How do you decide between building software in-house and outsourcing?

I’m curious how other businesses decide when a software project should be handled internally versus working with an outside development team.

In my experience, the difficult part is not really finding developers. It is finding people who understand the business process behind the software. A team can technically build an application, but if they don’t understand integrations, users, scalability, or the existing tech stack, the project can become much more expensive later.

For companies that don’t have a large internal engineering team, AI software development services can make sense for specific projects, especially when the requirement is well defined.

What I usually look at is:

  • Communication with the development team
  • Experience with similar projects
  • Ability to work with existing systems
  • Post-launch maintenance
  • How changes are handled during development

I’d be interested to hear how others here evaluate development partners. Do you focus more on technical expertise, previous projects, price, or long-term support?