Here in Dubai and in fact all around the UAE the custom software development is getting popular day by day. Businesses have realized the advantages and superiority of the custom software applications over COTS (commercial off-the-shelf software/solutions). However, when it comes to developing a custom software, the biggest challenge a business face is to decide whether they should develop it with in-house team or should they outsource it to a third-party or custom software development company in Dubai, UAE. Businesses tend to outsource several business functions, it is not a new thing. However, most of the businesses in UAE also have an in-house IT team. As we all know the quality comes at a price. But high price doesn’t always assure good quality. For custom software development, the quality and efficiency of the solution/application matters the most but cost and the ROI is also very important. Here in Dubai and all around the UAE since past few years, businesses are more inclined towards outsourcing their IT needs. But still the in-house team have its own advantages. This is what often cause confusion and make it hard for the businesses to take a decision.
In this blog we will discuss the benefits and drawbacks of both outsourcing and in-house software development. It will help you understand which approach will work best for you as per your current needs.
Advantages of In-house Software Development
Mostly businesses have in-house IT teams with a variety of different skillsets. Mostly they are there to help and support the non-IT staff to be able to operate relevant software and systems. The most common trend in Dubai and all across the UAE is to have an IT team who can manage networks, IT infrastructure and other IT needs for the staff. Here are some key advantages of developing a custom software or application with the in-house IT team:
Better Communication
With the in-house software development team the biggest advantage is that there are no communication barrier. As the IT team also works in the same organizational environment and they are already familiar with the project stakeholders and with each other as well. So, the communication is not a problem at all. The in-house software development team knows the feedback, approval and work flow processes much better which makes communication simpler and easier. On top of that the in-house software development team also have their interest in the success of the project. The project manager, stakeholders or any concerned person can easily held face-to-face meetings, or quick discussion sessions. The feedback collection is also simpler and more convenient comparing to out-sourcing the software development project to a third-party or vendor.
Better Understanding of Cultural Values
The in-house software development team being an employee of the company are well-versed with the internal culture and values of the business. Since they are in-house team they would already know the reasoning behind various processes and practices. It is much easier to get them familiar with the new things. The outsourcing require much more onboarding efforts comparing to in-house software development team. The in-house software development team could act faster and they are more aware of company’s needs and are much better cultural fit. Furthermore they also doesn’t require intense requirement gathering and formal meetings to get everyone on track, in fact the in-house software development team can start immediately without causing any delay.
More Control and Monitoring
The in-house custom software development team offers more control and monitoring. The in-house team is always available, which makes them more accessible. The project owner or project manager can easily supervise them if needed. On top of that the in-house software development team is more aligned with the business’s philosophy. The business can also easily enforce their own quality control policy to each and every aspect of the actual development process. Furthermore there is no much issue with the compliance and development procedures. As the in-house IT team is already familiar with all those policies so they can enforce them more effectively. The project manager can examine the software at any stage along with individual tasks and performance of each team member which provide them a great control and monitoring over the in-house software development team.
Disadvantages of In-house Software Development
The in-house custom software development have some advantages but it also have some disadvantages. That is the reason why the outsourcing industry is currently witnessing a rapid growth. Here are some major disadvantages of the in-house software development:
Shortage of Skilled Staff
One of the biggest reason of outsourcing custom software development is the shortage of technical personals or the required skillset. The in-house IT team is not built for software development only, in fact it is to maintain the internal IT infrastructure and to provide instant support to non-technical staff. However, the IT team is not only network administrators and security engineers, in fact businesses also hire application and software developers to improve the efficiency and performance. But when a need arises for a custom software development, usually businesses doesn’t have enough software developer in the team. Another considerable aspect is that the software developers who are working in an in-house IT team doesn’t always have updated skills and knowledge. As they are used to of working on a limited set of software and applications.
In-house Software Development is Expensive
The biggest expense of in-house development is to fill the skill gap, which means the business must have to hire new software developers with the require skillset. Which not only add to the cost of the software but it also put extra strain on the overall budget and finance. Hiring full-time employees require additional expense which continues even after the completion of the customer software development project. That is why the in-house software development cost is very high. Another problem is that if a business assign an entire team to work on a single project, then there would no room for additional work. Which will have two negative effects, one the support to staff will be disrupted and disturbed and the second effect is on the project completion itself. In such scenarios the project completion will require more time than anticipated.
Slow Project Execution and Delays
For the in-house IT team the manager must have to maintain a balance between working on the software and catering to the regular needs of the organization. Which not only have impact on the support and service the internal IT team is providing but it also results in slow progress on the software development project. There could be so many unexpected scenarios where the IT team could get additional work, which could impact the progress. Furthermore the software developer’s turnover is also very high in Dubai and all around the UAE. Which could completely halt the progress or slow it down and hiring a new developer will take more time and resources. Due to all these reasons the in-house software development is not ideal for the businesses.
Advantages of Outsourcing Software Development
Mostly the businesses who have in-house IT team doesn’t use it to meet internal IT needs. Majorly their core specialties are not IT but they operate in other industries. That is why when it comes to develop a customized software application they usually don’t have adequate skilled staff who can build it for them or either their IT team is already fully occupied. Here are some key advantages of outsourcing software development in Dubai, UAE:
Seamless Project Execution and Quicker Delivery
The in-house IT team is mostly occupied and more importantly they could lack sufficient skilled staff, however, businesses can hire more software developer to fill this gape, even then the in-house software development tend to take more time than anticipated. However, outsourcing software development project ensures that all the milestones will be met and the project will be delivered in a timely manner. As the professional software development company will already have the pre-set workflows and project execution mechanisms which ensures a seamless project execution. This not only lift burden form the business and its in-house IT team but it also ensures a quicker delivery of the project. Since the outsourcing software developer or contractor will be bound to the agreed timelines, they will make sure the project delivers in time and all milestones met.
