With the current ability to recruit from anywhere in the world, startups often think about how best to assemble a team. It’s always a challenge to decide whether to prefer in-house development or outsourcing. Every kind of development has its pros and cons, so you can not be unequivocal about it. The choice also depends on the capabilities and goals of startup companies. Thus the theme “in-house development vs outsourcing” needs thorough analysis. And that is what we will cover together in this article.
In-house development is the process of development with the people you have chosen on your own. It can look similar to regular staff hiring. That is the way you choose every member for your future team, give him personal tasks, and evaluate every performance personally. In-house development equals building a company from scratch.
Outsourcing focuses on hiring external sources to create your product or perform some specific tasks. It is a chance to meet new professionals from around the world. You can hire a whole team or even one person to get the job done. It usually suggests online communication and work processes.
Although at first glance product development may not depend on the type of development process, these processes still differ. Here are the differences between in-house development and outsourcing.
The choice of development path depends on many factors. It is based on the type of company, the type of your client, the budget, and the business plan. And when you analyze all these factors, you will be able to choose the most suitable option. Choose in-house development when you want:
Outsourcing development may seem a bit complicated. For this path, you have to consider hiring new people from other companies or even the whole agency. It might also be risky as you meet them for the first time in your life. But if the following statements sound suitable for you, don’t be afraid to outsource resources.
The prices for an in-house type of development are quite higher. Even if your developers work from home, they will charge from $100.000 annually. The price also depends on the country you are living in. The prices in the US are quite higher than in Europe. Outsourcing will cost you less. Depending on the country, developers want to be paid from $20 per hour to $100 per hour.
For an in-house one, you can face the following risks. You can spend more than you planned; you might have to dismiss unqualified workers; you can lose a lot of time; your productivity might be less, and you will have to always control everything. In the case of outsourcing, the risks might appear when hiring new unknown people; entrusting important data; facing new cultures.
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