Business and Trade

Hiring In-house vs Outsourcing Developers: What Should You Pick?

The process of software development can go in one of two ways – either through in-house development or software outsourcing. In this article, we’ll compare these two approaches and detail out when to choose each one.

There are risks involved in both approaches. When it comes to in-house development, the main risk is that it can take a lot of time to gather an effective team. There’s also the possibility that the team members may not have the required skills or expertise.

On the other hand, risks of software outsourcing include working with a company that is not trustworthy or reliable. There’s also the possibility of language barriers and cultural differences.

So, which one should you choose? Let’s take a look at the pros and cons of each approach to help you make a decision.

In-house development team

The in-house development team is responsible for the development and maintenance of the company’s internal software applications. This team works closely with other departments within the company to ensure that the software applications meet their needs. The team typically consists of software developers, testers, and product managers.

The benefits of having an in-house development team are that the company has complete control over the development process, and can tailor the applications to meet their specific needs. The downside is that it can be more expensive than outsourcing the development to a third-party.

Pros of In-house Developers team

Build a team that aligns with your company culture

A company’s culture is its identity. It’s what makes the company unique and distinguishes it from its competitors. When you build a team that shares your company’s culture, you create a cohesive unit that is driven by the same values.

This sense of unity is something you won’t find when outsourcing your project. By having a team that is aligned with your company’s culture, you’ll be able to achieve better results.

Direct communication

Direct communication is one of the key benefits of having an in-house team. Because an in-house team is exclusively dedicated to your company, its members can often be found working within a physical space.

This allows for discussions to take place in person, which can help speed up the decision-making process, especially when it comes to finalizing the project’s requirements.

Real-time support

The benefits of immediate support are clear – investigations can be executed quickly and efficiently, and fixes can be applied without delay. This is particularly useful when deploying a new product, as some flaws may inevitably creep up.

However, it is important to remember that not all teams are able to offer this level of support. If you’re willing to hire dedicated software development team, the response time may be delayed as the team could be busy with other projects.

Therefore, it is important to consider both the benefits and limitations of immediate support before making a decision.

Cons of In-house Developers team

Heavy on your pocket

When you’re running a business, there are a lot of costs associated with keeping things running smoothly. One of those costs is hiring an in-house development team. While it may seem like a good idea at first, you need to be prepared to pay for the visible and hidden cost of having an in-house team.

According to Payscale, the average salary of an IT developer in the US costs $71,508. This is just the salary of the team members, and doesn’t take into account other costs such as benefits, overhead, or the cost of training new team members. In addition, when the team is idle between projects, you’ll still have to cover their fixed salaries.

So, while an in-house development team may seem like a good idea, be prepared to pay the costs associated with having one. It could end up being more expensive than you think.

The retaining rate can be high

The turnover rate in the IT industry can be high, which means that companies have to work hard to keep their best talent. This can be a challenge, as there are always other companies looking to poach IT talent.

To keep your best developers, you may need to offer them better benefits and salaries. This can end up costing the company more in the long run, but it may be necessary to keep your team intact.

Upskilling the team is your responsibility and costly

As the IT industry undergoes constant change, with the introduction of new technologies, tools, and languages, it is your responsibility to ensure that your team keeps up with the changes. Investment in training and tools can significantly affect the bottom line of your business.

If the changes affect your products’ growth, it is even more important to ensure that your team is up-to-date. By investing in your team’s education, you are ensuring the success of your business.

How to hire an in-house development team?

If you’re looking to hire an in-house development team, there are a few things you’ll need to consider. First, you’ll need to decide what size team you need. Do you need a team of full-time developers, or can you get by with a smaller team of part-time developers?

Next, you’ll need to consider the skills and experience of your potential team members. What programming languages do they need to know? Do they need to have experience with specific frameworks or platforms?

Finally, you’ll need to think about how much you’re willing to pay your team. developers with more experience and expertise will naturally command higher salaries, so you’ll need to be prepared to budget accordingly.

Outsourcing development teams

There are many benefits to hiring an inhouse team of developers, including having more control over the product development process and being able to manage timelines and budgets more effectively. However, Outsourcing development can also be a great option, especially if you’re working with a limited budget or timeline.

