Benefits of outsourcing development v's hiring in-house developers

Benefits of outsourcing development v's hiring in-house developers
Matthew Rhodes
Matthew Rhodes
Lead Business Development Consultant

Get the most from Technology

​If you're building something new and innovative, then you need the best in the business to deliver that vision.

Whether it's gaining a competitive advantage, or building an entirely new market, the technology that powers your organisation can make or break future growth.

It is no longer enough just to keep up, in a world where technology is evolving at an exponential rate. It's been shown time and time again that those who are slow to adopt a future-forward technology strategy will fall behind.

The Case for In-house Developers?

A question that clients sometimes ask is: would it be better to hire in-house developers or partner with a team like Custom D?

Motivations for hiring developers in-house include:

  • Perceived cost savings: salary vs provider rates
  • Flexibility: the ability to change your plan and priorities at will
  • Full control over resources: the developers are part of your business
  • Building up of internal knowledge

While we are somewhat biased, this article serves to provide more information on the benefits and reasons our clients have given for choosing to work with us.

"They are genuinely interested in and committed to our company purpose. ​They are a true partner.”

Paul Becker - Founder & CEO, Art Money

Outsource vs In-house Developers


In-house Developers


Higher hourly rate and larger upfront costs, but this time is divided between multiple specialists. Therefore it is efficient and effective.

Fixed cost (salaries). Lower hourly rate. Time spent may be less efficient due to learning on the job to fill expertise gaps, so the total hours are can be much higher.

Fully Managed

Management is completely handled by Custom D, who have had more than 20yrs experience leading a team of developers.

All developers require ongoing technical direction, code review, and management. This management is a significant overhead.

Technical Excellence

The team is cross-functional and constantly exposed to a variety of projects and industry-leading technologies and techniques. This results in a standard that can't easily be matched by a small number of in-house developers.

In-house developers can easily be siloed and become out of touch with the latest technologies and techniques. This has a flow-on effect to the systems they are building by adding technical debt and potential problems down the line.

Scale Up/Down

With a flexible team, we can scale up the number of developers as needed to meet your project demands month-by-month. We can also throttle down after the heavy work is done. There is no lock-in contract.

In-house developers are locked in and have a predefined number of hours, which may be too few sometimes and too many at other times.

Time to Develop

Working with a full-stack team that can work on multiple areas at once offers the fastest path to developing and deploying a new system.

A smaller team of In-house developers will struggle to reach the same speed and typically bottleneck when they hit gaps in their expertise.

Continuity of Care

Knowledge of your organisation and project is shared amongst the team and we build strong long-term relationships with our clients. If a team member leaves, it will have a minimal impact on the continued support we can provide.

In-house developers typically acquire a huge amount of valuable knowledge about the organisation and project they're working on. However, this forms also a large risk if they leave, particularly if there are only 1-2 developers.


For a team that lives and breathes development, we have a high standard of programming that is always evolving. It is also consistent between developers to ensure long-term maintainability.

In-house developers may be working to a variety of standards, or a lack of. This is hard for others in the business to see because it's under the hood. However, it can have huge impacts in the future on technical debt and security.

Quality Control

We have implemented a number of quality control processes such as merge review, which means all code is checked by another developer. These processes help de-risk development and streamline the process of iterative changes that constantly improve your product.

In-house developers often give in to internal pressure (deadlines, technical roadblocks) and lack of strict quality control practices, leading to subpar quality code and a higher number of bugs. We have seen this numerous times when auditing internal client applications.

Talent Acquisition

In 2023, it is difficult to find and retain developers, particularly good ones.
​Developers with a high-level skillset often want to be working in a firm where they're going to be exposed to more learning, other developers, and a variety of exciting projects. Custom D provides this.

It can be difficult for a business to attract and retain top-shelf developers if they don't provide the ideal environment.

A Hybrid Model

The working model doesn't have to be one or the other exclusively (out source vs in-house).

There is also a Hybrid model that can work extremely well for clients working on large ongoing developments.

​In this model, we form a close partnership with the business and help to work alongside your internal developers. In many cases–if there are not already in-house developers–we can help with reviewing candidates and onboarding them to work on the platform.

The typical process is:

  • Project Planning by Custom D & Client
    ​Initial workshop and development plan is carried out by Custom D in collaboration with the client.
  • Initial Development Stages by Custom D
    ​It's recommended that we execute and deliver on the initial development stages. This helps sets the framework up and lets us quickly deliver the most important (MVP) stages.
  • Subsequent Stages done in Hybrid
    ​Subsequent stages of development are done in collaboration with the in-house developer(s). The roles, responsibilities and development methodologies are established prior, to ensure quality control and efficient development.
  • Support & Maintenance in Hybrid or In-house
    ​Discreet areas of support and maintenance can be handled in Hybrid on in-house, depending on skillset and capacity.

A hybrid model brings the benefits of our team and de-risks your development while allowing you to benefit from the resource of in-house developers.