that your expectations are clear. You should also have benchmarks and processes in place to keep everyone on the same page.

If you want to know more about software development outsourcing, you can read a post we’ve written on the topic here. It covers more pros and cons, and provides actionable tips to help you outsource your project. 

Choosing the right software development method for your organization

Every company and software project is different. However, if you find that some of the advantages of outsourcing interest you and work to your benefit, outsourcing could be the right fit for your project. The keys to success are having goals in mind and clearly defining the project’s outcome. You can also work with an outsourcing partner that understands your specific needs. They can help you achieve the results you want from outsourcing.

What Unosquare offers…

At Unosquare, we know what successful software development outsourcing requires. We focus on finding the best talent in the world and putting together a delivery management practice that is your eyes and ears within our organization. Let us provide the complementing expertise for your teams in a way that is fast, transparent, and efficient with our distributed agile software development staffing solutions. To find out more about what Unosquare can do for your organization, check out our blog. You’ll find more tips on outsourcing software development and choosing the right partner for your project. 


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