In-House vs. Outsource Software Development: Which is Better for Your Project?

In-House vs. Outsource Software Development: Which is Better for Your Project?

The need and speed of development are pushing businesses to take a risk and launch big in the market. The pressure of growing presence across the world is elevating the speed of development in the market. The software development companies are now found across the world due to omnipresence trend and businesses are taking full advantage of placing their development.

As already explicated in our previous blogs, we have mentioned that software development is not an easy task as it takes planning, skilled developers and a whole lot of work to get a software application developed. Apart from all these things, costing and timelines of delivery are other aspects which makes the development tedious. Many businesses have started to avail the advantage of outsourcing the project to software development companies and enjoy the final product at the delivery. While others get the software developed in-house to have a better understanding of what's happening and the progress of the project.

If you too are in a dilemma which one to choose, we shall give you an understanding of whether you should go for in-house or outsource software development. Let’s get started.

Pros & Cons of in-house software development


1. Direct Communication: Business have full authority to directly communicate with the in-house software development company or team face to face. This makes the entire development process very transparent and clear. Any changes could be directly communicated with the development team and alterations can be made easily.

2. No Cultural Barrier: Another advantage of in-house software development is that there are no cultural and legal differences. It’s like getting the software developed in your own company which sustains on the same cultural grounds as you are. So, there’s no challenge in looking at cultural, language and legal barriers in the development process.

3. Team Knowledge: With in-house development, you can get to know your team very well. You will have a clear overview of all team members involved in the development process and know which member to a place where so that the development turns out to be great.


1. Expensive: Despite the direct communication benefit, the biggest disadvantage of in-house software development is that it is extremely expensive. Since you have to avail what is given to you, the expense bursts and the costing of the development may exceed than the defined amount. The cost varies with the inclusion of taxes, rent, hardware, employees, etc.

2. Lack of Talent: In-house development offers talents that may or may not be very skilled and experienced. This is another con of in-house software development. You may not find the right skill person when it comes to in-house software development in this ever-changing IT world.

3. Workforce Maintenance: Another challenge with in-house software development is when the projects get delivered and completed, it becomes difficult to maintain the workforce of in-house software development. The entire team and the hardware maintenance is a big task which demands cost as well.

Pros & Cons of outsourced software development


1. Cost-Benefit: The biggest advantage of outsourcing software development is that it is very cost-effective. Since you are outsourcing the project to some different company beyond country boundaries, you get the benefit of cost as wages are cheaper compared to own country. Most popular regions for outsourcing software projects are Central and Western Europe, the Baltics, Eastern Europe, the Balkans, and more.

Source: Cleveroad

2. Expert Talent: Most countries where the project is outsourced are equipped with expert talents who are experienced in the latest trends and technologies. The business can avail the advantage of getting the project developed using these high-end talents assuring that the turn out of the project would be just fine.

3. Faster Delivery: Since you don't get to be involved in the recruitment of the employees and talents to work on the project, it saves time and thus the delivery of the project is faster and efficient. Ensuring recruiting of the talents is the complete responsibility of outsourced software development company and business simply need to project their idea of development.


1. No Direct Communication: With outsourced software development, the biggest problem is that you don’t get to directly communicate with the team face to face. Because of this, there are often communication glitches and you cannot ask them to make any modification in real-time.

2. Security Challenges: Since you are outsourcing the project to an outside vendor, there is no guarantee that the project details will be secure with them. There is constant tension of information transformation out in the market thus losing the audacity of the entire development.

3. Cultural Barriers: There would be cultural, language and law differences with the company you outsource the project to. These differences may hamper the smooth development of the software causing various challenges like labor rates, legal rights, holidays and more.

Final Verdict

There is no right decision of whether to choose in-house software development or to go with outsourcing the development. If the business wants to save cost and get the best benefit of talented developers, then software outsourcing is the best option. Whereas, if the business wants to get the project developed in their vicinity safeguarding the project from threats, then in-house development is the best choice. Whatever a business chooses, the development requires constant updates, planning, and experienced team. If you have that, the development would be a smooth sail.

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