February 1, 2023 9:29 PM

After evaluating your mind-blowing idea, the first thought that comes to your mind would be: should I hire an in-house developer or should I outsource it?

Am I right?

If yes, then you must be facing delays in your project.

Thus, we have brought the pros and cons of in-house development and outsourcing that will help you choose the best approach for your project.

So, let’s begin!

What Is In-House Development?

In-House development is simply when a product engineering company develops a project with internal expert help. All work is carried out by employees, without outside help. In this, the overall success of their project depends on the skilled people they hire for their organization.

Amazon and Paypal are two examples that practice in-house development. They spend more money hiring their engineers, which gives them total control over their projects.

Pros of In-House Development

Before going for in-house development, look at some of its pros and cons of it:

The team that Supports the Culture of Your Business

A passionate staff that embodies the company’s basic principles drives successful businesses. You can choose team members for in-house developers who complement your company culture.

Direct Interaction

Direct communication is a significant advantage of working with an internal team. An in-house team works solely for your business, and members are physically present there. There is no need to send emails back and forth to make your argument clear to the team. In-person communication will help conversations go more quickly, especially while you’re completing the project’s needs.

Immediate Support

Immediate support is a privilege that comes with in-house development. When you have developed a new product, some flaws inevitably creep up. The investigation gets executed quickly with an in-house team, and the fixes were applied without delay.

Cons of In-House Development


The expense of in-house development is one of its main drawbacks. Payscale estimates that the average salary for an IT developer in the US is $71,508. The hidden costs of recruiting and onboarding each employee you have hired and the costs of sick days, vacation, insurance, and social security are not included.

 Finding Top Talent Is a Challenge

With the increasing demand in the IT industry, there is a fierce rivalry to hire top developers. Thus, finding the ideal talent pool for your product development will not be easy for in-house development.

Upskilling Your Team

In the information technology sector, change is continual due to the development of technologies, tools, and languages. Thus, you will need to invest in the upskilling of your employees to keep them abreast of the latest developments. Otherwise, the final outcome of a product will be compromised.

What Is Outsourcing?

Outsourcing is a business practice in which business owners take the help of third-party to get the job done rather than doing the work in-house.

Apple, Starbucks, Nike & Cisco are some renowned companies that believe in outsourcing and take the help of outside experts.

Pros of Outsourcing

There are many reasons why most people choose outsourcing. Here are some of them.

You Don’t Have to Hire More & More Employees

When you outsource your project, you get free from the burden of hiring more and more employees. This saves you money on everything from employee’s perks to their training.

Get Access to a Large Pool of Talent

When hiring an employee for your project, you only get access to a small talent pool, which means you compromise on your future project. However, when you outsource, you explore the vast collection of talent outside in the world and bring expertise across the world on your project.

 Focus on What Matters

Another benefit of outsourcing your project is enhanced freedom. By passing on the project to the hand of experts, you get enough time to work on your skills and improve the core business process that helps your business tick.

Cons of Outsourcing

Less Control Over Your Project

Although you know what you have to outsource and what kind of work you have to make it done, you might give up a bit of control when you outsource.  

There are many reasons for this, including the fact that you are hiring a contractor instead of an employee. And since the person is not on-site, it may be challenging to maintain the level of control you desire.  

Communication Gap

It is one of the potential drawbacks of outsourcing. Here are some of the questions you need to ask before outsourcing. 

What time zone does the person live in, and how does it match your working time?

How do you like to communicate? Email, Instant messaging, or phone.

Does the person have access to an excellent and reliable internet connection?

These are some questions you need to ask before outsourcing your work. Since communication is essential for the success of your project, you need to make sure you don’t lack it. Otherwise, the project may end up being trash. Having the right communication tools like business fax and those collaboration tools as business solutions to increase productivity and effective communication will fix the gap between different parties. This should help identify problems quickly and resolve matters efficiently.

Wrapping Up

Both in-house development and outsourcing have their own pros and cons depending on your requirement. If you want to invest your time and money in building your firm from scratch, then in-house development is best for you. However, outsourcing is the best option if you want to get the best expert in the industry for your project.

If you are looking for a trusted product development company, iFour is the one for you. They offer robust solutions to your digital transformation journey. You can leverage their unique expertise in deploying innovative products.

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