In-House Development Centers - Meaning & Definition

Published by MBA Skool Team, Last Updated: December 23, 2015

What is In-House Development Centers?

In-House Development Centers refers to the belief that to excel globally, one must invest in its most valuable assets, i.e., Human Capital and put them to the best of its use. Businesses should also try to develop their human resource by several business programs and by providing them with the technical knowledge. They should also invest in developing workers’ individual skills and attitudes.


A firm might decide to In-House activities such as payroll, accounting or tech support whereas other firms may outsource these activities and divisions. Keeping such activities in house, increases the degree of flexibility and changes or developments can easily be brought in. This flexibility also helps the company to maintain good customer relationships and satisfy their needs by client’s orders and developing the system from time to time.


Many organizations and universities lectures, seminars and other classroom learning with other development techniques like assessment centers and other online learning methods to develop both employees and managers.


Example: General Electric’s (GE) provides training to employees at the entry level as well as to the managers working at a high level.



Advantages of In-House Development Centers:

• The In-House teams directly work with the business and understands the business more closely

• The workers are directly supervised and they get personal attention

• It helps in quickly getting the desired change in attitude or behavior and improvement or development of the desired skills

• The In-House teams are capable of delivering high quality products to its consumers


Disadvantages of In-House Development Centers:

• In-House Development Teams might find it difficult to work within the budgets

• It is very costly as compare to other ways of development, like offshore development

• It involves high level of risk, including continuous change in technology and dynamic user requirements

• Startups find it difficult to invest in In-House Development Centers because of high cost involved.


Hence, this concludes the definition of In-House Development Centers along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.

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