Hiring vs outsourcing software development: what’s best for your business

Every business requires software. Now, it’s obvious to find out whether to hire a team for software development or outsource it to an external agency. In some cases, hiring a team can enable you to have better control over the software, and on the other hand, outsourcing will give you more flexibility in terms of managing the workforce. Organizations, irrespective of their size, find it quite challenging to decide between the two, as it impacts the project outcome. Choosing the suitable one for your business reduces the cost of software development that can be channelled to other sections for your overall growth.

Now, let’s have a closer look at the key aspects to consider before making the decision.

There is no specific advantage or disadvantage when it comes to choosing between the two, as both have merits and demerits.

Merits Of Outsourcing Software Development

• It reduces cost to a great extent, as you do not have to hire a team and pay for their salaries and training.
• You can start the project immediately, as you do not have to look for the right team to hire for your particular need.
• When you outsource, the skilled resources working on various projects and technologies are readily available and can guide you according to the current trends.
• The management will not be overburdened to monitor the software development team for their daily progress.

Demerits Of Outsourcing Software Development

•  As the team is not yours, you cannot control them directly. You must have the capabilities to negotiate with a clear set of goals and expectations.
• Outsourcing depends on the agency/third party. If the agency has any internal problems, the project may be impacted. In such a scenario, you have to think of a backup option.
•  Dependency on a third party can always pose a security threat. You need to choose a very reliable agency that can guarantee the required privacy and security standards with internationally accepted guidelines.
•  If the agency is located in a different time zone, it will require a lot of coordination, as scheduling a meeting or a simple communication with them can be difficult at times. But with a proper coordinator, the task will be easier 

Merits Of In-House Software Development

• You have the absolute right and proprietorship over the software.
• During the development phase, you have complete control over the features and monitor the progress daily.
• There is no need to sign a separate agreement on the usability and distribution of the software.
• As the developers are your employees, they are well aware of the goals and businesses of the organisation and can suitably incorporate the necessities in the software.
• The software development team requires input from various other departments in your organization, and when you have your own team, there is always good coordination between all of them.

Demerits Of In-House Software Development

• Hiring the right team is very time-consuming and needs a lot of effort by the management, as you need to choose a team of varied skills.
• You need to keep the team updated with regular training on various tools and applications.
•  It may not be so easy to lay off the workforce if you do not have the required project, as there are strict labor laws, and at times, it can be costly.
• You must have the infrastructure with the required tools and tackles to develop the software.
• Unavailability of the key resources during an emergency can cost your business a lot, as software development often requires specialization.

It may not be so easy to decide whether to hire your own team for software development or to outsource it, and you need to take into account a couple of factors before taking the final call.

Let’s break it down into a couple of steps, which you can evaluate to decide which one would be the best option.

Your Needs: 

You require the software for a specific need. It may be a small part of a large project, or the software itself may be the project. When you are looking to develop the software for a simple solution that does not require regular monitoring and updates, you can think of outsourcing it with a small cost, as hiring a development team would be too costly for the simple need. On the other hand, if you are working in the SaaS (Software as a Service) Model, where software is the key to your business, then you should hire your own team of developers for constant monitoring of the software.

Potential Of Your Team: 

Even if your organization develops software and has a workforce dedicated to it, the team must have the required expertise when it comes to developing new software. If the workforce is dedicated to a specific project and cannot spare time for the new software, then you need to either hire a team or outsource it. Now you need to assess your goals to make a calculation. If it’s a one-time requirement, you may go for outsourcing, but if you hire a new team with varied skill sets, you can take up various projects, which would be ultimately beneficial to your organization. Based on your efficiency in generating more business, you have to make an informed decision.

Cost: 

Finance is an important part and must be taken into account before making the decision. When you are hiring a team or a resource, you have to follow the rules and regulations in your location. As you have to pay the remuneration to the new employee or team, you need to think in terms of the revenue generated through the recruitment. If it’s not profitable in the long run and brings in unnecessary complexities, then hiring is not a good option.

Control Of The Service: 

With rising data theft and cyber crimes, the control of the service is of prime importance. Most of the applications we use process large amounts of data, and security is very important. One has to follow the international laws about the use and disposal of data, be it personal or organizational, and for that, the application/software developer has a major role. If there's a data breach, you must contact the other agency, which may take a lot of convincing based on your agreement. Improper communication or failure to resolve the crisis can hamper your goodwill, which can directly impact your business.

Why Choose Cubet for Outsourcing Software Development

Before deciding to hire a team or outsource software development, give it careful consideration. Both have their merits and demerits, and the right choice will save you cost and energy in the long run. Think of your needs, resources, and business goals and make an impactful decision.

When you are thinking of outsourcing software development, Cubet offers the expertise for your customized requirements. We provide innovative solutions that help businesses grow and scale efficiently. Contact us today to talk with our expert about your requirements.