In-house vs Outsourcing Mobile App Development: Pros and Cons

In-House vs Outsource Mobile App Development

In-house vs outsourcing is the most common dilemma that businesses face when they plan to work on mobile app development. With digital transformation governing the eCommerce industry, businesses are competing to offer their customers seamless experiences with the help of the latest technology. However, building a mobile app that is scalable and powerful requires a team of experts with the necessary skills and experience. Some enterprises prefer to hire in-house resources, train them, and subsequently work towards the mobile app development idea while others collaborate with top talents from across the globe to envision the product. In-house vs outsourcing is indeed an extremely critical decision – both have their advantages and disadvantages that need to be closely scrutinized before arriving at the final decision.

In 2018, global mobile app revenues amounted to over 365 billion U.S. dollars. In 2023, mobile apps are projected to generate more than 935 billion U.S. dollars in revenues via paid downloads and in-app advertising.

Worldwide mobile app revenues in 2014 to 2023

In-house vs Outsourcing Pros and Cons

Every business decision has advantages and disadvantages, in-house and outsource is no exception. While application development outsourcing has been a favored option, every enterprise big or small, needs to weigh the pros and cons of the commitment.

The rise in the use of mobile phones indicates that they are becoming an important marketing tool for every business. When the world is going digital, it’s crucial to adopt the newest trends, and let go of traditional means of doing business. Be it banking, healthcare, insurance, or any other industry; all have turned to mobile app development to reach out to their target audience. Hence the success of the app is also a significant determinant of the business’s success.

This blog discusses the in-house vs outsourcing pros and cons for mobile app development and its implications on the overall business growth.

In-house Mobile App Development

In-house Mobile App Development

Many companies that are inclined to build in-house mobile apps believe that it is extremely savvy and controlled; since the in-house team is fully managed by the parent company; they will be able to take care of the development operations as per their choice. This option might seem to work for a few companies, but here’s a look at how it can impact the overall process.

Pros of In-house Mobile App Development

Bigger companies are often equipped to establish the required resources for an in-house team, including allocating sufficient time and money. The principal benefits of building an in-house app are:

  1. Your in-house team has better access and insight into your business’ evolving goal, target audience, and market competition. Thus, an in-house team is able to build a better perspective that reflects while developing a business-driven app.
  2. Since the mobile application development team works out of the same office space, accessibility is not an issue. You can communicate closely and on a daily basis to check if everything is on track. You can meet them in person very frequently and discuss the challenges face-to-face. It is easy to manage and execute the plans or changes because the whole team is available under one roof.
  3. As a business owner, you are able to identify the specific expertise of your resources. This way, you can allocate the tasks to drive the best results by utilizing their skills and talent, efforts, and investment. Teams can be replaced, or team members swapped if needed to make the process more efficient.
  4. When deciding between in-house vs outsourcing, your app’s entire development process takes place in front of you in the case of an internal team. This guarantees that the process is going on time as per the business prerequisites without compromising quality. You can control and ensure that the app is built at the specified time and cost.

Cons of In-house Mobile App Development

If you are keen on in-house app development and feel that it can work for your business, you must be aware of the following disadvantages:

  1. When you build an app in-house, the process is likely to involve high costs. These are mainly directed towards recruiting & training the staff, the licenses as well as infrastructure which eventually become permanent expenses for the business.
  2. Higher the number of employees, more significant is the demand for staffing and other resources. However, the bigger challenge is ensuring retention of the entire team to avoid delay in the development. Moreover, once the project is over, it can be difficult to find the team relevant work within your organization.
  3. A good app development team consists of various professionals – designers, developers, analysts, quality assurance engineers, project managers, and team leads. To hire the right talent, you will need to invest a lot of time to interact with them and ensure that everyone is on the same track for building an engaging app. The process demands a significant amount of your time and effort even before the work actually begins.

Outsourcing Mobile App Development

Outsource Mobile App Development

Outsourcing of mobile app development has seen a sharp rise over the last few years. While the main reason for this has been attributed to the significant reductions in outsource app development cost, it is also the access to top talent pool from around the world and their expertise. It is no more ideal only for startups as many mid-size, and big enterprises prefer outsourcing their mobile app development.

Pros of Outsourcing Mobile App Development

Outsourcing mobile app development helps build a superior app or product without having to spend much time and money. Here are a few key advantages to outsourcing app development.

