Outsourcing software development has proven to be a popular option for companies worldwide. Boasting a number of benefits, outsourcing solutions is now more often than not chosen over in-house development.

Although in-house also has its own pros and cons, companies seem to be leaning more towards other options, choosing what is right for the individual business based on a number of factors; cost, technological advances and time.

What are the benefits for staying in-house?

With in-house software development teams, there is always a person on-hand if there are any technological issues. The developer will be constantly learning about the company’s software infrastructure, thus knowing how to improve and enhance it. It is also in their best interest to create an effective software as they will be working with it for the long-term.

However, will a company need an in-house developer long term? With work intensity constantly changing, there may not be a need for a developer a couple of months into their contract or post software completion. Recruitment and high annual salaries make in-house developers a costly investment. This is especially frustrating when workload dips but companies are contractually obliged to pay the persons’ salary. Plus, when workload peaks, additional staff may also need hiring to help with the processes, placing additional spending with recruitment.

“Recruiting your own in-house development team is not an easy feat. Firstly, you must have the technical knowhow to recruit the right people in the first place. Software development is an unregulated industry so developers mostly learn their trade on the job. To distinguish between those who are truly knowledgeable and productive, you must ask many relevant operational and technical questions, along with a technical test to filter out those who say they are good developers vs those who are actually good developers. Once you’ve recruited, you must retain these staff, so think about the fact they want to be continually stimulated doing different and interesting work. And if they don’t, they’ll leave, and you might be stuck with a system that’s unsupportable. Think very, very carefully and know what you’re doing before recruiting your own developers!” said Nick Thompson, managing director at DCSL Software.

3 reasons outsourcing is better than in-house


  • No contracted annual salary payout
  • Recruitment and operational costs minimised
Technological advances
  • A developer has a specialised skillset
  • A software developer is aware of latest and most efficient technological processes
  • Quality of development is higher and completed faster
  • Focused strategy with a competitive edge
  • Access to some of the best IT professionals across the world
  • Frees up management time as staff can be used elsewhere
  • Less time taken up on recruitment, training and development
  • People working on software around the clock rather than having the time constraints of the office
Are there any negative factors with outsourcing?

There may be some hidden costs, especially if a business chooses an inexperienced developer. Future-proofing code by choosing a more experienced and professional developer may entail a higher initial investment, however, it will ensure that the code will not need re-writing in the near future. There may also be some communication issues such as language barriers if outsourcing overseas. Scheduling phone calls may also be hard due to time differences, and e-mails could sit in inboxes for days without due attention. Finally, you are not the only company that they’ll be working with, prioritisation will be given to those with tight deadlines and higher payouts.

There are pros and cons to both outsourcing software development, or choosing to adopt it in-house. However, when taking into account the costs, technological advances and production time, the pros of outsourcing software solutions and development outweigh the cons. With lower staffing expenditure, higher production quality and better time management compared to in-house, outsourcing proves to be a more beneficial production option.

By Hannah Ricahrds, Amplified Business Content