In-House vs Outsourcing Developers: Which is the Best Choice?

Learn the advantages and disadvantages of hiring in-house developers versus outsourcing developers to carry out your software development projects for the business.

6 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.

Advantages and Disadvantages of Outsourcing Software Development Projects
Factors to Consider While Selecting the Right Country for Outsourcing Software and Product
Things to Take Care of While Outsourcing Your Software and Product Development Projects
Hiring an in-house developer 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 developer 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

What are In-House Developers?

Hiring in-house means hiring developers and designers who work from your offices as employees. You would have to build a whole network and infrastructure, allot a working space for them, and pay them remuneration as needed. In-house developers collaborate closely with other developers, including project managers, quality assurance analysts, and business analysts.

Hiring In-House Developers

To ensure that a company's software is built promptly and affordably, in-house developers are required. By employing developers, businesses can better manage the development process and can prioritize projects depending on their corporate objectives. Additionally, because they are intimately aware of the company's software systems and can identify and swiftly fix problems, in-house developers are better suited to tackle any pressing difficulties that may occur.

While having in-house developers can be advantageous, not every business will find it necessary or cost-effective to do so. Employing freelancers or outsourcing development work to outside providers may be a more practical choice, depending on the size, budget, and development needs of the organization. Increased flexibility, lower prices, and access to a greater range of talents and knowledge can all be found through outsourcing. Outsourcing, however, can also come with difficulties, such as problems with communication and quality control.

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 Developers

On-Site Availability: Your developer 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 an In-House Developer

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 a 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 Developers: Advantages and Disadvantages

What are Outsourcing developers?

Hiring an outsourcing developer 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.

Hiring Oursourcing Developers

Typically, outsourcing developers use the phone or the internet to communicate with their clients. They frequently give regular updates to their clients on the status of their work, and they may utilize project management software to keep track of tasks and deadlines. The extent of the project will determine whether outsourced developers work alone or closely with internal developers.

There are a number of reasons why businesses can decide to hire outside developers to do their work. Particularly for organizations lacking the means to acquire and educate more staff internally, outsourcing can assist cut costs. Additionally, outsourcing gives employers access to a larger talent pool, including experts in disciplines where there are none nearby.

Although outsourcing provides some advantages for firms, it also has some disadvantages. The absence of direct control over the task being done could be a drawback. To guarantee that the work is finished on time and to a high standard, it is crucial for businesses to select dependable and trustworthy outsourcing partners. Working with outsourced developers can occasionally result in communication and cultural problems, which might cause delays or misunderstandings.

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

Advantages of Hiring Outsourcing Developer

Access to a Large Pool of Talent: Hiring outsourcing developers 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 business revenue by adopting new technologies.

Cost-effective Solution: Hiring outsourcing developers 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 an Outsourcing Developer

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 of developers that offers to develop high-quality software products.

A Comprehensive Overview of Outsourcing Vs In-House Development Models


Hiring an in-house developer offers many benefits, but it’s not as cost-effective and flexible as it is hiring an outsourcing developer. 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. 

Ashutec Solutions Pvt. Ltd. is one such outsourcing developer you can rely on completely for any software and product development needs. They have multiple experts with various skill sets ready to be deployed on your software project. Further, they have a large portfolio and a good track record of working with small to large enterprises.

For more info write to them at to discuss your software project outsourcing needs further in detail.

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