Hiring vs Outsourcing in Software Development: What Is More Viable For You?

When it comes to software development, it’s often tough to decide whether to outsource or to build your own team. There are 5 significant factors to consider if you want to obtain a successful product. Let’s dive into each one of them and make your choice easier.

Costs

  • Outsourcing means a higher hourly rate but no extra costs required.
  • Hiring means a lower hourly rate but more additional costs. The overall cost will be higher.
Consider:

If you decide to build an in-house team, additional costs will be connected to organizing office space, buying software and tools, offering perks and insurance. That is why you have to pay a higher rate in case of outsourcing – these are the costs your potential partner has to cover to gather the best specialists. When you decide to outsource, you pay a higher hourly rate, but you also gain full control over expenses.

Final thought:

Costs connected with hiring pay off in time. It’s essential to think for how long you need your team and if the demand will change with the progress. For example, if you want to sell your software, and you need your developers for years to maintain and develop it further, your investment in hiring will pay off. If you have a variable or timely-limited project, you may want to outsource. Even if you’re going to create something as crucial as an app that will be the heart of your startup or an online shop.

Time

  • Outsourcing means a faster start. You devote time to find the perfect software house and then set the start date.
  • Hiring means that you have to spend more time on the recruitment process and onboarding, and during the project, your employees may need sick leaves or vacations.
Consider:

Choosing a perfect software development company for your project might take some time (to speed it up read “10 questions to ask your potential software outsourcing provider”). But professionals know how to organize the project to meet all your deadlines. What is more, you set a date, and your project starts. In case of hiring, the recruitment and onboarding process takes some time, and then absences can happen (outsourcing partner has that covered with substitutions).

Final thought:

If you want to start faster (for example, if your idea is innovative), outsourcing may be a better option for you. You only need to find out the best software house and set out a start date. Although, pay attention to choosing experienced professionals that understand your vision and know how to organize a project. If the quick launch is not an essential factor for you, keep analyzing your case.

Quality

  • Outsourcing means you access the most experienced developers and designers in the chosen region. 
  • Hiring means you may not be able to hire the best developers because they already work for the biggest brands in your area.
Consider:

The IT market is very competitive; employees often change jobs and look for the best work conditions. With outsourcing, you can choose a team of developers and designers that are the best in their region and derive from their knowledge and experience. With hiring, you have to offer a competitive price and job conditions to attract experts. 

Final thought:

It’s easier to outsource excellent developers than to find ones on your market, although you can initially do some research in your area if there are no significant players around.

Control

  • Outsourcing means your control level depends on your partner.
  • Hiring means you have your development team under your roof, and you can have total control over working progress.
Consider:

Professional software houses provide you with constant access to the project files. You also get a Project Manager to keep you in the loop and organize everything. You can communicate via Slack, phone or set up personal meetings. The advantage of hiring is that you can talk to your team face-to-face any time you want. But you also need to hire a Project Manager to organize everything.

Final thought:

The professional partner will provide you with all the information you need any time you’ll need it – you play an important role in the development process. If you’re comfortable with that level of control, you can choose to outsource. 

Flexibility

  • Outsourcing means you can scale up your team easily.
  • Hiring means you need to go through the whole recruitment process to supplement your team.
Consider:

The external software house can size up a team devoted to your project whenever you need it. If you want to speed up the development or add something new, they will simply supplement the team with additional developers. Also, the team can be reduced according to your demand. In case of your own team, you’ll need to hire someone new or let some employees go.

Final thought:

Changes are common during software or app development. You can stay more flexible with outsourcing. Do it differently if appearing on the market quickly is not crucial for you.

Outsourcing vs Hiring: What to Choose?

When the software you create is a core of your company’s activity, and you want to sell it further, it may be better to invest time and money into building an in-house team. Many companies achieved success in that field. If you need a team of developers for a determined task, like to create an app (even if it’ll be the core of your startup) or an online shop, outsourcing may be a better solution. You can also begin with outsourcing to kick off your project faster, and then start to build your own team by successfully adding employees to the outsourced one. Everything depends on your business strategy, goals, time and money. Analyze your own case and make a decision.

Looking for an app development outsourcing partner that provides excellent skills and quality combined with a reasonable price? You’re in the right place! Send us a short description of your idea to hello@appstronauts.co. Our experienced developers will be thrilled to help you with turning your idea into a perfect app. Check our previous project on Clutch.

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