It’s hard to choose between in-house web development and . It’s almost like Morpheus holding the proverbial red and blue pills in front of your eyes. Only this critical choice will determine how your business will scale, how flexible your plans will be, and how much further you can extend your foot off the precipice.
But fret not, for you stand at the crossroads that every 21st-century entrepreneur stands. And not everything has to be a bargain with the devil. There are definite benefits that accompany each option.
Here is a simple guide that illustrates why it’s important to consider the pros and cons of both the possibilities before making a choice.
In-house Development Team
There are ideas, people, networks, and various idiosyncrasies that build a collective body of work that is your dream. A good team can develop an idea into something much better by adding their inputs from their respective experiences.
Face-to-face communication is always easier. That Bob who secretly enjoys being trolled as ‘Bob the Builder’ because he is hardworking, that Alice who knows the name of every plant in the workplace, and the Jason who procures the finest of wines, a jolly bunch that hangs out after work every day, the camaraderie that comes with talking to the people you work with is just incredible. It’s also easier to back one another up in case of emergencies, weekend work, or any contingency that needs fulfilling.
Many companies have been built this way through history. There is something almost magical in the way an organization starts functioning organically and the many dimensions your ideas acquire.
To spearhead development within your office requires space, computers, logistics, stationery, coffee machines, employee policies according to hierarchy, and human resource management that caters to the needs of the many rungs in the organization.
The list is not endless though, but to hold all of them together requires strong leadership, a firm vision, and a careful selection of people who believe in your dream.
The cons of such a setup are the same things that enrich it — people’s idiosyncrasies can be a double-edged sword. Their ideas and experiences may differ from yours and might compel them to act differently. Training and development form a significant cost to a company, and in an ever-changing market, this takes on another dimension.
People’s priorities change, their marital situations vary, their financial situations might alter, prompting them to leave, seek better opportunities or move town completely. In such cases, talent acquisition becomes a challenge.
The time, cost, and effort involved in training a new individual to a pivotal role involves him/her acclimatizing to the new environment, re-establishing connections that the previous person made, and carefully manage stakeholders. This is easier said than done.
What is easier though, is to hire an offshore outsourcing company.
Since the early 2000s, IT outsourcing has been a rage.
However, this requires significant capital.
If your organization is still a small-scale company, then it is much easier to hire and . Some companies provide tailor-made services across a broad spectrum ranging from web development, business development, support, and many more.
A significant advantage of IT outsourcing is a direct reduction of operational costs, talent acquisition efforts, and the need for large office space. The outsourced company takes care of all of these things while providing a tailor-made solution as per your requirements.
The access to a large talent pool, especially in countries like India can be leveraged to scale web and product development to unprecedented heights. The exposure these companies have by working with offshore companies across the world sometimes results in great innovation as well.
Flexibility, agility, and mobility have become the hallmarks of efficiency. It is these three factors that can be easily achieved by outsourcing. There will not be a need for certain roles in your organization all the time. It could be front-end developers, QA engineers, administrative support, and product support. These are tasks that can be handled quite easily by an offshore outsourcing company with adequate training.
The competitive advantage offered by outsourcing allows companies to focus on their core value propositions and customer service.
However, there are catches here as well.
Lack of research and due diligence, and getting into deals early on may have long-term adverse effects. Companies indulge in nefarious activities under the banner of outsourcing. Shell companies, laundering services, and other activities occur in many such companies. Fraud detection and analysis is an additional challenge in outsourcing. There is some search cost involved in finding fraud analysis agencies in the outsourced country, and often, it can be hard to find the roots of these companies. Some startups change direction as they would have navigated from the core objectives due to the exit of one of its founders.
An alternative some companies occasionally consider is nearshoring.
Nearshore Web Development
For instance, if you’re based in the United States, you hire offshore developers from a company in Latin America. This form of IT outsourcing too has taken off in recent years.
The benefits of nearshoring are very similar to outsourcing, but cost remains a challenge. Most nearshoring solutions are quite expensive as it is easier to source work locally.
One key advantage of offshoring is access to a large talent pool, which shrinks every time you center upon a region. A major success factor for hiring an offshore outsourcing company in India as opposed to Latin America is the access to a higher number of talented individuals.
Offshoring vs. Nearshoring vs. In-House Development
||Low efficiency||Least efficiency|
||Low exposure||Low exposure|
||Low niche and specialized experience||Low niche and specialized experience|
||Relatively smaller, low flexibility.||Flexibility solely reliant on specific people, usually low.|
||Less challenging||Least challenging|
||Low variety||Least variety|
Tips For A Risk-free Outsourcing
The downside though is that scalability, flexibility, and agility are largely restricted to the ability of your in-house talent.
This is why outsourcing shines, for there are several ways you can mitigate risks.
Referrals, credentials, and hiring local auditing companies can help fulfill this task easily. If you are looking to hire offshore developers, then a trial agreement where you only provide a part of the assignment will work well.