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Software Development Outsourcing: Hiring Third-Party Developer vs Developing In-House

There are many companies that prefer to outsource software development to third-party digital agencies or freelancers working in the country or overseas, while others swear that they will never repeat such a mistake again after a bad experience they have once had. Our IT experts have come up with all pros and cons of app development outsourcing, which may help you decide, whether to build software in-house or hire a third-part web design professional.

The Advantages of Outsourcing Overseas

Foreign software development companies, especially the ones with emerging markets, offer cheaper costs. Why pay huge sums of money to local developers when you can develop an app with a similar functionality ten times cheaper, hiring developers from India? Moreover, you can use the savings to pay for software maintenance and continuous improvement, adding new features and expanding the functionality.
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Cheaper Costs

Global labour arbitrage, in other words the removal of economic barriers, makes it easier to hire experts from the nations where labour is much more inexpensive. It is no surprise that outsourcing overseas has become such a common practice among the British and American entrepreneurs. Of course, if you do not care about the prices, there are hardly any other advantages of outsourcing the job to a third-world country.

Extra Expenses

On the other hand, sometimes it may be hard to compare labour costs. The problem is that you should take into account the additional time and money that you need to invest into managing and planning an offshore project. It is a typical mistake when entrepreneurs think that the hourly rates can tell them everything they need and therefore compare explicit costs but do not consider extra costs that offshoring software development always involve. Recent statistics demonstrates that more than 60% of businesses who hired developers overseas expected the cost to be much less.

Short-Term Contract

One of the less obvious advantages of outsourcing app development is that you can hire an expert to work on your project without making any long-term commitments that frequently result in associated costs. To add more, you may need someone with a particular set of skills now, bit when some time has passed, you may require a specialist focusing on a completely different technology.

No Distractions

Large offices with open spaces and relaxation areas may distract development teams from their work. Lunch, coffee breaks, games, chatting with colleagues - all of it reduces the valuable time that can be spent on app development, which is the reason why third-party experts may do the same amount of work more time-efficiently than your in-house team. Office distraction can also mean more time spent at work to accomplish everyday tasks, which can hurt employee motivation and corporate culture.

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The Advantages of In-House App Development

Experts who are employed by your company full-time have a motivation to work harder and contribute to the success of the project. They invest their energy and time into the project and will have personal advantages if the end product turns out a success. You have more guarantees that your in-house employee will not leave the project halfway, therefore you may count on a long-term partnership.

Mutual Interests

A successful freelancer is an expert who has a client base, delivers working products and enriches the portfolio with multiple new projects. Businesses, on the other hand, measure success by the revenue they generate and the markets they conquer. To achieve it, you will have to come a long way. And you have to be prepared that a freelancer will not take you further than a product that works.
  • Tips for Software Development Outsourcing

    Quality is one of the biggest concerns of outsourcing software development because it is hard to manage quality assurance when your work with an offshore developer. How can you estimate the quality of the code written by the third-party developer? How do you choose a developer which profile you have found on one of the numerous online freelance marketplaces? It is only natural for a design firm to showcase the best projects it has accomplished. So you cannot really be sure what you will get in the end.
    How Can You Minimize The Risks?
    Here is what you may do to avoid the risk of hiring someone who will fail to deliver your project: hire some local expert to consult you on any app development questions you may have, ensure that all the legal paperwork is done correctly and assign the developers you choose with a task to see whether they will be able to successfully accomplish it. Do not ignore interviewing the candidates.
  • Test the Candidate

    Some freelance marketplaces for programmers and designers do have tests that assess their knowledge of different technologies, but it is always better to make them do a customised test that has to do with a particular area of knowledge that is required for the project. At any rate, you cannot be absolutely sure that a person who passed the test is the same person your are hiring, because you can just ask someone to pass the test for you to get a high score on a freelance platform.
    Interview the Developer
    If you have decided to do an interview, prepare a list of questions and possible answers. To create the list, browse through development forums and communities or consult someone who has some experience in app design and can help you with the task. If you are not sure whether you will be able to comprehend the answers the develop gives you, ask someone to assist you during the interview and assess the developer's knowledge. Do not forget that the purpose of the interview is to learn whether a developer can code. It may be surprising, but many people who apply for jobs at freelancing platforms do not really know what is what in software development. And apart from testing their technical knowledge, ask them a couple of general questions to see whether you come along on a personal level.
  • Code Collaboration

    Code collaboration with foreign developers can sometimes be really challenging. Developers from different parts of the world can have significant cultural differences and different work ethics, as well as coding standards. App creation is a process of ongoing collaboration between the client and the developer, so you should clearly articulate your requirements to the developers, paying extra attention to the fact that they may come from a completely different cultural background. Write the software requirement specification in great detail to prevent any misunderstanding and ensure a pleasant experience offshoring app design.
  • Scrum

    Using Scrum can be a good solution for code collaboration and communication with third-party developers. According to statistics, Scrum helps both small and large development teams achieve the same goals equally efficient. How is it possible? Scrum allows the software development outsourcing team to self-organize the whole process, ensures full transparency of their work and facilitates communication between the member of the teams. A lean established app development process and framework help the developers to work fast and productive.
    Why Scrum Is an Efficient Tool for Team Collaboration
    Scrum enables the client to track the developers’ progress and introduce changes to the requirements throughout the development process. There is hardly any other method for distributed teams to ensure timely communication and effective collaboration. Moreover, Scrum is not hard to use, as there are lots of manuals and videos about how it works available on the internet.
  • Difficulties in Communication

    You may not realize it, but hiring the developers who are located in a remote place and a different time zone can pose logistical difficulties. For example, they will have to attend conference calls in the middle of the night or at a sunrise when hardly anyone can be super productive. A possible solutions to this issue may be hiring a project manager who lives nearby or at least in a closer time zone. Many larger digital firms are accustomed to such a practice and have project managers in their team based in a number of countries across the world.
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