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Software Development Outsourcing vs. In-House Development.

Lowering costs and reducing time-to-market are the driving forces for companies to outsource their software development. Software development outsourcing or homegrown increased capabilities? The answer is never black or white.

Next, you’ll see a list of the pros and cons of software development outsourcing vs. in-house outsourcing. Go through all listed arguments and decide which one works better for you.

Five pros of software development outsourcing.

1. A fast approach to hiring high-quality developers.

The hiring process takes time and takes over the bandwidth of HR teams, especially if your core business is not directly related to software development. A specialized recruiter will allow you to build teams much faster and also, given that the costs of hiring nearshore are around 30 and 45 percent less than hiring on-shore, you’ll have access to a larger pool of developers with diverse capabilities and tech stacks.

2. Flexibility.

Outsourcing enables you to hire a team of professionals only for the amount of time required by a specific project or the demands of your business operations. Partnering with a nearshore IT Services provider can also allow for quick changes on your team’s assembly if the project calls for it without affecting budget, time-to-market, or performance.

As both business and technological environments change at an increasing rate, flexibility has become a critical issue for project management in general and software development projects in particular.

3. Scalability

Every project is specific and needs a team composed according to the specific requirements. As a result, with outsourcing, you can scale up the team of professionals specialized exactly for that specific project.

4. Short term commitment

While you need an expert in a field for a specific project, you probably don’t need him or her permanently. Outsourcing IT experts on a project basis enable you to get the best only when you need it the most.

5. Reduced costs

A top-level professional that can’t be productive all the time costs a lot of money. In this case, outsourcing can get you a high level of productivity at reduced costs. For example, studies show that with outsourcing the savings on overhead costs can be up to 60%.

Five pros of in-house software development

1. Long-term product development

If you’re developing a product or a solution that will require a long-term commitment, then it’s better to build a team of developers in-house. Since, they can be fully committed to this product, know it inside out, and easily and quickly make changes or fixes when needed.

2. Aligned interests

If a company is thriving, all employees have aligned interests and share the same vision. It means that they will give their best to meet the company’s goals. Such a commitment is hardly possible with freelancers who are not fully involved in your business.

3. Company‘s culture fit

It’s important to collaborate with people who fit your company’s culture. Having in-house developers who are nothing more than capable to do the job, but who get along with you and your team is usually more productive than trying to work with the best specialists who are a poor culture fit.

4. Shorter turnaround time

Developing a product in-house enables you to monitor all the steps in the process. If something goes wrong, you can spot it immediately. Therefore, turnaround time in fixing the problem is shorter than it would be in the case of outsourcing.

5. Alignment with the company‘s standards

Control over the company’s coding standards is crucial for the future life of the product. With the in-house software development, you can decide what’s best for the future maintenance processes of the product.

Trends in outsourcing

Outsourcing is expected to grow, particularly in Finance, HR, and IT. The primary reasons for outsourcing are cost-cutting (59%), focusing on core business (57%), and solving capacity issues (47%).

Outsourcing is becoming more important in enabling mergers and acquisitions deals.

Mawesi offers IT outsourcing services in order to facilitate the development of projects to different industries and business sizes. We have the right fitted team for your needs.

Contact us for more information:

(+57) 317 403 4984

(+1) 646 583 1840


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