Deciding between an in-house team and an outsourced development team can be a tough call. It’s not just about who builds the app – it’s about finding the right fit for your needs, business goals, and resources. Discover the key factors driving this choice.

In today’s world, a digital product is a business’s storefront – no question about it. Whether you’re an innovative biotech startup or an antique shop, you can hardly do without a digital solution supporting your business activities. The question is, what’s the best way to obtain such an asset? 

Many companies planning development projects face the dilemma of building a digital product in-house or going with an outsourced development team. We’ve already explored the pros and cons of each option, and this time, we’re taking a different perspective – focusing on the factors that drive this decision. 
When choosing between an outsourced team or keeping your project an internal affair, what should you be considering? We’ve identified some key factors that can help you decide.

Time is always of the essence, but in some cases, it can be a critical factor for the project’s success. If you have very strict deadlines because an investment hinges on it, your marketing strategy dictates it, or there are other business reasons why you must have a product in the market by a specific date, an outsourced development team is usually a much safer bet.

Agencies are an out-of-the-box solution. When we put our scheduling department on the task, we can pull together a skilled team tailored to your needs that is ready to go in no time. 

This approach also works if you plan on building an internal team in the future but simply can’t manage it in due time. Startups, for example, will often find themselves in these circumstances. If you’re pressed for time, an agency can help you get the project off the ground while giving you space and time to build an in-house team gradually. 

This situation can also benefit from the team augmentation model and, on an even larger scale, take the form of a Build-Operate-Transfer partnership.

When deciding between building in-house or with an outsourced development team, the importance of the product to your business is a significant factor. Sometimes, the digital product is in a supporting role, and sometimes, it is the star of the show. 

For example, if your business is fintech or e-commerce, your app is your business. It is the main channel through which you acquire revenue and absolutely essential for your operations. If that is the case, you would likely want to build and maintain it in-house. Think about Robinhood or Shopify. These companies will need a dedicated team working on their apps as long as they exist in the business. 

On the other hand, if you are not primarily or exclusively digital, it might be better to outsource your project. In this scenario, an app can be a great asset for upgrading your business, attracting more customers, improving internal operations, or opening new paths to revenue, but it is not the single most important asset everything hinges on. 

Think loyalty apps, companion apps for physical products, and apps that are an extended arm of the offline business. If technology isn’t your core business but more of a facilitator, you can confidently outsource the building and maintenance of your digital product to an external partner.

Sometimes, the product you are building is not essential for your core business but more of an experimental venture into a new field. Maybe you already manage several successful digital products, but you are looking to innovate further. Your team has a killer idea, and you decided to allocate some time and a part of your budget to see if it works. 

This is a clear situation where we wouldn’t recommend building an internal team. Hiring requires a long-term perspective, and if you’re yet to learn whether your new venture is viable, an outsourced development team can be a perfect interim solution. 

By the way, regardless of whether you’re keeping things in-house or outsourcing, we’d always recommend conducting a discovery workshop before you kick off a project. It’s a great tactic for de-risking your product and immediately validating your innovative idea.

When the project requirements dictate some very specific expertise or type of technology, an outsourced team can be of great help. Finding and retaining experts with niche technical knowledge may be challenging and definitely not worth the effort if your need for that expertise is project-based and time-limited. 

This may easily be the case with emerging technologies such as IoT and AI. These fields are undergoing rapid development, and keeping up with all the advancements might not be simple for a less tech-oriented company. 
On the other hand, tech companies have a laser focus on emerging technologies and will be able to supply skilled experts specialized in precisely what you need.

Cost savings are often a key factor when deciding whether to use an in-house or an outsourced development team. Though at first glance hiring an agency might seem costly (and you might be concerned about digital products’ elusive price tags), opting for an outsourced team can actually provide greater budget predictability and efficiency.

Hiring, onboarding, and retaining an in-house team comes with its own set of hidden costs. Recruiting top talent is time-consuming and cost-intensive, and retaining skilled developers requires competitive salaries, benefits, and ongoing training. With an outsourced team, you gain access to a broader talent pool without the overhead costs, and you can allocate more of your budget directly to the development of your product. 

