Outsourcing VS Hiring Software Developers

OK, now that you have already decided to build a software application, have you decided on how will you be going about the development process? Should you outsource or hire your software developer? A dilemma faced by many companies in this industry.  

So, which should you choose? If you are hoping for a definite answer, unfortunately that isn’t possible in this situation. Choosing between outsourcing or hiring software developers depends entirely on your business’ objectives and requirements. Let’s weigh the pros and cons of each option prior to making that decision.  

The benefits of outsourcing?  

  1. Cost-effective – With outsourcing, the world is your oyster. You have access to talents around the world, offering competitive pricing which in turn gives you cost flexibility.  
  1. Larger talent pool – Because you have access to top talents all over the world, you now also immediately have access to a significantly larger talent pool. You have ample options to select the best technical specialist for your company.    
  1. Easy scalability – Do you have a smaller project today but a bigger one next week and a mid-sized one the following week with a very tight deadline? Fret not, outsourcing allows you to conveniently scale up or down your project team according to the size and urgency of the deliverable.  
  1. Time-efficient – By outsourcing your software development, you can reduce all the time and work required for recruitment, resulting in a quicker turnaround time, allowing your product to reach the market faster.  

The potential risks of outsourcing?  

  1. Control – Seeing that team is not physically present with you, you could have zero face-to-face communication on a daily basis, hence giving you limited control over the team and what’s going on. This can be a rather concerning issue especially if you are outsourcing a critical aspect of your product.  
  1. Communication gap – If your outsourcing team is located in another geographical region and time zone, this will be challenge as well. But these issues can be easily addressed by planning beforehand.  
  1. Lack of loyalty – With outsourcing, there is an absence of loyalty to your company which could affect the dedication and commitment levels when producing work.  
  1. Data security – Confidentiality of project details could also be a concern when choosing to outsource. Be sure to protect your Intellectual Property and project ideas prior to engaging their services.  

Now that we have looked into outsourcing, let’s see what hiring has to offer. 

The benefits of hiring?  

  1. Improved communication – With your software developer being in-house, you can now be more involved in the development process and have better control of what’s going on behind-the-scenes. This will establish a more streamlined and clear communication process, which can help you foresee problems and better address them.  
  1. Agile and adaptable – With an in-house team, you have the flexibility to change directions as and when required. You can easily and quickly have changes made to your development process to meet the business’ changing needs.  
  1. Right cultural fit – By choosing to opt with hiring an in-house software developer, you have the opportunity to find candidates that will fit your company culture resulting in higher team spirit and increased motivation to perform better. Furthermore, with the right cultural fit, they will be more aware and knowledgeable of your specific business needs. 

The potential risks of hiring? 

  1. Higher cost – There is a lot more money required when opting to have an in-house software developer. Right from the cost of hiring and upskilling to monthly salaries and employee benefits. Everything is going to add up.  
  1. Time consuming – In addition to higher cost, hiring an in-house software developer is also a time-consuming process. Recruiting and onboarding can take a lot of time as you will need to search, interview and negotiate before finally making the hire. To make matters worse, you will have to repeat this entire cycle every time a resignation happens. 
  1. Limited talent – With the ever-increasing demand for technical specialists, the best talents within your region would most probably be already hired by your competitor. This would leave you with a much smaller talent pool to choose from.  

If you are still stuck with the question on whether to outsource or to hire, well, the top four things to consider are flexibility, talent, expertise and cost. Or, ask yourself do you prefer increased complete control of your resource and a clear line of communication? If yes, then maybe you should consider hiring your software developer. Whereas if you are looking for extra resource and don’t want to increase your payroll and HR headaches a specialist software development compant could be the right choice. It may be quite a conundrum, but it is easier than you think when you are aware of the benefits and drawbacks each option offers.

If you would like to discuss outsourced development then speak to us. For more information, please visit our contact page.