8 Best Practices for Creating Apps for Booking

According to a recent Deloitte study, 76% of American companies outsource their IT functions. What drives this trend? Does outsourcing truly win the in-house vs outsourcing development battle? In this article, we will explore both strategies, evaluate their advantages and disadvantages, and help you choose the approach that best suits your project.

What Is In-House and Outsourcing Software Development?

In-house development refers to the process in which a company independently creates its digital products. In this case, only the internal team is involved in development, without hiring external specialists.

Do you think this approach is ideal because all IT functions will be handled by a reliable development team that you assemble yourself? In some ways, you’re right. However, it also comes with significant responsibility and high costs. After all, you will need to hire and manage developers, designers, product and project managers, and other personnel. But we will discuss the pros and cons of this strategy in more detail later.

Outsourcing software development implies hiring an external team or individual remote specialists to work on a software solution. Depending on the budget size, required technology stack, and other project specifics, you can choose between nearshoring, offshoring, and onshoring. What do these terms mean?

‍Offshoring refers to delegating processes to a distant country, often on another continent. This is considered the most cost-effective outsourcing option, as service rates vary significantly across countries. However, such price differences do not always affect the quality of the final product.

Take a look at these impressive figures: In Switzerland, developers earn around $100,000 per year, whereas in Norway, Australia, and several other countries, this amount is nearly half as much. Does this mean that specialists in those regions are less qualified? Hardly.

Nearshoring—outsourcing to a neighboring country. Preferably one that borders yours or is at least located on the same continent. The goal is usually the same—to save on IT services.

Onshoring—hiring external specialists from your own country. What is the point? It’s simple. Even within the same state, the cost of creating an identical digital solution can vary significantly.

As an example, take a look at the salary range in major USA cities (data provided by Indeed):

• Columbus, OH – $142,605 per year
• Bellevue, WA – $137,206 per year
• San Jose, CA – $120,751 per year
• San Diego, CA – $118,932 per year
• Houston, TX – $98,751 per year

So, we have figured out the definitions of in-house and outsourced software development and also discussed the types of the latter. What are the key differences between these strategies?

In-House vs Outsourcing: Key Differences

In-house vs outsourcing development is a choice that many teams face. The fact is that there are several fundamental differences between these approaches. They should be taken into account when organizing the development process in a company.

This comparison highlights the strengths and weaknesses of both approaches to software development. However, to make these differences even clearer, let's take a closer look at the pros and cons of outsourcing and in-house development.

Outsourcing Software Development: Pros and Cons

Let’s start by looking at outsourcing software development – the pros and cons of this approach allow the global outsourcing market to grow at an impressive rate. This suggests that the cons of this approach are not so significant, right?

If in 2024 it was valued at $611.8 billion, it is projected to grow to $1,345.5 billion in the next 10 years.

Outsourced Development Pros

Teams that opt for outsourcing digital solution development can expect the following benefits:

1. Cost Savings.
‍We’ve already mentioned that companies can save by outsourcing to regions with cheaper labor.

However, that’s not all. Toptal has created a calculator to estimate the actual costs of hiring in-house developers and remote specialists. According to the calculations, even with the same hourly rate, outsourcing will cost the company 1.5 times less:

This is explained by additional expenses for office rent, employee training, providing necessary infrastructure, and so on.

2. Access to the global talent pool.
Finding a developer with the necessary skills can be challenging, especially in regions where the number of specialists is not very large.

Take a look at how the number of IT specialists differs in various countries:

Access to the global talent pool allows you to use the latest technologies that may not be widely available in your region.

‍3. Flexibility and scalability.
According to Indeed, the hiring process can take anywhere from a week to a month or more! Therefore, if you anticipate the need to expand or reduce your team, it is wiser to consider outsourcing.

It also makes more sense to consider a remote candidate for short-term projects if there is no further collaboration planned after the project ends.

