Outsourcing vs In-House Software Development
Outsourcing vs In-House Software Development

When it comes to software development, the choice between in-house vs outsourcing options always stands in front of an entrepreneur. And the preferred one depends on your needs and budget. In this article, we will look at both alternatives, discuss their pros & cons and show you an additional option.


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Advantages And Disadvantages Of In-House Software Development

Given that in-house development often retains more control and customization over the end product, it may have some advantages over outsourcing. But at the same time, outsourcing can be more cost-effective and allow for a wider range of potential project partners.

Advantages Of In-House Development

The primary advantages of inhouse development include:

  • Increased control – With this approach, companies have complete control over the software they create, ensuring that the end product is what they want it to be.
  • The same work culture - Since in-house developers are intimately familiar with their own company needs and know each other better, they can usually create software products with a holistic vision. This is especially important when it comes to complex systems or applications that require special attention to detail.
  • Improved speed – Inhouse development is often much faster than outsourcing, as there is no need for a third party to manage and oversee the project. This means that projects can be completed more quickly.

Disadvantages Of In-House Development

There are many disadvantages to in-house software development. The biggest con is finding experienced professionals for a full-time position takes longer. Thus, the mentioned advantage of improved speed can disappear if you do not have a team ready to work.

Additionally, suppose the company decides to switch developers on a project. In that case, this can be more difficult because the teams are already established and may not be as willing or able to move quickly. Finally, inhouse development often does not boast highly qualified specialists (unlike outsourcing).

Additionally, we suggest you read our post, which mentions seven tips dedicated to startup building. Who knows, what if your creation will be the next Airbnb or Stripe?

Outsourced Software Development: Pros And Cons

This approach has many advantages and some disadvantages too. On the one hand, software development outsourcing can offer a lower cost of the project, as well as the ability to customize the building process to better fit your needs.

Outsourcing also allows you to work with a broader range of suppliers, giving you better quality options. However, it can lead to less control over the final product and may take longer to finish a project.

Pros Of Outsourced Software Development

When it comes to creating a product, outsourced development is often seen as the preferred option. Since are a lot of reasons for this, but chief among them are the advantages it offers.

  1. It can be more cost-effective. Outsourcing can often result in lower overall costs due to the use of cheaper labor in comparison to inhouse development. Additionally, outsourcing allows companies to focus their resources on other areas, such as marketing or R&D.
  2. Outsourcing can also lead to better quality software because outsourced programmers may be more experienced in the area you need and thus produce more reliable and bug-free code.
  3. Outsourced development allows companies to gain access to a wider range of skills and expertise than they might find in-house. It means that you can find specialists for additional tasks much faster.

Cons Of Outsourcing Software Development

There are a few cons to outsourcing software development:

  1. If you outsource development to a third party, you may not have as much control over the final product.
  2. Outsourcing can take longer than in-house development methods.

However, such problems are usually encountered when cooperating with low-quality contractors. If you work with an outsourced development team recommended to you by knowledgeable people, the chances of this occurring are minimal.

Overall, it can be a cost-effective way to get new software products or updates.

Roles You Can Outsource

There are many roles you can outsource software development, depending on your project's needs. This includes everything from coding and development to QA and testing. By software development outsourcing, you can free up time and resources to focus on other areas of your business.

Below is a list of some common roles that you may want to outsource:

  • Coding and development
  • QA and testing
  • Desktop and web application development
  • Systems administration

By the way, if you are wondering how much it costs to build a web app, we recommend you read the relevant article from our blog.

Hybrid Approach

Since there are pros and cons to outsourcing and inhouse development, we want to show you the third approach that combines these two options. This is a hybrid way to create your product.

Pros Of The Hybrid Approach

The advantages of a hybrid approach to software development are that it can improve the speed and quality of the final product. By combining software development outsourcing with an in-house team, companies can benefit from the best aspects of both models. Outsourcing can provide a quick turnaround time and low cost, while inhouse development can ensure that the product meets the company's specific needs.

Cons Of The Hybrid Approach

However, there are also some cons to using a hybrid approach. For example, if there is a problem with one of the projects relying on the shared code, it could cause complications for both projects. Furthermore, if one project fails, then the entire hybrid approach could be compromised.

Hybrid vs In-House vs Outsourcing Software Development: Comparison








Skills Versatility




Development Pace

Fast (if you have a team ready to go)

Slow (if you need to hire specialists)



Work Efficiency

Depends on your team

Usually higher than an in-house team hired for the same money (depends on a chosen contractor)


Safety of Your Data


Good (if you made an NDA)

Good (if you made an NDA)









What Is Your Best Choice?

As you can see, the competition between in-house vs outsourcing software development options is keen. The first one is expensive, time-consuming, and often ineffective. On the other hand, outsourcing software development to the right company can save you money and time, but not all of them have a similar experiences.

The Wetelo team can verify their in-depth expertise by showing completed projects. You can also contact us; our experts will provide you with all the relevant details.


In-house vs outsource approach – what is the right option?
In-house development can be expensive and time-consuming. It can be challenging to find talented in-house developers, and even if you do, they may not have the expertise to work on your project. Outsourcing may be a better option if you want faster turnaround times but don’t care about quality or control over the codebase.
What is inhouse development?
In-house software development is the process of creating software within an organization. This can include developing new features or applications from scratch, modifying existing software, or upgrading or maintaining legacy systems.
What is software development outsourcing?
Outsourcing software development involves contracting out the creation of software to a third-party provider. Outsourcing can take many forms, including contract programming, custom web development, and application management services. Benefits of outsourcing include access to a wider pool of talent and expertise, reduced project timelines and costs, and greater flexibility in terms of project scope and delivery.
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