In-House vs Outsourced Staff

ALT Studio
3 min readJan 24, 2022

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Are you looking for a developer for your project? You’ve probably already posted a vacancy on specialized sites. But wait, read this article to the end. Now we’ll reveal the pros and cons of in-house development.

In-House or Outsourced Staff? Both of these methods have their place, but you need to understand the difference between them, when it is convenient and profitable to outsource the work and when to keep your own IT department.

1. Development of the project with in-house staff.
Let’s imagine that you are a real estate agency. You have been on the market for a long time, you have all your business processes fine-tuned. You decide to develop your own CRM, to automate the company’s work even better, to reduce operating costs. And then the question arises: who will do it? You must look for professionals.

Having searched the Internet, having read information about product development, you realize that for the project it won’t be enough to have a couple of programmers, who must be more than one specialization. You also need a project manager, an IT director, and a designer, after all. In general, you have to build a full-fledged IT department. And you have to learn how to manage it, it’s still a big challenge. After all, the development budget must be spent as effectively as possible.

And you need to hire all this staff, spend a lot of money on a cool HR who will find really good specialists. And you also need to pay for vacations and sick leave, so the project tasks will stagnate. You will also need to pay taxes for them, and they themselves are not cheap.

2. Development of the project with outsourced staff.

The main advantage of this approach is that you can find specialists and start working in just a few days. If the performer is adequate and expert, everything will go smoothly with the project and you will meet the stipulated deadline. There is one downside — it is a little more expensive than having your own staff. But when time is more important, or the project is not so large-scale that you have to build the IT department to develop it for half a year, outsourcing is the best option.

There are also problems with outsourcing, but they are usually associated with the fact that you have chosen the wrong contractors who can’t do anything but talk nicely. In the following articles, we will tell you how to protect yourself from such contractors, how to set your requirements correctly, and how to build the process of work with outsourcers.

3. Conclusion

In-house development is good when:
- You have the time and money to set up your own IT department.
- You have enough tasks to load your IT department full-time, preferably for several years. Or you are confident that the tasks will appear all the time.

In other cases, we recommend the use of outsourced development services, it will be more profitable.

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