our blog

Software Development Project Managers: In-house vs Outsourcing?

Author: Innotech Vietnam
Date: 22/04/2022

There can be no doubt about the importance of project managers. They must plan, budget, manage, delegate, and administer projects. They also need to have a thorough understanding of everyone’s role to ensure that the project is completed properly. 

According to PMI’s report, there will be a need for 25 million project managers by 2030. These figures show that a project manager is considered the key to success of any project. 

So, where should your project manager be located: in-house right next to you or close to the software development team, even if that means overseas? Read on to see the pros and cons of both options and which one will fit your business. 


What is Project Manager? What Are Their Roles In A Software Development Project? 


Project management is a complex process that comprises a wide range of activities, stages, and technologies. Usually, a project manager (PM) works as a middleman who connects the development team with the customer. 

The role of a project manager is to lead the team and manage the whole lifecycle of a project. Their job is to make sure that the final products are delivered on time and meet the required quality standards. 

In the planning phase, project managers will be responsible for managing the software development project, handling client expectations, costs, risk, and assigning responsibilities to team members. Project managers will continue to control the workflow based on new information, and market shifts until the project are completed. 



it outsourcing software development services


You may expect a project manager to conduct the following when working on your software development project: 

  • Maintain regular contact with the project’s development, design, and QA teams to ensure that tasks are completed in accordance with the plan 
  • Keep a close eye on the project’s progress so that any problems, obstacles, or risks may be identified and dealt with as soon as possible 
  • Make sure that the team follows the software development process chosen 
  • Involve software developers in the documentation process to ensure that all project papers are clear and simple 
  • Act as a link of communication between the business and the outsourcing software development team 
  • Ensure that the budget for the project is in line with the expected workload and flexible to adjust to changes in the project’s scope 
  • Ensuring that work is completed on schedule and within the budget. 

In summary, most of the project manager’s responsibilities are intimately tied to communication, particularly with software development engineers, testing teams and business.  


What Skills Do Software Development Project Managers Need To Know? 


Project managers in development teams must possess a wide range of both technical and soft skills. These skills allow them to successfully take a project from start to finish with more efficiency. You can use this as a standard for your recruitment process when looking for a software development project manager.  


Technical Skills 


it outsourcing software development services


In terms of technical skills, software development project managers should be able to: 

  • Understand the processes and requirements involved in developing an app, a website, or software. 
  • Build an effective plan for your software development projects. 
  • Ensure that your team is communicating and working together effectively. 
  • Manage your software development project’s budget  
  • The project manager should be aware of and execute the appropriate project management approach during the project’s development. 
  • Know how to assign responsibility. The finest project manager doesn’t try to handle all the issues and chores on their own but rather knows how to distribute them among the team members. 


Soft Skills 



it outsourcing software development services


Soft skills are just as important as the technical ones in every management position, and this is no different for software development project managers.  

  • Excellent communication skill is the first one that pops out. Project managers have to work closely with team members and understand their strengths and limitations. Also, project managers should understand how long it takes them to complete specific tasks. 
  • Negotiation skills will allow PM to communicate to both developers and clients, explain the issues, difficulties, needs, and solve conflicts between the two parties. 
  • Ability to work under pressure to deal with the numerous stressful situations that arise throughout the process of the software development project. 
  • Leadership abilities to gain the trust of your team and motivate them to succeed. 
  • Flexibility to adjust to changing project processes, especially if the team uses Agile. 
  • Creativity to come up with innovative project ideas. The project manager must be the one who understands the project’s needs best and how to innovate the software development process. 


In-house vs Outsourcing Project Managers: Which To Choose For Your Software Development 


In-house vs outsourced software development project managers has a lot to talk about depending on the complexity and resources of the project. To help you decide which project management style is ideal for your company, here are a few pros and cons of both approaches. 


In-house Software Development Project Manager 


It’s easier to get in touch with an in-house project manager since they are always available to answer any concerns. Their team members are also easier to access, work directly with them and keep tabs on their development.

Project managers who are employees of the company are familiar with other employees. They are familiar with the company’s structure and various projects and teams and easily pick suitable team members. 


In-house project managers are also a part of the corporate culture every day, so they know how to inspire and upskill their colleagues. They have a good grasp of the problem and what should be done to solve it. 

Only firms with large budgets and projects can afford to have full-time project managers on staff. Because they are dependent on each software development project, small businesses cannot afford to hire project managers who will then have nothing to do when a project ends. 


it outsourcing services

Pros of In-house Software Development Project Manager 

  • Non-Disclosure Agreements were signed to ensure confidentiality. 
  • Having better communication with the in-house development team 
  • Understanding the company’s values and culture 
  • Operational understanding 
  • Proven track record in the industry 
  • Internal resources may be directed with ease. 


Cons of In-house Software Development Project Manager 

  • Dependence on the vendor 
  • Ineffective for short-term projects 
  • Expensive to employ 


Outsourcing Software Development Project Manager 


If you’re going to outsource a whole development team, hiring a project manager is probably the best choice.  

Alternatively, you may hire an experienced project manager to work with your team on a short-term basis. Outsourcing is also a simple and cost-effective alternative to hiring employees in-house. 

However, there is a danger that an outsourced PM won’t research deep into business needs and values and offer the finest solutions. It takes time and effort for every manager to understand more about their team members and the organization. 



it outsourcing services


Pros of Outsourcing Software Development Project Manager 

  • Objectivity and cultural applicability distinction 
  • Fresh look and new ideas on the project and business needs 
  • A wide range of options and resources 
  • Enhancing the technical capabilities of the software development project 
  • Cost-effective compared to in-house hires 


Cons of Outsourcing Software Development Project Manager 

  • Lack of familiarity with the brand image in the software development process 
  • Communication is becoming more difficult 
  • Establishing leadership is a challenge 
  • Restrictions on the use of property information 
  • Relationships and business morale are lacking. 


Many firms are hesitant of hiring outsourced project managers for many reasons. Outsourcing a software development project manager may be quite beneficial for a company if it is the proper match. Outsourcing tends to work better for smaller, newer businesses than for larger, more established ones. 

If you’re looking for an Outsourcing Software Development team, we have a suggestion for you.  


it outsourcing software development services


Innotech Viet Nam is one of the leading firms in outsourcing software development in Vietnam. After 14 years of providing successful software solutions to over 200+ global clients and countless positive feedback on our outstanding communication and agility, we are confident in our capacity to provide the highest quality, the most trustworthy service, and the fastest time-to-market products to our clients.  

Contact our team of experts if you have any queries or concerns about outsourcing and we’ll be more than pleased to assist you.  

Mail: [email protected] 


Bottom Lines 


In-house vs. Outsourced Project Managers: Which is best for your business? It all comes down to your needs, your budget, and most importantly, the location of your developers. In order to achieve great results, both the software development team and the project manager must work together effectively. Consider all of the stated advantages and disadvantages before deciding will help you find out which model is best for your business. 

We’re here to help and answer any question you might have. We look forward to hearing from you.