When you outsource development, you’re essentially hiring a team of experts to build your product for you. This can be a great way to save time and money, as you won’t have to spend the time and resources training your own team. Additionally, outsourced development teams are usually more experienced and knowledgeable than inhouse teams, which can result in a better-quality product.

Pros of Outsourcing Developers team


If you’re looking to keep costs down, outsourcing your project may be the best option. You can engage an IT firm in countries where labor costs are lower, without sacrificing quality or expertise. Eastern European countries are one of the top destinations for IT outsourcing, so you’re sure to find a reputable company to work with.

Large pool of skilled talents

When you outsource your software development needs, you open up a whole world of possibilities. You no longer have to confine yourself to the talent pool in your immediate vicinity. With outsourcing, you can choose from a vast global pool of talented developers. This gives you greater flexibility and choices when it comes to finding the right developer for your project.

Of course, with more choices comes greater risk. It can be difficult to determine the quality of a developer from another country. There is also the risk that the developer may not be able to meet your expectations or deliver the project on time. However, with a little research and careful planning, you can mitigate these risks of outsourcing software development and find the perfect developer for your needs.

Cons of Outsourcing Developers team

No full control over developers

If you outsource your software development, you risk losing some control over the project. The team working on your project may not be solely dedicated to your project, which can lead to delays in communication and progress.

Without direct access to the team, you may not be aware of what is happening with your project. This can lead to risk factors such as missed deadlines, budget overruns, and poor quality software.
Communication barrier

If you’re outsourcing your software development to a team in another country, there’s a risk that communication will become a barrier. Time zone differences can make it difficult to schedule meetings, and language differences can make it difficult to understand each other’s concerns.

However, by carefully choosing your outsourcing partner and setting up clear communication channels, you can minimize the risk of communication problems.

Trust issues

One of the key concerns when outsourcing software development projects is trust. You are, after all, entrusting confidential information to a third-party developer.

You may have worries about the agency’s privacy policy and whether it will take on projects from your competitors in the future. It is therefore important to vet the agency’s track record and sign a non-disclosure agreement (NDA) to protect your interests legally.

How to outsource a software development project to an offshore software development team?

There are many factors to consider when deciding whether or not to outsource your software development project. Here are a few key points to keep in mind:

  • Make sure you have a clear understanding of what you want to achieve with your project. What are your goals and objectives? What are your success criteria? Without a clear direction, it will be very difficult to find the right outsourcing partner.
  • Do your research and ask around for recommendations. Talk to other businesses who have outsourced their software development projects and see who they used and why.
  • Get quotes from a few different companies. Make sure you understand what is included in their quote so that there are no surprises later on.
  • Make sure you have a clear communication plan in place. What is the process for communicating project updates and changes? How often will you communicate? Who will be the point of contact on both sides?
  • Have a solid contract in place. This should outline all expectations, deliverables, timelines, and payment terms.
  • Be prepared to manage the project closely. Even though you are outsourcing the development work, you will still need to be involved in the project on a day-to-day basis.

By following these tips, you can increase your chances of success when outsourcing your software development project.


There are many factors to consider when choosing an offshore development company. The most important thing is to find a company that you can trust to deliver quality work on time and on budget. With so many companies to choose from, it can be difficult to know where to start.

The best way to find a reputable company is to ask for referrals from friends or colleagues who have used an offshore development company in the past. You can also read online reviews to get a sense of what other customers have experienced.

Once you’ve narrowed down your options, be sure to ask plenty of questions so that you can be sure you’re making the best decision for your business.

When choosing an offshore development company, it’s important to:

  • Do your research
  • Ask for referrals
  • Read online reviews
  • Ask plenty of questions

By following these steps, you can be confident that you’ll find a reputable company that can deliver quality work on time and on budget.


Patel Nasrullah Co-founder Peerbits, one of the leading Top web development companies USA, in 2011. He devotes his time in inspiring young leaders to take the leap of faith. With the experience of 10+ years in Web and App development, he now gives full attention to the enterprise by offering mobility solutions about the strategic planning and execution.

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