• About
    • About Us
    • Our Company
    • How We Work
    • Agile Development
    • Our Services
    • Careers
    • Contact Us
  • Services
    • Services
    • Full Cycle Product Development
    • Design & Product Consultancy
    • Mobile & Web App Development
    • Devops & Cloud Infra Support​
    • Data Science & Machine Learning
    • Open Source ERP Customisation
  • Technologies
    • Technologies
    • Technologies We Use
    • On Demand
    • Healthcare
    • E-Commerce
    • Education
    • Travel
    • Fintech
    • Supply Chain
    • Risk & Privacy
    • Loyalty & Rewards
    • Utility
  • Portfolio
  • Blog
  • +1 (202) 640-4522
  • info@dewsolutions.in
  • We are hiring!
Behance
Linkedin
Facebook
Dew Solutions
  • About
      Dew Solutions

      Dew Solutions specializes in a suite of Application Development that is mission critical for business and enterprise, for clients across the world.

      About
      Our Company
      How We Work
      Agile Development
      Our Services
      Join Our Team

      We are expanding rapidly and are working on several cutting technologies across various domains. We have some of the best in the industry working with us and are looking for young and bright minds to join us.

      View Job Openings
      Contact Us

      Our teams are always available to help you with your queries and provide right solutions to your business problems. Let’s get in touch and turn your idea into a brilliant solution through our team of highly qualified consultants.

      Get In Touch
    • About Us
    • Our Company
    • How We Work
    • Agile Development
    • Our Services
    • Careers
    • Contact Us
  • Services
      Full Cycle Product
      Development​

      Consistently ranked among the top consulting firms across the nation

      Learn More
      Design &Product
      Consultancy

      Dedicated to providing personal attention to all our clients.

      Learn More
      Mobile & Web App
      Development

      Best mobile and web app development services in India

      Learn More
      Devops & Cloud
      Infra Support

      Unmatched Devops practices with end to end cloud support

      Learn More
      Data Science &
      Machine Learning

      Complex AI and ML solutions. You think it, we build it

      Learn More
      Open Source Product
      Customisations

      Save cost and time with our open source customisation offerings for ERP

      Learn More
    • Services
    • Full Cycle Product Development
    • Design & Product Consultancy
    • Mobile & Web App Development
    • Devops & Cloud Infra Support​
    • Data Science & Machine Learning
    • Open Source ERP Customisation
  • Technologies
      Technologies We Use

      A team of specialists with experience in
      a gamut of technologies

      Learn More
      Top Verticals We Serve
      On Demand
      Healthcare
      E-Commerce
      Education
      Travel
      Fintech
      Supply Chain
      Risk & Privacy
      Loyalty & Rewards
      Utility
    • Technologies
    • Technologies We Use
    • On Demand
    • Healthcare
    • E-Commerce
    • Education
    • Travel
    • Fintech
    • Supply Chain
    • Risk & Privacy
    • Loyalty & Rewards
    • Utility
  • Portfolio
  • Blog
Request Free Quote

Menu
GTWPLogoSVG_Curved
Menu
Dew Solutions
  • About
      Dew Solutions

      Dew Solutions specializes in a suite of Application Development that is mission critical for business and enterprise, for clients across the world.

      About
      Our Company
      How We Work
      Agile Development
      Our Services
      Join Our Team

      We are expanding rapidly and are working on several cutting technologies across various domains. We have some of the best in the industry working with us and are looking for young and bright minds to join us.

      View Job Openings
      Contact Us

      Our teams are always available to help you with your queries and provide right solutions to your business problems. Let’s get in touch and turn your idea into a brilliant solution through our team of highly qualified consultants.

      Get In Touch
    • About Us
    • Our Company
    • How We Work
    • Agile Development
    • Our Services
    • Careers
    • Contact Us
  • Services
      Full Cycle Product
      Development​

      Consistently ranked among the top consulting firms across the nation

      Learn More
      Design &Product
      Consultancy

      Dedicated to providing personal attention to all our clients.

