In-house versus Outsourced Model for Tech Development

WHITE PAPER ABSTRACT

Introduction:

With the tech application development work becoming complex, with the quality expectations of a customer from a tech product increasing, and with an increasing pressure on a firm to beat the competition by launching a product/feature earlier, is it really viable for an early-stage startup to take the ownership of this entire tech development activity and execute it in-house?

In this white paper, the question of outsourcing the tech development (third-party tech company providing tech development services) is considered. Evaluation is made on four major aspects: Quality, Cost, Safety and Throughput.

Definitions:

In-house Model: Companies perform all the activities with their own employees and resources.

Outsourced Model: Companies shift specific tasks or responsibilities to a third-party vendor to reduce costs in the short-run, reduce costs in the long-run, reduce risk of execution failure, ensure quality, shorten the time to delivery, or to focus on more important work.

Audience:

This white paper is relevant to any team that is involved in tech development. However, some of the pertinent use cases can be:

  • Early-stage startups having less than 20 engineers, and working on one pain-point, or trying to find product-market-fit.
  • Small to mid-sized firms, having employee strength of up to 500, that has created a dedicated team, having less than 10 engineers, that is tasked to work on one or more pain-points.
  • Non-tech founder in single-member to 4-member startup that is trying to build a Minimal Viable Product
  • Tech founder in a single-member to 4-member startup who is trying to build a Minimal Viable Product or a beta version of the product
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