Startup Product Development- In-House Vs Outsourcing

Startup Product Development- In-House Vs Outsourcing

Recent technological advances have made everything quite easier for businesses. It enables them to have better connections and to work together. Most successful startup enterprises began with an idea, but Startup Product Development execution matters the most for being successful. Executing an idea into one real product is equally crucial.

If the product idea is not properly materialized, then it holds no value. It is the time where the real struggle begins. Every startup does not have the technical expertise, IT infrastructure, tech skills, and team for working on the idea and making it real. Finding the needed talent, geographical limitations, budget consideration, and time constraints are quite challenging.

Like other firms, a new startup finds itself at the crossroads with choices like expanding infrastructure and hiring employees for in-house product development or outsourcing product development. In-house product development or outsourcing is a dilemma that any startup having an idea will have. So, here you can read the advantages and disadvantages of both in-house and outsourcing product development for making the right choice that matches all your requirements.

Top Advantages of In-House and Outsourcing Product Development

With a proper understanding of the product development process, you can face the dilemma of whether to choose in-house or outsource product development. You can have many questions to ask, like whether you should hire product managers, in-house developers, QA analysts, or outsource a development company. Few benefits of both of them are mentioned below.

In-House Startup Product Development

1. Reliability

Making the team means hiring and training employees to match your business needs. This can lead to enhanced product quality over time, and you can rely on them more.

2. Stability

The maintenance of the in-house team will result in better stability for the startup product development service. In-house developers will not leave their work unfinished halfway and will not misinterpret any critical project necessity.

3. Control

With in-house development, you can get full oversight and control of the way the product development project is being conducted. One can specify all the things starting from libraries and programming languages to methodology type of software development.

4. Faster Resolution

As the clients and developers are in the same company or office, it is easier to access everything. It means that the time from finding out issues to resolving them becomes much faster.

product development
product development

Outsourcing Startup Product Development

1. Reduced Costs

As one does not need to pay wages to the developers, the project outsourcing costs become lower than in-house startup solutions for product development.

2. Domain Expertise

The startup product development process becomes complicated each year as more and more programming languages, frameworks, and ideas emerge. But by outsourcing the project, you will contract with experts who know everything you need.

3. Scalability

Except for budget, there is no such limit to the outsourcing team numbers that you can want. If you require making the project’s pace faster, you can also utilize other outsourcing companies to help in the work.

4. Quick Time-To-Market

By hiring a startup product development company, your project’s time-to-market becomes faster. Since they have a huge talent pool, you do not waste any time hiring technical talent. Thus, your time-to-market speed increases many times with outsourcing.

5. Less Burden

By utilizing the outsourced talent frees up your time and lessens the effort for building an in-house team. This will allow you to focus on your core competencies and relieve you from other burdens.

Disadvantages of Outsourcing and In-House Product Development

Outsourcing Product Development

1. Privacy

You will have to give access to confidential data to a third party for outsourced developers. This can also lead to regulatory and legal issues.

2. Cultural Issues

Different time zones, professional attitudes, and language barriers can create numerous obstacles with outsourcing product development teams. This can be a big problem to optimal collaboration.

3. Dependence

If performing tasks such as maintenance and support are difficult for you, you have to depend on an outsourcing company to get these services. It can be a big problem if the outsourced team is unable to or is unwilling to give these services, then you will have to go for some other options.

4. Risk

When you work with the outsourced team, particularly if you do not know them well, it adds a greater risk. Sometimes, poor-quality work and missed deadlines can happen.

In-House Startup Product Development

1. Slower Development

As the in-house team will be fairly constant in the project process, you can be stuck with the in-house developers you have. It can be a big issue if you start falling behind on the milestones.

2. Greater Cost

When you have an in-house development team, you have to provide perks and salaries to them. If you need specialized knowledge experts in a particular domain, you have to give more salary to keep them in the team.

3. Big Investment

With in-house product development, you need to have updated software as well as hardware. Therefore, you need to make many technology purchases.

mvp development
mvp development

Comparison Between Outsourcing and In-House Product Development

1. Product Quality

Here, in-house developers show better results and provide high-quality products as you will have full visibility. You will also have complete control of your project from start to end.

2. Resource Quality

Well, it depends on the objectives you have. Outsourcing will give you domain experts that may not be available in the organization, whereas in-house product development will create a strong internal team.

3. Time

Outsourcing saves a lot of time as you can contract many companies or agencies to make the process faster. But it also sometimes introduces delays.

4. Cost Advantages

With in-house product development, you have to invest a lot of money. However, outsourcing will be less costly, and you can also get the same quality within your budget.


It is essential to know that there is no exact correct answer when choosing between outsourcing and in-house product development. When your startup is in the beginning stage, outsourcing may help as your technical professionals may not be that strong. In later stages, in-house development can be beneficial. After a complete assessment of the business objectives and needs, you can make the correct choice.

Mobio Solutions is a Startup Product Development Company that will guide you with strategic advice on the technology that fits best to your business solution.