Hire An In-House Development Team Or Outsource Your App Development?

Partner Post - Promatics Mobile App Development Service

Posted: May 16, 2017

Who are you? A start-up looking to get your product to the market at the earliest? What phase is your business in? Do you need to scale up or are you going to change your core business? Do you work in a niche area which needs specialized skills? Are you in a high-security industry? Do you have a clear idea about your app design? What is your IT budget? Is technology your core business? Do you want your app-related expenses to be a capital expenditure or an operating expense?

These are some of the things to ask yourself when you’re thinking about developing your app.

What is the right approach?

The truth is – there is no a single way you have to go about it. Your options are:

  • Develop an app yourself – learn and become a full stack developer!
  • Delegate it to a person (CTO or tech co-founder)
  • Delegate to a developer team that you employ
  • Outsource it to a developer/service provider who is based locally or offshore.

You can also pursue a hybrid approach – a combination of all the above approaches – depending on your needs while also arbitrage market/skill/exchange-rate efficiencies.

Below are some feature comparisons and risk factors to consider for the in house vs. outsourced approaches.

Feature Comparison

Risk Factors

A Hybrid Approach

For niche or specialized areas when your in-house team skillset is lacking, outsourcing some parts of the project to another firm/developer is a good idea.

Some tasks such as say, putting together a simple webpage or usability testing can also be out sourced as contract work. It can turn out to be more economical than doing it in house. It also leaves your team leeway to focus on the core areas of the projects or problem areas that need attention.

App Development Outsourcing Growth

App development remains one of the more popularly outsourced IT functions, and the growth in this segment has been encouraging for the past several years.

Some of the factors causing this increase are:

  • sluggish growth in capital investment by companies
  • fast changing app technologies which are only available with app development companies
  • companies investing more in marketing and core activities as the economy improves

App Development Outsourcing Trends

Here is a look at some of the recent trends in app development outsourcing:

  • Managed Units: There is growing interest in managed services. Managed units (project teams) need no micromanagement from the client side and minimal control. They do higher-level tasks and provide their own internal management capability, taking responsibility for deliverables. By using them you increase your process efficiency.
  • Offshore Captives: Businesses, who have had unsatisfactory experiences with outsourcing providers, will establish offshore captives at the cost-saving destinations and keeping full control on them in-house. If you own a big business this is an opportunity for you to diversify your in-house R&D resources, ensure process security, and save costs.
  • Cost is still a factor, but clients also look for quality and skills.
  • Demand for skillsets has always been there in the IT industry. Rare skill sets are in high-demand and associated with big players and high costs. Companies continue to lookout for additional skilled resources overseas.
  • For outsourcing providers, it means that low rates are not a market differentiator any more. If you’re a service provider you need to provide something more: valid experience, rare or niche skills, certified quality, service flexibility while keeping the rates low.
  • There is more vertical integration so niche skills and vertical project experience such as in virtualization systems, cloud platforms, or security solutions will be in demand.
  • Flexibility: Clients nowadays use services from multiple providers and outsourcers must integrate into these processes and projects. The ability to be flexible in terms of processes and standards will be decisive during next 2-3 years for outsourcing service providers. The era, when outsourcers could set up their own conditions in return for low rates, has passed.
  • Innovation: Cloud providers accustom their clients to constant innovation. So, clients now expect providers to innovate constantly.
  • Security has been a current trend in software development industry for years. So, if you’re an outsourcing provider, you will have to make your business more transparent and streamline all legal aspects of client relations, IP management, and business information protection.

These are some things to keep in mind about the app development industry and its current trends. It is beyond doubt that the best option for you when you need an app for your business or personal use is outsourcing it to a mobile app development company. Many studies have proved that it is always expensive to hire in house developers and it’s a headache to manage them. With outsourcing you are ensured you get the best of solutions at a competitive price.

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