In-house vs. external software engineering team: How to choose what is best for you? [2023 Guide]

There comes a time when you need a brand new software development team. That is great!

But there is a tricky choice you need to make: Should you choose in-house or hire Software Developers on-demand? The thing is: Both approaches are great. It all depends on your business goals, needs, and the nature of your project.

Is it a long-term or short-term project? Do you plan to scale up your product? What is the budget?

These are just a few questions you should ask yourself to make an informed choice.

But let’s take it in order.

In this article, we will explain how in-house development differs from hiring Software Engineering partners and take a realistic and unbiased look at some pros and cons of these two alternatives.

Let’s start!

In-house software development: The Pros

No doubt, in-house development has some unique benefits, which are genuinely significant regardless of time and space.

Here are the main ones:

Benefit #1: Absolute control over your team

You can always keep tabs on what your in-house team is doing, which resources they use, and how effectively they work to meet the company’s philosophy and strategies in real-time.

Benefit #2: Regular face-to-face meetings

Regular office meetings help avoid misunderstandings and opposing views on product development.

There is also the possibility of discussing the slightest project details face-to-face and implementing urgent changes, if necessary, on the spot.

Benefit #3: No cultural and language barriers

Unlike an external team, the in-house one usually comprises people from the same country, region, or city.

This can bring cultural and language misunderstanding and time zone discrepancies to zero.

 

In-house software development: The Cons

Nothing is ideal in the in-house software development world. Otherwise, outsourcing will not have gained the credit it enjoys nowadays.

Let’s take a look at the risks of in-house development:

Risk #1: Enormous cost

Having an in-house software development team means you must pay salaries, vacation days, sick leaves, raises, insurance, travel expenses, etc.

This drags you into never-ending investments and extra expenditures.

Risk #2: The talent shortage

64% of CEOs claim that the talent shortage is a key problem for IT companies, according to Gartner.

Therefore, it has never been more challenging to find the best Software Developers out there and make them an offer they can’t reject.

Risk #3: Outflow of brain power

Every developer you lose will require additional expenditures on finding and training their replacement.

These losses will definitely delay the product deployment date and affect other company departments.

 

Outsourced software development: The Pros

Most businesses that have already tried external Software Consultants are satisfied with the results gained.

Here are the main reasons why:

Benefit #1: Reasonable costs

There is a big pool of talented Software Engineers on demand that allows you to choose the best specialists at an affordable price.

The best part is that it doesn’t require fixed, regular monthly payments or spending money on equipment or offices.

Benefit #2: Access to a rich portfolio of skills and experiences

The IT outsourcing market gives you access to an enormous stock of various Software Consultants specializing in different areas.

Based on your project needs, you can easily pick the ones with the experience, skills, and technical knowledge you need.

Benefit #3: Fresh perspective

Having an impartial and fresh look at your business and product is always a good idea.

Software Engineering Partners can share their deep expertise and give you the reality check and the feedback you are looking for.

 

Outsourced software development: The Cons

Hiring external Software Engineering staff may pose some risks you should be aware of before opting for this work mode.

Risk #1: Limited control over daily activities

You won’t be able to oversee all the steps and actions taken by your on-demand hires or administer their daily work.

Luckily, numerous project management tools enable you to see how the developers work in real-time and the time and effort they spend on the project.

Risk #2: Different working hours, language and culture barrier

These are real concerns that may disrupt the project communication.

Luckily, Western Balkan countries are one of the top destinations for IT outsourcing because they have a Western mindset and work ethic similar to their colleagues from Europe and the USA.

Additionally, they are flexible to work on the time zones the client needs.

Risk #3: Security risks and information leak

The truth is: No one is safe in the digital world. Communication failures and lack of control can easily undermine a company’s security.

To be on the safe side, it’s a good idea to choose a reliable Software Engineering partner, always sign a non-disclosure agreement, and take some technical measures to prevent information leaks.

 

Why is International Growth Agency a reliable outsourcing partner?

There is no answer to quell the in-house vs. outsourced software development debate. What may work for one company may not work for another one. And that’s okay.

It all comes down to finding the right vendor for you to work with.

International Growth Agency has an 8-year of experience providing first-class software engineering contractors on-demand to clients.

We know firsthand what it takes to make a great product based on our users’ needs and business goals.

If you worry about the time zone difference or language barrier, we have you covered! Our contractors are fluent in English, have a Western work ethic, and are flexible to work in different time zones.

Feel free to contact us today so that tomorrow you can benefit from our dedicated Software Engineers, ready to work and drive the growth of your enterprise.