Do you have an idea for a project and wonder whether to outsource or hire a dedicated development team to develop it into a marketable product?
Well, you might have come across both; a dedicated development team involves a third-party company providing software development outsourcing services. On the other hand, an in-house development team involves a team of developers employed by a company who work on the project.
According to Commit, software development outsourcing will grow by 70% in 2023.
You can choose which works for you depending on the project requirements and budget limit. In this blog, you’ll learn what an in-house development team and a dedicated team are and which one to choose for your next software development project.
What Is An Inhouse Development Team?
To begin with, in-house development, known as insourcing, is developing software using specialists hired by the company as opposed to the outsourcing process. The one standout reason why companies hire an in-house development team is to take better control of the project.
In this case, it’s easier to manage and collaborate with them since they’re already on board. One of the best things about an in-house development team is that they can move from task to task faster since they are aware of your company’s needs and adapt to them.
Advantages Of In-House Development
You can have better control over your project since you have a team of developers who understand your company’s conduct code, ethical values, and organizational culture. That means there’s no need for additional resources or an NDA because one has already been signed.
In terms of communication, an in-house development team is better because you can contact them face-to-face and have a better understanding of the development process. You can speed up the development process by eliminating bugs and making changes to the project faster.
In-house developers know the company’s values and needs and are culturally fit. They know how the company runs and its peculiarities, which makes work organization easy when it comes to in-house development.
Disadvantages Of In-House Development
Yup, that’s true. There are some downsides to in-house development, and they all come down to one thing: cost. Having an in-house development team is way too expensive, from onboarding and paying wages to paying for software and hardware licenses, engagement, and more.
What Is A Dedicated Development Team?
Unlike in-house development, a dedicated team is a model for a long-term project between a client and the outsourcing dedicated software development team. In a dedicated development model, you hire dedicated software developers for long-term projects.
If you’re planning to outsource a large and long-term project with a well-established scope and goals, a dedicated team is a great option for you. So, you don’t have to waste time building a team out of IT professionals and can instead focus on what matters to business growth.
Advantages Of The Dedicated Team Model
The one outstanding advantage of a dedicated development team module is that it can scale up and down based on future demands and is flexible. A dedicated team is also a cooperative group of IT professionals who have already worked together. A dedicated team already has great cooperation and communication skills, resulting in a high-quality product.
Once you hire dedicated development teams, you can outsource the project as a whole, assign staff, and train the employee for a specific project. With a dedicated team model, you don’t need to manage all the resources as they’ve already worked together as a group.
Hiring a dedicated team saves you time and money, as you don’t have to look for IT professionals, save on internet and electricity bills, and cover health insurance.
A dedicated team ensures complete project delivery with high quality and standards, reduces cost by leveraging efficient resources, increases efficiency as they can anticipate problems faster, is flexible in terms of skills and competencies, and adapts to changes in project requirements.
Disadvantages Of The Dedicated Team Model
One thing that lacks in the dedicated team model is the culture gap. Contrary to the in-house development team, the dedicated team doesn’t share the same values as the customer or the hiring company.
A dedicated development team model is not an ideal option for small projects. You can try hiring remote IT staff for smaller projects. With fewer milestones and a well-planned project map, you can easily develop the project.
In-House Team Is Great For
Having an in-house development team is ideal for those with a large budget and no project deadline, those who want to protect their data at all costs, important projects, and large IT companies.
With an in-house team, you get quick turnaround time, increased collaboration, clear and effective communication, culturally fitted employees, and better control over the project to meet the needs and requirements of your end users.
A Dedicated Team Is Great For
I’d recommend you hire a dedicated development team for larger and longer-term projects. A dedicated development team is great for a project without a defined scope and deadline since they’re flexible and scalable depending on the project requirements.
Dedicated Development Vs. In-House Development Team: Key Differences
| Factors | In-House Team | Dedicated Development Team |
|---|---|---|
| Timeline | It takes 2-3 months to hire one IT staff | It only takes 2-4 weeks to sign a contract with an outsourcing company |
| Cost | Expensive | Cost-effective at a reasonable price. |
| Great For | Data protection | Long-term project |
| Global Talent | Limited resources | Access to diverse talents |
| Scalability | Has to augment staff for specific IT needs | Highly scalable based on your future project demands |
Is It A Good Idea To Hire Dedicated Developers Or A Team From A Software Development Outsourcing Company?
Why not! It’s a win for your upcoming project. As you can see, outsourcing your project to a company that shares the same interests and loves working together on your idea is a great way to reduce costs and develop great products that satisfy end users.
Before you outsource, make sure they’ve got what you need, from experience to the ability to tackle unplanned changes in the project and deliver great results. Make sure you choose a dedicated development team with great collaboration and communication.
With 7+ years of experience in software product development, we have successfully delivered a list of extraordinary apps for our partners. Contact us to discuss the scope and goals.
