When businesses aim to establish an online presence, they’re confronted with a crucial decision: should they develop their website in-house or outsource the task? Each approach offers unique advantages and challenges that influence cost, timeline, and the quality of the end product.
In-house website development involves utilizing a company’s internal team, often leading to higher costs due to dedicated resources, better communication, and greater involvement. Conversely, outsourcing relies on external teams, potentially offering cost-effective solutions.
To understand the nuances of each method, let’s delve into their distinct characteristics.
The Pros and Cons of 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.
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
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.
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
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.
The Pros and Cons of Outsourcing Development
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.
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.
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.
1. Less control
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 cause 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:
- In-House: Often pricier as resources like developers and designers are dedicated to one project, ensuring a more effective handle on complex projects.
- Outsourcing: Can be cost-effective unless the scope is too small or requires excessive customization. Outsourced teams may take longer due to fewer resources.
- In-House: A unified team can communicate better but may face disagreements when members lack understanding of specific design elements.
- Outsourcing: By hiring dedicated specialists, cross-department collaboration becomes easier. Clients can concentrate on core business, not everyday website design issues.
- In-House: Gives teams a sense of ownership, requiring them to be fully engaged. Provides access to all necessary resources, time, and flexibility.
- Outsourcing: Offers speed and efficiency. Offshore developers often deliver quicker results with versatile platform and technology experience.
- In-House: Suitable if seeking specific skills; offers more control over issues and their resolution.
- Outsourcing: A broader range of skills available, allowing for multitasking. They can assist with R&D, ensuring smooth website updates.
- In-House: Offers complete control, ensuring adherence to timelines and milestones without external negotiations.
- Outsourcing: Provides a more relaxed timeline. No pressure, just a focus on quality within the stipulated time frame.
- In-House: Guarantees a committed team that understands your business intimately, ensuring consistent quality.
- Outsourcing: Delivers specialists for the project’s duration. They might lack a deep business relationship but adapt faster to changes and offer timely solutions.
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
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.
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.
Whether you are a large enterprise or a startup with a low budget, we can provide appropriate service with guaranteed quality.