Additionally, agencies have established teams with streamlined processes and specialized expertise, which means fewer inefficiencies during the project lifecycle. Working with an experienced team, you reduce the risk of costly delays or mistakes, which helps you to stay within budget while still meeting your project goals. 

An outsourced team also provides scalability. Instead of committing to long-term internal hires, you can adjust the team size and skillset based on your needs at different stages of the project. This flexibility means you’re only paying for the resources you need when you need them, making it much easier to manage your budget effectively.

When making the call between an in-house team and an outsourced development team, it’s important to understand the various factors at play. Tight deadlines, experimental ventures, or niche technology requirements can mean outsourcing is the best way to get the speed, flexibility, and expertise your project needs.

Other times, especially when you have a long-term vision and a product that is central to your business, keeping both the project and the team under your roof might be a better route. 

Hopefully, the factors outlined above have helped you see the decision from multiple perspectives. If you’d like to discuss these further and explore what an expert outsourced development team could bring to your project, we’re here to talk.

Deciding between in-house software development vs outsourcing? We explore the pros and cons of each route to help you make the right decision for your business goals.

Building digital products can be a lengthy and cost-intensive process. If you’re considering starting one and have done the preliminary research, maybe even gone through a couple of agency proposals, the thought may have crossed your mind: “Couldn’t we just do this with an in-house team?

Don’t worry. In the digital product development world, choosing between in-house software development vs outsourcing is a constant dilemma. Like renting versus buying a home, each comes with a set of advantages as well as potential downsides. In a separate article, we focus on the key factors driving this decision, but on this occasion, we’ll examine the pros and cons to help you make an informed decision.

Whatever industry you operate in, your people know its ways. An in-house software development team doesn’t need time to get acquainted with the project because they already know it inside and out. They are familiar with the competition, similar types of products, and the target audience.

Domain knowledge can be especially important for niche software projects, and an outsourcing company may not be able to provide the right level of understanding. For example, suppose you’re producing synthetic sapphire crystals for electronic components and need a custom internal tool to monitor the production process. In that case, you’ll probably sooner build an in-house team than find an agency that is the right fit. 

With in-house development, achieving team alignment is one less thing to worry about. Your in-house team embodies your corporate culture and operational rhythms. They know the internal processes and ways of working, and they know each other. You can find fantastic alignment with an outsourcing company, but with in-house development, you already have it.

When you opt for in-house development, the entire team is under your roof, or if your company works remotely, just a Slack message away. Though we live in a very connected world, well-established communication channels – or live communication, when possible – enable a quicker and more efficient information flow. 

Sometimes, the best ideas come spontaneously, and it’s much easier to have an impromptu meeting in-house than with an outsourced team.

Investing in in-house development, whether through upskilling or reskilling your internal team, or adding new people to the mix, is a long-term benefit. You’ll have a broader and more diverse set of competencies in-house, which you can use in future projects, too.

Employing an internal development team allows you to always keep an eye on how things are progressing. With in-house development, you can make real-time adjustments and monitor the process closely, aligning each step with your strategic vision.

One of the difficulties with in-house development is that unless you can allow yourself a dedicated team to work on this project and nothing else, people from your organization will likely still be engaged in other activities. 

This is especially important for project management/leadership roles. If the project manager holds a similar role in your corporate structure, managing highly responsible organizational tasks on several fronts becomes challenging, if not impossible. 

Whether you’re hiring new people full-time or just contracting for this particular in-house development project, it’s a process. Finding the right candidate takes time, effort, and internal resources, and if you add onboarding to the mix, it may take months to get your software development team to full working capacity.

What’s more, to hire tech experts, you need tech experts. You can have the best HR in the world, but how will they assess a candidate’s technical skills in the hiring process?

When considering in-house software development vs outsourcing, you need to be aware that the costs of a project team amount to much more than salaries. A development team needs equipment to work with; they need digital tools and licenses and a whole suite of hardware and software to aid them in their work. 

