I'm looking to do a internet based startup with a friend. It is heavily focused on the site development and although I haven't really made proper cost calculations yet, I'm guessing the initial development cost will be around $20k-30k.
Although this figure isn't crazily a lot, we probably don't have this sort of money to spare unless we took loans. The dilemma now is deciding whether we should outsource the development offshore which is substantially cheaper but you would probably risk on code quality and also the fact that your developer is offshore when your business relies on the web platform heavily.
The other option is to hire someone locally on a contract basis. Through this, you'd definitely get better control, quality, communication and have a smoother working process. However, obviously this is more expensive.
Also note that initially the business won't be making profit immediately so for ongoing maintenance costs, the offshore developer is going to be way cheaper to maintain than the local one.
I know that regardless, eventually I would like the development to be in-house but just wondering whether it's worth the risk to outsource to offshore to save cost initially.
Keen to find out if you guys have been in a similar position, what path did you take and what were the outcomes? Good decision or regrets?