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In-House vs Outsourcing: Which Software Development Is Best for Non-technical Founders?

by Victor Purolnik
Software Development

If you’re a non-technical founder, you face a tough decision when it comes to developing software for your business. Should you build the software in-house, or should you outsource the work?

 This article explores the advantages and disadvantages of both approaches and understanding the nuances of each provides insight into which decision might be the best for your business.

 What Is an In-House Software Development

In-house software development is a process by which software is built within an organization, as opposed to outsourcing the development process to an external company.

It’s typically done by a team of internal developers, or an external team of software engineers. In-house software development allows businesses to have full control over the development process, while also giving them the flexibility to quickly modify the software to meet changing business requirements.

Are you considering your software development options? Schedule a brief, no-obligation call with us today, and let us explore the best option for your business. 🚀

What Is Outsourcing Custom Software Development

Outsourcing custom software development is the practice of hiring an external agency or software development company to develop specialized software for specific business needs. This type of software development is designed to meet the unique requirements of a company and is typically tailored to the company’s specific business processes and operations. Also, outsourcing custom software development can be a great way for businesses to get the software they need, without the costs and headaches of managing an in-house software development team.

Which Is Better: Outsourcing or In-House Software Development

There is no one-size-fits-all answer when deciding between outsourcing or in-house software development. Each option has its own unique set of advantages and disadvantages, and the best choice for your organization will depend on a variety of factors. 

Advantages of In-House Software Development

In-house software development offers a number of advantages for non-technical founders, making it an attractive option for many businesses. It offers:

  • Complete Control. To start, in-house software development allows you to have complete control over the development process. You can have a direct say in the design and implementation of the software, ensuring that it meets your exact specifications. Additionally, you can make changes and adjustments to the software as needed without relying on an outside party.
  • Customized Software. With in-house software development, businesses can create software that is tailored to their specific needs and requirements. Additionally, businesses can customize the software to fit their existing infrastructure, making it easier to integrate with other systems and databases.
  • Faster Turnaround Time. Businesses can ensure that the software is completed in a timely manner by developing the software in-house. Also, businesses can make changes and adjustments, enabling them to remain on top of the development process.
  • Increased Security. Finally, in-house software development can provide businesses with increased security. By developing the software in-house, businesses can ensure that the software is secure and that their data is safe. Also, businesses can ensure that their software meets industry standards and regulations.

Drawbacks of In-House Software Development

Although in-house software development can offer many advantages, it also has some drawbacks that should be considered.

  • Commitment to Time and Resources. To start, it requires a significant commitment of time and resources. You’ll need to dedicate personnel to the project and provide them with the necessary tools and training. You also need to stay on top of the development process and make sure that the software meets your exact specifications.
  • More Expensive. In-house software development can also be more expensive than outsourcing. You’ll need to invest in training and tools for your in-house team, as well as pay salaries. 
  • Lack of Expertise. In-house software development requires specialized knowledge and experience, and this can be difficult to find. Additionally, the development process can be complex and difficult to manage, so businesses must be sure they have the right personnel and resources in place to handle the project.
  • Riskier Option. If you’re not experienced in software development, it can be difficult to ensure that the software meets your needs and is up to industry standards. Also, in-house software development can require a significant amount of trial and error, which can lead to delays and additional costs.

Advantages of Outsourcing Software Development

Outsourcing software development offers a number of advantages over in-house development, especially for non-technical founders. 

  • Specialized Expertise and Skills. Outsourcing can access specialized expertise and skills without the cost of hiring full-time employees. By outsourcing development projects to a third-party provider, businesses can take advantage of a global talent pool and find the best developers for the job.
  • Cost-Effective. Outsourcing software development also allows businesses to save on costs by only paying for the services they need at any given time. This eliminates the need to hire in-house developers and the costs associated with their salaries and benefits as well as the additional costs associated with onboarding and training.
  • Access to Latest Tools and Technologies. Working with a third party allows businesses to gain access to the latest tools and technologies and ensure their software is up-to-date and competitive in the market.
  • Focus on Core Competencies. Outsourcing software development allows businesses to focus more time and resources on their core competencies, freeing up valuable time and resources that can be used to focus on other areas of their business.

Drawbacks of Outsourcing Software Development

Outsourcing software development can be a great way to save time and money, but there are also potential drawbacks that must be taken into consideration. 

  • Miscommunication. One of the drawbacks of outsourcing software development is the potential for miscommunication due to language and cultural barriers. When outsourcing a project, there is a risk that the team may not fully understand the project requirements, which can lead to delays and incorrect implementations.
  • Lack of Control. Another potential drawback is the lack of control over the development process. When you outsource a project, you are relying on the team to deliver the project on time and to the required standards. This lack of control can be a source of stress for some businesses, as it can be difficult to ensure that the project is being developed correctly.
  • Cost Overruns. Finally, there is the potential for cost overruns. Outsourcing can be cost-effective, but there is always the chance that the project may require additional resources or may take longer than expected, which can lead to increased costs.

So, is it better to outsource or hire an in-house software development team for non-technical founders?

Ultimately, the decision of whether to outsource or develop in-house should depend on the specific needs and objectives of your business. If you need a quick solution and access to a wide range of skills, outsourcing can be the better choice. However, if you require greater control over the development process, in-house development may be the better option. It is important to consider all the factors before making a decision.


The decision for non-technical founders to outsource software development or to keep it in-house is a complex one that requires careful consideration. So it’s important to weigh your options to determine which is best for your business. In the end, it’s about finding the right balance between cost, quality, and time. So, if you want to be sure you’re making the right decision, be sure to do your homework and outsource wisely!

If you’re looking for reliable and cost-effective custom software development in Schönefeld, Germany, then look no further than Trustshoring! We offer a wide range of services, including software advisory services, software agency matching, and recruitment.

We understand that there are a lot of software development companies out there, so we make it easy for you to find the one that best suits your needs. We’ll provide you with a list of top-rated companies, so you don’t have to waste time searching for the right agency. Let us help you find the right software development team for your business needs! Contact us today to get started!

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Victor Purolnik

Trustshoring Founder

Remote software engineering expert with CS and engineering management background, having built remote product teams for 10 years.
Author of the Complete Outsourcing Playbook and podcast host.
CEO of Trustshoring.