Contract development vs Web Development Company What to choose?

Development can be done in-house or by an external company. Web Development Company has the advantages of contract development, and in-house development has the benefits of in-house development. This time, we will thoroughly compare which is better, contract development or in-house development. We will also introduce the advantages and disadvantages of each and the skills you can acquire, so please read it.

What is Web Development Company

Web Development Company refers to the style in which a client requests the development of software, applications, etc., and develops them. Mainly undertaken by contract development companies, various services are born from contract development.

As a specific workflow, Company A requests software development in Company B. Company B develops the product by the delivery date. In the meantime, it aims for delivery by adjusting the development status and detailed specifications between companies A and B.

Benefits of contract development

I understand Web Development Company and a simple workflow, but what are the specific benefits?

Benefits of contract development

  • Have relationships with many companies
  • Easy to accumulate various achievements
  • If the client is satisfied, work requests will continue to come

Have relationships with many companies

A company that conducts Web Development Company does not deal with only one company. By having relationships with multiple companies, it is possible to receive stable job orders. There is also the fact that engineers who have a track record in ordering companies have relationships with many companies and are stepping up. Skills are essential for engineers, but connections are as meaningful as or even more critical.

Easy to accumulate various achievements

Having relationships with many companies means that there are a wide variety of things to develop. In recent years, blockchain, AI, big data, and IoT have been attracting attention. Having a lot of technology and development experience is a significant advantage. 

Of course, it may be good to master one technique thoroughly, but it is easier to get a job if you have a wide variety of techniques. If the client is satisfied, work requests will continue to come.

Web Development Company will be satisfied if the quality that the client imagines or higher is delivered. When you are satisfied, you usually want to ask for another job. The food shop I went to eat for the first time was delicious, and if it were over the price, I would go again, right? The development work is the same.

Disadvantages of contract development

  • Disadvantages of contract development
  • Delivery time may be short
  • Because it is a subcontractor, the price tends to be cheaper
  • Even if the product is a big hit, there is little reward

There were many advantages, but there are also disadvantages, so let’s take a look.

Delivery time may be short.

This depends on the client, but some companies set shorter delivery times. Usually, the contractor will present it at the estimation stage, but the delivery date may be shortened depending on the client’s circumstances. The client is inevitably more robust in terms of power balance. Of course, not all contract development has short delivery times, so keep this in mind.

Because it is a subcontractor, the price tends to be cheaper.

In the case of a development request, some differences depending on whether the requester is in the same industry or a different industry. In many cases, the price is reduced by request from a company in the same industry. There is a reason for this because if you request a job at the same unit price as the client, you can do it yourself. As a client, you must have the merit of making a development request.

Even if the product is a big hit, there is little reward.

Even if the product we made is a big hit, it does not necessarily mean that we will receive great benefits in the case of contract development. It depends on the contract, so it is unnecessary, but it is unavoidable because the client has more substantial authority. However, since the track record of making a big hit product will be on the contract development side, it will be possible to acquire further projects based on that track record.

Skills acquired through contract development.

The skills that can be found in contract development are as follows.

[Skills found in contract development]

  • Acquisition of a wide variety of technologies
  • Formation of many connections
  • Communication skills in development

I’ve written the above two for merit, so I’ll omit them, but my communication skills will improve significantly. When doing contract development, it is easy to pass each other. I intended to do this, but it often happens that I intended to do that. As you gain experience in contract development, you will be able to understand “confirmation just in case” and “points to keep in mind”. Efficient communication is required because we work with people who are far away.

What is in-house development?

In-house development, as the name implies, means developing in-house. It will be gratifying because we will turn the ideas that we have in-house into products. It depends on the company, but it is typical for the planning department to ask the development department.

Benefits of in-house development

Let’s take a look at the merits of in-house development.

Benefits of in-house development

  • Easy to communicate in detail
  • If you make a big hit, you can get great benefits
  • Delivery time is looser than contract

Easy to communicate in detail

In the case of contract development, it is mainstream to communicate with the client by e-mail or tools. However, if it is developed in-house, only communication within the company will suffice. It is a great advantage that you can convey the delicate nuances by talking directly.

If you make a big hit, you can get great benefits.

If you develop a blockbuster product by in-house development, the evaluation in the company will be high, and you can think of salary increases and promotions. You may also receive a significant bonus. It can be said that it is attractive that you can get great benefits if you work hard and develop and get results.

Delivery time is looser than contract.

Contract development tends to have tighter delivery times, but in-house development tends to be looser. Although not always, there is a risk that human resources will be leaked if the delivery date is tight for the company. We want to avoid the outflow of human resources, so we often do not set strict delivery dates.

Disadvantages of in-house development

There were significant advantages to in-house development, but there are also disadvantages, so let’s look.

Disadvantages of in-house development

  • More development of the same technology
  • Difficult to build a vast network

More development of the same technology

This depends on the company, but there are few opportunities to obtain a wide variety of technologies. In-house development can not afford to fail, and it is difficult to challenge new technologies. Since we make products using technology whose results are easy to read, it is easy to become a developer specializing in one technology. Conversely, it also means that you can become a specialist, so it depends on how you think about it.

Difficult to build a vast network

Since we develop only in-house, it will be a job with a narrow network of contacts. If you are a large company, you may get to know many people, but the culture and way of thinking differ depending on the company, so it may not be fresh. If you are thinking of freelance or independence in the future, you may want to consider it a little.