Building any project using in-house software development is still a viable option in 2022. So, let us talk about the pros and cons of in-house software development and when to use it.
The internet is already saturated with articles about in house development vs outsourcing. Despite all these articles and suggestions, the challenge of which software development method to use still plagues startups today. This is because the choice will have a massive impact on the success or failure of their project. That is why companies need to weigh their options meticulously before making any decisions.
However, our article will focus only on in-house software development. It will provide detailed information on its pros and cons and when best to use in-house software development. Before we begin, let’s first determine what in-house software development is.
What is In-house Software Development?
As the name suggests, it is a software development process managed and designed by a business for internal usage. Here, the company or business builds digital products using its own developers.
For example, Hospital X decided to go paperless and implement an Electronic Health Record System, which collects all patient data in a digital format and is accessible only to authorized personnel. The stakeholders of the hospital will need to create an in-house IT department by hiring individual developers based on the project requirements. Once the team is set up and all the members have their specific tasks, they can start working on the hospital’s projects. Note that the IT department serves only the needs of the hospital and no other.
Since people are constantly debating in-house vs outsourcing software development, these two systems surely have their advantages and disadvantages. Now, let’s concentrate on those for in-house development.
Advantages of In-house Software Development
In-house software development is still relevant in this day and age because of the benefits it brings to the table.
High Level of Control
Having absolute visibility and control over the entire product development process is critical for its success because the project’s vision can be continuously passed across to every single team member. And since you have optimum control over the team’s composition, it is possible to hand-pick developers with whom your visions and ideals align.
Also, with in-house developers, you are fully aware of their availability and schedule. It is vital for the progress and completion of the project because you know for sure that they are working and have a good estimate of the time frame.
Holidays and culture will not hinder the project since everyone will respect the only days chosen by the company. There is also the possibility to scale the project when necessary without a significant change in cost because the team of developers is always on stand-by.
Seamless Communication
Good communication with the board and among team members is also vital for success. According to Forbes, one of the main reasons software projects fail is the lack of coordination and communication. Communication will be seamless and uninterrupted with in-house developers since they have a synchronized time zone and can often meet face-to-face in an office setting.
Communication also helps to build trust and keeps developers motivated. There is no easy way to build trust. It comes with team spirit and frequent communication. No matter how talented the individuals in a team may be, failure is inevitable if they do not trust each other and their supervisors.
Ability To Make Quick Changes
With an in-house team of developers at your disposal, making changes at will and implementing them immediately become easy. It is now possible to add features and change existing ones without significantly affecting the project’s timeline. Also, once the product is built, the in-house developers will be able to track and fix bugs quicker.
Disadvantages of In-House Software Development
Outsourcing wouldn’t have been prevalent if in-house software development did not have flaws. So, let’s look at some of the disadvantages:
Time-Consuming Recruitment and Onboarding
It takes time and resources to find and hire a competent software developer. The average time needed to hire a developer is about 43 days, which excludes the notice period before the employee completely leaves their previous company.
High Costs
When hiring new developers and setting up an in-house software development team, the company will incur costs from employee salary, equipment, job board fees, training, and onboarding.
A study by Glassdoor shows that it takes about $4000 to hire a new middle/senior developer, excluding their salary, which is over $80000.
High Turnover Rate
Sometimes great talents are not only motivated by interesting projects. Compensation is also one of the biggest factors for their loyalty. It won’t be easy to keep them loyal when top IT companies come knocking. Churning employees will significantly slow down the project if they leave for greener pastures.
So, to keep employees happy, the business will often end up counteroffering with better benefits, which will increase payroll.
Upskilling The Team of Developers
As the IT industry continues to evolve, new tech, languages, and tools are introduced for better performance.
The responsibility of upskilling and updating the in-house team falls back on your business. To keep up with the market, the business will have to invest in training employees and buying new tools.
Difficulty In Getting Skilled Developers
Every IT company is on the hunt for top experts, including tech giants like Amazon, Google, Microsoft, and Netflix. Competing against these types of companies is very challenging.
Also, It will take a skilled CTO to conduct interviews and accurately assess the candidates’ skills. All of these roadblocks will generate unnecessary costs.
When To Use In-House Software Development?
In-house software development will be a good fit for your project in the following circumstances:
Not Limited By Budget
This applies to large companies or startups that have done really well in their fundraising phase. Having an unlimited budget opens doors to lots of different possibilities. So, there is no need to worry about the high costs of hiring, turnover, and upskilling the team. A development team needs about six experts to function smoothly, including:
- UX/UI designers
- QA engineers
- Product manager
- Senior engineer
- Back-end and front-end developers
Most developers will be happy working in such an environment because they will often have all the tools required to do their work. If it is an ongoing and continuous project, you will have the possibility to keep the developers around for maintenance, support, and updates.
Not Limited By Time
When a company is in no rush to complete the project, the hiring department can take all the time they need to find the best candidates for each role. It will be very beneficial since cooperation with the developers is often long-term. Also, there will be time to train employees and pass across the values needed for the project to be successful.
The Need To Be in Control All The Time
If you need to be in total control of the project, then in-house development is a good choice.
You will have complete control of how the developers work. Here, you are the mastermind pulling all the strings behind the scenes. Your vision can be passed across to the developers without any interruption or middleman.
Final Thoughts
As long as the IT industry exists, the debate on in-house vs outsourcing software development will continue to trend. Both of them have their pros and cons. However, it should not be a distraction from the actual project’s needs.
It’s better to decide on in-house vs outsourcing only after carefully considering and analyzing the project requirements. We hope that this article will help everyone better understand the pros and cons of in-house software development and when to use it.