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E-Commerce Development : In-House vs Outsourcing ?

Taru M. Taru M.
Published: 10 Sep, 2021

In-House Vs Outsourcing eCommerce development has seen a massive upsurge in the latest time.

And with the advancement in technology and user preference to shop at the comfortability of their homes, eCommerce has become the new trend.

So many people are now looking to hire eCommerce developers to tap into the latest opportunities. Some go for in-house eCommerce development, while others go for e-commerce outsourcing.

Firstly one common question that arises during eCommerce website development is:

“In House vs outsourcing – which one should you choose?”

However, both in-house development and eCommerce outsourcing have their pros and cons.

But let’s not be diplomatic! We know that you are here to get a clear answer for which one is better.


1. Cost In-House Vs Outsourcing

2. Skillset

3. Turnover In-House Vs Outsourcing

4. Productivity

5. Scalability and flexibility

6. Equipment

7. Security In-House Vs Outsourcing

8. Payment methods

9. Speed of development

10. eCommerce Development – In-House Vs Outsourcing

So before we conclude, let’s compare both ways based on specific parameters.

1. Cost In-House Vs Outsourcing

Cost In-House Vs Outsourcing

In-house eCommerce development would require hiring a team of developers.

Moreover experienced and capable web developers demand a high pay scale. A local group will incur enormous costs for your web development project.

Additionally, managing a team domestically requires other overheads and formalities.

So don’t forget the monthly salaries apart from other additional benefits you would have to provide your employees.

And these may include HR services, insurance benefits, office space, and infrastructure, etc.

So the investment of hiring an eCommerce website development company offshore – in India from the USA, Germany, Sweden, etc. – is always a more cost-effective solution.

Moreover, these companies are equipped and experienced. And they can reduce your time to market and result in a better return on investment.

2. Skillset


Therefore, for the apt outcome, the right skillsets is an absolute necessity.

Moreover, with in-house development, you not only need a team of developers but business analysts, product managers, and marketing professionals to ensure the product’s success.

Firstly, outsourced eCommerce development ensures that you are getting a skilful team. On top of that, it takes care of your entire product journey, from brainstorming and development to execution and marketing.

And outsourcing helps you to realize your dream become a reality with negligible overheads.

3. Turnover In-House Vs Outsourcing

Turnover In-House Vs Outsourcing

As per the research, the tech industry has the least loyal workforce.

However, if your in-house developers leave your company, it can become a massive threat to your ongoing product development.

And this could turn into a nightmare for you and can hurt the viability of your product.

Moreover, an eCommerce outsourcing company can absorb the risk of turnover and employee development.

Thus, removing all the overheads and keeping the product cycle on track.

4. Productivity


Offshore e-commerce development companies usually charge by hours.

And the scope and size of the web project determine the hours making them accountable for each minute which in turn enhances productivity.

So this makes you the master of each penny spent.

You get specialists making the best of each minute working on tangible tasks, which avoids unproductive time during in-house development.

5. Scalability and flexibility

Scalability and flexibility

Firstly, by resorting to outsourced eCommerce development, you have complete flexibility to scale the team and resources based on your project needs.

Secondly, if you feel you need one additional backend developer, you can hire eCommerce Developers as and when required—no need to manage a full-fledged in-house team that may or may not be required as per time.

6. Equipment


You need an enriching website, design, marketing strategies, and command of consumer behavioural dynamics for great eCommerce sales.

And E-Commerce outsourcing companies have optimum equipment, software, processes, and market to build and consume a successful e- commercial product.

So, outsourcing your eCommerce website development requirements to a competitive firm that has a reach in these countries can be a better bet than struggling with the right skills and equipment during in-house development.

7. Security In-House Vs Outsourcing

Security In-House Vs Outsourcing

Outsource eCommerce platforms come with safety certificates and a fraud protection team that ensure no security breaches.

So, unlike the in-house team, these platforms are more accountable for security as it shapes their face value.

Eliminating the chances of security breaches enables you to provide better service to your customers and earn their trust.

8. Payment methods

Payment methods

An outsource eCommerce development company will have the mechanism to handle various currencies and payment methods.

And, domestically, the lack of knowledge and time investment in building the learning curve would not be the right choice.

Therefore these eCommerce outsourcing companies take this overhead from you and leave you with a lot of time and energy to concentrate on other important business aspects.

9. Speed of development

Speed of development

If we compare the speed of development, outsourcing to an eCommerce development company is the clear winner.

And if you are looking to design & develop an eCommerce platform faster, then this is the best way!

Building an in-house team will take time. However, the number of iterations may increase since your direct control team would like to experiment with different features.

At the same time, outsourcing companies work in sprints and complete the project in committed time.

10. eCommerce Development – In-House Vs Outsourcing

By the end of this article, you might have become pretty clear on the answer.

Undoubtedly, outsourced eCommerce development is a better choice. And this comes with various advantages like less cost, more ROI, better skills, better types of equipment, better flexibility, and less burden.

Below are some of the main reasons why companies outsource development.

main reasons why companies outsource development.

So, rather than hiring eCommerce developers, go for hiring an eCommerce website development company offshore.

Prime factors while choosing the right eCommerce development company to outsource your project needs are:

eCommerce development company to outsource

Be careful to choose the right firm. Otherwise, it may hurt your business and drag you away from a meaningful firm.

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Taru M. Author :
Taru M.

For over 18 years, Taru M. is a successful technology entrepreneur by profession and a tech enthusiast by spirit. She takes pride in offering expertise in her domain to business people's success across the globe. As a business woman and technology expert, she manages to keep her balance along with her family responsibilities. She did her masters in computers, and her work delivery shows the expertise of her education. Connect with her via Linkedin profile to know more about her exciting personality

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