Insourcing or Outsourcing - Which Solution Is Better for Your Company?

When it comes to providing your company with appropriate IT solutions, you have two choices — you can opt either for outsourcing or insourcing. There are multiple factors that you should take under consideration when selecting the best approach. Small, medium and big companies have different resources and expectations that need to be addressed.

Outsourcing means that a company is acquiring some sort of services of a third-party organization instead of handling certain tasks internally. IT outsourcing became popular mainly because of the high qualifications and experience the employees need to have and the costs of building and maintaining an IT department.

Managed services is a type of IT offer that means continuous outsourcing of IT services. It is a popular choice for small, medium and big companies. Staff augmentation is the best solution if you need to support your in-house developers by hiring a specialist with specific knowledge. Total software project outsourcing is when an external provider builds an application or software for your company.

In IT, insourcing means hiring dedicated IT staff to perform specific work in-house. Tasks are dealt with by the company's employees rather than by experts outside the organization. The main benefit of insourcing is control — you are always in the centre of all processes.

You do not have to choose strictly between outsourcing or insourcing. You may combine these approaches, outsourcing cybersecurity solutions or analytics while insourcing a development team. Both approaches require adjustments to your organizational structure.

If you want to stay in charge of the development process, managed services are not a good choice — having in-house developers or a dedicated development team allows you to run the project your way. If reducing costs is the priority, outsourcing enables organizations to trim expenses, while having a remote dedicated development team saves costs while developing high-quality products.