Jānis Blaus
Jānis Blaus
25 November, 2018

Should You Hire In-House Or Outsource Overseas

Every business owner attempting to start a software development project will have this burning question, should I hire an in-house team or outsource to an overseas agency? Unfortunately, there isn't an answer that fits every scenario. If you're still contemplating your choices, here are some factors to consider.

1. Talent

If you’re setting up a business in a geographical location where talented software developers flood the job market, setting up an in-house team may be a wise option. With this said, you’ll have to bear in mind that there are various disciplines in software development. You wouldn’t want to bring in a team skilled in backend coding only to get them to pick up UI design, just because there are hardly any locally. On the other hand, overseas software development firms are usually staffed with professional developers in multiple disciplines. This enables the firms to take on diverse projects that often need a combination of two or more expertises.

2. Cost

The cost of hiring in-house or outsource can vary as they are dependent on a myriad of factors. For setting up an in-house team, you’ll have to budget in the recruitment cost, training, medical leaves, and other entitlements that are provided by the regulations in your country. If you only need to develop a single application, these long-term commitments may not be justified. There are also horror stories of overseas outsourcing where clients are presented with an expensive bill. However, these cases only occur when you engage software development firms that have low credibility and are unprofessional in their dealings. Working with professional development firms can be cost-effective, as you are given a timeline and the cost that will incur for the specific project. When you outsource overseas, you can even leverage on the currency exchange, if the firm operates in a country with relatively low currency value.

3. Recruitment

If you plan to set up an in-house team of software developers, you’ll have to go through the recruitment process. This is time-consuming, and there’s the risk of hiring the wrong people into your team, especially if you have limited knowledge of software development. Instead of spending hours crafting the right technical interview questions, it will be more efficient for you to engage software development agency with a proven track record. Of course, you’ll be better off recruiting an in-house team if you are building a business that is entirely dependent on a proprietary software.

4. Communications

One of the advantages of having an in-house development team is the direct communication access you have with the team. Any requirement and issues can be conveyed directly. This minimizes miscommunication that results in the wrong features being developed. When you’re outsourcing overseas, ensure that you work with a software development agency that communicates in a language you’re familiar with. At Netcore, we have worked with various clients globally who prefer fluent English speaking software developers.

5. Turnaround Time

There are claims that outsourcing could result in a faster turnaround time. At the same time, there are also proponents of shorter development lead time with an in-house team. At Netcore, we believe the turnaround time can vary for both options. If you engaged a proficient software development company overseas but have their resources stretch to the limit, it may take slightly longer than desired to deliver your software. An extended development timeline can also happen for an in-house team when the scope of work is beyond the current capability of the team or due to other miscommunications.

6. Nature Of Applications

Are you building a full-scale e-commerce system with mobile apps integration that needs to stand out from the common platform in the market? Or are you developing a standalone CRM management software to improve process efficiency? Software that has heavy customer interaction and conveys the unique brand of the company may be better supported by in-house developers in the long run, as they are instilled with the culture of the company. But if you need a customize business process application that does not directly affect the existence of your company, outsourcing is often an economical approach.

Your Takeaway From This Article

Unless we fully understand the nature of your business and the software requirements, we are not in the position to advise you to outsource or set up an in-house team. It pays to perform due diligence and consider each of the points mentioned above before you make a final and vital decision. Still undecided on whether to hire in-house or outsource overseas? Get in touch with professionals at Netcore.

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