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In-House App Development Vs Outsourced App Development: How To Choose

Confused about whether to opt for in-house app development or outsourced app development? In this detailed blog, we compare the two and dispel all your doubts.

When a business founder or entrepreneur implements an idea, one of the first questions he/she may have is, “should I recruit an in-house development team or outsource?”

Even though IT outsourcing will be worth $98 billion by 2024, nobody is still sure about the answer.

Mobile app outsourcing is a 21st-century trend. IT industries in India, Ukraine, Poland, Romania, etc., have tremendous talent at reasonable costs that the firms operating in the USA and UK find advantageous.

In-house development is another option. Developing an in-house team takes time, money, and patience. We’ll examine each method’s benefits and cons to determine which is ideal for mobile app development.

What is In-House App Development?

In-house mobile development is like hiring permanent personnel. It entails posting jobs, reviewing applications, sifting them, scheduling interviews, and employing people.

You must build a list of required team members, such as a designer, developer, QA, etc., and then publish individual job openings. Amazon, PayPal, etc., hire in-house developers for comprehensive project management at a greater cost.

Pros of In-House App Development

Align your team with the goals of your company

Big tech companies always want a team that is highly motivated understands the company’s goals for the product, and lives up to the company’s core values. When you do development in-house, you can hire people who fit in well with the culture of your organization.

Better Communication

An in-house development team has this clear benefit. In outsourcing, you communicate with a project coordinator or manager who may not grasp the details. You can instantly contact the in-house development team at their workplace.

No meetings or emails are needed to explain the criteria. Face-to-face access speeds talks, especially when finalizing project needs. It saves time and reduces misunderstandings, boosting progress.

Immediate Support

This is another benefit of developing apps in-house. When the product goes live or is put on the production server, some bugs show up. With an in-house development team, you can find and fix them right away.

Cons of In-House APP Development

Cost is high

You must be prepared to spend for in-house development staff. You must pay an HR person to hire other team members, which is a pricey process.

According to Indeed, a mobile app developer’s average compensation in the US is $122,000.

Apart from the salary, Sick days, insurance, holidays, social security, etc., are hidden costs. If the crew remains idle without a task, you still have to pay them; you can’t fire them.

Finding talent is difficult

Finding IT workers is difficult as every developer has a host of opportunities. You may provide your developer better perks and pay raises and still lose talent.

Invest in talent

IT technologies, tools, and languages evolve quickly. You must guarantee that your team adapts to and embraces these changes. You may need to provide expensive training courses.

What Is Outsourcing App Development?

In outsourced app development, you delegate product-building to another agency. Planning a strategy to outsource app development involves sharing your needs with a project manager or coordinator.

The manager will understand your needs and deliver a quote, SOP, and other paperwork. When both parties agree, a contract is created. The manager will be a contact during the project’s progress.

Outsourced development is cheap and scalable. Google and Slack outsource IT development.

It happens when the company’s main expertise isn’t IT or when the IT department is overwhelmed with other essential functions. Let’s examine the benefits and drawbacks of outsourcing development.

Advantages of Outsource App Development

Proven Workflows

Best app development companies have worked on diverse industries and projects. They collaborate and employ well-defined routines to improve productivity and code quality.

A mobile development agency also provides project managers, scrum masters, QA experts, UI/UX designers, etc.


Outsourcing saves money, no doubt. If you live in a country where local developers are expensive, such as the USA, UK, Europe, Australia, etc., you should consider outsourcing. In India, Indonesia, Ukraine, etc., extremely competent coders labor at reasonable prices compared to the west. Moreover, outsourcing saves you money on office space, insurance, recruitment bonuses, etc.

Talented developers

You can discover the right talent when outsourcing. Big tech companies have excellent developers with tech skills. You’re no longer limited to local candidates. A global pool of qualified engineers gives you many possibilities. It saves you from reading dozens of resumes to find a developer.


If your product’s needs change, the outsourcing provider can scale up or down to meet them. So, scaling up or down your project is easy. In-house development is inflexible. Hiring new team members takes time, and firing them will hurt your company’s reputation.

Quicker time-to-market

Outsourcing app development expedites product development. The contracted agency will assign resources per specifications and strive to start the job quickly. Internal teamwork is time-consuming. Recruiting a skilled specialist takes at least a month. These factors contribute to increased development time.

Disadvantages of Outsource App Development

Let’s have a look at the disadvantages of outsourcing mobile app development.


When outsourcing, you must disclose confidential data with the agency. You may worry about the agency’s privacy policy and whether they’ll share it with competitors. Professional companies give NDAs and ensure the security of your data.


If your organization is in the US or UK and the hired agency is in India or another south-east Asian country, organizing meetings may be difficult. Many organizations now interact in clients’ time zones. Fluent English-speaking project coordinators can improve communication. Getting a project coordinator is a good strategy for outsourcing your mobile app development projects. The coordinator serves as a single point of contact, saving you from many hassles.

When to Opt for In-House App Development?

Although in-house development is rather pricey, there are valid reasons for creating an in-house development team. These are:

Long-term project planning

If you are a product-based company planning to construct a long-term product with multiple updates, future scalability, etc., then it makes sense to grow your in-house development team.

You need complete control

The in-house team would be perfect if you can’t afford any difficulty in your project and want complete control. Having your team enables you to make decisions that affect product development and removes any chances of data compromise.

When to Opt for Outsourcing App Development?


Outsourcing is the ideal alternative if you have a limited budget and can’t afford a permanent office workforce. It provides cash flow flexibility and eliminates regular salaries.

Unprofessional Local Talent

If you can’t discover suitable talent in your area, then instead of wasting money and time in your city, you can contact an outsourcing firm where an IT vendor can help you.


If your sector has little IT experience or this is the first time your business needs mobile, an app, or a website, you may hit hurdles. You can’t afford delays with a deadline. Outsourcing saves time, and many organizations offer faster development at fair surge costs.


Both developing mobile apps in-house and via a third party have their advantages and disadvantages; the one you choose should depend on your priorities. If you want to be able to concentrate only on your company without having to worry about hiring new employees or addressing any technical issues, outsourcing is the option you should go with. On the other hand, if you want complete control over the project, you can engage developers to work in-house.

Originally posted 2022-11-25 19:30:07. Republished by Blog Post Promoter

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