An outsourced team can actually be a more cost-effective solution because an agency already has all of those additional resources at its disposal. For example, our QA team has an inventory of 200+ devices, including all possible types and brands of smartphones, tablets, and smartwatches. When we test, we test thoroughly.

Sometimes, there’s power in numbers. Whatever the size of your in-house development team, it can’t compare to a large tech collective. An outsourced team is usually a part of a company full of tech experts, which means much more support for any individual. Learning is quicker; all the resources are readily available, and there are feedback sessions and mentoring opportunities. And quite simply, when there’s a particularly complex problem to solve, there are more brains to pick. 

Finding the right people for in-house development isn’t the only challenge—you also need to know how to keep them, or you’ll find yourself running short on staff mid-project. The tech industry is known for its superb employee benefits, and to keep talented developers on board, you need to create an environment in which they’ll feel content and appreciated.

Will you have enough quality work for them when this project is done? Do you have a structure in place that will allow them to progress in their careers? It’s something to think about. 

Sometimes, domain knowledge is useful, but sometimes, it prevents you from seeing the forest for the trees. People who’ve worked in the same industry for years are more susceptible to a bias known as “But this is how we’ve always done things.” 

On the other hand, when outsourcing software development to an agency, you can benefit from its breadth of experience across industries. As we’ve witnessed on many projects, a fresh perspective can prove invaluable, and this is another important factor to consider when weighing in-house software development vs outsourcing.  

A digital product development agency probably has hundreds of successful projects under its belt. We’ve seen projects big and small, complex and demanding, simple and straightforward. We’ve done immeasurable amounts of user research for all imaginable types of products.

This extensive experience allows us to make better decisions more quickly. We can recognize where potential dangers lie and plan ahead, and we can recommend a course of action when you’re faced with a dilemma because chances are we’ve seen it before. 

It depends on the type of product you’re planning to build and what kind of specialized skills you already have at your disposal, but we can tell you what type we have—all of them. From product strategy to design, development, and data analytics, we cover the entire software development process. We also have a very versatile tech stack and are skilled in emerging technologies like ML, AI, and IoT. 

Because an agency has all those differently skilled experts available, it’s easy to put together a custom development team with specialized skills suited to your project’s needs. You have an in-house design team but no QA engineers? No problem; we can supply those. You need two Android developers and three iOS developers for your mobile app? We’ve got you covered. 

Adaptability is key for the modern software development process. The project scope may change mid-course, and an outsourcing company has the necessary flexibility to support that. In an agency setting, it’s much easier to scale the development team up or down or add new members to support changing project requirements like a different platform or technology. 

Questioning the quality of your outsourcing partner is a legitimate concern. Just like in any profession, anyone can claim that they’re the best, but few actually are. 

When outsourcing software development, choosing the right partner is a leap of faith. However, rather than giving up before even trying, do some research to put your mind at ease. Check whether the company holds relevant certifications, find client reviews, review their previous project work, and check out app stores to see their products’ scores. 

It can be challenging to find an outsourcing partner who has the required technical expertise and can seamlessly integrate with your team. Potentially, there will be cultural differences and language barriers, variations in working methods, and maybe even a time difference to struggle with.

Before you decide in favor of in-house development, focus on finding a partner who is the right fit – both in terms of technical and soft skills. When you have, the integration won’t be that much of a challenge, and those teams will merge like two software modules in a well-architected application.

A common concern with an outsourcing partner is that project teams often change during the development process, and it is another perfectly legitimate one. An agency juggles many plates, and sometimes, moving people from one project to another is necessary.

We can’t speak for other agencies, but we can say for ourselves that if this happens, there are onboarding and offboarding processes and mechanisms in place to ensure that any changes in staff are seamless and that a project’s success is never jeopardized.  

You may feel that an outsourcing team will never be as dedicated to the project as your people are. It’s only logical – an in-house team is invested in the project’s success because it will bring benefits for the company, ergo, benefits for them. 

However, when we enter a partnership, your project becomes our project, and we share a common goal. We want you to succeed because that means we’ve also succeeded. 

