In House Vs Outsourcing Website Development: Full Breakdown

in house vs outsourcing

It’s no secret that the world of website development is changing rapidly. With so many options available, it can be hard to know which type of development is best for your business. That’s why we’ve put together this article to help you make a decision. In it, we will compare in house vs outsourcing website development, and by which provide you with the pros and cons of each option. By the end of this article, you’ll be able to decide which type of development is best for your business in 2022. 

In short, in-house website development refers to the process of designing, building, and hosting a website within the organization itself. By contrast, outsourcing website development is the process of contracting a third party to create or improve a website on behalf of your business

In-house Development

An in-house development team is a group of developers within your company. They work under your control, strictly on their tasks – web development and maintenance, and will do so under the culture, mission, and vision established by your company.

You need to go through the recruiting, interviewing, and onboarding process to build your IT team.

Pros

1. Direct communication and management

Direct communication is the obvious benefit of having an internal team. They are dedicated to your company. You can have face-to-face discussions to help speed up the process, especially when you finalize the project requirements.

2. No cultural differences

A successful company is driven by a dynamic team that reflects the company’s core values. Through internal development, you have the opportunity to select team members that fit the startup culture. It helps employees integrate effectively, adding value to their work.

3. Immediate support

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Instant support is a privilege brought by internal development. When you deploy a new product, some defects will inevitably appear. An internal team can perform investigations immediately and directly apply fixes. If you hire an outsourcing team, the response may be delayed because the group may be jam-packed.

4. Internal Expertise

Because they’ve worked with the web from the start, and are members of your company, they know the website and everything around it. So in case of an issue, they may be the ones who can spot the cause and fix it in the shortest time.

Cons

1. Hidden cost

Be prepared to pay for hiring an in-house team’s visible and hidden costs. According to Payscale, the average salary for an IT developer in the US is $71,508. There would also be more fees for sick leave, vacation, insurance, office supplies, recruiting, and onboarding of each member you bring. 

2. Distractions in a face-to-face setting

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Offline communication is smoother and more accessible, but it can come at the cost of productivity. Your team members can be distracted by other people or some activities in the office, which sometimes extends the time spent on a task.

3. Responsibility for upskilling the team

Technology constantly changes. You have to make sure your team keeps up with the change, especially when it affects your product growth. Investments in training and tools can dramatically impact your business’s bottom line.

4. Limited creativity and innovation

The members of an internal team are usually more experienced in their field. This can limit the creativity and innovation that is necessary for your company to stay ahead of the competition.

5. Limited job satisfaction

Internal development may not offer the same level of job satisfaction as freelancing or working with an outsourcing team because they are not able to control their work environment as much.

Outsourcing Development

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Outsourced development implies entrusting the process of building a product to an outside agency. These may include freelancers or agencies specializing in specific tasks or projects. It is usually done through a contractual agreement that communicates the requirements to the outsourcing agency.

Pros 

1. Lower costs

Local developers get paid more than outsourced online workers, another reason why many entrepreneurs choose to outsource help. Spending half the cost of outsourced technicians is a welcome idea for those just starting.

2. No shortage of resource capacity

In terms of team lineup, development outsourcing is a more flexible approach. For example, the team lead, QA engineer, backend, and frontend developers have been working on the project for three months. But such a large team is useless after web release unless the website’s architecture is complex and needs close observation.

3. Broad access to an international talent pool

There are plenty of talented freelancers and agencies out there. They can specialize in certain types of projects, while some can handle all kinds of projects.

It won’t be challenging to find a qualified contractor who can complete any project you intend. You can find subject matter experts with detailed, in-depth knowledge that your team can’t match.

4. Flexibility

Outsourcing to another company can help you quickly get the resources you need. Some projects require diverse skill sets, and it can be challenging to find individuals who are well versed in all professions. However, you can partner with several IT companies proficient in the different technologies needed to build the solution. 

5. Reduced risk

When resources are scarce, outsourcing can reduce risks by providing a pool of reliable and qualified contractors. This can keep you from having to use your own resources for tasks that may not be as critical, saving both time and money.

Cons 

1. Less control

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When you outsource your project, it can be harder to know how your task is going. You have less visibility and generally less communication. 

Even the best communicators will rarely give you a daily check-in because it is impractical to talk to all of their customers daily.

2. Possible security problem

Bringing in a third-party team can make issues around information and security liability. This is a more significant issue when using an offshore company, where laws regarding privacy and security may vary. Businesses should ask questions about how suppliers protect sensitive data, including employee and product-related information.

3. Language & Cultural barriers

Language and culture are other possible drawbacks. Unless both partners speak the same language, there’s always a chance of miscommunication due to different languages. Also, cultural barriers may lead to work conflicts.

6 Key Factors to Compare In House Vs Outsourcing Website Development

There are a lot of things to consider when choosing whether or not to outsource your website development project. Here are some key factors to keep in mind:

  • Cost
  • Communication
  • Involvement
  • Skillset
  • Time
  • Turnover

Let’s get started! 

When it comes to website development, the key factors that you need to compare are cost, communication, involvement, skillset, time, and turnover.

Cost

When it comes to cost, in-house website development is usually more expensive than outsourcing. However, this isn’t always the case – depending on the complexity of the project and the number of people involved. In some cases, outsourcing can be more expensive than in-house development if the scope of work is too small or if there are too many customization requirements.

