In-House vs Outsourcing Software Development

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In-House vs Outsourcing Software Development

In-House vs Outsourcing Software Development

February 14, 2022 0 Comments

You may be at a time in your life when you’re considering in-house vs outsourcing software development. Before you decide on one option, it’s important to know the facts. Hiring an in-house application development team has some perks like easily sustainable security, communication, and plan implementation. However, it’s also very costly, hard to find the right help in one area, and staff dismissals can be a pain. Whereas outsourcing these services have some pros and cons of their own. At Klik, we offer a whole line of outsourced services and even some consultation solutions for your in-house services. Our Offshore Software Development, Software Development Services, and Mobile Application Development Services are sure to get you where you want to be.

Comparison: Inhouse Software Development vs Outsourcing - CMC Global

In-House vs Outsourcing Software Development.

Now you may be wondering what the in-house development definition is -this is when you hire an entire team of individuals to work on your staff to design and develop new software. You also have to pay for all the resources they require to build your program. So, what is in-house software? And what’s required to make it? This kind of application is created by a corporation for themselves and their end-users. Let’s go over the in-house development advantages and disadvantages:

Pros and Cons of In-House Development.


  • No language barriers. When outsourcing for this kind of solution, many vendors are offshore. Because of this, many people assigned to your team roles will speak different languages. This can cause errors in communication and understanding due to contrasting cultural outlooks.
  • Consistent collaborations. When hiring an in-house staff, your whole team is right there where you need them. As opposed to outsourcing where many of your staff members are hours and even continents away.
  • Prior knowledge of business and projects. Anyone you hire will need training and extensive explanations about the task at hand. However, an in-house team is easier to train and might even have current experience with your corporation and its ideations.


  • Extremely expensive. Employing a whole team of IT specialists, developers, and engineers, along with all the resources they require, can cost an arm and a leg. This makes an outsourcing company’s fixed-monthly rate seem like a walk in the park.
  • Lack of diversity. It can be nice to have a diverse staff with knowledge in multiple different areas that could benefit your project. However, this is less likely to happen when you try to put together an entire software development team in your area.
  • Unscalable staffing. With outsourcing, you can scale your necessary staff and resources up and down to fit your needs. Unfortunately, this just isn’t a luxury you get with an in-house solution.

Pros and Cons of Outsourced Software Development.

Now that we’ve discussed some of in-house software development’s advantages, it’s time to discuss the benefits of outsourced solutions. So, you can get a better idea of outsourcing vs in-house development:


  • More reasonably priced. As mentioned before, this process can be extremely cost-conscientious compared to the alternative. This is because outsourced teams have more expertise on a range of topics and more resources at their fingertips. And you won’t have to spend thousands of dollars to correct issues that may arise.
  • Time-efficient. Let’s face it, the hiring and training process can be very expensive and can also be the most time-consuming portion of the project. With outsourced solutions, your team is hand-picked by your vendors and assigned accordingly to their appropriate roles.
  • Expandability. Possibly one of the biggest perks of this service, if you don’t count the budget, is its scalability. Need more people on your project? No problem, you’ll be able to upgrade and downsize resources and employees as much as you need.


  • Common knowledge. Because your team is scattered in an offshore location, it can be difficult to get everyone on the same page when you need them. It is extremely crucial that you are very concise on your application specifications because your outsourced team will be following them to a T.
  • Security risks. Considering your team isn’t in the same region as you but they are building a product based on your data, you can expect a lot of your sensitive information to be exported frequently. Because of this, it’s vital to create general compliance procedures for your external team.
  • Possibilities of unsupportive code. It is easy to become dependent on your outsourced development team if you’re having issues interpreting the code. So, it’s critical to maintain your code sans contractor participation.

Outsourcing Around the Globe.

A ton of large and infamous corporations use outsourcing because of the global selection and cost-effective solutions it offers. Here are a few examples you might recognize:

Google. This multimillion-dollar organization utilizes outsourcing for low-priced yet quality software development and customer service resources.

GitHub. A collaborative repository platform that has over 23+ million. GitHub representatives decided to try outsourcing when they had a low budget and were in need of help developing their designs.

Whatsapp. An application that helps millions of people stay in touch with their loved ones, was originally run by outsourced operations before it was bought out by Facebook for 19 billion dollars.

Is a Hybrid Approach Right for You?

Now that we’ve touched on the topic of in-house development vs outsourcing by describing each of their perks and downfalls, it’s time to decide whether hybrid in-house development of products and outsourcing design is right for you.

After reading the carefully selected list of the two processes’ advantages and disadvantages, you may be having trouble deciding between them. That might mean it’s time to consider the third selection, a combined solution. Here are some of the pros and cons of this possibility:


  • Optimal workloads and separations. After deciding which tasks to outsource and which to in-house, you can distribute the workload efficiently between your external and internal teams.
  • Money-saving. By combining the low costs of outsourced software and in-house engineering, you’ll get the best of both worlds for the most cost-effective solution yet.


  • Time-consuming. Because you’ve decided to take on the workload of managing two teams, you’ll spend a lot of time analyzing the market, determining workloads, and resolving communication errors.
  • Complicated. In-house and outsourced processes can be extremely disparate at times. So, you’ll have to find the time and resources to manage your internal and external team effectively.

Figuring Out Which Solution is Best for You.

As mentioned throughout the article, all three of these service types have their benefits and drawbacks. Picking the right one for you will require some research and planning on your part. Here are some things to consider when deciding upon one of these three resources:

  • Budget. This may be one of the most vital aspects to consider. Do you have the money to hire an in-house team? If you don’t then hybrid or outsourced development may be your only option.
  • Existing staff. How is your existing staff? If you were to start an in-house application creation process would the members of your team be strong enough to help carry your business through the process without additional help or resources?
  • Scope of the project. What exactly is the project about? Is this something your current staff has expertise in? Or do you possibly need outside help to understand the scope fully?
  • Intended goals. What are your overall hopes for the project? Would the current staff and resources you have alone be able to guide you through obstacles and get you to those goals? Or would it be easier to take a hybrid or fully outsourced approach to have more expertise on your side?

If you’re in need of software development solutions or would like to consult with a professional, call us today at 888-959-1196 or Klik here to schedule a meeting today. The Klik team can help you navigate your way through the development landscape and assist you in devising a plan to obtain all of your software creation necessities. Check out our portfolio to learn more about us.

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