When you outsource, the project is no longer under your roof. You may be unable to micromanage every aspect, check in on your developers to see what they’re working on at a given moment, or call those impromptu meetings. 

However, when you work with an agency, you don’t give away control over the project; you delegate it to a competent partner who knows what to do. Maybe you won’t be as involved in day-to-day operations as you would be with in-house development, but you’ll still have full visibility of what is going on. We manage all our projects in Productive, and you can monitor how your product is progressing and what’s going on with the budget at all times. 

When you set out to build your digital product, choosing between in-house software development vs outsourcing is an important step that will shape the journey ahead. To make an informed decision, you should carefully weigh the pros and cons but also think about the deeper nuances of your project goals. 

There is no one-size-fits-all solution, but we hope we managed to shed some light on the factors to consider when making this choice. 

If you still have concerns about leaving your million-dollar idea in the hands of an external development team, let us know what they are. Maybe we can help you put your mind at ease. 

In 2023, Infinum Foundation’s scholarship program for promising yet underprivileged high school students flourished. We could never have imagined the difference it made in their lives.

Sharing is one of the core values we cherish at the Infinum Group. We continuously share knowledge, time, best practices, and valuable resources. With a culture like ours, it seems natural to support each other with small but helpful acts of kindness. But when we started Infinum Foundation, we strived to impact the community and achieve more. Or, to be precise, to share more. 

A couple of years ago, we pledged to allocate a percentage of our profits to support initiatives and causes we believe in, mainly focusing on the ones helping children and youth. Since then, with the support of teammates and resources from our sister company, Productive, we have backed over 60 projects across the region. However, the initiative dearest to all our hearts, I dare say, started just last year – the Foundation Scholarships.

In a nutshell, last year we decided to hand out ten scholarships aimed at helping underprivileged high-school students who demonstrated outstanding academic and sports achievements. We’ve recognized the limited opportunities for high school students to obtain scholarships yet understood the weight they carried. We wanted to relieve the stress of this important period in their lives. 

When we piloted the initiative, we couldn’t anticipate the impact of our scholarships on the students’ lives. Of course, we understand monetary assistance is always appreciated. Still, we never truly grasped the amount of relief and joy those students would experience with our support, nor could we predict all the different, meaningful experiences our scholarships would help provide.

Hiring a vendor to build a digital product is an important business decision for any business owner. You’re not choosing a stationery supplier, but a custom web application development company you’ll trust with tens of thousands of dollars, and finally, your reputation.

As an award-winning full-service digital agency, we get in touch with brand leaders and startups from various industries all the time. To engage any further down the collaboration lane with them, we first need to understand and evaluate a project, its scope, and the technical requirements to determine whether we are a fit from a technical and strategic standpoint.

Off-the-shelf software solutions are available immediately, they are industry-appropriate and they are cost effective. However, they are standardized. They are made to respond to the average needs of the average business in your industry. Average doesn’t fit all, though.

When you opt for a custom web app development company, the software is built just for you, like high quality tailor-made clothes. A company specializing in custom development services will first spend a fair amount of time to get to know your business. What are your specific needs? What’s your client base? What goal do you wish to accomplish?

They will also test abundantly throughout the development process to check the app’s usability with real users and make sure it’s on the right track. This ensures that the final digital product fulfills its purpose and brings value to your business.

All this considered, it’s important that the custom web application development company you choose is a good match. Since there is still no Tinder for software development partners (potential market opportunity here!), to get to know the company you’ll be working with, you need to be asking the right questions.

Here’s a set of frequently asked questions in the initial meeting with potential clients that can help set a software project up for success from the beginning.

When prospects see we’ve worked with big names and brands across industries, they frequently inquire about “the size” of our clients and the industries we’re most experienced in.

Although we’re seasoned in the hospitality, fintech, and telecom industry, we are always looking for interesting, innovative, challenging, and game-changing projects, whatever industry they might belong to. Real estate? Why not.

We understand the price is an important factor. That’s precisely why we always point out that it depends on the chosen cooperation model. Each one will suit a different type of client.

These are the three common cooperation models when estimating the price of a digital product development project.

