In light of recent events (Covid-19, the rise of remote work, economic downturn, project closures, and mass layoffs), the outsourcing of IT services is gaining momentum. And for aspiring developers from countries known as "outsourcing hubs", companies of this business type may now be the most attractive option to start a career in IT. However, it's worth noting that working in the outsourcing sphere has both its advantages and disadvantages. To provide you with a full understanding of the "joys and challenges" in different types of companies, we're shedding light on working in product-based and outsourcing IT companies. Hopefully, this article will help you decide which path holds more promise for your needs.
What Is an In-house Team?An in-house team of developers is a group of specialists who work in a team and are directly employed by some organization. Unlike outsourcing, where tasks are delegated to external parties, an in-house team works exclusively for the company to which they are employed. The main benefits for developers working in-house include:
- Clear policy. In-house developers have a deep understanding of the company's goals, vision, and culture. They also often work closely with other teams and departments within a company, which results in better communication and alignment with the overall project objectives. Hence, better control over the development process and decision-making.
- Stability. As a rule, in-house teams work on long-term projects that span multiple stages of development. This stability allows developers to delve deeper into the project and build expertise in specific technologies.
- Greater client interaction. In-house developers usually have direct contact with clients, allowing them to better understand user needs and incorporate customer requirements more effectively.
- Lack of external projects. In-house developers typically work on projects within their organization only, which may limit their exposure to different industries, technologies, and development approaches.
- Limited skill set. From the above point, it's easy to conclude that in-house developers have fewer opportunities to expand their skill set beyond the technologies common to their organization.
- Heavy workloads. In-house developers may be prone to project overload since they are solely responsible for critical projects. The result? Increased stress levels and no work-life balance.
- Resource limits. In-house teams can be subjected to such limitations as tight budgets and restricted access to specialized talent, which may lead to the team's disability to quickly scale up or access expertise in emerging technologies. In addition, in-house developers should often adhere to the organization's standards and procedures, which sometimes limit flexibility and creativity.
What is Outsourcing?Outsourcing is the process when a company attracts a remote team and delegates certain projects to it. In the area of IT, such projects may include the creation of a mobile or web app, software development, product design, business analytics, etc. For example, if a restaurant wants to make a website or appropriate app, its owners aren't likely to hire an in-house team of developers to do that. The best option is to hire an outsourcing development agency to conduct the full development cycle from A to Z. Outsourcing gained popularity even before Covid-19, but afterward, it became a huge trend: remote hiring become an integral part of almost all companies across the globe. And the global market size of outsourcing services is expected to further expand and grow up to US$904.948 billion in 2027. What's the catch? Outsourcing offers numerous advantages to enterprises of any size. Namely, outsourcing offers greater control, over 50% reduction in the development cost, and complete consistency in the development workflow owing to the dedicated talents.
Besides that, outsourcing gives access to the broader talent pool, thus, helping companies to keep up with competitors. Also, outsourcing wins in terms of a quick and flexible workforce, which can become a rescue in case of an emergency project. Outside specialists are ready to dive into work within the shortest time possible. Well, what about developers working in outsourcing teams? What benefits do they get?
The benefits of working in an outsourcing team
- Diversity of projects. Developers in outsourcing teams have the opportunity to work on a variety of projects. This exposure to diverse projects and technologies can expand their skill set and provide valuable experiences. Plus, if you like non-boring tasks, you may always stay challenged with new interesting projects.
- Access to expertise. Working in an outsourcing team allows developers to collaborate with experts in various fields. They can learn from experienced professionals, acquire domain-specific knowledge, and gain exposure to industry best practices.
- Professional growth. You can climb the career ladder as fast (if not faster) as working in-house. As outsourced developers often have the chance to work on complex projects, they can enhance their portfolio and improve their technical proficiency. Now, it's all about the experience!
- Knowledge boost. In outsourcing teams, developers often work with other talented professionals, which encourages knowledge sharing, teamwork, and the opportunity to exchange ideas and approaches.