      Learn More
      Mobile & Web App
      Development

      Best mobile and web app development services in India

      Learn More
      Devops & Cloud
      Infra Support

      Unmatched Devops practices with end to end cloud support

      Learn More
      Data Science &
      Machine Learning

      Complex AI and ML solutions. You think it, we build it

      Learn More
      Open Source Product
      Customisations

      Save cost and time with our open source customisation offerings for ERP

      Learn More
    • Services
    • Full Cycle Product Development
    • Design & Product Consultancy
    • Mobile & Web App Development
    • Devops & Cloud Infra Support​
    • Data Science & Machine Learning
    • Open Source ERP Customisation
  • Technologies
      Technologies We Use

      A team of specialists with experience in
      a gamut of technologies

      Learn More
      Top Verticals We Serve
      On Demand
      Healthcare
      E-Commerce
      Education
      Travel
      Fintech
      Supply Chain
      Risk & Privacy
      Loyalty & Rewards
      Utility
    • Technologies
    • Technologies We Use
    • On Demand
    • Healthcare
    • E-Commerce
    • Education
    • Travel
    • Fintech
    • Supply Chain
    • Risk & Privacy
    • Loyalty & Rewards
    • Utility
  • Portfolio
  • Blog
Request Free Quote

Dew Solutions
  • About
      Dew Solutions

      Dew Solutions specializes in a suite of Application Development that is mission critical for business and enterprise, for clients across the world.

      About
      Our Company
      How We Work
      Agile Development
      Our Services
      Join Our Team

      We are expanding rapidly and are working on several cutting technologies across various domains. We have some of the best in the industry working with us and are looking for young and bright minds to join us.

      View Job Openings
      Contact Us

      Our teams are always available to help you with your queries and provide right solutions to your business problems. Let’s get in touch and turn your idea into a brilliant solution through our team of highly qualified consultants.

      Get In Touch
    • About Us
    • Our Company
    • How We Work
    • Agile Development
    • Our Services
    • Careers
    • Contact Us
  • Services
      Full Cycle Product
      Development​

      Consistently ranked among the top consulting firms across the nation

      Learn More
      Design &Product
      Consultancy

      Dedicated to providing personal attention to all our clients.

      Learn More
      Mobile & Web App
      Development

      Best mobile and web app development services in India

      Learn More
      Devops & Cloud
      Infra Support

      Unmatched Devops practices with end to end cloud support

      Learn More
      Data Science &
      Machine Learning

      Complex AI and ML solutions. You think it, we build it

      Learn More
      Open Source Product
      Customisations

      Save cost and time with our open source customisation offerings for ERP

      Learn More
    • Services
    • Full Cycle Product Development
    • Design & Product Consultancy
    • Mobile & Web App Development
    • Devops & Cloud Infra Support​
    • Data Science & Machine Learning
    • Open Source ERP Customisation
  • Technologies
      Technologies We Use

      A team of specialists with experience in
      a gamut of technologies

      Learn More
      Top Verticals We Serve
      On Demand
      Healthcare
      E-Commerce
      Education
      Travel
      Fintech
      Supply Chain
      Risk & Privacy
      Loyalty & Rewards
      Utility
    • Technologies
    • Technologies We Use
    • On Demand
    • Healthcare
    • E-Commerce
    • Education
    • Travel
    • Fintech
    • Supply Chain
    • Risk & Privacy
    • Loyalty & Rewards
    • Utility
  • Portfolio
  • Blog
Request Free Quote

Menu
Menu
Dew Solutions
  • About
      Dew Solutions

      Dew Solutions specializes in a suite of Application Development that is mission critical for business and enterprise, for clients across the world.

      About
      Our Company
      How We Work
      Agile Development
      Our Services
      Join Our Team

      We are expanding rapidly and are working on several cutting technologies across various domains. We have some of the best in the industry working with us and are looking for young and bright minds to join us.

      View Job Openings
      Contact Us

      Our teams are always available to help you with your queries and provide right solutions to your business problems. Let’s get in touch and turn your idea into a brilliant solution through our team of highly qualified consultants.

      Get In Touch
    • About Us
    • Our Company
    • How We Work
    • Agile Development
    • Our Services
    • Careers
    • Contact Us
  • Services
      Full Cycle Product
      Development​

      Consistently ranked among the top consulting firms across the nation

      Learn More
      Design &Product
      Consultancy

      Dedicated to providing personal attention to all our clients.

