In-house vs Outsourcing — What You Need to Know

Outsourcing tech development is a convenient way to scale up — assuming you know what you’re looking for. But doing it in-house is the other side of the coin. Both are viable; the decision usually comes down to the project’s scope, time-frame, budget and, above all, your team. Whichever you choose, define your requirements and expectations first.

Why hire in-house

In-house (insourcing) assigns a project to a person or department inside the company. It costs more but lets you train people to your needs and have them available on demand — valuable for emergencies like a security breach. Benefits: face-to-face engagement and morale, a long-term relationship you invest in, and an easier management process with fewer language, cultural and time-zone hurdles.

The downsides of in-house

The cons are mostly restrictions: financial outlay, time and quality control. Finding the right person, onboarding and continuously training them is costly and slow — plus a competitive salary and benefits to retain them. Once you assemble the right team, though, you’re in full control.

Why outsource

Outsourcing offers convenience of choice — practically limitless access to specialists in software development, product design, UX/UI and more. It saves time once you know what you need, gives access to high-quality talent, and is often more cost-effective since you can hire skilled talent from other regions.

The downsides of outsourcing

The cons centre on the working relationship: communication (often time-zone driven), involvement and transparency. Fix them by agreeing on shared working hours, weekly sprints with daily updates and a constant feedback loop, and an NDA/contract for trust. As Notis CEO Simon Anderson put it, scheduling and English were never an issue with our team.

A mixed approach

Most companies use both: a ready in-house IT team for some functions, while support, security or development are outsourced. Not all roles suit outsourcing, and keeping rarely-needed experts in-house can be too costly. Define your budget, time constraints and requirements — and manage the project within that scope.