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Welcome to the community.
As a business owner, I look at it from an application perspective. If the application is strategic to the business, I hold on to it. If it isn't and involves a "self-contained" function (payroll processing, for example), I outsource it.
Another factor for me (and most small business owners, I think) is whether or not the application is "doable" in-house. If an employee tells me he wants to initiate or improve a function we need, then he is normally going to get the chance try. Website development is a perfect example of that.
Sarram, Lighthouse gave you a good first answer without knowing about you.
Also as he said,
Welcome.Tell us more about yourself. Are you involved in the IT field?? And How??
The more you share with the community, the better our answers.
We are an internet technology company. All of our IT is in-house now, we have planned to keep it that way even when we grow larger.