Outsourcing vs. In house app development - StevenClark321/mobileappsdesign GitHub Wiki

Disadvantages:

Lack of Talent:

The Process of developing an app is really complex and it rarely happens that an organization has talent at their disposal that has the ability to deal with all that is required in the development process. So hiring the right person takes time and effort from the management. As the rise of the app market is a recent phenomenon it very difficult to hire the right person without overstepping the budget.

High Risk:

For small businesses especially the cost for development is really high and when investing so much into an in-house can really break a company if due to some factors the project does not reap the required return the organization can face an exit from the market.

High Cost:

Hiring talent and having the proper infrastructure proves to be a costly feat when an organization heads towards in-house development. If you have a company in a region that is not known for its IT services then the acquisition of the proper tools and skill becomes really costly.

Outsourcing

Today the global market size of outsourced services is generating a revenue of $85.6 billion and as we observe the rise of IT services and its penetration in every industry like Mobile Game Development, the question of outsourced software development is a process every manager will have to go through at some point in time.

Advantages:

Cost Fluidity: With so many options and outlets available for outsourcing organizations can juggle around and get services at rates that they can easily spend on. Outsourcing service costs App Design Company are heavily dependent on the region where the outsourcing agent is present. If an organization hires services from Eastern Europe, the cost significantly reduces as compared to working with an agency in the US.

Secondly organizations do not have to spend hefty resources on the development of in-house infrastructure and human resources which proves to be costly iOS App Design Company. So all in all outsourcing gives one the advantage to get the desired product without investing so much capital.

Availability of Talent:

When outsourcing organizationscan consider IT specialists and designers from all over the world so the available pool of talent becomes really large as compared to hiring talent that is available with the physical reach of the organization. Through outsourcing businesses can hire required talent in a matter of days as compared to hiring a team in-house which could take months finding the right skill-set.

Expandable:

Through this method of development organizations can scale resources up and down depending on the requirement. When organizations need to speed up the development process they can outsource more and make the team bigger and similarly they can do the opposite. This way a business can have more flexibility at their disposal as compared to having teams in-house.

Fast Development Process:

As the time spent on hiring and recruiting talent is reduced and organizations can also save time as there are no internal developmental strategies that have to be implemented, due to this the software development process becomes really fast. This way organizations can take control of the speed of the development process as a result there are significant impacts on the time to market.

Working With Advanced Tech:

Most probably organizations will hire specialists that have already handled similar projects in the past so chances are that they have the latest tech required for development. So with the reduction of infrastructural cost organizations can reap benefits of the most advanced tech available in the market.

Disadvantages:

Security Challenges: As the organization itself is not in control of the developmental process and communication becomes difficult as a result one might not feel protected enough. So trust between the parties should be ensured by the vendor. This means that project security is in the hands of the vendor hired for development, due to this factor organizations are better off signing security contracts before development begins.

Lack of Collaboration:

This is the greatest barrier organizations have to overcome when outsourcing, because there are no face to face meetings and also the vendor can be placed in a region far off, communication can become very difficult. Also there are several other factors that might affect communication like difference of culture, time zones and language. Other than this your hired vendor should be efficient enough to provide effective solutions so that communication becomes smooth.

Conclusion:

So far we have observed that no method of development is perfect, there are opportunities and challenges that have to be overcome in order to achieve a smooth flow. So when hiring an in-house team or outsourcing it is the responsibility of the managers to know their own requirements and be up on their game with the assessment of every option available to them. If an organization fails to properly assess the scope of their software they will likely encounter failure in the development process, it does not matter if they do it in-house or try outsourcing.