Home > Blog > software development > What Should You Choose – In-house Software Development or Outsourcing?

Are you thinking about setting up your own in-house software development team? First, you need to consider what it would mean for your business and what it would require you to do. The budget associated with having even a single software developer can go beyond set limits. The cost of hiring, on-boarding, training, and benefits is too much for many businesses to consider this option. It is lots more than what you will have to pay for a software development company in India. It is imperative to consider the different aspects of hiring an in-house software development company. Then put them against the benefits of choosing one of the best custom software development companies. Now you are in a better position to make a decision. Call-in haste, and without proper research has the power of putting your business off track.

Why is it important to be clear about what you want – in-house or offshore?

You can choose to go the outsourcing way or decide in favor of having in-house custom software developers. Make sure that your business goals are always at the forefront of whatever you do. In recent years, the business world has seen a shift in terms of the way businesses choose to go with. Many companies hire offshore software developers to handle their entire software development function or a part of it. The offshore team is seen as a supplement to the existing IT teams of these businesses. These teams work together to ensure that the product that is built serves the purpose. No wonder the global market share for IT outsourcing has seen such a rise in recent years.

No matter how beneficial choosing one of the best software development companies has turned out to be for businesses, you can decide against it if you think an in-house team can be a better choice for you. However, your decision needs to be backed by information. You need to know the ins and outs of setting up an internal custom software application development team. You can then decide whether or not you have the right resources to go ahead and do that. Let us look at a few factors that could come in your way.

What are the factors that can affect your decision?

    • Cost: The first hurdle of putting together an in-house software development team is its cost. In addition to the initial cost of hiring, onboarding, and training, you will also have to take care of the paychecks and other benefits of your in-house employees. It is a big financial responsibility that you will have to live with. Additional costs that you will have to bear include health insurance, equipment, technology, meals, travel, and more. Are you just starting? Or have you still not been able to find your footing in this competitive business world? Hiring an in-house team of developers may not be your wisest decision. These suit large enterprises that have the financial power to honour their needs. Outsourcing is the best option for startups as well as small and medium-sized businesses. They can leverage expertise to build quality products without spending a lot of money in the process.
    • Versatility: Building an internal team that can work on various technologies and uses different software development methodologies is very hard. You can hire people who are well-versed in one or two technologies or are experienced in building products for one or two industries. But if you are a company that works with businesses belonging to different sectors, you would need people who can help you develop and scale software based on your changing needs. You can’t achieve this with an in-house team of software developers. The technology world is continuously changing. You can’t have a team that’s big enough to accommodate different needs. The best alternative is to work with an outsourcing partner. It’s always better to have a company whose primary focus and job are building software.
    • Cultural aspects and time differences: Putting together an in-house team that shares cultural issues and peculiarities are challenging. You can’t hire people based on their culture. The only criterion for your selection should be their skills. Also, internal teams follow a strict work schedule that matches yours. So it is often challenging to get something urgent work done out of work hours. It is not the case with offshore teams. These teams are used to working with people that come from different cultural backgrounds. So they know how exactly to make them feel at ease or adapt to their way of working. Also, these teams are much more flexible when it comes to work times. They may be located in a different time zone but willingly accept your request to work on your schedule.

Conclusion

These are only a few things amongst many that should set the record straight when it comes to why hiring an outsourcing partner for software development is better than setting up an in-house team.

 

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