In-house web development means hiring an in-house team that works exclusively for your business. Businesses outsource web development via external agencies as partners to deliver their ecommerce web development.
The decision to outsource custom web development can save costs while improving access to specialized skills and flexible resourcing.
However, outsourcing is a sizeable piece of work requiring a strategy, detailed planning, and careful management.
It’s not as simple as finding an available agency and handing over the work. In this guide, we’ll consider the case for outsourcing and cover the detailed steps and considerations you’ll need to follow.
- In-House vs Outsourced Development: What You Need to Know
- Common Misconceptions About Outsourced Teams
- Different Ways to Outsource Web Development
- When to Use Each Model Based on Project Type
- How to Prepare Before You Outsource Web Development
- Where to Find Reliable Web Development Companies
- How to Vet a Web Development Company Professionally
- The Step-by-Step Process to Outsource a Web Dev Project in 2025
- Common Pitfalls and How to Avoid Them
- Tips for a Smooth Outsourcing Experience
- Cost Breakdown: What to Expect in 2025
- Final Thoughts: Is Outsourcing Right for You?
In-House vs Outsourced Development: What You Need to Know
Most businesses will wrestle with whether to have an in-house or outsourced web development team. There is no “one best” approach to managing business website development, and many larger businesses switch between different models as their leadership teams change.
What are the pros and cons of an in-house web dev team?
These are the high-level pros and cons of an in-house team:
| Pros of an in-house team | Cons of an in-house team |
|---|---|
| Directly managed for easy access and easy oversight | Heavy investment in recruitment, salaries, benefits package, training, accommodation, and equipment. |
| Highly integrated into business culture and objectives | Fixed costs don’t change even if the team is underutilized or when staff are absent (sickness, holidays, staff turnover, etc.) |
| Sole availability for business needs. | Skills upgrade challenge, to keep staff adequately trained to meet the latest standards and evolving technologies. |
| Fixed cost can be a benefit if the business tends to be less efficient, or doesn’t want to pay for chargeable management and admin time. | Slow recruitment lead times for skilled team members. |
| Corporate overhead reduction is available by recharging individual business units in larger group-type companies. | Conflicting in-house priorities can slow progression in larger teams, especially where multiple stakeholders and sign-offs exist. |
| Existing relationships can speed up effective teamwork and communication | Push back challenges. It’s harder for in-house staff to push back against senior stakeholders professionally. |
What are the pros and cons of an outsourced web dev team?
These are the high-level pros and cons of an outsourced team:
| Pros of an outsourced team | Cons of an outsourced team |
|---|---|
| Usually more cost-effective. Outsourcing cost also represents a flexible opex cost to the business, rather than a capital investment. | Requires excellent partnership working on both sides. Relationships must be tightly managed for success, which can be more challenging between companies, especially if their working cultures are not aligned. |
| Easy scalability with the business’s changing needs - scale agency hours up and down according to budget or needs (so long as you’re within contract) | The business client must work efficiently, per the partnership agreement's SLA. If the business flip-flops on project directions, changes the brief, delays project sign-offs, or is generally inefficient, it will still need to pay the agency fee (and use up service hours quickly). |
| Allows businesses to operate on a leaner model. | Removes in-house talent, which may be wanted for broader operational resilience and structure reasons. |
| It may deliver higher-quality work, as good agencies stay constantly abreast of best practices and hire staff with cutting-edge skill sets. | There can be a culture challenge to manage here. Internal business teams can sometimes feel overly challenged by confident, skilled agencies and push back. This is, again, a relationship and communication challenge. |
| Provides fast and easy access to additional digital marketing skills and services. | Access to agency skills may not actually be immediate if critical staff are working for other clients. |
Many businesses will be persuaded to outsource web development. However, the benefits are only achievable with experience, a strategy, and a tight grip on communication and collaboration.
Cost Comparisons and Budget Flexibility
Costing models and budget factors will always be key in deciding whether and how to outsource web development. Let’s examine costs in more detail.
