In-house development vs outsourcing: An ultimate guide for business

The coronavirus pandemic has shaken up not only the medical sector and the global community. It has had an incredible impact on international business, forcing companies to act in new ways. Those rules and concepts that had reigned in the business world until the fall of 2019 have been erased. Now firms, C-level executives, and Heads of IT are facing new challenges that require a fresh approach to solving them.

In-house development vs outsourcing: Why the confrontation started

What is in-house development? Its main pros and cons

1. No cultural differences and similar mentality.
2. Direct communication.

1. No language barrier.
2. No time difference.
3. A quick exchange of information and fast updates of the project at the office.

1. A long time to hire a specialist and the high cost of recruiters' services.almost 41 days10 to 30%
2. Too high expert salaries.

1. High associated costs.
2. There is a significant shortage of IT professionals in the U.S.6 out of 10talent gaps
3. Frequent job changes.not worried about switching

What is outsourcing? Its main pros and cons

1. Many talented developers.28.7 million4.4 millio
2. Reasonable prices of services.

Note: You should know that you should not choose a team based only on an hourly rate or a fixed price, despite the cost savings.

1. No problems with recruiting.
2. There are many universities and colleges abroad where programmers get an excellent education.

1. More opportunities to scale up and cut down on the programming team.
2. Excellent time management.

1. Time gap and cultural differences.
2. Dependency on a third party. You are slightly dependent on another company.
3. Security issues.

How to work with an outsourcing company for the first time?

ABOUT THE AUTHOR

Alex Vasylenko

CEO at The Frontend Company, Founder of Digital Business Card

Alex Vasylenko is the founder of The Frontend Company, DBC and several other successful startups. A dynamic tech entrepreneur, he began his career as a frontend developer at Deloitte and Scandinavia's largest banking company. In 2023, Alex was honored as one of 'Top 10 Emerging Entrepreneurs' by USA Today.

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ABOUT THE AUTHOR

Alex Vasylenko

CEO at The Frontend Company, Founder of Digital Business Card

Alex Vasylenko is the founder of The Frontend Company, DBC and several other successful startups. A dynamic tech entrepreneur, he began his career as a frontend developer at Deloitte and Scandinavia's largest banking company. In 2023, Alex was honored as one of 'Top 10 Emerging Entrepreneurs' by USA Today.

Follow the expert:

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