As an Entrepreneur Should I invest In-house Techies or Outsource to Software Development Companies?

hire full time or outsourceToday’s world with its technical advancements leads to a global connection amongst various business sectors. Many startup entrepreneurs are also trying to utilize this connection in order to grow and prosper in the respective domains. Now, the big question is that whether these startup entrepreneurs should invest in-house techies or outsource to software development companies.

There are many software vendors in India. Most of these vendors believe that the core competency of the business should always be developed by the in-house software developers. The core competency can further be enhanced with the help of software outsourcing companies.

In-house vs. Outsource Software Development

Like every business, there are various advantages as well as limitations associated with the in-house versus outsource software development. The benefits and the restrictions are largely based on the following factors.

  • Businesses prosper on innovation
  • Software outsourcing services (may) lack security and focus
  • Outsourcing software development reduces distractions
  • Higher cost of employing the in-house team
  • Lower costs associated with outsourcing software development
  • Outsourcing software development enables focus on marketing
  • Outsourcing software development ensures flexibility
  • In-house team has a sense of ownership

Points to Ponder

When you utilize the software outsourcing services, you are benefitted by the different skill sets available to produce a world-class product. Although not impossible but there is always a fight to have in-house techies produce the same result. This is attributed to the lack of skill set and required experience. Moreover, the software developers usually fail to maintain the interest level while working on a project. Further, it is not feasible for the organization to satisfy the software developers with different projects. In such cases, it is best to have in-house software maintenance after the product is built. In this way, you will have the flexibility of exploring the code.

Although the cost of employing in-house team is more but there is always a risk of data security while outsourcing the software development. At the same time, while the outsourcing is costlier it also reduces distractions. The fewer the distractions, the more focus can be laid on the marketing aspects of the product.

Yet another important factor is the deadline to achieve the final result. In case you are not sure of the timeline then it is advisable to use the software outsourcing services. In case of in-house team, although there is a sense of ownership but it may be tough to manage the strategy and investments across the different stages of the product.


It can be well concluded that the core competency of the product remains for the complete life cycle of the product. So, it is a good idea to have in-house team if you have technical person in your team with enough funds for developing the primary features of the product. However, since the software outsourcing service providers need minimum amount of management, they can very well be hired for specific talent and skill sets. None the less, the in-house team provides a better control but if you move with a hybrid model like technical interview route before hire any outsourced techie, hire a technical project manager (technical consultant) too who is either local or work within your time zone. This process could be much cheaper than hiring someone full time and effectively follows the proper (agile) methodology.