In-House Software Team versus Outsourcing

Person standing at the crossroads of in-house versus outsourcing

The pitch meeting went well, and your business is chomping at the bit to make the idea a reality. The trouble is, innovations require new skills and new approaches. Pursuing these innovations leaves companies with questions on whether to use in-house employees or outsource the project to another software company altogether. Here are a couple of things to consider when asking yourself what direction to take a proposal.

Do you need to invest in future talent?

 Some projects represent a chance to train existing employees on talents that will help them in the future. Other projects represent a one-off requirement that would be easier and cheaper to find an outside company to handle. Breaking the project into its components will help determine which need is which.

What’s your timeline?

Hiring someone with the unique skills you need takes time, money, and personnel. Instead of hiring someone new, it may be quicker to contract the project out. However, if you already have in-house talent with the necessary skills, keeping the project in the business may be faster.

What’s your budget?

Most of the time, it’s cheaper to outsource new projects out of house. However, it may be time to use the funding to expand your personnel. If you have the money now, it may be time to invest in the future.

In-house vs outsourcing

How is your in-house employee workload?

 Overburdening your existing employees can create stress, burnout, and unhappy workers. Odds are, in-house employees have other duties and projects that can interrupt attempts to start a new project.

“When you’re in house, you just automatically become the wearer of many hats,” said Michelle Haynes, In Time Tec Head of Talent Management. “If you’re really committed to the company and the team, you just do what needs to be done. But that can really interrupt the goal you’re moving towards at times.”

Outsourcing to an outside company can allow your company to specialize and focus more on existing projects.

“An outsource team is typically dedicated to whatever project you have,” said Kevin Nielsen, In Time Tec Director of Engineering. “So there’s a set of resources, human resources, that are put on that project with a focus and a known deliverable.”

Are there quality concerns?

Pursuing a project within your company allows you to oversee the timeline, project, and work hours personally. Contracting an outside company creates the need to communicate expectations, conditions, and requirements. If there’s a miscommunication or the outsourcing company produces subpar work, this could add unneeded difficulty to the project.

Deciding whether to contract to an outside company is a difficult decision to make. If you need help with your software, In Time Tec is here.