In-house vs Outsourcing: Which Software Development Model To Follow

in house vs outsourcing, pros and cons of in-house vs outsourced software development, in-house vs outsource vs freelance

In-house Software Development: Pros and Cons

At AgileTech, creating a cost-effective and high-quality strategy is the first thing we do before we start any project. We then invite our client to explain the whole process. Once they approve, we kick start the cooperation.

Nguyen Manh Thang, CEO of AgileTech.

In-house team

in house development, pros and cons of in house and outsourcing software development, benefits in-house product development

Why you should hire in-house team

  • Face-to-face communication. What does it mean when building a team from the same country/city as you are, with the same cultural and language? This may lead to more engagement between team members, better understanding as well as faster progress.
  • Easier management process. With an in-house team, you know their abilities of team members and assign task directly. Accordingly, they can stick to your projects. If there is any issues, urgent tasks and fixes can always be prioritized.
  • Ability to build company culture. Developers who work with you full-time will understand your company culture as well as a work flow and corporate ethics. Hence, these influence how products are created and, consequently, the final result.
  • Long-time relationships. Once a company decide to hire in-house developers, they will invest in their employees’ talents, skills. This cooperation is rewarding not only for your team but for you. They spend time and energy into your idea and have a vested interest in the outcome.

The downsides of an in-house team

  • Time. The in-house approach allows you to involve in hiring. Finding new people who make a long-term commitment and training again seem like a never-ending process.
  • Staff dismissal. In some cases, if your employees invested significant resources, they would go away. Then, you’ll need to invest in new members of the team again.
  • Lack of versatility. There are many frameworks such as Flutter, Laravel, React Native,… Thus, if you start a new project with unknown knowledge, it will take time to hire a professional.
  • Quality control. Additionally, training never stops. Many technology trends that they need to update everyday. So the question is how to constantly update their knowledge, skills while making sure they fit your team culture.

When to develop in-house development team

  • Do you have budget for taxes, insurance, payroll law changes, etc.?
  • Are your product built to influence your company culture and expectations?
  • Do you need to keep your product updated?

Outsourcing Software Development: Pros and Cons

Outsourcing team

More small businesses are outsourcing tasks these days because technology has advanced to the point of professionals being able to work from anywhere in the world.

Laura Lee Sparks, The owner of Legal Marketing Maven said to Entrepreneur.

Successful companies that outsource software development

  • Google. Outsourcing allows them to engage workers with expertise they don’t have in-house.
  • Slack. Stewart Butterfield, Slack founder brought his rough prototype to user interface specialists MetaLab.
  • Microsoft. Outsourcing suppliers are responsible for managing the day-to-day work of Microsoft’s contract workers. In other words, this brings peace of mind to Microsoft employees while reducing their daily load.
  • Alibaba. Working with the outsourcer, Jack Ma was able to build sustainable infrastructure, show its promise, and secure funding for continued growth.

What are the benefits of outsourcing?

benefits of outsourcing, many advantages of outsourcing, pros and cons of outsourcing IT services

Cost-efficiency.

A short-term cooperation.

Huge talent pools.

Faster time-to-market.

Focus on urgent tasks.

Streamlined processes.

Cons of outsourcing software development

Communication.

By having weekly sprints, daily status updates and a constant feedback loop, everything is in progress. When outsourcing in Vietnam, you may think that language is a challenge. At AgileTech, we make sure that our team members can communicate in English well.

Nguyen Manh Thang, CEO AgileTech

Security risks.

Unsupported code.

Commitment.

When should you outsource?

57% of companies outsource to better focus on their core business.

According to Deloitte’s Global Outsourcing Survey

How To Decide Between In-house and Outsourcing

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