IT Outsourcing Vs. In-house: What Is The Best For Your Business?

QArea Team by QArea Team on December 21, 2012

IT Outsourcing Vs. In-house: What Is The Best For Your Business?
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If you need software for your business, it doesn’t matter what the size of your company is. From the moment when such need had arisen you should start thinking about creating the own team of technical support in-house or outsource this activity to specialized company. We want to share with you the results of analysis made by our experts regarding this question.

In-house Pros

  • There is the biggest benefit you gain if you make the choice to keep IT in-house – you can control the development process, including quality of the product, activity, time, costs, etc., by yourself.
  • You have opportunity to address issues immediately.
  • The same salaries for IT support employees not depending on the type of tasks.

In-house Cons

  • Costly. There are many hidden costs regarding new equipment and hiring people who are fully dedicated to your project. And if you don’t need full time technical support you still have to pay salary. Also if you want high-skilled specialists in your team you have to organize trainings for them.
  • Technological expertise. People can’t know everything, and if person knows how to handle with your printer or customize the program it can be hard for him or her to test the server for security issues, for example. And then you have to hire someone else who can do it.

Outsourcing Pros

First thing we need to mention is that all the drawbacks of keeping IT in-house are easy solved by outsourcing.

  • Reducing costs. As outsourcing company has the own model as any other fulfilled business object it spreads over fixed costs as other companies. Hence, you don’t have to buy new equipment without sure it will be used more than one time in your business, or spend thousands on trainings for your team, hiring managers, etc.
  • Focus on the core activity. When you outsource not the main activity you can dedicate more time to your business, marketing campaigns, customer services, etc.
  • 24/7 service. Usually, software outsourcing company with high level of organization of the work process provides round-the-clock services. Even if your project manager got sick you can still get assistance from other high skilled person.

Outsourcing Cons

  • Culture differences. Many frustrating situation may arise when you and representative of outsourcing company (i.e. manager or developer) don’t understand each other. Unfortunately, lack of language skills or culture misunderstandings could failure the project.
  • Lack of quality software outsourcing companies. Today, there are many companies that are ready to take on any job without proper guarantees to implement the task and fulfill the project as you are expecting. So, you need to be vigilant when choosing outsourcing vendor.


It is hard to say for sure that you need to outsource services or keep IT development in-house, because this also depends on specific of your business. You need to ask yourself: What company can benefit and lose from the both of solutions? Perhaps the best common solution for the most of the companies is nearshore software company. This helps to avoid many risks associated with outsourcing, getting access to dedicated development team while focusing on your business.

Check out our related articles:

4 Tips For Choosing The Best Network Solution For Your Business

Advantages Of Outsourcing

Top 9 Solid Benefits Of Outsourcing Quality IT Solutions

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