It's a really difficult decision. As an owner, you want to control and track all tasks that are in a progress at the same time you can't be always divided into the development process because you need pay attention to marketing and sales issues to make your app more profitable.
I guess an appropriate way is to find a good development partner, whom you believe and may trust. This task is difficult also, but it helps you to make your work more efficient and easier.
The world is changing with the arise of smart phones. Next generation is looking the world with eyes of smart phone applications. Facebook is connecting next door friends and whatsapp is taking the communicator role between groups. People find it more important to play with smart phone rather than meeting their buddies face to face.
With popularity of applications, smart phone users are coming up with their own unique ideas and few are capable enough to change the world. The question is who develop this applications/ games and what is quality? Off course, answer is an iOS developer but it is very important to know that he is working on his own or he is working in an organization.
The answer of the above question will decide future of application. The developer who works for his own is a Freelancer, his own boss. There is no one to control him, no one to ask him, no one to help him. Now when this happens, off course there would be issues coming when he develop the application and that will make sure that your application is delayed or never completed. What is next step for you now?
I hope you are doing good. Every startup went through this same phase as I am currently helping many as tentative CTO. Here is a million dollar tip: Act smartly not emotionally. Outsource it to company and get your MVP done to secure funding for next round. If you got funds then only hire in-house team for future work. Keep getting support from outsourcing company unless your team is fully trained.
both options are doable; though you've to figure which one suits your current management bandwidth and costs; I run an app development company agicent.com (serving customers like you), and let me tell you that it is easier said than done to hire and retain talented developers, for any technology and since mobiles are hot these days, it has only become tougher.
Now, coming to facts - outsourcing to an offshore mid size app development company like us would cost you $ 15 to 25 K for a 6 months' longer project (assuming it involves only 1 or maximum 2 resources); the same campaign in house would cost you at least $ 40 K along with other expenses and management burden.
While it apparently gives you more flexibility in terms of managing changes, do iterations when you've an inhouse team; you can gain the same by properly managing the offshore team as well; just you need to be more communicative, planned, and good on documents. We, the offshore guys can also understand your concepts and goals (doing so already offcourse) and convert them into quality weekly releases; but you would need to work as a team owner.
One more advantage of outsourcing to a company (not just an developer) is that you'd interact with not only the developer doing the code but also with a solution architect of that company who is mostly a seasoned techno-commercial guy doing all sort of non-code but important things for you; like doing R&D for the right SMS gateway system, proposing you best options for payment gateway, or suggesting you right kind of backend system etc. Apart from that, the same guy would be managing the grunt part of the development management; keeping the backup resource, maintaining repos, handling change orders; spending hours with you on skype and what not.
So, the overall package that a professional company can give is not comparable with having an inhouse developer, except the only fact that the latter is sitting near to you.
You may better hire a CTO (if you are not the one technical), who can manage the development team (be it your inhouse or an outsourced one).
Also, reconsidering having inhouse team and infra if you don't have solid longer dev plans. I've worked with inhouse teams in India, US, and Singapore and also did outsourcing and now running an outsourcing company - managing internal team when you are a startup is sometimes more cumbersome than managing a professional vendor working for a fee.
In any case, the goal of your campaign should remain fulfilled; so choose your plan based on your requirements and not on the basis of what sounds cool.