‍4. Accelerating Time to Market.
Outsourcing allows you to reduce the time spent on recruiting and hiring specialists. Additionally, there is no need for training and onboarding the development team, which, as you’d agree, is also a lengthy process.

Moreover, you can engage several teams to work on the project. They will work on different aspects of the application simultaneously, bringing its release closer. An additional benefit is the ability to work around the clock due to time zone differences.

‍5. Optimization of company operations.
Outsourcing IT functions will allow you to focus on other activities, such as marketing, customer service, implementing financial strategies, and more.

Furthermore, outsourcing makes sense even if you have an in-house development team. Engaging external specialists will reduce the load on your team and allow you to implement innovative technologies that your developers may not be proficient in.

Outsourced Development Cons

Along with the benefits for a company, turning to IT outsourcing can lead to certain challenges:

‍1. Communication problems.
This issue is especially relevant with offshoring, when specialists are located in different time zones. Just imagine: you need to urgently address an issue, but it's outside your team's working hours. This can seriously affect the efficiency of development.

Another possible barrier to productive collaboration is different languages and cultural differences. Wouldn't it be difficult to understand your counterpart if their vocabulary is unfamiliar to you, or if they adhere to values and traditions that differ from yours?

‍2. Quality control challenges.
When an in-house team is working on a software product, they are clearly aware of the standards they need to follow. This enables them to create solutions that meet the needs of the audience and business expectations.

In the case of outsourced development, there is a risk of discrepancies in quality standards between internal and external teams, especially when communication gaps exist.

The result is an unsatisfactory final product, which may lead to another outsourcing drawback—as we'll discuss next.

‍3. Hidden costs.
If the final product quality is lacking, you’ll have to hire other specialists to fix defects. However, this problem can be avoided by working only with trusted providers. 

Still, there is the risk of additional costs for managing remote specialists and the possibility of project expansion due to control issues.

‍4. Data and intellectual property (IP) security.
Collaborating with third parties on development involves sharing confidential information about your business and clients.

Again, only work with reliable partners to ensure they won’t misuse your data or share it with unauthorized individuals.

We’ve discussed the pros and cons of outsourcing software development. How does the situation look with the advantages and disadvantages of creating an in-house team?

In-House Development: Pros and Cons

Despite the growing popularity of outsourcing, many companies still prefer to develop software in-house. This approach also has its own pros and cons.

In-house Development Pros

Developing software internally offers the following advantages:

‍1. Full control over the development process.
The decision to hire an in-house team is a step towards complete control over the development process.

You can select the optimal tech stack, implement methodologies that you deem suitable, and track every stage of the SDLC and its duration.

‍2. Intellectual property security.
According to ABI Research, U.S. companies lose between $180 billion and $540 billion annually due to intellectual property theft.

In-house development minimizes the likelihood of this issue, as the company will be the sole owner, and there is no need to share data with third parties.

‍3. Improved communication on the project.
Teams working in a shared workspace experience fewer communication challenges. They are not hindered by cultural and language differences or time zone discrepancies.

This, in turn, helps avoid several problems. According to recent statistics, poor communication methods can lead to a number of losses for a company. Among these, 68% of work time is wasted, 42% of employees face stress and burnout, and 12% of customers leave for competitors:

4. Team engagement and a deep understanding of business nuances.
An internal development team is likely to be better informed about the company's values, culture, and target audience. This enables them to create a tailored solution that aligns with the client’s vision.

Additionally, in-house developers are more invested in the success of the project, as they are part of the business.

In-house Development Cons

If you are an advocate of in-house development, be prepared for some challenges along with the benefits. Here are a few of them:

1. High costs.
With outsourcing, the company only spends money on the developer’s rate. The situation is completely different with an in-house team.

We present a list of expenses to consider:

• hiring costs;
• total salary of the team;
• provision of necessary infrastructure;
• training fees for technologies;
• bonuses and benefits;
• software license purchases;
• overhead costs.

