Pros and Cons of In-House and Outsourced Development

In-House and Outsourced Development

Discussions centered around in-house and outsourcing software development have been around for a long time now. Some advocate building an internal software development team, while some champion the benefits of outsourcing. 

Whether you are a startup owner with a new product idea or an established enterprise in need of digital transformation, app development is essential to your success. Considering this, you must find the right people with the right skills to bring your idea to life. Furthermore, you need to determine the best way for you to gather the IT professionals you need for the project.

To help you determine the right route for your business, read about the pros and cons of in-house and outsourced development in the sections below: 

What Are the Pros and Cons of In-house Development? 

In in-house development, you build your own team of software developers who will work on your idea. This entails your usual hiring recruitment process along with technical tests to ensure that you are hiring the person with the right skills. 

Here are some of the advantages you can gain from going down this route: 

  • You gain full control over your project. Consequently, you know what your team is working on day-to-day.
  • You and your team work during the same hours and in the same physical space. This makes face-to-face discussions and smoother communication flow possible. 
  • You keep all knowledge inside the company, effectively minimizing risks of information leak. 

On the other hand, here are some of the drawbacks of going in-house: 

  • The hiring process can be demanding and time-consuming. You have to compete with other companies to attract the best talent. Additionally, hiring one developer usually takes around 30 days. 
  • Hiring and keeping an in-house team involves high costs. You have to take care of payroll, taxes, insurance, training, as well as IT infrastructure maintenance. 
  • You may not be able to hire an in-house developer with all the technical skills you need for the project. 

What Are the Pros and Cons of Outsourced Development? 

In this setup, you get in touch with an outsourced development provider and send them your business requirements. The provider then finds the best talent among their current pool of developers that match your needs. They also handle all the intricacies of employing and compensating the developers. 

Outsourcing your software development will allow you to enjoy these benefits: 

  • You gain access to a deeper pool of tech talents. You are not limited by your geographical location and can even outsource to destinations with better prices. 
  • You can launch your product faster. This is because you will be able to assemble a team faster compared to recruiting in-house employees. Furthermore, the provider will do the sourcing of qualified developers for you. 
  • You can easily scale your team; all you have to do is send your requirements to your vendor and they will take care of finding and adding tech talents to your team. 
  • You will have more time to focus on your core business activities as outsourced development teams are usually self-managed.

On the other hand, here are some drawbacks of hiring an outsourced team: 

  • You get less control over the project. Unlike in-house development, the process may not be as transparent. 
  • You may have to work with communication gaps and find ways to work around different time zones. 
  • There are risks involved in sharing business information with a party outside your organization. 


In-house and outsourcing development both bring different benefits and advantages to the table. The former involves building your own development team while the latter involves partnering with a provider who will be the one to put qualified tech talents together. To decide the best route to take, you should consider your budget, timeline, and the complexity of the product to be developed. Careful planning will allow you to choose the path that will truly benefit your business. 

Wolfmatrix is a team composed of skilled and reliable app developers in Australia. We can be your technical partner who will help you create innovative business solutions to your complex requirements. Contact us today to get started!

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