Outsourcing or In-house Development: Which to Choose

Do you have a company or a startup? Are you planning to develop software for your business? To do this, you will need developers, resources, time, and budget.

You are likely at a crossroads: should you carry out the project internally by hiring new resources and optimizing your team, or should you opt for outsourced development and assign the task to an external software house? Making the right choice can save you time and money.

Let's try to clarify things to make the choice easier.

Two Methodologies Compared

There is no one-size-fits-all solution. There are many variables to consider: the type of product to be developed, the current team composition, the recruitment process, the costs of potentially hiring new resources, the timelines, the budget allocated to the project, and so on.

Finding the ideal candidates to expand your internal team (or create it from scratch) and identifying the partner agency are processes that require time and resources: choosing wisely is important. Both solutions have specific advantages that can assist in making the decision between these two methodologies.

Advantages of Outsourcing Software Development

Choosing to rely on an agency for the development of your company’s software has an immediate major advantage: cost reduction. By avoiding the recruitment, hiring, and onboarding process necessary to hire employees, expenses are reduced.

The second significant advantage is the availability of highly qualified and specialized resources for your project, capable of offering diverse solutions within a single team.

Also, progress monitoring, especially if the chosen tech partner adopts the agile method, is much simpler.

Moreover, delivery times and consequently the time-to-market of the final product are greatly reduced.

Advantages of In-house Software Development

The primary advantage of hiring internal resources is definitely communication: having a direct line of communication with the team, being internal, makes it simpler. If there are questions, misunderstandings, or urgent tasks, it is much easier to resolve them working in the same environment.

The second factor that usually drives this choice is the sense of control. Having an internal team gives the CTO or CEO a greater sense of control over the developed product.

A final advantage concerns investors: having a CTO and a development team internally can be a plus when seeking investments for your project.

Generally, an internal team fully embraces the company philosophy and culture, and it will be easier for the developed product to fully reflect these aspects.

The Importance of the Right Tech Partner

As we have seen, companies often face the dilemma of whether to develop everything internally or outsource to an external provider, choosing outsourcing. Both solutions have their advantages and disadvantages, and there is no universally better solution.

When a choice must be made, finding the right support is crucial for the success of the project and to avoid wasting resources and budget. Our software house offers a strategic consulting service to companies to help them choose whether to develop in outsourcing or in-house. In the first case, we take care of the product to be developed comprehensively, while in the case of in-house development, we support the team by offering specific technical skills or providing support during peak workload moments. Astrorei is the ideal partner for both outsourcing and in-house development. Contact us for a consultation; let's discover together the best path to achieve your goals.