In-House Software Development Team V/S Outsourced Software Development Team - Challenges & Solutions

Mobile web market is flourishing with tremendous activity. Every company endeavors to expand its panorama of work.

In fact, modern-day companies are putting in tremendous efforts to capture the entire market via apps and sites.

But, in order to make sure that required apps, as well as sites, turn out as per their specific needs, there is a need for the proper team whether you have it in-house or you outsource it.

Employing the wrong people who execute faulty project management methodology can actually turn your thrilling project into a failure. There are challenges in both in-house software development and outsourcing. Below we will discuss in detail about both of them.

At an initial glance, maintaining an in-house software development seems to be just plagued with the monetary issue, but if you delve deeper, you will get to know that having an in-house software development team will rope in a plethora of issues to handle before you.

What most people like about having an in-house team is that you will have people dedicated to working for you. In case of an emergency event, you will be their first priority.

Also, in course of time, they will fully understand all your needs and offer you solutions accordingly.

Whereas an outsider will always view you as a vendor and might not fully offer you a product as per your need.

There are some big obstacles which come with having an in-house team -

  • The hiring of the right team
  • Over expenses
  • Varying intensity of work

If you want a permanent software development team, this calls for a major investment from your end.

Even if you have the required resources finding skilled developers is also not a very easy task.

If at all you are not developing software on a regular basis your work intensity might vary and keep having idle workers will pinch you a lot.

Regardless, of the quantum of work, you will have to pay fixed salaries to the developers. So, in such a scenario outsourcing software work seems to be the most viable proposition before you.

There are various types of software development outsourcing. There are certain companies which go in for body shopping. This means they rent the services of the developers as per their requirement.

You can even hire software development houses as outsourcing providers in order to build up your whole project.

Depending on the location of your outsourcing partner, you can categorize it as local or offshore software development outsourcing. All you need to concentrate is on the quality of work offered by your outsourcing providers.

Several business houses go in for a highly trained in-house team for software development. Nevertheless, a lot of companies opt for the outsourcing alternative, but it is you who has to decide on what is ideal for your business?

Take an informed decision for your company if you wish to touch true realms of success.

Challenges during in-house software development

* A huge amount of investment

Cost is the main issue which any company has to deal with if it plans to go for in-house development.

For in-house software development, you do not need to recruit a full team of developers you even have to put in place a proper infrastructure to execute the entire process.

Money is also required for imparting proper training to the employees. It is akin to expansion in work and any kind of expansion calls for input of resources.

So, basically significant investment is a prerequisite for in-house app development.

* Recruitment Process is quite tough

Even if you have the money; hiring the right people and setting all other things is not easy. This process consumes a lot of time as well effort.

Every company is on lookout for the best in the industry, so getting in touch with the right people isn't a child's play.

* The dearth of skilled people

Even though the market is flooded with developers, finding the right one is a big task. There is a serious paucity of professionals with the right skills.

At times, if you find the right person, he might be charging too high. So, basically finding a skilled person in your budget is what actually holds relevance.

* Dependency

Once, you hire an in-house developer, your whole work becomes dependent on him. If the developer goes on a leave or is fraught with some issues the entire project will suffer because of him.

This turns out to be a grave concern for the company as it also prolongs actual project completion time.

* Varying areas of Domain Expertise

There are so many different aspects of app development. So, basically, you will need a domain expert to handle the different range of issues.

For instance, the task of an app developer is just the development of the app, nevertheless, there is a need for a competent designer who can carry out the task of designing the app.

In the same way, if you are getting the site made in PHP, there is a need for Flash for a particular webpage. This need for several domain experts infringes spontaneity and even enhances problems in the course of efficient project development.

* Tools and Technologies

Even though there are quite a number of development tools which are available free of cost and do not necessitate any kind of permission for distribution, there are several other technologies that call for permission for purpose of distribution.

Thus, getting apt tools as well as technologies for development is a huge faltering block when you opt for in-house software development.

* Maintenance of Workforce

There are many huge corporations for whom setting an in-house software development team is a minor thing. But, for them, the problem shows face when the project is completed or when the requirement ceases.

These companies find it hard to maintain the required infrastructure as well as resources later on. This maintenance expenditure is actually uncalled for the burden on the shoulders of these big companies.

Conclusion on Hiring In-House Software Development Team

The most viable solution to overcome all these different stumbling blocks is outsourcing the task of software development to a service provider firm.

There are several companies who are ready to do your task with perfection thus leaving you to hassle-free and comfortable.

Not only will this keep the capital cost within budget but you will also get a solution as per your need.

Also, when your project is outsourced, you can pay attention to other important things. Companies offer different software development models. Choose one in accordance to your need and budget.

Going in for in-house development might seem to be beneficial in the beginning, but when you put things into action, there are more stumbling blocks than what you anticipated. So, take a wise call and do what is ideal for your company.

How to Maximum Benefit While Outsourcing?

Top Outsourcing Issues and their Solutions

The industrial revolution gave a huge spurt to outsourcing. In fact, since late outsourcing has emerged as a full-fledged industry.

Initially, outsourcing started with just the manufacturing sector but now there is hardly any industry which does not resort to outsourcing.

Outsourcing is basically a routine of passing on work to the outside suppliers. Work is then completed by vendors rather than on-site.

Outsourcing is a highly effective cost-saving strategy as a lot of times it is better to get the work done from outside than getting it done in-house.

Outsourcing service providers now put in huge efforts to deliver products as per expectations of the clients through enhanced strategies.

From the owner point of view when you outsource work, you can apply all your energies and efforts on core tasks, leaving the non-core activities for the others.

