Why Outsourcing Web Development Is Better Than In-House?

2020-03-23 by Rebecca Lee

Are you stuck between getting everyone in the same office space to work relentlessly on the shared objective? Or planning to save massively on offshore outsourcing with a leading web development company?


Or if you have decided to develop software or a mobile app, there is an urge to determine how to organize the development process. So the question arises - Which team of website developers to hire - Outsource or In-House? 


So, let’s uncover the secrets behind each option. 


There are numerous factors to compare and consider, but by focusing on the right factors it will make your selection process a lot easier.


Let’s walk through the considerations.


  1. Advantages
  2. Risks
  3. Costs


I will funnel down these three factors, using the same scale, to evaluate the options for each of the two choices.


1. Risks : In-House Vs Outsourcing 

On both sides of the fence, you seem to be surrounded by some underlying risks. First, if you are not a technology proficient, there is a risk in trusting self-acclaimed proficients. Then you are on the peril of hiring viable talent, managing employees, and even employees turnover.


Most importantly, there is the risk of the overall success of your project. As accompanied by the most things in business, there are pros and cons to both options.


Let’s take a look with the main risk related to the in-house development team first.


a)Risk With Hiring In-House Development Team  


The time you opt for in-house to hire a website developer, you acquire all of the risks in terms of their abilities. So, the most common question that comes along the way is....


Do you know how to make the right hiring for tech talent?

That’s an obvious prerequisite to hiring in-house talent. But if you are a newbie, you will need help from an expert, or you will be taking a risk in that you will be able to recognize the right talent when you see it.


Do you know what skills are needed?

Having access to a pool of proficients, with a presently evolving skill set, will eventually help your firm thrive. But, what skill set is needed to develop the product and manage it to completion and execution after launch? How many resources are required to build the native app or engineer relevant software? Which alternatives will deliver the skill set of service to gratify the level of service your project needs - now and in the future?


In the 1990s, a handful of forward-thinking companies yearned to stay somewhat relevant by staffing one or two IT experts. And, the time when they were not playing Minesweeper, they were successfully abreast the technical curve.     


However, in the present scenario, it takes an entire IT village to raise up an online and mobile success that meets the needs of the masses.


The conventional resources required to develop a successful business app consist of:


  • Android and iOS app developers
  • Interactive designer
  • Front-end developer (web) and back-end developer (server-side)
  • Project and product manager
  • Business analyst (you are building a business, not just an app)
  • App marketing expert, App Store Optimization
  • Quite possibly a data scientist


Except, you are picking from the clearance aisle, these assets are not cheap. You might think there is no way you will need all of these people in your project, but I have seen (less than 1%) successful business app without all these disciplines included.


However, assuming you have got some candidates, you will be solely responsible for training, planning, feedback loops, re-development, on-going product evaluation and everything. And, as a surprise, managing a team of technology geeks isn’t the easiest task - especially if you are not dwelling from the IT backdrop.

Turnover Is Other Risk That You Can’t Ignore

As per Payscale, the technology field has the minimum average tenure rate to any other field. While using in-house talent, make sure the competitor company may come calling - and, undeniably, one of the essential asset developers of your firm might jump the ship. 


With in-house IT operations, you are at likely risk of attrition. Whereas, onboarding other technology experts can put your complete project on hold - alarming the entity of the product.


As for the overall success of your project, the risk does not entirely fall on the web development companies in Dubai or the team you hire - assuming you partner with the right team.


b)Risk With Outsourcing Your Development Requirements

While choosing your offshore development partner, your main risks include:


  • The firm stepped out of the business.
  • Not able to meet the deadlines.  
  • They take your money and vanish.


In another way round.... Your risk is in hiring the right firm, with the right talent, with the right process.


Thus, you need to know what you are looking for and what questions are crucial to ask to be sure you hire the right team.


  • How much experience the firm has in development?
  • Are they able to provide you with the latest portfolio?
  • How is the quality of their work?
  • Do they have experience in building similar apps or similar components like your requirements?
  • Will they provide after launch technical assistance?
  • Did they only provide you with a one-page bid?


If you are considering a reliable and experienced web development company, and you are not satisfied with answers to the above questions, there is a probability that “Shady Eddie’s App Developer” may not be in the arena for a long time.


When it’s all about outsourcing software development, web development, and creating a mobile app - choose an established and certified firm that has an excellent reputation and understand the insights of business software. Then, possibly you won’t be stuck trying to breathe life into a partially complete software project when fly-by-night tech firms skip to meet the timeline.


2. Benefits - In-House vs Outsourcing

I have given you cold feet with risks but what about benefits? Of-course there are distinctive benefits related to each option. Yes, you heard it right. Let’s have a quick rundown to them...


a)In-House Web Development Benefits

After you have installed your in-house team, you have got them in your palm. You are the boss.


However, tedious it may be to achieve, develop, and manage IT talent, having some experienced proficients in your home court, is one significant advantage to an in-house operation.


This means a more exceptional ability to create a culture around your product and your business also. A dedicated team that is only focused on one product, one objective, all in synchronization towards a common goal.


