Your Own Software Development Team VS Outsourcing: What Is the Optimal Option for Tech Startups?

Oct 27, 2014

Human resources are key for a successful startup. You want to carefully select the most suitable experts and have them on your team full-time and long-term, because that guarantees consistent quality. But IT recruitment is not that easy for tech startups, which are often unable to compete with larger established companies for top developers, or can’t afford quality talent because of budget constraints.

For these reasons, many tech startups prefer outsourcing development to offshore agencies in the East rather than recruiting and maintaining their own software development team. But does that satisfy the need of a startup in reliable, effective manpower? Let us consider what the pros and cons of both variants are and what the right option for tech startups would be.

In-House IT Software Development Team

  • Confidence and Stability

With an in-house IT software development team, you are confident in the security of your data and product information, because you work with the same people over the years. Besides, you hire each developer personally and know what to expect from them, which means more confidence in the quality.

  • Responsonsibility and Ownership

When you are planning to build your whole business around a product or service, you need developers who will treat this work as more than a task to complete. Agencies want to finish a project and get it off their hands, while in-house employees will treat this product as their own and feel responsibility for it.

Outsourcing to a Development Contractor

  • Fewer Distractions for You

When you outsource, you don’t need to worry about hiring and firing, office maintenance, trainings and vacations for your developers. You set tasks and expect results, so no time is spent on preparation for the project - the development starts right away.

  • Lower Costs

One of the major reasons why businesses outsource development offshore is the development costs. In Eastern Europe or Asia, where salaries and other expenses are lower, developing a product will cost less than maintaining an in-house team, even considering that the cost estimate you get includes the agency’s expenses.

  • You Can Focus on Marketing

When you are just introducing your business and product into the market, it will require a lot of work and investment. When development is done elsewhere, you are free to focus on the marketing efforts and prepare a good ground for your product when it is finished.

What Is the Best Option Then?

You may be hesitant, since both variants have their benefits. The good news is there is a third option that combines the security and long-term vision of your own software development team with affordable costs and fewer worries that outsourcing offers. An offshore IT software development team is a merge of the two: you hire offshore developers and let a subcontractor take care of the distributed team setup. Ultimately, you get a dedicated team that requires far less investment, is fully dedicated to and focused on your product, and does not require your attention in terms of maintenance.

An offshore IT software development team can be a great compromise for tech startups. Combining the benefits of your own software development team and an offshore contractor, it helps you build a good product and kickstart your business.

Build your offshore dev team with Daxx.

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