Outsourcing Vs. In-House Development: How to place a strategic investment decision?

Outsourcing Vs. In-House Development: How to place a strategic investment decision?
18 Aug 2021

Software and technology are the new normal. Today, in order to have a competitive advantage, one must be able to integrate the technology and stay a step forward. Again, I am not forcing on the say that being successful means IT driven operations but being competitively ahead is what needs IT and software. 
We have all heard of Mumbai Dabbawallas and at the same time the biggest giants like Amazon.

These are the two opposite sides. The former used the most traditional approach to the business where loyalty, dedication and simplicity is the core whereas the later one has run the world with having rarely any direct competitors. Amazon believes in automating any possible human manual processes so that the lead time and delivery are as quick as possible to sustain the changing consumer demands and requirements. 

This brings us to the strategic decision making. How can you as your organizational CEO and a Leader, hear the cries of your employees along with catering the demands of thousands and millions of to be clients which you could reach through technology? This is where a best capital investment decision is to be made. The two options: Outsourcing or In-House Development? 

Basically, outsourcing means that you have no burden on your head, you can blame the company for not giving you the progress you deserved despite of your company’s efforts on the process. You hire or agree to a third-party software providers, license or SaaS, even negotiate a few, and voila!! You are IT friendly. 

But in-house development is so much more to that. (The benefits first please!!) So, the first benefit is that you get exactly what is tailormade just for you. No compromises. Second is that it remains your own creation and your own copy-right in the differentiation. However, it is a long lengthy process if you are not an IT friendly company and have no developers on board. 

It’s challenging to find talented developers, system analysts, Quality Assurance and Control personnel more especially if you are limited in time as well as money. This is the exact reason why companies decide to outsource software development for reduction of the administrative expenses like rent, equipment, software licenses, taxes and lower the cost of product development project itself. 

When do you know that you must develop a software in-house? 
As troublesome as it sounds, it is best to develop a software in-house if, 
-You have in-house software developers
-Your requirements are unique and 100% customizable
-Your requirements are not matched with software out there in the market by 75-80% 
- The software provider is not customizable i.e., you must set your policy as per their software 

But, when do you outsource a software? 
Software outsourcing is a really easy and most convenient way of having things run smoothly. However, you must be careful on which software to choose as wrong software can make your business, opportunity cost, time and effort all go in vain. Feel non-hesitant to go outsource if, 
-You know the software providers has been established for long time
-They have a very solid foundation and team of competent manpower
-They have clients from all the sectors or market segment
-They are customizable for your minor and even major customizations at most cases 
-Their solutions match 75-80% of your needs 
-They have a very good support and implementation service 
-They have higher respect for customer’s requirement and fulfillment 
-They consult and suggest you on what is the market trend and give you opinions on what should be done better 
-They are upgrading and consistently improving the User Experience 

So, what do you think? Does your company require an out-sourced service or should you run an in-house software development project? Are you still here??? Let me tell you a secret!! At Nimble Infosys, we have marked all those checklists and are the best-selling software in Nepal. Make sure you keep in touch with us at [email protected], or feel free to contact me on any of your “AUTOMATION REQUIREMENTS”. See you next time. 

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