Overall, the difference between in-house vs outsourcing development can amount to hundreds of thousands of dollars. And as you can see, it is not in favor of the in-house team.

2. Limited resources.
In-house specialists may have limited experience and knowledge in specific areas needed for the project. There are two solutions to this issue: employee training, which again incurs additional costs and time, or opting for familiar technologies that are unlikely to yield the desired results.

Moreover, the lack of resources may become noticeable when scaling the project significantly. Hiring an in-house specialist is a lengthy and complicated process.

3. Hiring issues and employee turnover.
According to Statista's analytics, in 2023, 54% of organizations experienced a shortage of tech talent. And this is not the peak — two years ago, this figure was at a record-high 70%.

However, even if you manage to hire the best talents, don’t rush to celebrate your victory. You still need to retain them. And here’s where the real challenge begins. To attract a developer to work specifically for your company, you will need to offer a high salary (higher than your competitors), social benefits, bonuses, etc. In other words, you will be committing yourself to unforeseen expenses. Whether this is justified is up to you to decide.

So, we’ve thoroughly discussed the advantages and disadvantages of in-house development and outsourcing. Now, it’s time to determine which strategy is best suited for you.

In-House vs Outsourcing: How to Make the Right Choice?

In-house vs outsourcing software development—which one should you choose for your company’s success? Here are the types of projects optimal for each of these strategies:

For in-house development:

• Long-term projects. If a project requires constant development, support, and close collaboration, it makes sense to build an internal team. This is especially relevant for complex systems that are continuously evolving and require in-depth knowledge of their architecture.

• Projects involving confidential data. If you are dealing with confidential data, in-house development can guarantee its complete security. This is facilitated by better control over work processes and the absence of the need to share data with third parties.

However, as an alternative, you can turn to a reliable outsourcing provider who guarantees the security of confidential data on par with an in-house team.

• Projects that are critical for the business. These are projects that involve creating products that must fully reflect the vision, culture, and strategy of the company. If you are not sure that you can achieve this with external developers, it is better to opt for an in-house team.

‍For outsourced development:

• Projects with a limited budget. Outsourcing allows savings on developer salaries and related expenses.

• Short-term projects. If the team is only required to create a product without further updates and support, hiring in-house specialists is not advisable.

• Projects where quick time-to-market is a priority. Time savings on hiring and adaptation, the ability for round-the-clock work, and involving multiple teams contribute to faster releases.

• Projects with changing resource needs. Here, the ability of remote teams to scale quickly is key.

• Innovative projects. Access to a global talent pool enables the use of cutting-edge technologies that may not be well-developed in your region.

Thus, if you are looking to save costs, use an innovative tech stack, and outpace competitors, outsourced development will be the best choice for your company.

Darly Solutions—Your Reliable Partner in Outsourced Software Development

The Darly Solutions team is ready to be your guide in the world of creating high-quality digital solutions. We provide comprehensive services, including web and mobile development, UI/UX design, MVP development, QA and testing, and much more.

By outsourcing your project to us, you can be confident in our full immersion in your product vision, data and intellectual property security, and guaranteed adherence to project deadlines.

Contact a Darly Solutions manager, calculate the estimated costs, and start your journey to digitalization today!

According to data from the Precedence Research resource, the worldwide SaaS market is estimated at USD 358.33 bln in 2024 and is expected to grow up to USD 1,251.35 bln by 2034 at a CAGR of 13.3%. Such demand is due to the ease of deployment of such solutions (instead of local installation, access to them is possible from any device with a purchased license where there is an Internet connection), as well as often extensive customization options. If you would like to launch your own SaaS solution, but are not yet sure about the final list of features, you should consider the SaaS MVP development option. 

What Is MVP in SaaS?

