What Should be the Best Choice: Hiring In-House Developers or Outsourcing Team?

Let’s get to know what’s the best choice out of hiring an in-house developer team or an outsourcing team to carry out your software development projects.

4 min read
Mar 31, 2022

If you have landed on this page and post, then I guess you have software and product development requirements, which you want to outsource or develop in-house. However, you are confused about which option is right for you and makes your life easier.

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Hiring an in-house team seems an easy option at first while outsourcing may look a bit overwhelming at first glance. However, without comparing the pros and cons of each model, reaching a conclusion doesn’t seem fair.

Outsourcing means hiring a third-party vendor to carry out the development work on your behalf while in-house development means hiring an in-house team of developers and designers to do the same work. Let’s understand the concept a bit more in detail:

Hiring In-House Developers: Advantages & Disadvantages

Hiring in-house means hiring teams of developers and designers who would work from your offices as an employee. You would have to build a whole network and infrastructure, allot a working space for them, and pay them remuneration as needed.

They work on the tasks assigned to them to achieve common company goals and objectives. Here are some advantages and disadvantages of doing so:

Advantages of Hiring In-House Team of Developers

On-Site Availability: Your team would be available on-site to work on your project. The communication between you and your team becomes effortless and you can promptly get answers to your questions.

Awareness of the Business: The in-house developers are employees of your firm. As they will be working more on your software and product development projects, they will have a better idea about your organization to work efficiently and effectively.

In-Depth Knowledge of the Infrastructure & Network Setup: After they thoroughly work and understand the network and infrastructure setup, they gain an in-depth understanding of the same. This will enable them to bypass the system onboarding process and rapidly solve problems.

Deep Understanding of the Users: Since your employees are aware of the organizational goals and key performance indicators, they’ll have a deep understanding of the company’s workers, users, and prospective customers.

Disadvantages of Hiring In-House Team of Developers

Highly Expensive: Hiring in-house developers is a big investment that your organization has to bear. In addition to paying out salary to your employees, you’d have to buy or rent an office space. Further, whenever a new member joins in and the team size expands, the expenses will keep on rising.

Leave of Absence Issues: One of the common issues of hiring in-house employees is the leave of absence. The team members may get sick or leave the company to join a new one, you’ll have to cope with that and invest your time and effort in hiring completely new members. This will hinder the ongoing development of software products and projects might get delayed. In some cases, you may have to bear some losses too.

Low Retention Rate: As mentioned, employees in western developed countries change jobs more frequently due to high demand and enticing incentives provided by competitors.

Don’t Have Necessary Skills: No one can be an expert in all the fields. The same is true for your employees as you do not have experts in all the fields to carry out the necessary tasks. Also, training your existing employees would be a time-consuming process and divert their focus from one thing to another.

Hiring Outsourcing Team: Advantages and Disadvantages

Hiring an outsourcing team refers to hiring a third-party vendor to carry out the software and product development projects on your behalf. Here, you don’t need to worry about providing working space, building infrastructure & network, or paying recurring salaries.

Outsourcing involves hiring outside organizations to accomplish the tasks and activities, through external company’s resources. This helps save a significant amount of money as outsourcing to developing nations like India is cheaper than developed countries.

Advantages of Hiring Outsourcing Team

Access to a Large Pool of Talent: Hiring an outsourcing team enables you to access a pool of talents with different skill sets and experiences.

Increased Focus on Core Business Functions: Outsourcing allows your organization to focus on its core strengths and improve the business revenue by adopting new technologies.

Cost-effective Solution: Hiring outsourcing teams is a cost-effective solution compared to hiring in-house developers. You can save a significant amount of money by hiring a dedicated and reliable outsourcing service provider like ashutec.

Flexibility: The outsourcing model is a flexible one as you don’t have to go through a lengthy process of hiring individual team members since everything will be on to the outsourcing provider.

Faster Project Delivery: Since there will be a large pool of experts from varied fields available, the delivery of software projects becomes fast-paced.

Disadvantages of Hiring Outsourcing Team

Management Issues: If the project is not delegated to reliable outsourcing providers, there may arise some management issues that you’d have to hire an in-house project manager to deal with.

Communication Issues: This is not a big issue in the 21st century with dozens of tools available at our disposal. Still, you need to be careful about time zones when selecting your outsourcing provider.

Quality Issues: Sometimes, the quality of the software project is not what may have been anticipated. Thus, you need to hire a reliable team like ashutec that offers to develop high-quality software products.

A Comprehensive Overview of Outsourcing Vs In-House Development Models
Many factors have contributed to the rise of the outsourcing model. Here’s how the Outsourcing Model fairs against the…


Hiring an in-house team offers many benefits, but it’s not as cost-effective and flexible as it is hiring an outsourcing team. Also, if you require multiple hands of experts such as designers, developers, QAs, writers, etc. Hiring outsourcing providers is an ideal choice here. They can deploy multiple skill sets required on a project.

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