In-House vs. Outsourced Software Development

As this has been a dilemma for quite a while now, we are going to try to explain during this article the “outsourcing software development” approach and the way to decide if a corporation should go ‘internal’, or ‘external’. Most corporations activating in several areas of business understand the importance of 1 or several internal software systems as the basis of their business efficiency maximization.

Some corporations have their own development departments manufacturing software for internal needs. This approach is known as ‘in-house development’ and was additionally used in the past.

But the business world is increasingly complex and undergoing a large transformation, with a lot of players and diverse business models, solution bundles and more sophisticated, tech-savvy business users, all these delivery new challenges to the managers. Such new business challenges, cannot continuously be supported in due time and price effectively by internal software systems. The software departments were facing difficulties in aligning the various business functional desires with multiproduct and multiphase developmental pipelines. Additionally, corporations were facing challenges to find all the skills required to adopt the latest technologies internally.

In order to solve quickly a broad vary of requests, but additionally to adapt to new technologies, corporations began to extend their internal software development departments. This brought new challenges in terms of budget management. Not only they were facing fixed prices with salaries increases, however also long term expenses made to cover new infrastructure desires.

When it comes to the dilemma of getting in-house developers or outsourcing IT resources, the solution is never black or white. There are continuously pros and cons on either side. Here a shortlist of each – software outsourcing pros and cons. Go through all listed arguments and choose which aspect works better for you.

Main pros for outsourcing software development

Fast approach to quality resources

The hiring method takes time. A specialised seller can provide you with a high-quality software development team much quicker.


Outsourcing allows you to hire an expert for a limited time, according to the requirements of your project or specific business operations. Freelancers and specialised vendors are flexible to “jump in” in accordance together with your project schedule and desires.


Every project is specific and needs a team composed according to the particular necessities. By outsourcing, you’ll be able to scale up the team of professionals specialised exactly for that specific project.

Main cons for outsourcing IT resources

– Quality control

It is much easier to manage the level of quality created when you will physically approach and speak to your software engineers than to place the vital phases of your project within the hands of somebody you’ve never seen, and then hope for the best.


Software development could be a collaborative process. Hiring freelancers from a different cultural background may be a large challenge for mutual understanding of specific needs. possible issues appear also from the language barriers, which could hinder a fluent collaboration.

-Logistical challenges

Working with a developer from a different geographical zone is difficult for each side, especially once it comes to choosing the time for a call or meeting the deadlines which are adapted to a one-time zone, but not to another.

 The strategy you select to create a digital product depends on your goals, resources, and priorities. to create a decent choice think about what’s your priority — time, quality, value or communication.

Leave a Reply

Your email address will not be published. Required fields are marked *