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Software development: in-house or outsourcing?

Your company is growing and you are planning to make investments – also in software. There are many projects ahead of you that are going to require the support of professionals. Is it better to hire an internal developer for writing a new web application or to outsource it? Both solutions have their advantages and disadvantages – learn them and choose the best option for implementation of your software project.

Internal team of experts – exclusive help?

There is a common opinion that building an internal software team responsible for the technological development of a given company is a decision that guarantees efficient and effective execution of software projects. Such an opinion is supported by strong arguments.


+ the people employed are at disposal, they know the organisation's culture and if they like the organisation's values and mission, they usually stay in a longer relationship with it, 

+ it is easy to supervise the work of developers and to modify the priorities set for them on a current basis,

+ the flow of information is quick – all the doubts can be clarified on the spot.

And why is it not always the best option for implementation of software projects?


- usually, time-consuming recruitment process that generates high costs;

Demand for developer services on the worldwide employment market is greater than supply. According to the Economic Modeling research, in the Unites States only there are, on average, 3 times as many job offers as the number of developers interested in taking them.

software job postings - programa

 Source: The Labor Market Supply & Demand of Software Developers, Economic Modeling 


Because of this, it is hard to find a competent person who would fit a given organisation. The developers themselves do not consider this a problem – they find it relatively easy to switch jobs, since the competition awaits them with open hands.

- the necessity to not only ensure fixed salary, but also cover the costs related to employment and non-salary benefits,

financing internal and external trainings in skills and soft competences,

costs related to creating an appropriate work environment.

The needs of developers do not end on a comfortable chair and working computer – chillout rooms and creative spaces have become a standard a long time ago. In order to maintain high efficiency of employees it is necessary to offer them "something more".

Outsourcing developers – an optimal solution?

 As you can see, creating one's own team of developers is a large investment. Not all the enterprises are ready for it at the moment when it becomes necessary to make an application. That is why it is a good idea to seek support of an external company.



+ from among many companies operating on the market you can choose the one that is going to provide the best offer, one that is adjusted exactly to our needs,

+ you have the opportunity to obtain initial price estimate for the idea and negotiate the offer conditions prior to commencing project implementation,

+ you do not incur any additional costs related to investing in infrastructure, i.e. hardware, office spaces, etc. The object of the transaction includes "only": time, ideas and mode of implementation,

+ you limit the risk of the effects not meeting your expectations – especially since the service price includes also submission of regular reports on project implementation,

+ the work on the solution is efficient – you make settlements for performance of specific activities, not for being available.

bugilo project management

You can see the tasks in the project management tool, for example, Bugilo

However, outsourcing is not an answer to all the challenges related to efficient implementation of software projects that the companies face. Engaging inexperienced people to work on an application that is important to us is a risk.



- limited supervision – some companies limit the contact and informing on the progress of works to reports only.

Solution: regular meetings and designation of project teams on both sides minimises this risk to a large extent;

- communication difficulties – it is difficult to discuss the details of collaboration if, for example, the difference in time zones is a major one and in order to have a talk you would need to rise up in the early morning or stay at the office until late evening hours.

Solution: It is worth implementing a project together with a software house that is going to be available during the business hours of your enterprise, uses actively the communication software such as Skype or Hangouts and has no trouble communicating in your language or a jointly chosen one.

- challenges related to data security – outsourcing of the project always entails disclosure of some sensitive information.  

Solution: prior to making the final decision regarding outsourcing, it is worth making sure that the data is going to be stored on servers made available only to people dealing with your project. It is also necessary to remember about signing a non-disclosure agreement (NDA).



When developing the project – irrespective of whether it is a web application or a website – you need to decide whether you build your own team of developers or entrust this task to outside specialists.

Prior to choosing the form of project implementation, analyse your company's situation in detail and carry out research of potential partners. How will you know whether a given software house is worthy of your trust? Here are some tips that will help you choose the right software house for implementation of your project

Doing business is based on mutual trust of all the parties involved and their acceptance of certain rules of cooperation. This rule applies also to collaboration with external specialists. Outsourcing is a new attitude towards doing business that is being employed by an ever-increasing number of companies and startups that look for ways of optimising costs and business development paths.


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