There are pros and cons of outsourcing an app building business are as follows:
Pros of Outsourcing:
1. You Do not Have to Hire More Employees: When you outsource, you can pay your help as a contractor. This allows you to avoid bringing an employee into the company, which saves you money on everything from benefits to training.
2. Access to A Larger Talent Pool: When hiring an employee, you may only have access to a small, local talent pool. This often means you must compromise. Many companies have found that outsourcing gives them access to talent in other parts of the world. If you need specialized help, it often makes sense to expand your search.
3. Lower Labour Cost: Every company has its own reason for doing this, with many chasing lower labour costs. You do not want to trade quality for price but outsourcing often allows you to get the best of both worlds. By searching a global talent pool, it is easier to find the right talent at the right price.
Cons of Outsourcing
Despite the many benefits of outsourcing, you don’t want to go down this path until you compare these to the potential drawbacks:
1. Lack of Control: Although you can provide direction regarding what you need to accomplish, you give up some control when you outsource.
There are many reasons for this, including the fact that you are often hiring a contractor instead of an employee. And since the person is not working on-site, it can be difficult to maintain the level of control you desire.
2. Communication Issues: This does not always come into play, but it is one of the biggest potential drawbacks. Here are several questions to ask:
a. What time zone does the person live in and how does this match up with your business hours?
b. What is your preferred method of communication? Phone, email, instant messaging?
c. Does the person have access to a reliable internet connection?
According to Cameron Herold, the founder of a COO training program, communication is essential to success in the business world. Since a large number of U.S.-based employees report not being engaged at work, communication remains a major problem. Will this get worse if you outsource?
3. Problems with Quality: Despite all the benefits of outsourcing, it is only a good thing if you are receiving the quality you expect. Anything less than this will be a disappointment.
This is not to say you cannot successfully outsource tasks, but you need to discuss the expected quality upfront.
Pros and Cons of internal development team are as follows:
Pros of In-House Development:
1. Cultural fit: Developers that work as permanent members of the team tend to pay much more attention to the specific needs of company. It means they’re motivated to achieve the best results and bring as much value as possible. It is easier for in-house developers to integrate with your company’s culture.
2. Face-to-face communication: Having the same working hours and being in the one office allows making the communication process much more comfortable and clearer. Direct conversations help avoid misunderstanding and increase effectiveness.
3. Quick changes: When you have an in-house team of software developers, it’s always faster to change project's features, add new ones, and discuss their technical background. Also, in-house developers usually process bugs quicker.
Cons of In-House Software Development
1. High cost: The price is an issue that can change everything. It’s obvious that in-house development is much more expensive than cooperating with a vendor. The final price makes up of many expenses like rent, taxes, software, hardware, and more. In fact, there are some additional spending like training for employees, sick days, and benefits.
2. Staff turnover: Software developers tend to change the working place quite often. It happens because the demand for talented developers is high and other companies tend to offer better working conditions. As a result, you may face some challenges with labours and lose time. Finding a new developer is always time-consuming, so your project development can be stopped or slowed down for some time.
3. Lack of tech talents: The ever-rising IT market brings an overwhelming demand for tech specialists. It is already tough to hire the right person in some regions. Apart from meeting soft and hard skills, the developer should fit into the planned budget. Which is often hard because of competition from other companies.
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