In-house our outsourcing software development? Which solution will be more suitable for your company?
by Arina Smith Business Development 25 November 2020
The market is changing more dynamically than ever – the pandemic has sped up the revolutions that have been looming on the horizon in the last decade. That applies especially to the shift of power between traditional trade and e-commerce, as well as the rise of remote work. In this new reality, the digital transformation is no longer a smart move in order to keep the business afloat, but an inevitable solution that the market will most likely enforce in the nearest future.
The rising popularity of outsourcing
Another visible trend is a change in approach to outsourcing. On the level of the multinational corporations, it has been present for years. Such organizations function as decentralized complex structures that use the services of more specialized smaller outsourcing companies. In recent years, also smaller enterprises have started turning into it in order to reduce costs and focus on their business goals instead of dividing attention between more technical aspects.
Outsourcing software development – advantages
In the software development sector, outsourcing is the most popular variant. The reason is simple – it allows hiring the best professionals on the market for a specified period. The pricing is usually prepared per project, not per hour.
Other advantages of outsourcing include:
- ability to focus on core business tasks;
- alleviation of the employees that results in increased effectiveness and creativity;
The measure of the outsourced company’s work quality is the final effect. Providing you with a fast and satisfactory result is in the interest of an outsourcing company, as then it can quickly switch to another task. When hiring a software development company or software house in the outsourcing model, you may also benefit financially, choosing the B2B model instead of hiring the developer in-house.
In-house software development – advantages
Choosing in-house software development may make you miss out on the benefits listed above, but provide you with others, such as:
- increased level of control over the project;
- a higher level of data security (particularly important in case of high-confidentiality projects);
- fewer communication problems
When you are facing the dilemma –in-house or outsourcing? – it is worth considering which advantages are crucial for the enterprise and analyze both options according to them.