In the long run, the organization benefits from the same as it leads to efficiency and good organization. Also, companies advantage from cost reduction.

Outsourcing is actually based on the principle of delegation of work. When you hire outsiders to do tasks which either you are not good at or which follow predictable patterns, it leads to fluidity in business.

The significance of outsourcing is fast rising in our present times. Companies now go for outsourcing for various vital functions.

This is due to the internet and constant communication that outsourcing for significant tasks is now possible. Nevertheless, the road to outsourcing isn’t easy.

Various challenges crop up during the course of outsourcing. Given below are some of the challenges along with their solutions.

Challenge No. 1

Feeling of uncertainty amongst the In-house employees

It has been seen that mere mention of outsourcing lowers the morale of the existing team of employees.

They develop a feeling of uncertainty and this propels them to look for the greener pastures. This can be a big shake-up to the organization as it can interfere in their human resource element.


Although severing of ties with some employees can be quite distressing, organizations can deal with this problem by building internal centers of excellence for individual areas.

By doing so existing employees will get past their fears and receive training in new vital processes as well as technologies.

This will hone their proficiency, and they will grow further along with the company.

Challenge No. 2

Choosing the perfect Service Provider

Finding the perfect service vendor is the prime base of the whole outsourcing process.

In case there is any flaw in the selection process, frustration, as well as breach of promise, will slowly show face in course of time.

To choose a partner for your outsourcing business is very hard. It is the challenge which most of the companies have to face. There are so many service providers available in the market.

The competition is so tough and every vendor claims to lead the others in the race. Any error in choosing the vendor can lead to grave circumstances in the long run.

So, you really have to be cautious while selecting your partner.


In order to tackle this issue, it is vital that you select the vendor as per strict parameters.

Keep in mind specific needs of your organization along with desired output needed prior to hiring any outsourcing agency.

Before signing any kind of contract, be sure to establish the kind as well as the duration of the contract. You can even for a test run ahead of signing any long-term agreement.

After execution, critical performance indicators need to be scrutinized regularly. Continuous performance appraisal is must to ensure efficacy in work.

Challenge No. 3

Legal issues and Deficiency incomprehension of contract

In case the legal consequences of outsourcing contract are not clear it can have problems for both the company and vendor agency. This can even lead to total failure of the outsourcing decision.

A lot of outsourcing firms do not pay proper heed to the legal issues and then, later on, face a wide array of predicaments.

Outsourcing has been fraught with hugely stringent competition in the market. Outsourcing contact should not be a medium to serve a “win-win” situation.

It should be a means to achieve a positive outcome for both the parties lest it would lead to hostility, disappointment and bad-mouthing in the long run.


In order to stay away from any kind of legal complications, later on, the contracting parties need to adhere to all local legislation.

When the negotiations regarding the contract are going on, executives from both the sides need to be present and all terms related to the contact should be made clear so that informed decision making is executed.

Challenge No. 4

Cultural Issues

In current times cultural stereotypes along with niceties are playing a vital role in shaping the outcome of the outsourcing contract. Basically, there are two kinds of cultural distinctiveness -

• Corporate

• Country-specific

It is not a simple task to set right the cultural tangles.


The complexities of the process which you intend to outsource and outcome of outsourcing to people belonging to varied cultural background need to be comprehended prior to signing the contract.

It is extremely essential to strike cultural coherence as well as synchronization. This can be achieved by having a good multi-cultural sensitization program for both the company and the vendor agency.

Challenge No. 5

The practice of ‘Outsource and Forget’ is not practical

You cannot just outsource and stay complacent. Delegating work to an external service provider does not relieve you of responsibility to check how the final product shapes up.


Regardless of the fact that the company has delegated non-vital operations to a third-party, it needs to be prepared to handle any kind of emergency.

Apart from this advanced monitoring processes needs to be put in place, so that complete control is exercised on the outsourcing organization.

Challenge No. 6

Huge language, educational and cultural inadequacies

There are significant language, cultural and educational barriers between people in developed nations and those from developing countries where the projects are usually outsourced.

These differences have a big influence on the capability of different offshore teams to completely comprehend minor nuances of the project and then to carry out the same in an effective manner.


Before hiring any service provider, a proper analysis of skills should be there. Also, it should be ensured that any kind of language and cultural barrier is duly handled in order to avoid issues later on.

Challenge No. 7

Customer loss because of outsourcing

Customers place their trust in a company and if they get to know that the company is outsourcing work, they might just shift preferences.

A company's brand image is a sensitive issue. From the logo of the company to its products, customer service each touch point is actually an opportunity you get to retain and satisfy your customers.

If it is not handled in the right way, it can bring about customer attrition. Due to this reason a lot of companies feel reluctant to delegate work to an outsourcing vendor.


Customers are always concerned about their data safety, data which they provide and which is saved in companies’ databases.

It’s always better to bind the outsourcing vendor for appropriate legal non-disclosure agreement so that they must be assured that no business information will be leaked from outsourcing vendors end. Also, there should be a valid service contract signing between companies’ and outsourcing vendors. Nowadays, laws are strong enough to detain a wrong entity in the market.

Conclusion on Outsourcing

In earlier days, when companies were not knowing the term, ‘Outsourcing’, it was easy for vendors to make them fool, take their hard earned money and disappear but nowadays, there are strong laws and there are many ways down the line which can detain fraudulent outsourcing agencies/vendors.

So, nowadays, there is no harm in outsourcing your work to vendors. The only thing required, you must be smart enough to bind out outsourcing partners in appropriate non-disclosure agreements and service contracts.

If you will follow the right approach and you will never be in a quandary regarding your outsourcing decision.

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