In-house versus Outsourced Model for Tech Development



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.


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.


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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