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Outsource vs. In-House Product Development

outsource vs in house

Managing product development in-house or via outsourced partners will look different for every company. Custom solutions typically yield the best outcomes, but the following considerations can help you determine what it looks like for your team. 

When To Keep It In-House

Precision Development Requires First-Hand Knowledge

If a deep understanding of in-house operations, business needs, functionality, or goals is essential to creating a successful product, it may be best to keep development in-house. This helps reduce excessive communication and endless feedback loops. That said, Kickr can often step in here to simplify the process. We’re used to taking complex requirements and making execution easier.

The Vision Is Still Unclear

If you’re still figuring out what problem you need to solve or what product you want to create, in-house development can be a good starting point. Once you have more clarity and are ready to move forward, outsourcing can accelerate the process. But this is also one of the areas where Kickr thrives, helping teams refine and define their vision so the product strategy is clear before development begins.

When To Outsource Product Development

You Need More Manpower or Specialized, Professional Skills

Some projects, especially internal or corporate product development, get shelved because the Mechanical Engineers or Electrical Engineers are already overextended. Additional personnel are needed to support this or the next phase of any project.

If you have enough personnel but not the right type, it may be time to outsource, especially if you’re not ready to hire. Specialized, professional skills can augment your existing team and help bring your product to life through collaboration. 

Some specialized skills worth outsourcing for include:

Outsourcing Product Development Vs In-House Vs Hybrid Approach

Creating the actual product may not be where support is needed most. You may need assistance identifying opportunities and solutions, overcoming product challenges, or conducting early R&D investigation. 

At the other end of the process, internal teams may lack the experience in navigating the detailed work on the back end, such as preparing for mass production, working with manufacturers, and final product launch. 

Either of these scenarios necessitates a hybrid solution, where outsourced team members step in and out of the process as needed. 

When You Need EVERYTHING (or You’re Not Sure)

Maybe all you have is an idea, and you’re not sure what to do next. Consider a product development consultation to talk through ideas, needs, and goals. You’ll walk away with clarity, knowing what you need and the best way to bring your idea to life. 

Final Decisions: Cost vs. Control

Which of these two priorities is highest on the list for your project? If you’d like to keep costs lower, outsourcing may be the best solution as it won’t redirect your existing team. But if you want to maintain complete control, in-house development is the way to go.

At Kickr, we work with startups, established companies, and teams of all sizes and capabilities. We find that custom product development solutions usually offer the best outcomes. Learn more about how it works here.