Difference Between In-House vs. Outsourcing Software Development


The development scale of software applications has been changing the landscape of all industries. The growing need for users, the increasing expectations, and the dynamic market trends are additional catalysts to changing the course of software development. While many businesses develop software applications in-house with their team of developers, coders, and testers; few go with outsourcing software development companies to get the application developed.

There had been a constant debate on this as it’s a critical decision to be made by the business. While one gives the advantage of having all at one place and that too in-house, others give the benefit of completing the development in a different place worked by talented and experienced experts. Both in-house software application development and outsourced application development have their pros and cons. Based on the requirement of the business, it may choose the best one.

Between In-House Software Development Company

What is in House software? What is in House software development? In-house software application development: This type of development is the one when a business has its development team and develops the application as and when required by the business. They have a team of developers, coders, and testers, a support team to look through the application whenever required, and does not have a dependency on a software development agency.


1. Employees on Site:

The biggest advantage of in-house application development is that they have employees on-site who are working on the development. It’s easier to connect with them and ask for changes/modifications in the application as per need thus saving the time of both the business and the employees.

2. Personal Talent Hiring:

Another benefit of in-house application development is that a business can hire talented employees easily. They would be interviewing them and vetting them before hiring them thus ensuring that they fit the right talent for the development.

3. One Line of Control:

It’s better to have all team members under one roof so that it’s easier for businesses to align the tasks, give direction, and have control over what’s happening. Any kind of improvement in the development process could be closely monitored and directions can be given to accelerate the process.


1. Hidden Cost:

In-house application development companies have their development team, infrastructure, appliances, hardware, employee training, salaries, software, and other necessities. This increases the cost of development. Plus, with time more hidden costs creep up and it becomes difficult for a business to manage these additional costs, which can even halt a project midway or force the organization to look for a software development firm.

2. Hiring Challenges:

Another challenge being faced by in-house application development is that there is always constant hiring going on. Employees hired may not always stick with the company and could leave resulting in hiring new resources. This becomes a tricky task as hiring the right talent takes time.

3. Employee Training:

 This is another con of in-house development as the business has timely upgrades to the skill sets of the employees. This asks for a huge investment and it has to be done timely to make sure employees are upgrading their skills.

Outsourcing Software Development Company

Most businesses today are eager to outsource a software application development company as it is fuss-free, cost-effective, and free of all burdens that in-house development comes with. Fact alert: The overall revenue of the global outsourcing market has almost doubled in size since 2000.


1. Cost Effective:

The biggest benefit of outsourcing software application Development companies is that it is cost-effective. There is no cost of hiring employees, infrastructure, software, hardware, training, and all. The only expenditure is the budget for the application development.

2. Talent & Expertise:

Who wouldn’t want to have talented and expert developers working on their project? Outsourcing software development companies have expert developers and coders with relevant experience as well. This automatically saves businesses from hiring resources and then training them to work on the project.

3. Focus on Business:

Now that a business has outsourced a Software Development Company, they have the power to focus on its business rather than teaching and monitoring the development team to work on the project. This helps in improving the internal segments of the business.


1. No Direct Access:

The challenge with outsourcing software Development Company is that it does not direct information on what’s happening with the update of the project. The development company surely sends a timely update but instant and constant touch with the team lacks throughout the development phase.

2. Feedback:

Since there are fewer connections and communication between the business and software Design Companies, the feedback time also lacks outsourcing software development companies. This increases the time of making any modifications to the project.

3. More Projects at a time:

Another challenge to highlight with outsourcing software Development Companies is that they work in operative mode. They have a lot of projects in their kitty and work simultaneously on each project. This could create hassles in understanding the project and missing out on various points necessary in the application development.


Wrapping up, there’s no definite answer to which selection should be made by a business. Both seem to be equally good options, and both have their own set of drawbacks to count. The best way to decide is to understand the budget, need, and requirement of the application and then proceed with choosing the development company.

If a business has fewer budgets and wants experts to work on their project, then outsourcing is the best option. In both ways, businesses get to attain what they desire and avail advantages afterward.

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