Although hiring a good development team will keep you continuously engaged in the process, when your team is in-house. You have full authority and control over every aspect of the product as well as the knowledge gained while building it. So, please don't rely on the timelines whether your team will make it or not on the side.


This provides you with a clear vision about the progress.


b)Outsourcing Web Development Benefits   

The most prominent benefit of outsourcing web development requirements is, by far, the availability and scalability of the powerhouse skills pointed in a proven technology development firm. The skills that provide business wizards, data science, designing, programming, and ongoing enhancement of the products and business, representing the immense value of outsourcing an experienced third party and entrusting them to nurture your business. 


An experienced and trusted technology firm will have more than enough talent to understand and implement your project requirements well. And, the experts on staff will be available to you, as per your need.


Now, it’s no more a question of “Who do you hire website developers for your company’s progress in the global market?” instead, you reach out to the technology firm, and it will put the right person on the task. Surely, you pay the firm to do the heavy lifting and to take on the potential resources risks.


Provided you are with an experienced technology firm. The risk of your overall product delivery is minimal. An experienced and entrusted firm will count the risks of the development and production of your project. They will keep you from pre-planning to implementing the project.


Further, they will make ongoing resources available to be sure your redevelopment needs are covered.


Talking about the “Turnover”, turnover of employees is also a critical aspect to absorb. 


In the prospect of turnover, a good tech development company will keep you in the loop throughout the development to work quickly to make things right. But, if I talk about a high technology company, it will have redundancies in place to be sure there is no hiccup in the production, development, retooling of your project.  


And, if you are working with the right web development company, turnovers and employee development is uniquely something you will have to consider. 


A successful app takes much more than a good software company.


The right app development company, that’s worth the value, will understand the prerequisite, process and skills that are necessary and work to secure the long term sustainability of the project. 


3. Cost - In-House vs Outsourcing

Placed as the last but not the least, cost is a decisive factor. A steep bottom line exists on both the sides of the scale. How much will it cost for your company to hire website developers for your software development or app compared to in-house IT staffers for the project?


“How much?” You must be thinking


It’s expected to shell out for quality web development or the building of your next big project?


Let’s dive deep…


a)Cost Of Hiring In-House Web Development Team

An experienced developer is worth the investment. But, as I have covered, you will need more than just a good developer. Hopefully, finding all the necessary talent to handle the resource needs of the company. It’s better to take a look at the average annual salaries of the IT proficients for quality web development purposes.


On average tech salaries for iOS developers ranges from $80,000 and Android developer $ 84,562, Back-end developers $ 116,808, designers $67,281, project manager $ 91,440 and Data scientist $91,440.   


By the time, when you add up the average salaries for each team player, you are possibly looking at more than $500,000/year. It is undeniable that some group may be able to get by with a bare-bones operation.


However, if you bypass the sparkle to hire website developer from a trusted firm and settle for a minor-league app development team, it is for sure to put you in the ballpark of approximately around a whopping amount per year, irrespective of equations taken in account equipment, personnel management, licensure or office space - that is a considerable chunk of change.


b)Cost Of Hiring Outsourcing Web Development Team

Relying on a technology company and signing on the dotted line can maximize the blood pressure, for sure. Outsourcing is a lot less expensive in comparison to in-house or better to say owning an IT department, but it’s still a considerable investment.


And, if your partner with a wrong firm in the past and have been taken for a voyage by an IT self acclaimed professionals who had promised big and come up short, then possibly you may have a bitter taste in your mouth.


While there are many web development companies in the market, the reality is a competent and experienced firm will be worth every penny spent. Not just this, you will get years of knowledge and expertise that you simply won’t have and even can’t afford to bring in the infancy stage of the company.


But What Will It Cost To Outsource Your Development Prerequisite?

A typical experience outsourcing development firm to hire a website developer will cost you an hourly basis of $ 25-49/hr. Besides, they have a couple of different rates for different trades or skill set depending upon their model.


Moreover, they will add these numbers collaboratively, applying a buffer, and come out with a cost. Typical app development firm cost ranges from $100-$250/hr


App costs vary depending upon the size of the development firm and, for sure, the complications related to the project.


  • Large companies: $250,000 — $1,000,000+
  • Medium companies: $150,000 — $450,000
  • Small companies: $50,000 — $150,000


As per the report by Kinvey, on average, firms spend around $270k to develop an app.


In The Last... You are developing a business not just an app.


So, undeniably outsourcing your web development, app development requirement keeps you reminding of the fact that “Outsourcing Your Project Requirement Is The Best Fit”.


Even, in the early stages, outsourcing makes every effort to minimize your risk while maximizing the potential of your business opportunity. If this means hiring an experienced team to outsource development requirements from leading web development companies in Dubai, then partner with the best one you can afford.


So, make sure you weigh the risk and make the right decision that’s just perfect for your new business.

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Rebecca Lee

Rebecca Lee is a Sr. Business Consultant in one of the top software companies in Dubai. Apart from consulting she has a keen interest in writing too. She is a graduate from a renowned business school and has done much research work in this field. Apart from this, her keen interests linger around reading novels, discovering new cuisines and culinary arts.

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