Hiring good employees is a piece of cake, right? Now, imagine having to hire highly technical software developers. The idea can be daunting, especially when it comes to starting from scratch. While you have more control over the process, there are some inherent challenges of an in-house developer or development team. But first, what is in-house development?
What Is in-House Development?
In-house development means that you hire developers as employees and provide the necessary training and support. Your in-house team is dedicated to your software development requirements and are fully committed to your projects. A business that already has programmers on their payroll is more likely to add new projects and resources to that team. The big decision comes in when you have a brand new need for custom software development. Then, the question becomes a choice between outsourcing and hiring an in-house team.
Learn More: In-House versus Outsourcing
Key Challenges of In-House Software Development
If you decide to create your custom software with in-house developers, there are some challenges you’ll want to be aware of ahead of time. These include:
- Control: It seems like you’d have more control with an in-house team. However, control is more than a matter of assigning duties and deliverables. It becomes a management exercise with an in-house team in terms of accountability.
- Intellectual Property: The business is in a good position here, assuming employees have the right non-compete agreements in place. Without those, there is a risk that an employee can separate from the company and end up being a competitor.
- Hidden Costs: With an employee, there is a cost burden that includes benefits, withholdings, etc. However, with software development, you’ll also have costs of software, hardware, and training. And these compound with employee turnover.
- Quality Control: In our view, this is one of the biggest issues. Good quality control is a very technical process that non-programmers often don’t understand enough to implement. That means you’ll depend entirely on your development team to report back to you that things are working as expected.
- Team Chemistry: With an in-house development team, you’re introducing a new unit into your company. It’s important to understand how that will affect your existing team, from office space to culture.
- Scalability: As your software needs grow, you’ll see all of the above challenges balloon with that growth, from technology and training to hiring and re-hiring to control over the software itself.
Making the Decision
As you consider which way to go, in-house versus outsourced, you’ll want to run a Total Cost of Ownership analysis to help understand the short and long-term costs of your project. But you’ll also want to consider the issues above and how it’ll affect your business’s bottom line.
Contact us today to review your requirements. We’ll help you understand what you might be looking at for your project.