  1. One of the prominent advantages is that outsourcing ensures faster time-to-market since the team you hire can start working on the project right away as against building and training internal teams. Moreover, you have extensive options for companies and talent to choose from. Several web portals list mobile app development companies with various skillsets, locations, experiences, and costs. You can scrutinize them as per the business requirement to find the most suitable mobile app partner.
  2. When you outsource app development, you don’t have to worry about obtaining any certificates or incurring expenses on the office setup, maintaining full-time employees, or other infrastructure. It’s the responsibility of your partner development company to take care of these specifications and manage other challenges to come up with the ideal solutions.
  3. When you collaborate with an organization to build your mobile app, you are primarily partnering with experts who are skilled and experienced in the field. Hence, with outsourced development, you can leave it to the professionals and focus your resources and time on managing several other associated tasks of your business, such as marketing and sales, without bothering about the minute details of the app-building process.
  4. Outsourcing app development is completely different from in-house development in terms of the risk involved. If there are significant changes in the app along the way, teams can be readily scaled up or down to manage the requirements, which is not a possibility in the case of an in-house team where hiring and firing can severely affect the project. Additionally, when you hire experienced app developers, they are more aware and abreast of the latest market trends and technologies and can adapt them well in your app.
  5. The outsourcing partners are experienced in working on different applications across several sectors. This implies the presence of well-defined processes and workflows that lead to better productivity and quality of the mobile app. Also, a mobile app development agency comprises a full team right from Project managers to UX designers for a comprehensive approach to the process.

Cons of Outsourcing Mobile App Development

Outsourcing mobile app development offers great opportunities to those companies who want to aim for a faster business growth without having to go through elaborate groundwork. Mobile app development firms offer end-to-end services; however, there are a few drawbacks to outsourcing app development.

  1. If you and your development team are located in different time zones, you may face communication problems. Nevertheless, this disadvantage is less likely to occur in the case of top app development companies, which adjust their schedule as per the client’s convenience and consistently stay in touch during the entire development process.
  2. The quality of the product can be one reason to make you feel stressed as the development isn’t done under your nose. Fortunately, a vast majority of mobile app development companies work with Agile methodology, where the entire project is divided into various modules, which are freely coded, tested, and then sent to the client. This certifies the quality as well as the time and cost of app development. You can suggest changes and get them easily executed as the project progresses.
  3. Enterprises are often worried about the possibility of a leakage of confidential information when they hire an agency for mobile app development. The developers/partners require access to several details of the business to successfully build the app which could include the customer database and other sensitive information. Such likelihoods can be avoided by hiring a well reputed organization as well as IP protection and non disclosure agreement supported by strong legal measures.

Finding the Right Team for Outsourcing

Finding the right fit to outsource mobile app development might seem like an arduous task, but the process can be less difficult with a little research. Try to look for organizations on portals such as Clutch, which list detailed ratings and reviews of the mobile app development agencies. You can also talk to other companies for opinions on the partners that they are associated with. The next step, interview, helps understand in detail the skills and experience of your potential partners and decide if you want to go ahead with the team. Benefits of outsourcing mobile app development are many however, it is the trust between you and the team that will go a long way in achieving the product that you have envisioned.

Time to decide

In-house vs Outsourcing – Final Thoughts

In today’s digital world, businesses are always under pressure to gain a competitive edge and ensure a bigger and loyal customer base. The eventual decision on in-house vs outsourcing the mobile app development depends on a combination of factors including the time to market, costs, and your willingness to take the risk. The choice to build the mobile app inhouse or through collaboration depends on an organization’s long-term strategy, access to resources, and several other factors. The above-mentioned points throw light on the advantages and disadvantages of both the approaches that can help a business decide better on what benefits their end goals. The decision to in-house or outsource mobile development, after all, is an essential determinant of the success of an enterprise.

Hire Experts to Build Innovative Apps

Gaurav Bakshi

About the Author

Gaurav Bakshi is a result-driven Software Management Professional with +10 years of experience in Account Management, Sales, Business Development, and Project Management. Gaurav has extensive experience in building and managing energized, creative, and focused teams that aim to deliver seamless customer experiences by designing, developing, and growing next generation and enterprise-ready products and solutions.

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Frizza wold

6:28 PM, Jul 31, 2020

Thank you for sharing such an amazing topic.

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