      Learn More
      Mobile & Web App
      Development

      Best mobile and web app development services in India

      Learn More
      Devops & Cloud
      Infra Support

      Unmatched Devops practices with end to end cloud support

      Learn More
      Data Science &
      Machine Learning

      Complex AI and ML solutions. You think it, we build it

      Learn More
      Open Source Product
      Customisations

      Save cost and time with our open source customisation offerings for ERP

      Learn More
    • Services
    • Full Cycle Product Development
    • Design & Product Consultancy
    • Mobile & Web App Development
    • Devops & Cloud Infra Support​
    • Data Science & Machine Learning
    • Open Source ERP Customisation
  • Technologies
      Technologies We Use

      A team of specialists with experience in
      a gamut of technologies

      Learn More
      Top Verticals We Serve
      On Demand
      Healthcare
      E-Commerce
      Education
      Travel
      Fintech
      Supply Chain
      Risk & Privacy
      Loyalty & Rewards
      Utility
    • Technologies
    • Technologies We Use
    • On Demand
    • Healthcare
    • E-Commerce
    • Education
    • Travel
    • Fintech
    • Supply Chain
    • Risk & Privacy
    • Loyalty & Rewards
    • Utility
  • Portfolio
  • Blog
Request Free Quote

Home»Blog»Development » In-house vs Outsourcing: Pros and Cons Explained
  • Development
  • How To Guides
  • News
  • Technology
  • UX & Design

In-house vs Outsourcing: Pros and Cons Explained

By Akash Negi
November 19, 2020. 5 min read
Last update on: October 22, 2021

Inhouse vs Outsourcing has remained a central topic of discussion among entrepreneurs over the years. While some feel outsourcing is a relatively better option, a few others still tend to prioritize in-house development. Enterprises across the globe look to outsource services these days by contacting an IT outsourcing company. But it’s also true that not everyone experiences the same level of services and satisfaction. Organizations have faced a terrible experience with their outsourcing partner in the past. So then this question arises whether to have an in-house team or go for outsourcing.

Like every coin has two sides, the same goes for outsourcing and inhouse development. Both have associated pros and cons and choosing between them can get difficult at times. But no worries! In this blog post, we will walk you through the difference between inhouse and outsourcing, explain their pros and cons, and help you make the right choice.

What is Insourcing?

In-house product development or insourcing is a business practice in which the work is performed in-house, means within the premises of the organization. The company hires or uses its own employees to perform its business activities.

What is Outsourcing?

Outsourcing, on the other hand, is when you hire a third-party firm on a contract basis to do the same set of work or fulfill your software requirements. They work either from an onshore or offshore location.

Pros of In-house Development

Why do companies prefer to stick to in-house development rather than outsourcing that specific task? Well, let’s find out.

1. Physical Availability

Having an in-house team means having people who work at your company’s location and whom you can supervise physically. There is better communication and understanding between you and your team that not only makes the work effective but synchronized as well. Since everyone in the team works together within the same workplace and time zone, it gets easier to get things done.

2. Better Control

Insourcing allows you to manage teamwork internally and provides you with better control over the work process. Hiring a pool of talented workers is a hectic and time-consuming process yet some business owners stick to that just to have everything under their control. Also, in-house involves different people working together in a similar culture that keeps things better managed and helps boost a company’s efficiency besides adding more value to the work.

Cons of Inhouse Development

Although building an in-house team seems to offer some good perks, there are several other factors involved that add to its cons and overshadow the pros.

1. High Cost

When discussing In-house vs Outsourcing, cost is a crucial factor to consider. The cost of hiring in-house developers is comparatively higher than when outsourcing IT services. This is because you will have to invest in the recruiting process, employee training, pay employee salaries, and more. It also involves infrastructure costs since you will need to buy or rent a workspace for the team. The expense associated with insourcing makes outsourcing a better option.

2. Lack of Skill Set

You cannot expect everyone in the in-house team to have the same level of experience and skill set. Different people have different areas of expertise so as per your project requirements, you will have to hire someone who has the expertise and the specific skill set to do the needful. And it’s not easy to find highly qualified specialists. Even if you do, you will have to pay more than what they are already getting, to get the required talent onboard. A lack of skill set reflects in the product quality later.

3. Low Employee Retention

In today’s IT culture, employees tend to switch jobs more frequently on being offered attractive packages by other companies. There’s always a risk that someone might leave your organization in the middle of a project which could create a hindrance to your project’s success. This is why in-house development is tagged with a low retention rate. While you look for a replacement, the workload at that time increases and the entire process also slows down, eventually resulting in a delayed product launch.

Pros of Outsourcing

Let’s now take a look at the benefits of outsourcing services for your project.

