In-house Work vs. Outsourcing: What to Choose?

In-house Work vs. Outsourcing

What is In-House Work?

In-house work or activities are done by employees of an organization or company, rather than by workers outside the organization or company.

What is Outsourcing?

Outsourcing is the process of transferring some or all of the responsibility for a work process to another company.

There is no single answer between in-house work and outsourcing because they both have their ts and demerits. Let’s see some pros and cons of in-house product by-products.

What are the differences between In-house development and Outsourcing?

In-house development and outsourcing are two different approaches to doing business. In the case of in-house development, the organization’s team, which is full-time employed by the company, works on the project to produce a final product. On the other hand, outsourced employees work as freelancers; they cannot be considered as permanent staff even though working with one organization for an extended period.

Pros of Outsourcing

Cost-effective: Generally, outsourcing charges a lower fee than the in-house development model. Furthermore, companies that offer cost-effective packages can be a better choice for small-scale organizations and startups.

Time-Saving: If an outsourced company provides the product on time after following all the project requirements, it’s highly beneficial for the client company to reduce project costs without losing quality. 

Productivity Improvement: Outsourcing has been found as one of the best ways to increase productivity within a short period without incurring extra expense. In this way, many issues can be solved by outsourcing which will take additional efforts from your end if made in-house. For instance – Handling Service Level Agreements (SLA), 

Cons of Outsourcing 

Quality: Sometimes, the quality of work produced by the outsourced company doesn’t match with the client’s desired standards. This can be overcome by selecting the right outsourcing company with suitable expertise and years of experience in the same field. 

Risk: A key concern for many organizations is security as it’s directly related to their system infrastructure. However, if you choose a reliable outsourcing company, this risk will be significantly minimized. 

Control: Another issue faced by companies who outsource their projects is that they cannot control freelancers working daily on a remote server. It’s advisable to go for an outsourcing partner with enough control over its employees and notice at each project stage.

Pros of In-House Work

It can be customized according to the client’s needs.

More control over the project, process, and deadlines. 

No third-party interference in your project, so you can work more efficiently according to your terms. 

Better for bug hunting because all team members are available only at the company premises, unlike outsourcing, where it is scattered all across different geographical locations. 

Less cost than outsourced development and the best value for money for customers due to availability of multiple resources at one place, i.e., fewer person-hours required for completion, which will also result in a lesser load on employees themselves during time or deadlines. Since all the developers are working as a team, they also tend to interact with each other resulting in better output.

Lesser time is required to complete the project due to the on-location availability of the team and optimum use of the company’s resources. 

There is no need for training or resource allocation, which you have to provide regularly if outsourced development is chosen. It saves money and time from spending on this activity which can be utilized elsewhere.

Can work more efficiently as all of your experts are available in one place. In outsourcing, employees have to travel from one site to another depending upon their assignment; hence work efficiency will decrease after a specific limit. In-house projects will be delivered faster than outsourced ones, where development is scattered all across the globe.

Lesser chances of losing valuable data and information, which can be an issue in outsourced scenarios, are made manually; hence human error can sometimes prove costly if vital data are missing due to the manual process involving backups. So, in-house development ensures that there will be no such issues at any point in time because everything is done automatically without any hassles by the automated tools used during the development process.

In-house team members get to work under pressure together as well as take up challenges more willingly rather than outsourced ones who mostly try to avoid challenging projects unless they are explicitly assigned for them only even if their expertise level suits best for it this attitude of outsourced employees have been observed over years of attending such projects. It carries significant weight when it comes to making a final choice for any client.

Cons of In-house Work

If the project requires more than one language, it becomes more cumbersome to manage developers as they cannot know all; hence you need to keep local experts for each language. 

A good number of employees are required because there is no scope for outsourcing. Here it becomes a cumbersome task to manage employees and their work. 

You have to bear the brunt of the cost even if you don’t require resources for a specific period because you cannot move employees to other projects where they are needed then. 

In-house work is slower than outsourced as resources are limited and need tmustvided between various tasks. Managers will not get everything is done on time, which leads to more pressure; hence this role gets more complicated. 

The knowledge base is comparatively lower for a few critical roles like Project Manager, System Analyst, etc., who can make or break your business game plan with their decision-making capacities. 

With lots of distractions around them, it gets challenging to manage employees’ time and effort, which will affect the overall time for completion.

Employees might resist changes as they have been used to a specific environment for years. If you have an outsourced development team, then it is easy to implement processes or make necessary improvements because resources can be moved across different projects depending upon the situation. 

In-house Work vs. Outsourcing: Which One Should You Choose?

In-house work is still a better choice if you want to the project and enjoy everything at your fingertips. In this scenario, you will need to have experts in each department like development, testing, etc., which entails more cost.

Also, some types of business involve close cooperation and tight deadlines, for example, some kind of laptop repair service.

If your project is not very complex and you can afford to take certain risks in terms of time and efforts involved, then outsourcing is the best choice for you. It is cheaper than in-house development because you pay per hour or per project basis depending upon the type of model chosen by the outsourcing company with whom you are working. Also, they will help you get rid of issues related to data loss or any other type of problems that may arise due to the non-availability of experts at one place due to physical presence under one roof, etc., thus resulting in increased productivity. So keeping all these factors in mind, it’s better to outsource projects if you are a start-up or new to the market.

Outsourcing is better if your project is not complex or has no associated risks. You should also consider outsourcing if you are a start-up without enough resources to hire full-time employees. Outsourcing will help reduce costs and give you access to experts whose physical presence may be required only during the development process. In-house development is ideal for projects that are very complex or have significant risk factors, as having all of your employees under one roof allows them to communicate easily and quickly if problems arise which require immediate solutions. 


These are some factors to consider while choosing between outsourcing and in-house work. Ultimately, it all comes down to the requirements of your project and whether you have enough resources or not to make this decision. Outsource if you are starting as you do not have enough resources. In-house work is better for more critical projects that require more control over every stage at every moment.


Tim Absalikov is the Acting CEO of Lasting Trend, is engaged in marketing for small law firms, and not only law ones. Tim is an expert in technical optimization. He has a deep understanding of SEO, SEM, UX and UI considerations, works with E-Commerce and Web Analytics. 

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