In-House vs Outsourced Development: Choosing the Right Option — Part One
There is little doubt that software development is currently experiencing a golden age. Once the realm of diehard geeks and tech heads, programming is now more accessible than it has ever been.
An explosion of available platforms has created a wealth of new opportunities. Years ago, Windows and the Mac were the two dominant platforms. Both of them were stable and mature, with established leaders in virtually every category of software. Today, the situation has changed dramatically.
The Rise of Mobile and Cloud Computing
The industry was turned on its head in 2007, 2008, and again in 2010, with the introduction of the iPhone, Android and the iPad. Each of these marked an all-new market for developers to target. Suddenly, the old standbys were no longer the only game in town, with upstart programs quickly carving out markets for themselves and gaining legions of devoted fans.
The next great shakeup came in the form of cloud computing. Although cloud computing had been around for years, it came into its own beginning in the mid-2000s, as Amazon, Google and eventually Microsoft entered the market.
The combination of these various advances ended up being greater than the sum of its parts. Mobile computing, cloud computing and web applications came together and gave rise to a number of frameworks, APIs and toolkits that made it possible to build cross-platform applications faster than ever before. Once again, this created new opportunities for developers and companies to capture market share by offering a comprehensive solution across platforms.
The end result is the current golden age of software development, where companies large and small are cashing in on the opportunity to create custom and commercial software. Even non-software companies have had to focus resources on software development. The more people have come to rely on smartphones and tablets, the more they expect companies to provide an app that makes it easy to access their services.
One of the biggest questions companies have, however, is whether they should develop software in-house or outsource it. Given how much of a role the above trends have played in the current status of the software development industry, it’s no surprise those same trends play a major factor in which route a company should take.
The Case For Outsourcing
Outsourcing has become a popular option for companies suddenly looking to expand their software development efforts. There are a number of factors that make outsourcing viable.
Cost
One of the biggest benefits of outsourcing is cost. Non-development companies looking to build an app to tie into their services can easily be overwhelmed by the cost of hiring a dedicated development team. In contrast, outsourcing development can be a cost-effective option. Just as cloud computing has ushered in an era where everything is a service—SaaS, PaaS, IaaS—development can be treated the same, with the client company only paying for what they need.
Expertise
In addition to cost, expertise is a major factor to consider. This is especially true for companies in areas that lack a strong developer pool to hire from, such as small towns and rural communities. On the other end of the spectrum, areas with strong developer communities can be so competitive that it can be difficult to attract top talent. Outsourcing solves these problems. When a company is willing to consider outsourcing, suddenly the whole world is at their disposal.
Finding programmers with the necessary expertise can also play a role in complimenting a company’s internal development team. It may be that a company’s in-house programmers specialize in developing for a specific platform, but the company needs to expand to cross-platform development. This is another instance where outsourcing can save time and money.
Focus
Another important benefit of outsourcing is the freedom it gives a company to focus on its core business. This is especially important for companies that are not in the business of software development, and are simply using an app to compliment their service and meet their customers’ needs.
By outsourcing the development process, it prevents the company from wasting time and resources trying to do something that is not part of their core business.
Conclusion
In Part One, we have looked at the unique status of the current software industry. Companies large and small are expected to have apps that compliment their services. Many other companies have unique opportunities to address markets and make their mark in ways that were difficult, if not impossible, in years past.
Without a doubt, outsourcing can be a valuable tool for companies involved in software development—either commercially or as a compliment to their own services.
Despite its advantages, outsourcing isn’t always the best option. In Part Two of this series, we will look at circumstances where in-house development wins out.
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There is little doubt that software development is currently experiencing a golden age. Once the realm of diehard geeks and tech heads, programming is now more accessible than it has ever been.
An explosion of available platforms has created a wealth of new opportunities. Years ago, Windows and the Mac were the two dominant platforms. Both of them were stable and mature, with established leaders in virtually every category of software. Today, the situation has changed dramatically.
The Rise of Mobile and Cloud Computing
The industry was turned on its head in 2007, 2008, and again in 2010, with the introduction of the iPhone, Android and the iPad. Each of these marked an all-new market for developers to target. Suddenly, the old standbys were no longer the only game in town, with upstart programs quickly carving out markets for themselves and gaining legions of devoted fans.
The next great shakeup came in the form of cloud computing. Although cloud computing had been around for years, it came into its own beginning in the mid-2000s, as Amazon, Google and eventually Microsoft entered the market.
The combination of these various advances ended up being greater than the sum of its parts. Mobile computing, cloud computing and web applications came together and gave rise to a number of frameworks, APIs and toolkits that made it possible to build cross-platform applications faster than ever before. Once again, this created new opportunities for developers and companies to capture market share by offering a comprehensive solution across platforms.
The end result is the current golden age of software development, where companies large and small are cashing in on the opportunity to create custom and commercial software. Even non-software companies have had to focus resources on software development. The more people have come to rely on smartphones and tablets, the more they expect companies to provide an app that makes it easy to access their services.
One of the biggest questions companies have, however, is whether they should develop software in-house or outsource it. Given how much of a role the above trends have played in the current status of the software development industry, it’s no surprise those same trends play a major factor in which route a company should take.
The Case For Outsourcing
Outsourcing has become a popular option for companies suddenly looking to expand their software development efforts. There are a number of factors that make outsourcing viable.
Cost
One of the biggest benefits of outsourcing is cost. Non-development companies looking to build an app to tie into their services can easily be overwhelmed by the cost of hiring a dedicated development team. In contrast, outsourcing development can be a cost-effective option. Just as cloud computing has ushered in an era where everything is a service—SaaS, PaaS, IaaS—development can be treated the same, with the client company only paying for what they need.
Expertise
In addition to cost, expertise is a major factor to consider. This is especially true for companies in areas that lack a strong developer pool to hire from, such as small towns and rural communities. On the other end of the spectrum, areas with strong developer communities can be so competitive that it can be difficult to attract top talent. Outsourcing solves these problems. When a company is willing to consider outsourcing, suddenly the whole world is at their disposal.
Finding programmers with the necessary expertise can also play a role in complimenting a company’s internal development team. It may be that a company’s in-house programmers specialize in developing for a specific platform, but the company needs to expand to cross-platform development. This is another instance where outsourcing can save time and money.
Focus
Another important benefit of outsourcing is the freedom it gives a company to focus on its core business. This is especially important for companies that are not in the business of software development, and are simply using an app to compliment their service and meet their customers’ needs.
By outsourcing the development process, it prevents the company from wasting time and resources trying to do something that is not part of their core business.
Conclusion
In Part One, we have looked at the unique status of the current software industry. Companies large and small are expected to have apps that compliment their services. Many other companies have unique opportunities to address markets and make their mark in ways that were difficult, if not impossible, in years past.
Without a doubt, outsourcing can be a valuable tool for companies involved in software development—either commercially or as a compliment to their own services.
Despite its advantages, outsourcing isn’t always the best option. In Part Two of this series, we will look at circumstances where in-house development wins out.