Outsource or Develop In-House? What's Better for Your Business?

The transformation of the technological market is not only due to the maturity of the consumer. It is also a result of the way managers are conducting their business. In addition, as complex as this market may be, more precisely the mobile market, the participation of costs in the company's processes is practically unanimous. This is exactly what justifies the strength that outsourced software product development gains every day.

Because of this, it is necessary to ask about developing solutions internally. Should you rely on the company’s internal team or outsource functions/products? What is the best path for your company to follow?

Reduce Cost by Outsourcing or In-House?

Since cost is the main pillar for an organization's progress, all development stages must be well calculated. In the mobile environment, this is presented more clearly. The company's structure will indicate which path to follow. That is, if the need arises to obtain the development of a team, the demand or contract must justify this investment.

After all, in addition to the team, a good structure for the work must be fostered. This includes the computer system, hardware, electricity, and specialist staff to provide customer support. We must also consider that every solution developed later generates maintenance and customizations requested by the customer. This can create an extra headache.

Therefore, when including costs in the process, every decision will require a comprehensive analysis. Remember that it is important to have the necessary resources to develop an internal product. This also requires skilled labor and a lot of commitment from the manager.

Quality

Another point that must be reinforced is the quality of the product that will be created. When opting for outsourcing, the manager must keep in mind whether the quality of what is being done will remain high. However, if the supplier is a specialized company well aligned with the purposes of your business, outsourcing is a practical and efficient choice. In addition, the cost-benefit ratio will be much more interesting.

Let's analyze together, for example, companies that develop management software. These companies currently have their development teams focused and with practically:  40% of their time developing and adjusting their processes to meet current regulations, which constantly change.

Another 40% of the time is used to fulfill customizations requested by the customer base. 20% of the remaining time, the team normally focuses on creating new processes, seeking innovation in management software so as not to be outdated in the market.

Imagine directing your current team to seek knowledge in developing mobile software. Seek knowledge in a world that is totally different from the usual one in which the team operates. It's practically a long shot, which is why it's interesting to look for a partner that has a core business in corporate mobility. In addition, this company must be aligned with its business strategy.

Structure

Outsourcing is an excellent option when the contracted company has great know-how. A specialized company has good professionals, modern technologies available, state-of-the-art applications, and strictly complies with the deadlines and characteristics of the demands.

Most people bet on the efficiency of outsourcing. This happens because, despite designing and marketing the product, they have partner companies able to meet their needs with quality and efficiency. In this way, outsourcing works directly with the product development process.

As you can see, outsourcing should always be an option on the manager's radar. Often, the productivity lacking for a given action may be in the outsourced company. One tip is to experience the market, review costs, and improve your planning. Such characteristics are fundamental to success.

You should consider all important factors before outsourcing software development or sticking to your in-house team.