In-house web development team costs
These include:
- Recruitment, development, and management costs for in-house staff.
- Software, licensing, and developer-ready hardware costs
These costs are fixed overheads that must be paid whether or not the project is delivered on time or to quality standards.
Outsourced web development team cost models
Outsourcing switches a fixed overhead to a variable cost, based on the needed hours and skills.
Different models exist for outsourced web development costs. Fixed-price contracts are standard for small projects, while retainer models are typical for ongoing partnerships and enterprise web development projects. For freelancer work, hourly fees are common.
| Cost model | Considerations: |
|---|---|
| Monthly Retainer |
|
| Project Cost |
|
| Hourly Charge |
|
Control and Communication Differences
An in-house team is immediately accessible and face-to-face, which has pros and cons. On the plus side, this means instant briefing and adjustments. On the downside, in-house web development teams often get bogged down in internal politics, leading to project delays.
Outsourced teams formalize communication. There may be some face-to-face meetings (if locally based), but most interactions will be through platforms like Slack or Trello. A good outsourcing agreement keeps everyone accountable with clear project deliverables, milestones, and KPIs.
Scaling and Hiring Speed
Hiring skilled developers can take months and involves lengthy HR processes if you resource an in-house team. Businesses that outsource ecommerce web development through an agency can instantly access the skills they need
When you choose a web development company, the outsourced model facilitates scaling. Agencies can respond to changing client needs, such as a new website launch or seasonal shift, and simply adjust the monthly bill to reflect the hours bought in.
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Common Misconceptions About Outsourced Teams
These are all common misconceptions about outsourced web development teams:
| Agency misconception | To fix it: |
|---|---|
| Outsourced teams are hard to control. | Focus on regular reporting, effective communication, and efficient project management. |
| Communication problems (jargon) and culture differences | Invest in good communication, regular updates, and precise documentation. Show mutual respect. |
| Quality issues | Choose a high-quality, experienced web development agency, rather than focusing on the cheapest provider. |
| Only for big firms | Remember that startups and SMEs can also find outsourcing more cost-effective. |
| Security & IP risks | Sign NDAs to protect IP, and work with reliable, quality partners to safeguard your business. |
| More expensive | Factor in the alternative costs of recruiting, training, resourcing, and accommodating an in-house team. Remember additional costs of pensions, benefits, sickness, and holiday pay on top of salaries. |
| Less efficient. | Be realistic. Outsourced teams are often more efficient than in-house teams because they invest in the latest project management methodologies, software, and automation to achieve efficient and quality outcomes. |
Different Ways to Outsource Web Development
Depending on your business needs, there are different ways to outsource web development. These are standard models.
Freelancers vs Development Agencies vs White Label Teams
- Freelancers are cost-effective for niche skills and smaller projects. They can sometimes co-locate physically with an in-house team for a blended model. However, they are unlikely to provide enough resources for larger projects.
- Development agencies offer a whole team with project and account managers, developers, designers, testers, and QA. These are ideal for end-to-end solutions.
- White label teams work under agency brands, behind the scenes. These are common in agencies that need extra hands for bigger white label web development, without publicly collaborating with secondary partners.
Many clients will never be aware of a white label partner working with an agency. For client-side vendor selection, white label teams are less relevant, but it’s good to be aware of them.
Offshore, Nearshore, or Onshore: What’s the Difference?
Offshore, nearshore, or onshore refers to the location of web development agencies. Some businesses will have a strong preference. Think of this as your second “big” strategic decision:
- Offshore teams are based in distant countries like India and offer significant cost savings. (Be cautious and remember the “you get what you pay for” maxim.)
- Nearshore teams work in nearby time zones and are ideal for real-time projects.
- Onshore teams are based in your own country for physical collaboration and project management. They cost the most but share language, culture, and business practices.
