Building Your IT Product: Software House vs. In-house vs. Freelancer

You have a product idea and a plan for development, so it’s time to find the perfect team that will build your project. But which one to choose: a freelancer, a software house, or the in-house team?

Different projects require a completely different approach, so you need to determine the scope of the project before you choose a solution tailored to your needs. Learn the pros and cons of each solution and make a wise decision. 

Working with a freelancer

Pros:

Hiring a freelancer works well for small projects, but only if you don’t plan to develop them in the future. So it’s better to hire a freelancer for one-off projects, such as making a landing page or a simple static site. 

Moreover, it’s relatively easy to find freelancers and they can usually start right away. They can also quickly finish a certain project and charge less than a software house or a full-time employee. 

Cons: 

Once a project is finished, the freelancer’s job is done. If you expect maintenance, bug fixing, or support, you will need to handle them yourself. Even if you find a full-stack developer, it’s hard to expect one person to cover all elements, such as backend, frontend, QA, UX/UI design, etc. And managing several freelancers can be tricky. 

Plus, freelance developers sometimes work beyond working hours, which can result in poor communication. They usually have more than one client, so they often work on multiple projects simultaneously. This means less commitment to a project and when they receive a better offer, they might drop out in the middle of the work. 

Perhaps you should hire a software house

Pros: 

When you need a full package of services managed by an experienced team and want to develop a product from scratch, a software house is the answer. Such companies put huge effort into completing teams that consist of a vast range of experts who specialize in certain technologies and industries and provide quality products and security. They are also familiar with up-to-date technology and trends. 

You should consider working with a software house if you want to build a bigger app (with a bigger budget) with complex logic or if you run a large offline business that needs IT systems to improve its performance. 

It’s also a good idea for companies that build online products, have their own teams but with a limited processing capacity, or if you need to scale the team for some time with highly skilled people. 

Cons: 

One of the biggest concerns that you might have when outsourcing your project to a software house could be time zone differences, but it’s often solved with the right tools and strong communication skills. 

Another thing is that working with a software house comes at a higher price than working with freelancers, but you get higher quality based on years of experience. Plus, sometimes you have to wait several weeks to start a project, but when you choose one of the market leaders, it’s worth waiting. 

In-house team

Pros:

Building a product with in-house developers could be the best decision for companies that build complex IT products. Especially if the project requires processing confidential data and strict access control. Outsourcing such projects can be risky and it’s more secure to keep it in house even if it’s more expensive. 

In-house development is also a good idea for large technology companies that offer products with commercial success. In such a case it’s worth investing in building your own team. 

The in-house team is familiar with the product, thus can smoothly run long-term projects with complicated use cases. They can also make real-time fixes and react as soon as anything happens. 

Cons: 

If your team is small, you may need to hire more people. But, assembling a new team can be costly and time-consuming, as it’s not easy to find the best specialists. Make sure you can afford it. 

Costs related to hiring developers are not only about paying salaries, but you also need to provide equipment, tools, office space, employee benefits, etc. Add the costs of staff turnover, onboarding and training, cover for sickness, raises, dismissal management, and many more… It really costs money. 

Over to you

It’s time to decide. 

If it’s a small project with minor upgrades that don’t require maintenance and there’s no strict deadline on the horizon, hiring a freelancer should be a good idea (and will most likely be cheaper). 

If you need a bigger app with a complex logic that requires project management, think about a software house or building a project in house. Consider your team’s skills and make sure it will have time and resources to complete a project. If not, a software house would be the best option. See our servieces and feel free to contact us!