In-House Vs Outsourcing Development Services: Which Is Best For You?

According to Exploding Topics, over 37% of small businesses outsource at least one process. Indeed, outsourcing is so prevalent that it could hit $731 trillion in 2023. IT outsourcing is a fast-growing part of the industry and a valuable solution for different companies. So, is in-house development still popular today? Let’s discover the pros and cons of both kinds; which type of tasks should be outsourced and vice versa.

Outsourcing vs In-house development services

What is In-House Development?

In-house development is building software with the internal experts in your company. All work is carried out by your employees, without outside help. The term also encompasses using other resources developed within your company.

The Pros of In-House Development Services

Aligned with your company’s culture.

In-house developers will already understand the company’s culture. Successful companies are driven by a high-spirited team that embodies the company’s core values. When a team works in synergy, you can get better results, which may not, which may not be possible in outsourcing. 

Direct communication 

The way people communicate directly will enable in-house developers and managers to avoid misunderstandings. It’s also helpful in solving various tech problems faster. It is much less burdensome and better accessible than in the case of outsourcing. 

Immediate support 

This is another privilege of in-house development. When you’ve deployed a new product, some flaws inevitably come up. You can find and fix them with an in-house development team without delay. In outsourcing, things may get delayed. 

The Cons of In-House Development Services

High cost

Be prepared to pay for the visible and hidden cost of hiring an in-house team whereas working with a team on a project basis, you only pay for their work and that’s it. If you are a startup, it means a lot.

Increased turnover 

IT talents are in high demand and you’ll have a tough time fending off poaching attempts by competitors and recruiters. You may end up counter-offering your developer better benefits, ultimately increasing costs. Else, you will lose the talents in your team.

Upskilling the team is your responsibility.

The IT industry is highly dynamic; with the introduction of new technologies, tools, and languages. Thus, you must ensure that your company invests in training and tools that affect your business'syour business's bottom line. 

The Pros and Cons of In-house Development Services

What is Outsourcing Development?  

Outsourcing development means transferring product development to another company, even overseas. Outsourcing development is recommended due to its low cost and scalability; making it different from the in-house approach.

The Pros of Outsourcing Development Services

The Pros and Cons of Outsourcing Development Services

Better control over cost

This service will save a lot of money for businesses, especially for small and medium-sized enterprises (SMEs). Also, with outsourcing, you don’t have to pay other costs like extra office space; insurance; recruitment bonus, etc.

A Large Pool of Talents

While outsourcing, you have the flexibility to find the right talent as per your requirements. You have a great chance to find the best of the best and gather them. You will have a lot of options with an immense global pool of talented developers to choose from.

No technology constraints

Some projects require diverse skill sets and it can be difficult to find individuals who are a master of all trades. When consulting and working with different specialists, you get greater chances to improve or even totally change your project; product; and working process.

The Cons of Outsourcing Development Services

No full control

Sometimes companies will have difficulty communicating and reducing quality. These can cause significant delays in development or service for you.

Communication barrier

These can affect both employees and customers, especially when clear explanations of the problems and solutions are required.


It’s important to vet the agency’s track record and sign a non-disclosure agreement (NDA) to protect your interest legally. 

Which option is better In-House vs Outsourcing Development Services?

Statistics show that this service is prevalent in 2023 and more than 60% of global companies use it on an ongoing basis (and right now) and more than 30% of US companies used outsourced product development at least once. Companies must Companies must determine their priorities in development and choose the best for each business model. Most frequently outsourced services are: IT Management; Sales & Marketing; Human Resources; Accounting;…

In-house Development Vs Outsourced Development Services

BHSoft – Reliable outsourcing partner

BHSoft is a leading outsourcing development services company with massive experience in various technologies. We are proud of a team of top-notch software developers who are well-trained through practical projects. Besides, we always focus on customers’ core value competencies. We will provide all the support you need to build a high-performing custom software product. Particularly, BHSoft provides the best Odoo customization and Odoo development services to develop and organize your business workflow. In addition, we have built tracking solutions that help you accelerate your business operation. Most of our clients are from all over the world, particularly small and medium-sized enterprises in the United States, Canada, and other countries. Our experience; expertise in technology would promise to provide you with the greatest service to match your requirements. Let’s build your next product! Share your idea or request a free consultation from us.

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