Top tip on hybrid models for 2025
In 2025, some businesses are using hybrid outsourcing models. These models involve a local project manager acting as the client contact point and offshore developers. This can offer a “best of all worlds” situation in some cases. However, it may be better for clients who are more familiar and experienced with web dev projects.
Project-Based vs Dedicated Teams vs Staff Augmentation
The intended structure guides your third strategic question on how to outsource web development. This could be:
| Team structure | Work Type | Benefits |
|---|---|---|
| Project Based | For fixed scope work at a fixed cost | Great for one-off or quick turnaround projects. |
| Dedicated team | Long-term collabs with consistent team members | Ideal for ongoing website development |
| Adding external resources to your in-house team | To quickly plug internal skills gaps using freelancers | Fast skills additions, flexible resources |
When to Use Each Model Based on Project Type
The best place to outsource web development also depends on your work.
- If building an MVP (Minimum Viable Product) or prototype, consider a project-based team or flexible freelancers.
- A dedicated agency or team offers long-term, stable, and skilled resources for building a large new website.
- Feature upgrades and enhancements can be handled by freelancers, augmenting your existing in-house resources.
- If you’re an agency dealing with a spike in work volumes, white label teams add resources under your brand umbrella.
How to Prepare Before You Outsource Web Development
Planning, prep, and good project management make or break a web development project.
Use a defined project management methodology to structure each project and improve its outcomes. Detailed documentation and clear routes for sign-off are key. Here are the areas to consider:
Define Scope, Goals, and Budget Clearly
Define the deliverables, budget, and timeline. Discuss the planned development approach with your agency partner. Know exactly how you will handle iterations and changes to the scope, functionality, and features.
Decide on Tech Stack and Platform Requirements
Know your desired tech stack and platform requirements to help find the right vendor. Many agencies specialize in certain build types, such as Shopify or WordPress. If you’re unsure what you need, approach potential partners for advice.
Create a Timeline with Critical Milestones
Know when you need your project to go live. Your agency partner can then collaborate with you on the timeline for design, development, and QA pre-launch.
Prepare Internal Documentation and Access for Handoff
Get your document set ready. Prepare your brand guidelines, details of key contacts, and access to information on your server, API, and any existing source code before you begin. This avoids delays.
Where to Find Reliable Web Development Companies
Reviews, recommendations, and portfolios are the keys to successful research. Take your time with selection when you outsource ecommerce web development, as a good partner can work with you for the long term.
Top Platforms and Agencies in 2025
For a web development freelancer, look at Upwork, Design Rush, Toptal, and LinkedIn. For agency partners, research online, access industry Slack groups, ask your network for recommendations, read reviews, read industry media, and attend tech meetups.
Red Flags to Watch Out For
Be cautious of freelancers and agencies without a strong public portfolio, a reluctance to share client references, and a tendency to over-promise without engaging with technical details.
Be mindful of your client-side red flags, too! Have you gained internal sign-off on the project strategy from key stakeholders? Are you prepared to devote the necessary internal contacts and time to support delivery?
How to Evaluate Reviews and Case Studies
Look beyond high-level ratings and dive deep into the case study detail. What did the provider do to solve problems? What did the client love about working with them? What themes emerge?
Ask These Questions Before You Schedule a Call
Prepare for your fact-finding call with these questions:
- Do you have experience in any similar fields? Can you evidence this?
- Who will be my point of contact? What is their experience?
- How do you manage changes to the project scope or deliverables?
- How do you project manage work?
- What is your process for QA and testing?
- How do you assure quality outcomes?
A Bonus Tip for Agency Selection
Make sure you “gel” with your agency web development consultant. During a big project, you will work together closely, and there can be sources of friction on both sides. The easier you click, the easier it is to quickly build a professional relationship with a little “give” on both sides.
How to Vet a Web Development Company Professionally
When you outsource web development, it’s essential to deep-dive into the technological aspects. If you, as the client, lack expertise in this area, ensure the agency can explain their approach fully, clearly, and without resorting to blind jargon.
