Software Outsourcing vs Product Development Team – What suits you?

Software Outsourcing vs Product Development Team – What suits you? | OmiSoft

Have a mind-blowing idea for a new product and want to find your dream team to make it live?

To present a new product or service to the world you need specialists from all areas of full-cycle product development, who can put your great ideas into action.

Building a dedicated software team is a rather challenging process, that can be solved in 3 ways:

  • to form your own team (In-House Team)
  • to use outsource companies (Software Development Company)
  • to find a partner (Product Development Partner)

In-House Team solution can take more time and bust your budget, so we’ll walk you through the last two options to compare their features, which can help you to form your team and to start your work in a short period.

From the first sight, it seems like they are pretty similar, but today we’ll go deep to show the difference and to look closer at each one. If you weigh both alternatives on a balance, you’ll find pros and cons in both of them.

Outsourcing development

Companies can choose outsourcing software development to reach goals faster and within budget.

Software outsourcing companies are focused on coding for websites, web/mobile applications and games, so typically do not provide a client with consulting services or data analysis. It will be your own duty to create a product strategy and choose the right technology for the application.

Advantages Disadvantages
Good for projects if you already have a team but you need additional hands to work.

A software development company allows you to hire staff quickly and add or remove team members upon request. It helps to accelerate product development.

Usually, doesn’t have a deal with Discovery Phase and marketing. Limited control over the development team
Big amount of companies Often jump from one project to another, can miss deadlines, and fail to finish the project in time. Limited motivation can be another problem and delay your launch.
It is possible to get a part-time team member on an hourly basis if needed. You pay hourly without thinking about an additional bonus system (Control over costs and predictable billing) The outsourcing team doesn’t have product skills, which doesn’t allow it to be independent and make decisions without a Product Owner and Business Analyst.
Lower costs. The outsourcing team is not distracted by development; do not analyze properly your product potential. User research and market research is not their responsibility.

Can be an option for small and simple products.

Outsourcing software development doesn’t mean technical support. Outsource is not interested in support without additional payments.
Scalability: Outsourcing companies often have large talent pools, allowing a business to scale projects more quickly Can jump from one project to another and come out from the project for better clients.
Horizontal system of growing: Outsourcing companies are interested in offering you more and more developers to increase their income.
Risk of data theft: outsourcing always comes with risks. You share ideas, innovations, and data with third-party vendors that can “borrow” or use it however they like.

Software product development

Product development companies have much wider options than Outsource. Digital product development can help you to use resources effectively in order to deliver a high-quality outcome.

The main scope of activities includes:

  • Strategy
  • Discovery Phase
  • Delivery (Development & Support)

We’ll come close and discover all these phases in our next reviews, so if you want to know more – stay tuned for more useful articles, subscribe and follow us on Twitter and LinkedIn.

The main target of a software product development company is not only to create the product but to do everything possible to make the product successful, competitive, and profitable for all your needs.

The basic pros and cons of software product development services are as follows:

Advantages Disadvantages
Turnkey solution for your product. Every developer shares the same passion and vision of the company and aligns itself to create products that make a difference. Limited market.
Discovery Phase as a part of their responsibilities. You need to have an optional or bonus system for the team.
Strongly motivated team. The software product development company is responsible for the entire project. This means that the customer can focus on achieving business goals. They pay attention to improving skills to understand the market and the product (User research and market research).

It can roughly take 20% of the time from the beginning and 10% after knowing the subject, which can be a bonus for serious and big projects.

As a rule, they have powerful Product Development skills. Higher prices for reputation and skills
Strong support on each step of development.
Better cost-time combination for the top results.
Strong partnership with mutual tasks with going through all steps together.

Communication is transparent and seamless.

Highly motivated in creating the best profitable product as they have their payment benefits and are interested in vertical growing.
As a long-term partner, knowing and being engaged with your product, the development team can offer a good discount or even create MVP with a cost price.

Summary

Building a software team is not an easy process. However, with the right strategy, you will be able to find and hire your dream team.

It’s a complex task with one of the most important steps – product developing (find out details in our previous review on How to successfully launch Mobile Application).

Successful software development relies on a motivated and reliable team, playing 100% on your side to lead you to increases in efficiency and productivity.

To find your long-term IT partner (product development company) is goal number one, and if you are ready to start, we will gladly help you with all the product development processes.

If you are ready to bring your idea to life with the help of a professional team - contact us for a free consultation.

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If you are looking for a partner with transparent and open-book management, we are ready to help and find the best solution together.