In-house vs. outsource development. What to choose?

Whether you're a small business or a large enterprise, outsourcing development can help you scale your software applications quickly and at a fraction of the cost. However, there are different types of outsourcing that can be used to develop software, an app, a website, or anything you need. Unless you know what type of outsourcing you require and how it will benefit your organization, it's easy to make costly mistakes that could have been avoided if more time had been spent researching the options available to you. In this article, we'll look at some examples that highlight the pros and cons of both in-house and outsource development teams so that you can decide what's right for your business needs.

What Are the Pros of Outsourcing?

What Are the Pros of Outsourcing_

The most obvious advantage of outsourcing is cost savings. When you outsource, you can focus on what you do best while letting an expert handle the rest.

In-house development teams are often hamstrung by geographical constraints and limited access to specialized expertise, whereas outsourcing allows companies to tap into a global pool of talent and easily scale up or down as needed. 

When you hire an in-house team, it’s hard for those employees to come up with ideas for new products when they’re not immersed in your industry every day — but when you outsource, there’s no shortage of fresh perspectives from people who live and breathe software development every minute of every day.

Because outsourced developers will work remotely from their own offices rather than yours (and therefore need no salary or office space), this option saves valuable real estate dollars that would otherwise go toward leasing office space near your location(s). 

In addition, since remote workers don’t have daily commutes (even if they’re working on projects in more than one-time zone), they’re able to save time that would have been spent commuting back and forth between home bases each evening/morning — another huge boon for both parties involved: less stress on employees’ mindsets due to fewer hours spent away from loved ones; less financial stressors placed upon employers who’d otherwise be paying rent/mortgage payments while also providing insurance coverage (life insurance policies) as well as other benefits like paid vacations/holidays off work, etc.

Read also: “Main differences between ReactJS and React Native

What Are the Cons of Outsourcing?

What Are the Cons of Outsourcing_

While outsourcing has many benefits, it does come with some drawbacks. The biggest downside of outsourcing is that you have to pay for the service. While this may seem obvious, it’s important to remember that your company still has bills and expenses of its own. You need to know exactly what you want to be done by an outsourced developer and find the right company or development agency that can provide those services at a reasonable price point. If you don’t do this research up front, your business could end up paying more than it should — and this money could be better spent on other aspects of your business (like marketing).

Another major pitfall is communication issues: if there isn’t good communication between teams or individuals within the same group then things can go south quickly! This can happen even when all parties involved are professional enough not to let their emotions get in their way; so make sure everyone knows exactly where they stand before any decisions are made? That being said, however: once things start rolling smoothly again then everything will fall back into place relatively easily because most people are good at adapting when they need to-so long as they know what’s going on beforehand!

In-house development Pros and Cons

In-house development Pros and Cons

In-house development pros:

  • You have more control over the final product. This means that you can change your software as you see fit and make the final product much better than outsourcing.
  • It might be cheaper in the long run because you are paying employees to work on a project that they understand, rather than paying someone who doesn’t really know anything at the very beginning unless the project is started from scratch.
  • The benefit of working in an environment where everyone knows each other can help increase efficiency, especially if there are any issues or problems along the way.
  • A good IT department not only helps you solve problems but also helps ensure that your technology is working at its optimal level. When you have an outsourced IT department, they will take care of all the maintenance and repairs for you so that you don’t need to worry about anything going wrong with your equipment.
  • In-house IT services help you save time by ensuring that the people who use technology in your company know how it works, and how best to use it and when problems arise they know where they should go for help or what kind of assistance they need from other departments within the company (such as marketing) when developing web pages or designing websites for clients/customers/patients, etc.

In-house development cons:

  • There is a risk of losing knowledge if employees leave; this could lead to restarting from scratch or hiring someone new who will take up valuable time explaining how things work before getting started on producing results again.
  • Lesser talent pool. You don’t have such large access to the global talent pool and need to take great efforts sometimes to assemble a great team.
  • Regular control over processes. Sure thing you need the work to be done properly and here you have two options: you can run everything yourself or hire a project manager who knows how to deal with it in the right way.
  • Office rent and equipment. Sure thing people have to work somewhere and use something and this is your headache to take care of it.

What Should I Outsource?

What Should I Outsource_

It’s no secret that outsourcing your development can save you a lot of money. But why is this?

First, it allows you to focus on what you do best: your core business, rather than the technical details of developing software for yourself.

Second, outsourcing will help you get better results because there are many highly-skilled developers and other specialists out there who can help you solve problems more quickly than an in-house team would be able to.

Thirdly, outsourcing saves time and money in keeping up with new technologies as they emerge (e.g., cloud computing) or when dealing with legacy systems that need updating so they work properly in newer environments.

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Decide what will be outsourced to an external agency or project manager

When you decide to outsource, you will want to know what is the most critical part of your project and what can be delegated. This is a very important question that should be considered at the beginning of the project: What will be outsourced? Will it all be outsourced, or only some parts? Which parts will stay in-house and which ones will go out? The answer depends on many factors like budget, time frame, complexity, and other factors. To decide this, you must consider many things such as:

  • Budget – If your budget is limited then it may be better to focus on hiring an internal developer or freelancer instead of an entire team working with external developers. Outsourcing can also save time if there are specific skills needed but not available inside an organization (e.g., machine learning).
  • Time frame – If time is limited then outsourcing might be better than hiring an internal employee because everything will happen faster without having to train someone new for months before getting any work done at all! However, if there’s no rush then it would probably make sense still hire somebody internally first so they can learn from mistakes made along the way…

Why Hire Software Developers at RIVO AGENCY?

RIVO AGENCY is a team of professionals that has been creating websites, apps, and software of various complexity for different business needs for 13 years already. We have deep experience and honed skills to provide a wide range of services from the development of custom software, to support, and updating the existing projects. Our offer is professionalism, reasonable rates and prices, and high-quality services because we do care about your name and business.

RIVO AGENCY in numbers:

  • 13+ years in the market
  • 200+ projects
  • 50+ developers
  • 7 expertise industries

Why Hire Software Developers at RIVO AGENCY_

Turn to us, describe your idea and we will create the best solution for you.


When you hear the word “software development,” what comes to mind? Many people think of writing code and coding, but there’s a lot more to it. Software development can be broken down into two categories: in-house and outsourced. In-house software development is when your company develops its own software, while outsourcing involves handing off the project to a third party (such as us). Outsourcing gives companies access to highly qualified programmers without having to hire them full-time or train new employees from scratch — saving both time and money.

Outsourced projects are also much less risky than in-house projects because they come with fixed costs and price guarantees upfront; however, if something goes wrong halfway through an outsourced project there’s no guarantee that everything will turn out right on time or even at all — so make sure you choose wisely!

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