Technical Screening: Languages, CMS, Integrations
Check that a potential partner has demonstrable experience in your chosen technologies and can integrate with any linked systems or third-party APIs.
UI/UX Skills and Mobile-First Experience
Review the design portfolio to assess showcase projects for design appeal, accessibility, and usability. Check that your partner ensures mobile responsiveness and delivers cross-platform testing.
Communication, Collaboration, and Project Management Tools
Discuss which tools they use. Slack, Asana, and Jira are popular. Do these integrate with your business and communication protocols? How often do they issue updates? Do they work with Agile methodologies or another PM approach?
Pricing Transparency, Contracts, and IP Ownership
Costs are the crux, but don’t choose a provider based on bargain-basement prices. Document costs carefully, including revision fees. Ask how they charge for account management time. Ensure the contract states clearly that you will retain IP and source code after payment.
The Step-by-Step Process to Outsource a Web Dev Project in 2025
Want to know how to outsource web development reliably? Keep it structured, with a tightly managed process.
This step-by-step guide can be your high-level go-to for the process:
| Step 1 – Internal Planning and Goal Alignment | Do the work internally before you outsource. This means aligning stakeholders on project objectives, deliverables, timeframe, budget, and ROI. Consider bringing your chosen partner in to meet key stakeholders during the selection process. |
| Step 2 – Market Research and Shortlisting | After reviewing your preferred options based on reviews, referrals, and the agency portfolio, create a structured shortlist with a rating system. Don’t allow “gut feel” (or existing relationships) to override the factual information you gather, particularly for large projects, or for budgets where you will need to evidence your vendor selection process if delivery falls down. |
| Step 3 – Initial Discovery Call and Proposal Review | Schedule a discovery call to discuss the project in detail. Make notes. Review proposals carefully. Check that the information is detailed, qualified, and legitimate. Excess jargon or vague waffle are red flags! |
| Step 4 – Finalize Contract, Milestones, and Onboarding | Formalise the project deliverables, timelines, and payment structure (e.g., upon completion, released in phases by milestone or via monthly retainer by hours) into a contract. Sign and onboard with a project launch meeting. Hand over your system access credentials. |
| Step 5 – Project Execution, Feedback Loops, and QA | Check in regularly to review progress and be available to test every milestone fully. Provide complete and quick turnaround feedback and be available to collaborate. Large projects work best with full ongoing collaboration. |
| Step 6 – Post-Launch Support and Ongoing Maintenance | Know the plan for bug fixes (usually a ‘FOC’ period after launch), system upgrades, and future possible feature upgrades. |
Common Pitfalls and How to Avoid Them
Businesses commonly experience these pitfalls when they outsource ecommerce web development. Here’s how to avoid them.
Lack of Clarity on Requirements
If you try to outsource web development without knowing what you want, the project will easily cost twice as much and lead to frustrating delays. Be clear on your requirements (and ensure internal sign-off) before approaching potential partners.
Overpromising by Agencies Without Proof
Reject any agency with a weak portfolio. Ask for client referrals and follow up on them. Request live demos of their work. Where geographically possible, have a face-to-face meeting for a larger project.
Ignoring Time Zone Overlaps and Communication Delays
Choose partners that either work in your time zone or work primarily in your time zone. If there is no overlap in working hours, communication will stall.
Not Prioritizing Ownership of Source Code and IP
Check that you got your IP ownership clause in the contract! Ask your legal resource to check the wording.
Tips for a Smooth Outsourcing Experience
Invest in good management, communication, and relationships when you outsource ecommerce web development. These tips will smooth the project path:
Use Agile or Scrum for Better Iterations
Many agencies use Agile or Scrum to manage web dev projects. These break projects into small chunks for greater adaptability, faster communication, and quicker resolutions. Adapt to these PM methodologies on the client side for the best results.
Set Up Weekly Reviews and Sprint Updates
Regular catchups and speedy contact routes keep everything flowing. Agree on an approach that makes sense for your project. This might be a morning call during an intensive development period.
