Is your business losing money, time, and effort for having an in-house software development team? If you are seeing these signs, it is time to think about outsourcing.
To outsource or to insource, that is the question.
There are many dilemmas to face when it comes to business, and one of them depends on whether to develop software in-house or to hire a nearshore/offshore firm.
This is a very important decision that can affect a company’s performance, which is why enterprises need to take every factor into account that underlies this resolution to ensure they are choosing correctly.
Do not miss this: 8 benefits of working with an offshore software development center
1. Focus loss
If your core business is not related to IT or software, then having an in-house software development team increases the amount of work to do.
When you have a department inside your company, you will have to be more aware of the daily progress and make technical and trivial decisions. Additionally, you will have to take on project manager tasks, ensure that the implementation activities are completed on time, and recruit the right staff, among others.
Moreover, if you are not an expert in this area, you may have to be in charge of a project with technologies you do not know well. That way, you lose attention and time to carry out the most important assignments, such as running the business, monitoring your corporate plan, marketing your product, etc.
2. High costs
One of the biggest drawbacks of having an in-house software development department is that it is much more expensive than outsourcing. First of all, you need to make sure you have the right equipment for the team to work adequately, which means a large investment in infrastructure.
Along with that comes the fact that you must ensure you are hiring the most experienced professionals, and if not, you put the software’s quality at risk, which can lead to higher costs in the future.
Take a look: Software quality or price: Which one really matters?
3. Low quality
Considering your company’s core competency is probably not software development (or your software company is not big enough to accomplish large software projects), there is a strong possibility that an outsourcing company will be able to do the job much better than you will.
If the team inside your company does not have the expertise required, they can make many mistakes regarding the estimation of the project and its scope and scalability, which may not only delay the process but also the final result.
By hiring a company dedicated to software, you can solve this problem as they have vast experience working in similar projects, bringing you the best solution with the highest levels of excellence.
4. Higher risks
When developing software by oneself, there are many decisions that have to be made in an uncertain context. For a company (especially one that is not an IT specialist), that carries a lot of risks that fall under the responsibility of the organization’s managers.
The best way to diversify those risks is by sharing them with a partner with more experience in the field than you. That way, if something goes wrong, the impact on your enterprise will be minor.
5. Waste of time
An in-house software department demands much more time than you think. Not only because finding the right developers that fit your company best takes a lot of time, but training them and leading the entire process can take you away from other important matters you have to deal with.
Overseeing the development represents time, a lot of effort, and dedication you may not have.
Besides, internal employees have probably less experience in software development than the ones in an outsourcing company. They are trained and well-qualified to do their job faster, allowing you to get your product to the market as soon as possible.
6. Hiring issues
If you have decided to develop software in-house, you have to carry out the recruitment process, and if you are not a staffing expert, it can turn into a difficult task.
To begin with, finding the proper personnel with the required skills is not easy at all as the demand of developers and software specialists increases more and more. Besides this, the search, interviews, and training take a lot of time and entail significant costs.
If you outsource software development, then the other organization has to carry out all of those tasks and becomes responsible for ensuring its correct execution.
This can be useful: Custom software development: Why choosing it instead of off-the-shelf solutions?
7. Limited skill sets
Since hiring the most experienced professionals in the technology industry is a very difficult expensive, and demanding challenge, you may have to end up settling for the best you can get, but not the best in the job market.
Even if you get the chance to hire skilled employees in some particular technologies, the number of workers you can hire for an in-house team can be limited, which is why every employee will have to carry out many tasks at the same time instead of focusing on their specific knowledge and deepening it.
Working with an outsourcing software development company has the benefit that it has professionals with expertise in diverse technologies that can be assigned and will focus only on your project, reducing team management issues, and enhancing their productivity. An added benefit is that dedicated team members have a deep understanding of the client’s project and business goals.
Content related: What to consider before outsourcing a software product
To Sum Up
Even though having an in-house software development team may seem the cheapest, fastest, and most optimal choice, it entails many risks that can make you end up with a defective solution, and what is even worse, they can affect your core business in the long run.
So, take a deep breath and think: Are you having these problems in your company? Have you thought about hiring a nearshore/offshore software company so you can make sure your project is in the hands of qualified professionals?
Maybe this is the time to do so.
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