I’ve gone through full-cycle development with an external partner twice now—one was a mid-core mobile title, the other a PC narrative game. You're totally right to weigh the pros and cons carefully. For me, the biggest benefit was the unified production pipeline—they handled everything from pre-prod to launch support, and that seriously reduced miscommunication between departments. But it’s not a silver bullet. You have to vet the studio hard, make sure they’re not just good at production but also flexible enough to work with your creative vision.
We ended up working with a team from Devoted Studios
this website for the second project, and what I liked was that their structure isn’t rigid—they adapt to what you already have. For example, we kept our narrative designer in-house while they built the rest around that. It gave us control where we needed it. The challenge? You’ll still need someone on your side with solid PM skills to keep things aligned—especially across time zones. It’s not “set and forget,” but it can be worth it.