The main reason why in-house development is more expensive than outsourcing is that a company’s internal resources (like software developers and designers) are usually dedicated to its own products rather than working on multiple projects at once. This means that they’re usually better equipped to handle a complex project like website development effectively. On the other hand, an external provider will typically have fewer resources at their disposal, so it may take longer for them to finish the project. 

Communication

Communication is another important factor to consider when comparing in-house vs outsourcing web development. If you want your team to be able to work together efficiently and without any conflicts they will need to be able to communicate effectively.

In-house web development usually involves the use of a single designer who creates all the graphics, logos, and other visuals for the site. This approach can be effective if the designer is highly skilled and familiar with all aspects of web design. However, this method has one major drawback: it’s difficult for team members who are not familiar with graphic design to understand what the designer is doing. As a result, disagreements can often occur over how something should look, which can lead to tension and conflict.

Outsourcing web development eliminates this problem by hiring a separate graphic designer who works on behalf of the client. This approach allows team members from different departments (like marketing and engineering) to work together more easily because they can each understand what the other person is trying to achieve. In addition, it allows the client to focus on their core business rather than having to deal with daily issues related to website design.

Involvement

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Involvement is another important factor to consider when comparing in-house vs outsourcing website development. If you want your team to take ownership of the project and feel like they’re making a real contribution, then in-house development might be the best option for you. However, if you’re more concerned about speed and efficiency, outsourcing may be a better option for you.

When it comes to in-house development, you’ll need to make sure that your team is fully engaged with the project from start to finish. This means that they should have access to all the resources and information they need to complete the project successfully. It’s also important that you give them enough time and flexibility so that they can complete the project on their own timeline without interference from you or other members of your team.

On the other hand, if speed is your top priority, then outsourcing may be a better option for you. Oftentimes, offshore developers are able to produce websites much faster than in-house teams can. They also have experience working with different platforms and technologies, which makes them better equipped to create a website that meets your specific needs.

Skillset

If you’re looking for someone with a certain set of skills then in-house development may be the best option for you. This is because your team will be able to assign specific tasks to the developer, ensuring that they are able to work on what you need them to work on. Additionally, if something does go wrong then you’ll have more control over how it’s fixed and who is responsible for doing so. 

On the other hand, if you’re not sure what kind of skillset you need or if you want someone who can do multiple tasks then outsourcing may be a better option for you. This is because an outsourced developer will likely have more than one set of skills, which means they can handle more than one type of project at once. They’ll also be able to help with research and development so that your website updates and changes run smoothly.

Time

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Time is also an important factor to consider when comparing in-house vs outsourcing web development.

If you want your website project completed as quickly as possible then in-house development might be the best option for you. With in-house development, you have complete control over the project and can rigorously timelines and milestones to ensure that everything is done on time.

Plus, you don’t have to worry about any lengthy negotiations or waiting periods – your web development team will take care of everything from start to finish.

However, if you’re not a fan of tight deadlines then outsourcing might be the better option for you. With outsourcing, you give your web development team a set amount of time to complete the project.

This way, there’s no pressure to rush anything – the team can take their time and create a high-quality website that meets all your specifications.

Turnover

When it comes to web development, turnover is a huge issue to consider.

If you want a team that is permanent and will stay with your company for a long time then in-house web development may be the best option for you. With in-house development, you’re guaranteed that the team working on your website will be with you from start to finish.

They’ll be able to develop a strong relationship with you and understand your business better than any outsourcing company could. Plus, you’ll have complete control over their workflow and can make sure that they’re always meeting your high standards.

However, if you’re looking for a quick and easy solution then outsourcing web development may be the best option for you. With outsourcing, you’ll get a team of specialists who will work on your website project from start to finish.

They won’t have as close of a relationship with you as in-house developers do, but they will still be able to produce high-quality work. Plus, they’ll be able to quickly adapt to changes in your business and provide solutions quickly – unlike in-house developers who are often slower at reacting because they’re more entrenched in their own process

In House Vs Outsourcing Website Development: Which One Is For You?

In the previous parts, we have figured out the advantages and disadvantages of in-house vs outsourcing website development. Now we will suggest some types of business/ projects that are suitable for each approach.

Who needs in-house development?

With the advantages and disadvantages of hiring in-house services, the right audience for this service is primarily large businesses, and their requirements usually include:

  • Have complete control over a project
  • Need long-term support
  • Handle sensitive information
  • Need full project management

Who needs outsourced web development?

Outsourcing services are usually for small and medium businesses when their requirements are not too complicated:

  • Need short-term help
  • Have specific tasks distractions
  • Have tight deadlines
  • On a limited budget

Exceptions

However, there are many large enterprises that love to outsource services from foreign web development companies.

Many agencies offer high-quality outsourced software development services because they provide developers with excellent skills and extensive knowledge. And Tigren is confidently one of the choices of any business looking for outsourcing web development.

We have nearly ten years in web development. Our clients come from many countries around the world. Tigren always satisfies the most demanding customers.

Whether you are a large enterprise or a startup with a low budget, we can provide appropriate service with guaranteed quality.

Let’s check out our website to see incredible works!

Tigren

Final Thoughts

Overall, in-house vs outsourcing website development – choosing one depends on several factors.

When coming to a decision, be sure to weigh the advantages and disadvantages of each approach, as they relate to your particular business structure, culture, and requirements. No one knows your business better than you, and ultimately you want to make sure that your IT staff (internal or outsourced) are always in your best interests.

Read More:

What Is Offshore Outsourcing Web Development?

Significant Benefits Of Outsourcing Web Development

Offshoring Vs. Outsourcing Web Development: What’s The Difference?

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