What’s Better? Outsourcing vs. In-house Software Development

Whether you have an in-house IT team or a single web developer on site—or maybe you’re considering bringing someone onboard—barriers, namely budget, can still arise and make it difficult to achieve all of your organization’s software development goals. With this in mind, despite having folks experienced in tech on your team, you may started debating between outsourcing vs. in-house software development.

In recent years, offshore software development has been becoming a popular choice among business owners for supplementing their existing IT teams. Moreover, more organizations are choosing to outsource their software projects altogether. Thanks to this shift, the global market share for information technology outsourcing (ITO) has now reached a whopping 62 billion USD (Statistica).

While outsourcing is a great choice for many organizations, you’ll have to decide if it is a good fit for yours, or if it would be better to stick with your in-house team. To do so, let’s weigh the pros and cons of outsourcing vs. in-house software development.

Working with Your In-House Software Development Team

Four Onshore Software Developers Sitting at a Table

There are several benefits to scaling your in-house team. When your IT team grows, they can tackle larger software projects without outside help. However, when your software needs come to a slow, you’ll still be paying a full salary for those new hires, which can become expensive.

Here are just a few of the pros and cons of expanding your in-house team.

Pros

  • Accessibility - The greatest benefits of working with an in-house team is that they are working in the same timezone as you, speak the same language, and might even be in the same building as you. This makes planning your project, making changes, and the overall development process relatively simple.

  • Quality control - When working closely with your in-house IT team, both geographically and throughout the development process, you’ll have a lot more control over your project than you would when outsourcing. With that control, you can ensure that the final product is up to your standards as well.

  • Quick development - With a team of U.S. software developers, your team will likely have had access to quality training and education. As such, your IT team will be more likely to start and complete your project more quickly.

Cons

  • Costly - As great as it is to have your in-house team conveniently located down the hall and available for in-person meetings, that convenience comes at a price: The average salary for an IT person is $80,342 per year (Glassdoor), and that’s without benefits, sick pay, vacation, and any other additional compensation you may offer.

  • Difficult to scale - With the salary of an addition IT employee costing a median of $80,000~ per year (often more), not to mention the additional costs of hiring and training that person, infrastructure, and more, growing your IT team quickly and substantially enough to meet your software needs can be a challenge.

  • Limited expertise - Even when the funding is available to expand your team, a person with the skill set you need may not be. According to Full Scale, there were 50,000 computer science graduates in the U.S. in 2017, but over 500,000 unfilled positions in their field. With so few people skilled in tech in the U.S., you’ll likely struggle to find exactly who you’re looking for.

Choosing to Outsource Your Software Development

Offshore Software Developer Writing Code on a Laptop

Outsourcing can seem like the obvious choice when you need to build a software project but don’t have a large enough budget to grow your own team. The cut in costs can sometimes leave you with a loss in quality, however, making it a more difficult to choose to outsource than you may have initially thought.

Here are the drawbacks of outsourcing, followed up by the benefits.

Cons

  • Difficulty collaborating across timezones -  When you outsource, your software developers won’t be right down the hall—rather, they’ll likely be thousands of miles away, not to mention in a different time zone. This can make communicating requested changes, or thoughts on your project’s progress, more challenging.

  • Limited quality control - With your software developers on the other side of the globe, you’ll have limited control over how much you can oversee your project. Because of this, it can be more difficult to ensure that your software project is the level of quality you expected.

  • Slower development process - While there are many great offshore software developers, their educational and training opportunities are not as robust as the ones we have available here in the U.S. That said, offshore developers often take longer to complete software projects than their U.S. counterparts.

Pros

  • Cut costs - Okay, we’re not going to beat around the bush on this one: Outsourcing is substantially cheaper than adding another member to your IT team. Not only do you not have to worry about spending money on hiring, onboarding, and infrastructure, among other things, but most offshore teams charge a mere 25% that of onshore developers.

  • Scalability - Not only does it cost significantly less to hire offshore talent, but there is also much more talent to pull from overseas. Rather than being limited to your local prospects, let alone those available in your country, you can pull from talent virtually anywhere in the world.

  • Larger pool of expertise - With your in-house team, you’re limited to the skills your team has. On the other hand, when working with an offshore software development company, the agency often has a variety of software talent on staff, from back-end developers to front-end UI/UX designers.

Now that you’ve weighed the pros and cons of outsourcing vs. in-house software development, it’s up to you to decide the best way to tackle your next software project. If you’re leaning toward outsourcing, you’ll want to ensure that your team can save you money, as well as provide you with the product you envisioned.

At ClikGlobal, our U.S. software developers and project managers work with our offshore software developers to deliver affordable software development that doesn’t compromise on quality. Whether you need us to build an entire project or to supplement the work your in-house team is doing, we’re ready to help.

Let’s start making your software project a reality—reach out to us today.