In-House vs Outsourcing Software Development. 2018 Update.

| 15 min read

At the beginning of any new project, you will undoubtedly face the question: how to translate your idea into reality? Where to find experienced professionals and how to organize a team for the development?

We know how tiresome this choice can be, so let’s outline the biggest advantages of both these options. In this article, we’ll help to learn further which path to go when you are considering in-house software development vs outsourcing?






What is an in-house software development definition? It is a software development process that is run by a corporate entity for the organizational usage. Let’s see an example to better understand the in-house software development meaning. A company, which may have a relation to the IT sector, decides to develop their own digital product. In this case, the app development company should use their own software developers (called in-house developers) to develop the system and needs to conduct a hiring procedure to pick up the development team the project requires. Though the cost of hiring staff is high enough, there are tons of advantages of in-house software development. In fact, an in-house team is less expensive in the long run.  To get the full picture of what the in-house software development has to offer, let’s examine its pros and cons.

Pros of in-house development

No language/cultural boundaries.  It is a team of the professionals probably from the same country/city as you are, with the same cultural and language background working within the same organization. What advantages does hiring in-house give to you? Fewer boundaries and limitations, face-to-face communications and, as a result, a better understanding of what should be done.

Deep involvement. It allows you to maximize the customization of in-house software development process for every minor tech need of your company. You can make appropriate changes in the development process easily to adjust the project to your business.

In-project expertise.  Internal specialists master their skills in building the project you started and soon become narrowly focused professionals of the highest level. This reduces bugs and, in addition, it means that the support will be straightforward and efficient, and your company has enough skills to maintain the product independently.

Cons of in-house development 

Huge price. It requires many funds to be invested in the initial stages, especially in small and large-scale projects. If the organization of the processes is lame, you’ll need to spend money even on inactivity. However, in middle-scale projects where the product is a valuable resource the scheme works well.

Staff dismissal. One of the biggest in-house software development risks is the dismissal of employees. After companies have invested significant resources in their adaptation, they can go away and you’ll need to invest in new members of the team again.

The lack of expertise in different areas. There is another classic problem with an in-house software development pool. In order to apply specific skills you’ll need to hire a specific candidate, and thus, run the hiring again. The same situation is in the case of project expanding. If the employee works in-house, you will have to pay insurance fees, premises, equipment, holidays, etc.



As we’ve got some knowledge on what is in-house software development praise, let’s overlook the outsourcing as well. Outsourcing is a practice when an outsourcing company builds products for your company. Outsurcing software development also has both pros and cons to consider.

Pros of outsourced software development 

Price-wise expertise.  Outsourcing price is more reasonable than in-house software development because typically, outsourcing product development teams have more development experience in different fields. If an unusual problem arises, there is no need to hire new specialists to your in-house development team. With the proper planning, you can reach the same goal with a smarter budget.

Smart time-to-market. Outsourcing allows avoiding all major hiring and staffing issues, which usually occurs if you practice in-house development. You can add features that matter to your customers at any time, no matter which skills do they require. This definitely shortens the timing of the product launch.

Easy scaling of teams. If you need to expand the development outsourcing team urgently or to cut staff, you do not lose money. All the people on such projects are replaceable.

Streamlined processes. Upon turning to a specialized development agency, you can count on well-established development processes and application development experience. All the processes are properly set up.

Cons of outsource software development

Mutual understanding. Despite the fact, that the geographical and language barriers have become a thing of the past, in outsourcing the requirements are the main source of coherence for your company and developers. The vendor will develop a product according to agreed specifications, so you have to be sure you are on the same page regarding the acceptance criteria.

Transparency and security risks.  The lack of direct in-person control and communications can cause a lack of trust to have a place while a project development. Although, it depends on the specific contractor/developer. This issue can be limited by choosing the right partner. Be sure that you agree on the way of reporting, acknowledgment, meetings schedules, which are comfortable for both parties.

Risk of receiving the unsupported code. If you outsource your strategically important product, make sure you can maintain the code without contractor involvement. Otherwise, your business will become dependent on the outsourcing apps development team. Although, of course, the quality of the code depends on the integrity of the contractor.



Summing up the issue of outsourcing vs in-house software development options it must be said that both of the models have its benefits, but there are also disadvantages. The choice depends on the specifics of the project. The main rule when it comes to choosing the in-house or outsourced web application development is as follows: if a web application development or maintenance is not the core capability of your company, it could be a huge challenge to your IT staff to get it right. They may lack the experience or understanding to get it done. Then after unsuccessful attempts to do it in-house, you can land up with an outsourced product. In that case, building an in-house product is not well worth choosing.

On the contrary, it will be smarter to outsource it. The app development company that is expert in its niche will make your product competitive and will drive more customers. Luckily, today, there are many business application development services out there, so it won’t be a problem for you to choose the one that suits your development mobile project needs the best.

By the way, Artelogic is one of the leading outsourcing software development providers. It has a diverse portfolio of software development outsourcing projects and boasts lots of returning customers. Moreover, our development company hires several in-house teams to help you with your project. Every our software development team is expert in its particular development niche. In a nutshell, we can help you with any project regardless of its needs, size, and budget.

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