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.
An 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. Strong arguments support such an opinion.
+ 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 long 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 higher than supply. According to the Economic Modeling research, in the United States, only there are, on average, three times as many jobs offer as the number of developers interested in taking them.
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 ensure not only a fixed salary but also cover the costs related to employment and non-salary benefits,
- financing internal and external pieces of training in skills and soft competencies,
- charges associated with creating an appropriate work environment.
The needs of developers do not end on a comfortable chair and working computer – chillout rooms and creative spaces became a standard a long time ago. It is necessary to offer them "something more".
Outsourcing developers – an optimal solution?
As you can see, creating one's team of developers is a significant 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 the 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 precisely to our needs,
+ you have the opportunity to obtain initial price estimate for the idea and negotiate the offer conditions before 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 – mainly since the service price also includes submission of regular reports on project implementation,
+ the work on the solution is efficient – you make settlements for the performance of specific activities, not for being available
However, outsourcing is not an answer to all the challenges related to the 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 – for example, the difference in time zones.
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.
- challenges related to data security – outsourcing of the project always entail disclosure of some sensitive information.
Solution: 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 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 team of developers or entrust this task to outside specialists.
Before choosing the form of project implementation, analyse your company's situation in detail and research 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 the implementation of your project.
Doing business is based on mutual trust of all the parties involved and their acceptance of specific rules of cooperation. This rule also applies 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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