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Why outsourcing is better than in-house in software development

We are bringing a comparison of outsourcing vs in-house software development. Declaring one of them better than others in all aspects is not justifiable but we will argue to prove that outsourcing is way better than in-house development.

By Andy DassanPublished 4 years ago 2 min read


Outsourcing software development is hiring a third party team and assigning the work to them. This third party could be a freelancer or agency, gained via freelancing websites or LinkedIn.

In-house Software Development:

In-house software development is developing a software application by a company itself using its own resources. The company needs a complete development team that includes a developer, designer, and QA tester.

Why outsourcing is better than in-house in software development

Outsourcing gives you a lot of advantages over in-house. It is cost savvy; the company does not have to arrange a sitting space for the team. The in-house team will use electricity and internet that is payable by the company. Traveling cost is another expense as the team members have to travel between home and office. Outsourcing software development to developing countries gives an extra cut on wages. There is a huge difference between western countries and Asia regarding the fees of software development.

Below we enlist 5 major pros/reasons for outsourcing

Ease of choosing fitting talent

Outsourcing comforts greatly to choose the best freelancer for a specific project. Your team might don’t have particular skills that are required for a project. On websites like Fiverr and Upwork, you can explore as many dev freelancers as you want and only contact those who have your desired skill set.

You will have a chance to go through their portfolio, previous projects, and reviews.

Saves Recruiting Endeavour

Creating job ads, publishing and interviewing the candidates is much time-consuming. Short-listing and finally choosing one takes extra effort that you can invest in other aspects of your business. Freelancers are always ready to jump in and agree to meet your deadlines and requirements. Another perk is the short-time commitment, a freelancer is hired only for a specific project, you don’t have to pay him every month.

Different worker for a different phase

As the work progresses nature of the work changes. For example, you hired an app designer and designing phase is complete, now you can easily hire a developer that best suits. Same is the case for QA tester.

Unrevealed software testing specialist

Another very important aspect if you keep in mind will give you a huge benefit. It’s choosing an unknown or anonymous QA tester. Yes, anonymous for your developer. Understand a case, in an in-house development team your developer and tester may have a good friendship and they dodge you. But if you outsource the testing process to a remote freelancer, he will be more honest in assuring the quality and finding out the loopholes.

Cones of In-house Software development

In house software development is very complicated and highly expensive. You need to run it as a regular business. Register it with Government, get the license, needs training for employees, also have to give medical insurance and bonuses to the team.


In case you’re wanting to build up software which will require a long haul responsibility, opt-in structuring a group of developers in-house.

Otherwise, recruit an expert temporarily at a diminished expense.

In-house development versus outsourcing is at last an issue of cost versus quality. It is a test of finding the correct ability at the correct cost. With increasingly more examples of success are coming from freelance developers/testers, it does not shock anyone that more organizations are going down the way of outsourcing development.


About the Creator

Andy Dassan

Andy Dassan is CEO of

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Comments (2)

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  • Mukesh Ram5 months ago

    Hey There, I really appreciated to you guys, wonderful blog you have provide us. it is definitely enhancing my knowledge after reading your blog and I really thankful to you guys to give this knowledge to us. I am sharing this blog to my friends and colleges to give a opinion about this blog Also me and my team wore similar blog on Outsourcing vs. In-House Development topic here id the link you can check it out ( give us your opinion on our blog and let us know how you like our blog thank you once again for sharing your knowledge to us through this blog Thanks & Regards, Mukesh Ram

  • yana cleverabout a year ago

    Any model of cooperation, consulting services for software development has its pros and cons, which you should know about. Thanks for the useful post and description of the advantages of choosing outsourcing for development.

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