In my experience, there are two schools of thought in this area: 1) You want developers in-house because they're creating your product. This generates your reve

In my experience, there are two schools of thought in this area: 1) You want developers in-house because they're creating your product. This generates your revenue, so you want to be intimately involved (not outsourced). 2) You want very, very low overhead and/or aren't in a time crunch to deliver the product or new features. Which gives you more flexibility to handle somewhat lower quality (and more difficult* to manage) outsourced developers. * Not as easy because they are not in-house.