Navigating the digital development dilemma: Developing product in-house or hiring a vendor
When you're creating a core digital asset for your company, the stakes are high. You’re not just looking to build a product. Instead, the goal is to secure a competitive advantage, increase time to market, and reach your business goals.
And, with so much riding on the outcome, how do you choose the way that you will bring that asset to life? Will you rely on your team and develop your product in-house, or will you look outside and bring in an experienced vendor to get the job done?
Eventually, many businesses find themselves at this crossroads, and this choice becomes almost just as important as the asset itself.
For many, mixing things up with a trusted external partner can give you the best of both worlds: in-house control and outside expertise.
Is in-house development right for your business?
Keeping development in-house can feel like the ultimate dream. You’re creating your digital product from scratch while having full control over all process aspects.
In this scenario, you get to call the shots and quickly shift priorities.
But let’s not sugarcoat it. There are many hurdles you will encounter on the way.
Your in-house team might not have the specialized skills you need, and hiring top talent with skills that are high in demand is no walk in the park. That’s why you need to prepare for lengthy hiring processes that will not only use your time but will also come with high salary checks you need to provide.
In addition to spending resources on scaling your team, your team must also manage deadlines and customer demands while juggling their workload.
Here is a comparison to help weigh the pros and cons of keeping your development in-house:
|
Aspect |
In-house development |
Hiring a vendor |
|
Control |
You will have full control over the entire process, which is ideal if you need the flexibility to quickly change priorities. |
With transparent communication with your vendor’s team, you can have full control of your project. |
|
Expertise |
You may lack specialized skills for certain tasks. |
Hiring external consultants can help you to bridge the skills gap. |
|
Costs |
You may experience high costs for recruitment and employee retention. |
It can be financially viable to hire a vendor, if planned strategically and fully utilized. |
|
Time-to-market |
It can be slower, especially if the team is working on multiple projects. |
Bringing in extra help can speed up development and avoid delays. |
|
Scaling |
Scaling up quickly might be a challenge, and it can lead to bottlenecks. |
An experienced vendor can scale up or down based on your needs and goals. |
So, is the in-house path a win for your business, or more like biting off more than you can chew?
When is the right time to start looking for a vendor?
Hiring a vendor lets you focus on your core competencies and activities that will push your company to its next growth stage. You get peace of mind knowing that external experts are taking care of the technical aspects of your project.
The right software development partner can help you with:
- Accelerating your product’s time-to-market
- Introducing new technologies
- Modernizing legacy systems
- Leading your digital transformations
- Navigating complex software integrations
Below, we’ve outlined some common scenarios we continue to see with some of our clients. By considering these factors, you’ll have a clearer understanding of when the right time is to bring in a partner on your project:
|
Scenario |
Indicators |
Partner solution |
|
The internal team is stretched too thin |
Your projects are delayed, or the team is overburdened with tasks. |
Bring in external experts to ease the workload and meet deadlines. |
|
Lack of expertise |
Your team lacks the knowledge or experience required for the project. |
Bring the firepower with specialized knowledge to fill the gaps. |
|
Having to scale digital products |
Your business is growing rapidly, and your current resources cannot handle the increased demands. |
Bring the know-how, the right team, and scalable solutions to support rapid growth. |
|
Not adopted new or emerging technologies |
Your company is transitioning to new technologies that require specialized skills. |
Bring the experience in the new technologies you're adopting. |
|
Need to improve operational efficiency |
You want to optimize resource allocation and reduce costs without compromising quality. |
Bring the plan to increase efficiency, optimize processes, and reduce overhead. |
Make the right choice for your business
In the end, deciding between in-house development and hiring a vendor comes down to finding the right balance that will align with your goals and ambitions.
If you decide to bring in the extra firepower to your in-house team, how can you identify the partner that will be the right fit for your business? Check out our comprehensive guide with a cheat sheet, follow these ten straightforward steps, and you will have enough collected data to make an informed decision.