Suited for smaller-scope web development projects, like building a landing page, in which the scope isn’t likely to change mid-project.

Used for long-term projects with dynamic requirements. At the beginning, the full scope is still unknown. Some flexibility is needed so that the requirements can be adjusted, direction shifted, and features replaced during the course of the project. With this model, clients are billed for the amount of hours the development team spends working on the project, plus the cost of materials.

Suitable for projects with uncertain requirements and potential changes in scope. The client is charged monthly based on actual time worked by every team member and certain fixed parameters, like hosting or licensing costs (if they occur). Usually, this type of cooperation involves a team of (minimum) six to seven people and facilitates long-term collaboration between a vendor and a client. Find out more about the dedicated team model.

When we’ve agreed on a cooperation model, we can start talking about money. Our prices are not predefined because we build from scratch, be it mobile applications, web solutions or other digital products for our clients. To put it another way, we build custom-made software, and that includes different services in different ratios, making it hard to “put a fixed price” on a specific service.

Also, the scope and duration of the project affect the budget and rates. If we expect long-term collaboration, there is a high chance we will agree on better terms. That’s why we need to understand the project’s scope completely to provide an accurate timeline and budget estimate.

Often, a software project requires additional services on top of the “core” one – development. We also offer design and branding services, code maintenance, and will gladly assist with growing your user base.

“Full” in full-stack refers to the collection of technologies needed to complete a project, whereas “stack” refers to a collection of accompanying services, like design, software testing, DevOps, analytics and so on.

We employ an agile way of working: Scrum methodology, to be more precise.

In Scrum, we work mostly in two-week sprints. Each sprint starts with estimating the potential tasks and agreeing on the scope of the sprint. At the end of each sprint, the team presents a demo of the results and comments on problems.

A dedicated Project Manager will make sure everyone needed is involved in making all the important decisions and informed about the project’s progress.

Sometimes, the clients are not sure whether they need a Project Manager or a Product Owner.

As mentioned above, the Project Manager acts as the main point of contact and oversees and coordinates the project with clients. A Project Manager is perfect for projects that already have a dedicated product team.

On the other hand, a Product Owner is ideal if your company needs guidance in adapting business processes for digital product creation.

Check out this resource if you want to learn more about the difference between Product Owners and Project Managers.

Both the client’s and our teams are on the same page and stay up-to-date by using our agency management tool Productive. In Productive, our clients have an overview of all the important metrics, like hours worked, hours billed, or costs. This way all parties can track the project’s progress in real-time.

We’re proud of maintaining multiple touch points of quality control for our products. Every line of code is reviewed and approved by two sets of eyes through pull requests. Further, our QA team tracks quality control metrics and conducts extensive usability reviews and tests on more than 100+ devices available in our device lab to ensure the highest quality standards.

We preach and practice open and transparent communication with our clients through a variety of channels.

One of them is Productive, which provides an overview of tasks. We also use dedicated Slack channels for day-to-day communication and collaboration with all client stakeholders. We can switch to Microsoft Teams or WhatsApp groups depending on the clients’ preferences.

During the initial chat, it’s essential to set expectations on the degree of involvement after the production has finished, because there’s still plenty we can do for you. Some clients want to keep us on deck once the production and testing are concluded, and we always look forward to such long-term engagements.

Finally, developing and releasing a digital product is just the first step towards success. It’s just as important to connect your product with the right market and audience, not only by focusing on acquisition but by constantly working on app improvements.

Our Data team has already helped many clients attract more users and keep them engaged by relying on relevant data. Using different tool sets, from Firebase, Amplitude, Google Data Studio and many more, they devour delightful data, draw conclusions from it, and then suggest the game plan for guaranteed success.

By the time the initial conversation is done, both the client and the vendor will have hopefully gained a better understanding of each other’s expectations and potential.

Whether it ends in a realization that the client and the vendor aren’t a perfect combination or as a springboard for successful future cooperation, it’s better to discover it sooner rather than later.

If you want to dig deeper into the conversation and get more information about web application development, let’s keep talking!