A minimum viable product (MVP) in the context of SaaS development is a version of a product where only the key functionality is implemented – that is, the one that determines the value of a specific SaaS solution for the end user. The goal of a SaaS MVP is to reduce development time by cutting down on secondary functionality, and to obtain user feedback to determine the course of implementation of a full-fledged SaaS version. 

SaaS MVP Development Benefits

What are the benefits of SaaS MVP development? Let’s find them out right now.

Ability to competently plan a budget and attract investments

Compared to implementing a full-fledged SaaS solution, MVP development is cheaper, since its task is to allow the target audience to test its key functionality in practice, without any excesses in the set of features and user experience (UX) design. This simplifies budget planning, too, as it does not require colossal expenses from the project owners from the very beginning. Also, thanks to this approach to development, its speed increases. Therefore, the working product can be presented to potential investors a few months from the start of work, and it will not just be a business plan in the form of a presentation, but a functioning software solution that can be applied to solve specific tasks. Usually, negotiations regarding further investment in such a project with this strong attribute (an MVP) are successful.

High productivity of the development team

Since an MVP has a limited number of features, your team will be freed from optimizing user interface. Therefore, work on the MVP will proceed faster. In addition, when developing such a software version, your team may gain valuable insights that were initially overlooked – they can also be implemented over time. Finally, when the solution’s functionality is limited, it is easier for developers to identify possible areas for improvement and, thus, address them in further development cycles associated with the launch of a full-fledged SaaS version.

Reduced time to market

An MVP approach allows you to release your solution first. Indeed, given the rapid development of the global SaaS market, this would be a wise move. A couple of months delay needed for implementing a full feature set could cost you the fact that your product's analog will appear and win the audience's favor first. At the same time, by launching your product as early as possible, you will also be able to start refining it earlier, too, ultimately receiving a SaaS platform with a lot of functions and advanced user experience after 9-12 months from the start of work on the project.

Common Challenges of Building a SaaS MVP

Along with all the benefits, it is also worth considering the possible challenges associated with SaaS MVP development.

Impossibility of applying the MVP concept to absolutely all products

It is worth starting with the fact that MVP development is not a universal approach, and not all products allow for feature prioritization. In particular, this applies to the ones in which all functions are interconnected, and it is not possible to single out the most priority ones among them.

Breaks in development cycles

It is important to understand that the release of the MVP in its first version is not always followed by the development of a full-fledged product. Sometimes, the team has to implement one or two more solutions with limited functionality before its participants come to a full understanding of the concept of the SaaS solution. Since the collected feedback may relate to non-overlapping functions of the product, the preferences and dissatisfaction of real users may not be fully covered in the full-fledged product.

The need to adopt new approaches to software development

Quite often, the development of MVP is accompanied by the introduction of radically new practices, such as Agile development and DevOps. In the long term, iterative development and other methods can increase the team's productivity by about a third, but the adoption and training can also take a lot of time for the team.

Possible issues with the program code stability 

Typically, MVP development of a cloud-based solution implies speeding up each development stage (in particular, the one related to testing the program code and its optimization). In this regard, it often happens that teams pay insufficient attention to the code stability, and the MVP solution itself becomes susceptible to hacker attacks. That is why, regardless of the chosen development approach and methodology, developers are still better off adhering to generally accepted standards for user data security and using proven authentication/authorization methods, reliable encryption protocols, access rights delimitation, etc.

Difficulty of scaling

Even though the MVP is initially hosted in the cloud, its computing power may not be enough if the product becomes really popular. In this regard, when choosing a cloud provider to ensure a scalable architecture, it makes sense to initially focus on options that allow automatic scaling as the workload on the software changes. Today, such type of service is provided by AWS, Microsoft Azure, and some other cloud vendors.

Problems with long-term budget planning

Lack of a clear understanding from the very beginning of what set of functions will be present in the final solution can provoke difficulties with budget planning, which, in turn, carries certain risks for investors. Therefore, it is important for you as a product owner to discuss with them all possible risks and prospects of your MVP launch strategy at the early stages of your interaction.

