For remote software developers, the experiences in product-based vs outsourcing domains differ, and it is essential to understand the differences to choose the career path that best suits one’s temperament and skills. If you are wondering about choosing a product-based or outsourcing company, read more detail.
Involvement
In product-based companies, you will have a great opportunity to see the product grow and participate in it at every level. You are involved in the project from the beginning, see how it is created, changed, grows, adapts to new requirements, and take pride in a product that works well. As you follow the project from the beginning to the end, you will gain expertise in specific technical skills.
While working on short-term projects in an outsourcing company does not provide the same sense of involvement. You are involved in a variety of projects in different fields This can help you expose yourself to many different technologies, allowing you to learn a lot, but not extensive about a specific technology because you are working on one project today and another tomorrow.
Client Concerns
Software developers in an outsourcing company focus solely on the client’s priorities and concerns. The developer ensures the final product’s quality, sustainability, and efficiency. You’ll need to understand and meet your client’s needs. Making the client happy is, to some extent, the priority of your work. Singapore culture is also very client-focused, which is beneficial for developing and maintaining strong professional relationships. However, even the best outsourcing professionals may be influenced to focus on pleasing the client rather than meeting standard operating procedures, which can lead to operational inefficiency and further waste of resources.
In product-based companies, your product and users are now your top priorities. You are fully engaged in the software development life cycle, invested in the company’s growth, and your strategic inputs are critical to decision making, even deciding whether a specific function is required. Not having to deal with customers at work is a huge relief. Reducing unnecessary stress with the client may be a wise decision.
Communication

The client makes all decisions about what should be implemented in an outsourcing company. As a result, the development team is primarily responsible for the final product’s quality.
In product-based companies, development and business are inextricably linked. Your team are responsible not only for the functionality of a feature but also for its necessity. You can get your voice heard and decide whether something is suitable or not. Especially, when you work remotely as a software developer, communication has become more challenging than working on the same ground. Communication is generally better in product-based companies if there is no middleman to mess things up.
Salary
Which company will offer you a higher salary? Unfortunately, there’s no one clear answer to that. It entirely depends on what outsourcing or product-based company that you work for. However, you must be aware of the following issues:
In the product-based company, which recruits, trains, and nurtures your skills, you enjoy the safety net and stability of growing salaries with seniority and experience. Product-based companies have fewer middlemen and more excellent opportunities to grow your expertise and better pay packages.
In outsourcing companies, developer salaries and perks are satisfying but demand-based because everything is billed hourly to the client, and there’s not much leverage to tinker with wages. Outsourcing companies frequently have more levels between you and the client, which means you will receive less compensation than the product-based one.
Responsibilities

In product-based companies with a smaller chain of command, you will most likely get more experience and more responsibility. Growing responsibility gives you more experience and opportunities for advancement; you are free to experiment, take risks, and contribute new ideas.
On the other hand, outsourcing companies receive direct orders from their clients. Developers who have new ideas must approach the business analyst, who discusses the issue with the business owner and awaits the product manager’s final approval. They must work within the constraints of the client’s priorities, and there is little leverage to push a robust reformist agenda.
If you want to turn up and be told what to do, then outsourcing is probably better, but product-based companies are a better fit if you prefer choice and freedom.
Product-based Vs Outsourcing Company: Conclusion
Consider outsourcing if you’re a junior software developer looking to improve your skills and learn more. If you crave the gut satisfaction of creating a brilliant product and becoming a leader in your domain, a product-based company would be your call.
Make sure you determine your goals. Joining an outsourcing or product-based company makes no difference if you don’t know what you want or what you want to become in the future.
Hopefully, this article will help you in making the best decision. If you want to join a product-based company in Singapore and work remotely from the comfort of your home in Vietnam, Inspius can help! Find out more here.