Early Startup? What Should You Go For – In-House or Remote Offshore IT Developers?

Entrepreneurs across the world have praised and lauded the merits of outsourcing development work. Strange but a few of them have stories of terrible experiences during their outsourcing project days. Should you go the outsourcing way or plan for an in house development team? Here’s our take on what you should go in for – in-house or remote IT development. This is a crucial decision, especially if you are an early start-up working on shoestring budget.


The Benefit of going to the outsourcing way:

1. Cost: Well, this is the most common reason. The cost of labor is much cheaper overseas. A local developer may charge you an exorbitant fee on a per hour basis but with the outsourcing plan on the cards, there is a definite cost reduction that you can initiate. The same amount done during a quarter may cost you a half while outsourcing. Hiring and training a full-time developer for your business is an economically heavy affair. You could use the cost savings to build a bigger and feature-rich application for your business.

2. Labor Arbitrage: Labor Arbitrage is often perceived as the biggest pro for going the outsourcing way. Entrepreneurs wouldn’t mind getting the same work done for a pre-decided amount of money in another part of the globe. It doesn’t make sense to pay more for the same thing locally where cost is equal but recruiting a developer is a task. Comparing labor costs isn’t as easy as you might think of it. Some firms urge entrepreneurs to consider the extra time associated with handling and preparing for an offshore project. In most cases, comparing explicit costs lead to the blunder of not considering opportunity costs and falsely considering that an hour of work everywhere costs the same. An in-depth analysis of the same can help you sort the differences here.

3. Short Term Commitment: Here is the most underrated benefit of outsourcing. The ability to bring an expert on board is one of the greatest advantages of an outsourcing facility. This is possible without committing to a long-term contract or work while on an outsourced project. You may really need someone with one skill set now but the need for a certain skill may arise in the future. This is where outsourcing works to the best. While hiring an expert with a specific skill set for your business, you may have to pay a lot more than what you had budgeted for. Outsourcing handles that side of your business efficiently.

4. Core Competencies: Most start-ups that plan to or has outsourced their projects state that passing on the development responsibilities have helped them focus better on their core competencies. They are able to focus on their main work while the outsourcing service provider handles everything on their behalf and hiring a trusted service provider has helped them remain stress-free about the project on the whole. Outsourcing avoids all sorts of human resource diversions and office distractions.

The Benefits of hiring dedicated developers are also relevant. Some developers prove to be long-term players in your team and will focus their skills at getting you the best outcomes at work, Developers working with you real-time know what is happening and what it takes to give your business the best. Though the idea seems to be awesome in the face of it all, there exist some real issues while hiring a full-time developer. From recruiting the right person to explaining your needs and getting the best out of the developer takes a lot of time and efforts. The focus towards other activities is lost and this at times lead to a lot of confusion and the project losing its flavor.

A general recommendation is to evaluate the overall situation. A SWOT analysis – Strength, Weakness, Opportunities, and Threats. Getting a better perspective is possible only by conducting a self-evaluation of the situation and this leads to a better understanding of your needs. Outsourcing does take away a lot of the planning and execution part from your workload thereby freeing your efforts at focusing on tasks that demand your attention.

Did a SWOT give you a pro-outsourcing signal? Well, if you are in search of the right outsourcing service provider in India, you definitely ought to connect with us by dropping a line at info@yourteaminindia.com. Our experts at Your Team in India can surely help you strategize your project in the best possible way!

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