How to Build a SaaS MVP

So, how to build SaaS product – you may ask. Therefore, let’s consider the main steps you have to perform to develop an MVP. 

Defining the target audience

First, you will need to understand who the target audience of your SaaS solution is and what they expect to get from it. In fact, you will have to collect demographic and behavioral data about your product users to determine the most important functionality for the MVP and provide them with the most comfortable ways to interact with it.

Market research

To give your SaaS solution a unique selling proposition (i.e., to make it stand out from the competition in some way), you will need to conduct preliminary research that will determine both market trends in general and help identify the strengths and weaknesses of your competitors.

Identifying core functionality

Now, you have everything ready to determine the functionality that is the highest priority for your SaaS solution. Usually, this is the functionality that allows you to solve one or two key tasks assigned to your product (that is, without it, it will lose its value for the end user).

Choosing a business model

At this stage, you need to come up with ways to monetize your product. Note that in the context of SaaS, this is most often the purchase of either a license for a certain period of use or access to advanced functionality.

Building a roadmap

Now, you can create a step-by-step plan for implementing your solution, from MVP to launching and supporting a full-fledged SaaS product. Note that this is necessary not only for presenting the prospects of your project to investors and stakeholders, but also for the technical team to make them understand in which direction to move.

Creating an MVP

At this stage, your technical team can begin to build MVP, i.e., implement its user interface, server requests, database requests, alpha testing, etc.

Deploying an MVP and collecting user feedback

Once your team is confident that the MVP meets the previously defined specifications and everything works as intended, you can deploy it to the production environment and begin beta testing – that is, testing it on real users to gather feedback on possible improvements. After that, you will have to prioritize the aspects highlighted by users and plan to implement them in subsequent development cycles.

How to Accelerate SaaS MVP Development

Finally, let’s consider a number of best practices that will help you speed up the SaaS MVP development process:

• Use Backend as a Service (BaaS) and low-code solutions to reduce the amount of work for your backend and frontend specialists, respectively;
• Choose a time-tested technology stack that all members of your development team are familiar with;
• Delegate individual tasks within your project or the entire project to an outsourcing service provider to eliminate the need to urgently search for talent with the necessary skills;
• Establish processes for collecting feedback from users from the very beginning of work on your project.

SaaS MVP Development with Darly Solutions

Would you like to build an MVP as a Service solution and are looking for a seasoned team of developers who will bring your business idea to life? In this case, feel free to contact us. MVP as a Service is one of the key areas of our activity, which you can see for yourself by requesting our portfolio. You can also entrust us with individual tasks within your project, such as QA testing or, for example, UI/UX design. Whatever the list of our services you choose, rest assured that you will be satisfied with the results of our cooperation!

Most likely, you would like to make your digital product highly competitive, get guarantees on its relevance, and avoid its costly rework even if its life cycle exceeds the unspoken five-year limit, right? Then, in today's changing tech environment, endowing it with long-distance growth prospects will be not just another strategy you may follow or not – it will be a necessity. 

What Is Future-Proofing?

No one would dispute that guaranteeing long-term stability adds confidence to the development process. Based on this, you may have a question: “What is the future-proofing?”. Now, we will explain the future-proofing meaning.

In short, it is the creation of several applications, websites, and services that retain their functionality even after a long time. For example, in the context of mobile application development, it predicts the occurrence of potential changes in the operating systems of gadgets so that these applications remain practical and relevant. By considering possible technological advancements, likely competitors, and requests from the target audience, the need for large-scale updating is minimized.

This process consists of analyzing a number of technological trends, considering potential risks, and integrating adaptive solutions to market trends. But do not close your eyes to some problems and challenges of future-proofing. There may not be a specific update date, and the implementation of flexible solutions may require both additional time and additional money. You should be sure that the tools and methods you use guarantee high quality and a high level of reliability of the product so that the process of its development is productive and relatively simple.