1. Lets you focus on your Core Competency

According to a global outsourcing survey conducted by Deloitte that involved over 500 executives from leading organizations, it was concluded that outsourcing enables them to focus on their core competencies and other business aspects, and provides a competitive advantage. This helps accelerate business growth. Having an outsourcing partner also significantly reduces the workload on your in-house team and enhances productivity.

2. Cost-Efficient

Enterprises prefer to outsource because it works as a cost-cutting tool for them. It helps cut down various costs involved in hiring inhouse developers. Unlike insourcing where people are usually hired as full-time employees and are paid every month, outsourcing is usually a short-term contract and involves paying on an hourly basis or a fixed amount for that particular project. With outsourcing, you can reduce costs by up to 60%.

3. Risk Mitigation

Outsourcing IT services mitigate various types of risks involved in a software development project such as schedule risks, operational risks, technical risks, etc. Outsourcing doesn’t only mean handing over your responsibilities to a third-party firm, it’s more about joining hands and cooperating to achieve the desired outcome. As a result, both participants share the benefits as well as the risks involved in the process. Moreover, the risk percentage significantly drops down when you hire an offshore partner since they are experienced in handling projects with complexities.

Also Read: 6 Important Tips to Consider Before Outsourcing Testing

Cons of Outsourcing

While some companies applaud the benefits of outsourcing, it has some cons too.

1. Communication

Communication tends to get a bit complicated in outsourcing because the team may be located in a different country at a different time zone. Thus, both firms need to adjust the timings accordingly to have proper communication. A lack of communication can hamper the work progress and also raise quality concerns. Work it out on how you are going to keep a communication flow, and it is always recommended to keep a single communication channel. Keep a regular check on whether things are going as planned or not.

2. Lack of Control

One of the areas where inhouse development beats outsourcing is the control of the project. This is the most pointed-out concern by organizations where they report losing control of the project due to the outsourcing partner not being able to comprehend it. If the vendor isn’t a good listener, miscommunication can arise which would not only have an adverse effect on the project but may also spoil the relationship and lead to a failed outsourcing decision.

Take Your Final Call

Insourcing vs Outsourcing- Considering all the above-mentioned factors and the pros and cons of both, we can conclude that outsourcing has an upper hand over inhouse development in overall comparison. It’s not just about the cost and having qualified experts to do the job but outsourcing IT services helps you find long-term players who can effortlessly address even large complexities and play a crucial role in your project’s success. Having an in-house team may seem a good choice initially but if the team isn’t having the required skills and expertise, you might have to compromise somewhere on the quality. Besides, it may distract your focus from core competencies and affect productivity.

We have done our part. The final call is yours. Whether you go for an in-house development team or pick an outsourcing partner, ensure they are the right fit for your project requirements so you don’t regret it later.


In-house DevelopmentMobile App DevelopmentOutsourcingSoftware Development

Related Articles


Development  ·  Technology
Mobile App Performance Testing: Tools and Strategy
Development
Android or iOS- For which platform should you build your Mobile App first?
Development
Things to Consider When Outsourcing eCommerce Development
Android or iOS- For which platform should you build your Mobile App first?
Previous Article
What does the Future of Mobile Commerce look like?
Next Article

Have a Product Idea in Mind ?

Let’s talk about what you want to accomplish and how we can make it happen.

Let’s Connect
Dew Solutions

We specialize in a suite of App Development that is mission critical for business and enterprise, for clients across the world.

Gurugram India (HQ)

P301, 3rd Floor, JMD Megapolis, Sector-48 Gurugram - 122018
+91 (124) 421-2275

Pune

WeWork, Magarpatta Futura, Magarpatta Rd, Kirtane Baugh, Pune, Maharashtra 411028

USA

650 Castro St., Suite 120-385, Mountain View, CA, 94041
+1 (202) 640-4522

Contact Info

info@dewsolutions.in
Behance
Linkedin
Facebook

About

Our Company
Our Services
How We Work
Careers
Agile Development

Technologies

On Demand
Healthcare
Ecommerce
Education
Fintech

Services

Full Cycle Product Development
Mobile & Web App Development
Design & Product Consultancy
Devops & Cloud Infra Support
Data Science & Machine Learning

Case Studies

Loyalty & Cashback App
eCommerce App Development
eLeaning Platform Development
Supply Chain Platform
Fintech Platform

Resources

Blog
Guides
News

Partners

AWS
microsoft
Great Place To Work
Copyright © 2010-2022 Dew Solutions Pvt Ltd. All Rights Reserved
GTWPLogoSVG_Curved