In-House versus Outsourced Software Development: Why Hire a Developer

In-House versus Outsourced Software Development: Why Hire a Developer

Your business is ready to create your own, custom software. Out of the box solutions no longer cut it. Now, you’re considering building your own in-house team versus outsourced software development. Now, we’re biased, but we believe you’ll see why using an in-house team can get out of hand when it comes to costs and training. Let’s expand on that.

Advantages Of Hiring a Developer versus In-House Development

Hiring a developer for a custom software project often comes at a much reduced cost than building an in-house software team. Consider the salaries, benefits, office equipment, etc., and you can see how the expenses start to add up. Working with a developer, your only costs are the price of the project plus any ongoing maintenance. That will be significantly lower than that of an in-house team.

There are also those unexpected costs within a project team -- laptops, books, Mountain Dews. An outsourced developer covers their own costs of doing business, so there won’t be any surprise line items on your budget. Not to mention the operational security nightmare of a lost laptop.

There is also the cost of training. Each time a new in-house employee is brought into the project, they have to be trained up on everything from the project scope to client info to the code to the development stack, and so on. As training needs grow, there might even come a time where a full-time trainer becomes necessary, which adds another significant, annual expense. And that training is just for this specific project. That’s not even accounting for job skills training, to keep the in-house team up on all the latest technology to ensure that your project stays current and secure. These costs are all covered with an outsourced developer.

Learn more about the Costs of Custom Software Development

What About Offshore Developers?

Offshore development teams are good for simple projects with a short, well-defined scope of work. Think of tactical parts of a project, like graphic production. Once you go beyond that, to a larger scope, you run into a few issues.

Here are some significant disadvantages to hiring offshore development teams:

  • Communication: Communication can be a real problem, given the time differences.
  • Project Management and Timeline: Offshore teams often aren’t familiar with business practices here in the US, and often have cultural and holiday conflicts that can ambush a project timeline.
  • Security, Privacy and Intellectual Property: It’s important to consider intellectual property and privacy -- i.e. security. There’s a saying with manufacturers in China, for good reason, “The first two production runs each day are for the client. The third is for China.” You need to be careful with data that offshore teams have access to. You would be unlikely to maintain PCI compliance with an offshore team’s access to your data.

Learn More

We can’t cover everything you should consider in making the decision between going in-house versus outsourced software development. Set up a time to talk with us. We’ve been on both sides of the equation and can help you make the best decision for your company.

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