In addition, an equally important aspect of the above-mentioned approach is the study of potential changes that may occur in the needs and behaviors of the target audience of your product. This will make you ready to overcome obstacles. Let’s take a concrete example, if you integrate software with cloud services (using self-testing and scaling architecture).

The Benefits of Future-Proofing Software

It is worth considering the most striking advantages of this software to make sure it is appropriate:

• Flexibility in a dynamic technology environment: This helps to adapt existing products to new requirements.
• The real prospects for the future: The more long-term prospects are taken into account during the future-proof development of the digital solution, the longer it is guaranteed to be stable.
• Optimization of financial costs: If the potential upgrade of the review is done immediately at the development stage, it minimizes the possibility of costly disposal of the product itself.
• Superiority over competitors: Service providers that offer better protection of their decisions, respectively, are much more efficient and faster to respond to constant changes in the market and the needs of their target audience.

Future-Proofing Methods

You should also pay attention to the most popular ways to improve your digital products in the long term:

• Quality Assurance: Stable support of high-quality standards is a direct path to product reliability.
• Modularity: Modular architecture simplifies processes such as updating and modifying specific required components, minimizing any impact on the entire system.
• Documentation: Detailed documentation that is regularly updated to facilitate further support and streamlining.
• Implementation of modern standards: Strict adherence to the latest quality standards increases the adaptability of your products to innovative technologies several times.

7 Ways to Future-Proof Software

Let's dwell on the seven most essential methods for reliably protecting your software from upcoming challenges and guaranteeing its stable operation for many years.

Implementation of automated tests

Automated tests allow you to quickly detect and correct errors that occur when making changes to the code. This dramatically reduces the risk that new features or updates will break existing functionality. In addition, automated testing increases development efficiency, reducing the time for manual QA procedures.

Using containerization

Containers provide software flexibility and portability, making it easier to deploy across platforms. They isolate the application and all its dependencies, which avoids problems with environment compatibility. Containers also simplify application management in several environments at once.

Expanding of architecture

Planning the architecture for possible load increases makes it easy to scale the system. Using a microservice architecture, a design pattern that structures an application as a collection of small, loosely coupled services, for example, enables the scale of individual components independently, increasing the system's overall performance and reliability.

Integration with cloud services

Cloud solutions provide flexibility and the ability to adapt to new requirements quickly. They allow you to store and process data on remote servers, reducing infrastructure costs and achieving higher availability and service reliability.

Regular updates and patches

Constant software update allows you to maintain its relevance and reliability. Regularly fixing vulnerabilities and adding new features helps to avoid obsolescence and ensures it meets modern security standards.

Using open standards and APIs

Open standards are publicly available specifications that facilitate interoperability. APIs are sets of rules and protocols that allow different software applications to communicate with each other, be compatible with other systems, and simplify integration. These make it easy to connect new services and expand the existing functionality without significant changes in its architecture.

Investing in team training

Investing in team training and focusing on long-term planning is crucial to preparing to embrace new technologies and methodologies. This ongoing evolution of skills and knowledge not only enhances employees' current abilities but also prepares them to adapt to fluctuations in the tech market.

Conclusion

Future-proofing your software, through robust security measures such as encryption and regular vulnerability assessments provides you with long-term stability and high competitiveness. At the same time, you get a significant reduction in the cost of service and increased flexibility and speed of adaptation to a number of new requirements and conditions, which in the complex creates the conditions for the adaptability of the entire team. In this way, your software will always be efficient and reliable despite the changing technology environment.

It's crucial to note that the strategic approach to software protection and development is not just about the technology but also the people behind it. This approach stimulates the development team's performance, ensuring efficiency and effectiveness through process standardization and the introduction of the latest technologies. By empowering your team to implement new features and optimizations, this approach makes them feel valued and integral to the process, thereby increasing performance.

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