Build a Shared Knowledge Base
Centralize and share your project documents. Google Docs is a good option for document control and easy access.
Treat Your Outsourced Team Like an Extension, Not a Vendor
Of all the best tips for outsourcing web development, your attitude toward your new partner is key. The results can be tremendous if you prioritise open communication, true partnership working, and a healthy respect for each other’s expertise and respective skillsets.
Treat your vendor like a cheaper and second-class option to resourcing your own team. With sporadic communication and half-hearted planning, the model simply won’t bring the results you want.
It’s a hard truth for clients, but sometimes, when businesses say that outsourcing web development didn’t work for them, it’s because things fell down client-side, from initial planning to true collaborative working.
Consider a Pilot
If you’re using a new agency to outsource web development, consider running a smaller test or pilot project before a significant build to test whether the relationship will work and that the delivery is up to scratch.
Cost Breakdown: What to Expect in 2025
The cost of web dev outsourcing varies greatly in 2025. Here’s what to consider:
Hourly vs Fixed Pricing Models
Different pricing models are available for outsourced work.
- Hourly pricing is flexible, but costs can rack up, especially if you don’t manage the project well on the client side.
- Freelancers typically charge a day rate (make sure you have work lined up for them when they arrive).
- Fixed pricing is predictable, but it won’t allow scope changes.
Average Costs by Region (Asia, Eastern Europe, US)
The best place to outsource web development depends on your goals and budget. Average outsourced web development pricing in 2025 is as follows:
- US, UK & Western Europe: $80–$150+/hr
- Eastern Europe: $40–$80/hr
- Asia: $25–$50/hr
Here’s an example of cost breakdowns by country:
For businesses looking to outsource ecommerce web development for big builds, finding a local partner with a great reputation in that field makes sense. Cheaper overseas vendors may fit the bill for small, incremental work or easy web dev jobs.
Don’t be cheap just to cut the budget, however. If your business website is integral to your entire operation, prioritize trust, quality, and reputation over $$$ scrimping.
Top Tip: If a web deb agency is obviously under-cutting prices, find out why and get a transparent answer. Are they trying to build capabilities in your particular area, and offering a lower price while they get to grips with the work? Does the lower price reflect an expected lower quality? Proceed with caution.
Unexpected Costs to Budget For
Always leave room in your budget for unexpected costs. These could be for:
- Changes to the project scope
- Extra QA time
- Post-launch support (such as staff training)
- Third-party costs for service integration.
How to Negotiate Without Compromising Quality
Avoid negotiating purely on price, which can negatively impact the project outcome. You get what you pay for. Instead, negotiate on payment terms, such as phased rollouts to spread invoices, or staged payments, mapped against delivery milestones.
Final Thoughts: Is Outsourcing Right for You?
For many businesses in 2025, it is a smart play to outsource ecommerce web development for flexibility, talent access, and speed of delivery benefits. It also removes the need to maintain an expensive in-house team.
The key to success is to approach web dev outsourcing strategically and carefully. Invest time in planning, agency choice, communication, and partnership working to get the best possible ROI.
Frequently Asked Questions
How do I protect my intellectual property (IP) when outsourcing?
Use a Non-Disclosure Agreement (NDA) and include IP ownership clauses in your contract, determining that all designs, code, and project deliverables are yours upon payment.
What Sort of Budget is Realistic for Website Development in 2025?
Budget $3k to $10k for a small website build, and $20k-$200k upwards for an enterprise solution or complex app.
How Can I Manage Payments Safely?
Avoid any 100% payment upfront terms. Agree on payments by milestone and send them via direct wire or through trusted platforms like Upwork if using freelancers.
What Are The Web Dev Outsourcing Trends to Know in 2025?
Trends in website development outsourcing in 2025 include AI-supported coding for faster results, accessibility-first development to meet global compliance standards and regulations, and eco-friendly development and coding for brands with a sustainable business model.