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Outsourcing: Is it a Better Way for App Development than Hiring In-House team?

Guest Author
June 24, 2021

When it comes to app development, today’s projects no longer are limited to in-house resources. The workplaces have expanded to remote locations, and teamwork grew too small for experts all over the globe. 

Companies now switch between in-house development and outsourcing projects based upon their project needs, availability of resources and cost considerations. So, both in-house development and outsourcing have their own set of strengths and weaknesses. 

Before building a mobile app from scratch, a development startup needs to know the differences between in-house and outsourcing projects and their respective merits and demerits. Here below, we try to explain this. 

In-house development

In-house app development is basically about hiring app developers to build an app using its own IT resources and environments. This involves making job posts, conducting interviews and practical evaluation tests and hiring developers for the app projects. 

This involves using vast amounts of company resources in IT infrastructure, Human Resource management, hiring process, employee induction and training and long term overhead costs for each hired developer. Inhouse development has its equal share of advantages and shortcomings. Let’s have a brief look at them.

Advantages 

  • Closer integration and sharing values and objectives of the company by the hired developers ensure a desirable impact on their productivity, output and excellence. 
  • In-house developers being part of the teamwork and creative brainstorming process allow delivering more value through their output or team members. 
  • By adhering to a similar working schedule and sharing the same workplace premise, in-house developers can better communicate with the team members and managers. They can be better synced on project requirements. 
  • Inhouse developers fit better into an iterative development process exposed to frequent changes and continuous value additions just because they are available all the time. 
  • Inhouse developers’ great development expertise over time end up becoming the company’s long term human assets.

Shortcomings 

  • Hiring an in-house developer team involves the much higher hiring and long term overhead cost and an array of management challenges and responsibilities. 
  • Depending upon the company’s work culture and management, in-house developers can decrease productivity and output and turn into liabilities instead of becoming assets. 
  • Many app projects miss out on the expertise, cost advantages, and exposure offered by leading outsourcing companies by hiring in-house developers. 
  • By sticking to in-house development, app projects often end up in compromised hiring of lesser capable developers.  
  • Inhouse development creates a considerable strain on the IT resources of the company and can be damaging for many other projects.

Outsourcing Development 

Outsourcing the app development is delegating the development tasks to third-party app developers working remotely by utilising their own IT resources. For example, an Indian business can outsource its app project to a US-based development company. Sunlight Media in Los Angeles is a U.S-based company who can assist with custom app design & development.

Outsourcing development is preferred by businesses that are not competent enough in the IT field or lack access to expert developers for their projects in their locations. Outsourcing is often preferred over in-house development to do away with resource crunch and ensure speedier completion of projects. Obviously, outsourcing has its advantages and shortcomings. Let’s have a look.

Advantages 

  • While outsourcing an app project, one can compare several development services and indulge in price against value comparison. This often results in getting the most competitive rate for expert development,
  • Outsourcing projects are competitively pitched to ensure faster development, and this is a crucial consideration for taking onboard a service for the project. This often guarantees fast-paced development. 
  • Through outsourcing an app project, one gets unparalleled exposure to expert developers all over the globe and can hire the most seasoned experts in every technology niche. 
  • Thanks to outsourcing, an app project can quickly scale up the team in numbers and skills depending upon the project requirements. 
  • An app project can get the best output by outsourcing the task to specialists following the best industry guidelines and practices. A reputed outsourcing development company is versed with the latest DevOps, Agile or Rapid App Development (RAD) approaches.

Shortcomings 

  • The outsourcing vendor company and the client company are often not on the same page regarding the project specifications. This is particularly common with businesses delegating app projects to a small company for the first time. 
  • Unless you enforce practices and norms like complete code transfer after development and signing a Non-Disclosure Agreement (NDA), your business data and app security can remain vulnerable to security threats. 
  • Lack of streamlined communication with the client company due to time zone differences and cultural and linguistic barriers is a common bottleneck to outsourcing projects, resulting in iteration during development.
  • Unsatisfactory collaboration between the in-house project control team and the development company often results from outsourcing projects. This happens particularly when the development company has less experience in handling projects from technically ill-equipped businesses.

Conclusion 

So here we are, just not poised enough to give a clear verdict on which development approach to choose for your ambitious app project. It is not just because there are strengths and weaknesses, pros and cons on both sides. It is primarily because we still don’t know your business, your app idea and how you prefer this would-be app to serve your customers. 

For any business making a straightforward choice between in-house development and outsourcing is not that straight. It entirely depends upon a whole array of factors, including your app project size and complexity, targeted platform and required tech stack, app budget and the long term app objectives. The above exploration of strengths and weaknesses on both sides will help you analyse your project requirements better. It’s over to you now.

Having years of experience in the IT industry and being the managing director of Eurecaapps - a well known IT company for mobile app development services. Helping businesses in developing well-versed mobile tech solution at cost-effective prices. His passion for technologies motivates him to learn, read & write on different aspects of software development like mobile app development, AR, VR, Blockchain, Artificial Intelligence, Machine Learning.