Mitigate the Risk Factor
Another great advantage of outsourcing the software development project is that the software developer will help mitigating the risks associated with the project. The outsourcing software development company must be experienced in the relevant software and they will be able to analyze and rectify the problems and issues with the customer’s requirements. They would be up-to-date with the current market and their experience puts them in a better place to predict future trends. Mostly with in-house software development the businesses tend to get poor scalability and sometimes the product is also built on older or even outdated technologies. However, the outsourcing software development company can not only reduce all such risks but they can even help businesses to improve their product by providing them suggestions and feedback which further increase the productivity and ROI of the subjected software.
Get Highly Professional Team
The Dubai and in fact the entire UAE is a very competitive market for the IT industry and especially for the software development. Which means that a well reputed software development company will always retain a highly professional team. As the software development is the bread and butter of the team here, so they are always up-to-date with the ongoing market trends and industry practices. This way the business can gain access to the best software developers in the market for their project.The highly professional team with enough knowledge of the market and experience can deliver the best quality work. In addition to that the outsourcing software development company can also help you to improve your initial idea and propose you several more innovative features which you might never think otherwise. Furthermore the outsourcing company can offer your much more technologies and platforms. From which you can chose the best which meets your needs and budget requirement. However, the in-house team is limited to the capabilities of the team and only offer fewer or in some cases just one option to choose from.
Outsourcing is Much More Cost Effective
Cost is one of the most important aspect of any project. For software development outsourcing the cost for in-house development is way too high comparing to outsourcing it. Businesses have to recruit new technical staff, and the employee retention requires more investments. Which makes the in-house development many time more expensive. However the custom software development industry is rapidly growing, the competition is tough and the businesses can easily find a lot many software development contractors in Dubai or anywhere else in UAE. This results in very competitive prices. The outsourcing contractors always try to offer the best price in order to beat the competition. On top of that there is no cost of hiring new staff to fill the skill gap and no need to upgrade the infrastructure, etc. This makes the outsourcing software development project value way too less than the in-house software development. The ROI is also very high and the business can get superior quality as well.
Disadvantages of Outsourcing Software Development
The outsourcing software development has various advantages and it can add a lot of value to your project. However, there are some disadvantages too, which every business should be aware of:
Slightly Difficult Communication
When a business outsource their software development to a contractor or software developer the major issue they face is with the communication. As the software development company always appoint a project manager or account manager for each project, who is responsible for all the communication, some companies also provide additional contacts from the actual software development team which could significantly reduce the communication problems. However, comparing to in-house team who is always available and mostly works under the same roof where the administration or project manager works, the communication with outsourcing software development company is slightly difficult. Arranging meetings, conference calls, or online sessions require to meet the schedules from all the involved parties which sometimes could be trickier for the project managers at both end. Usually that doesn’t cause any issue but the level of communication is not comparable to the in-house team.
Less Control over Software Development Team
The in-house software development team offers great control and monitoring, as they are easily and always accessible to the managers. The manager can call them, set regular meetings or schedule weekly updates and much more to intensify the communication and monitoring. When the managers have ability to closely monitor the software development team, they can enforce higher quality standards at each and every step of the development phase. However, when a business outsource software development project, they have less control over the actual software development team and they also get less updates and insight of the ongoing activities. Hence they will have to rely on the outsourcing contractor’s project manager for a lot of things during the development phase. However, later they can analyze each and everything and they can raise their concerns too. But during the project execution the project owner have less control comparing at the outsourcing team comparing to the in-house team.
Data Privacy & Confidentiality
Data privacy and confidentiality is also a big concern when a business decides to outsource their software development project. Because the business have to share very confidential data and crucial information with the outsourcing partner. Sometimes the breach to that sensitive information and data could compromise the reputation of the business and it could also cause a huge monetary damages as well. The competitors can also utilize such information to gain competitive edge over the business. That is why the data privacy and confidentiality is always a bigger concerns when it comes to outsourcing the software development. The business will have to depend on the measures taken by the outsourcing partners. However, in Dubai and in fact in the entire UAE the government laws and regulations provide great advantage to the business and help protecting their interests. So, the outsourcing partner will always do their best to prevent any breach or misconduct. But still the risk is there.
Conclusion
In this blog we have briefly discussed the in-house software development and the outsourcing the project to a software development company or third-party. Both have their own advantages and disadvantages. However, with the passage of time the outsourcing of software development have proven to be more reliable, cost-effective and beneficial for the businesses. There are far less concerns about the outsourcing, as for the privacy and confidentiality related concerns, they can be reduced by signing NDAs (non-disclosure agreements) and adopting to best industry practices. That is the reason the outsourcing have gained huge popularity all over the world and it is currently growing at a rapid pace. With software development outsourcing a business can significantly reduce the cost, minimize the project management efforts and they can get the best available technologies at their disposal. That is what make it more superior and beneficial from the in-house software development.
RSI Concepts is a leading custom software development company in Dubai, UAE. If you want to learn more about the subject or if you want to outsource your next software development project or need our other services, please feel free to contact us through our Contact Us page or leave a comment in the comment box below and we will get in touch with you soon.
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