Are you constantly struggling to find high-quality software developers? Do your projects come too close to missing deadlines because of a lack of in-house technical capabilities? Has your struggle to find the right IT staffing left you feeling overworked and under pressure? If so, you’ve probably considered outsourcing. Consider these pros and cons to evaluate whether outsource hiring meets the needs of your department.
Outsourcing vs. Hiring In-House
In-house staffing can be great if you find the right employee with the right skills, but local applicants may not have the skills you require. Sometimes you can provide on-the-job training to improve the skills of current staff members, only to lose them as soon as they start to become really good at their jobs.
Outsourcing makes highly skilled technical experts available for as long as you need them. Plus, you can hire staff for specific solutions, such as project management, business needs analysis, technical architecture, quality assurance, and more. You tell them what you want and they work according to your guidance.
Compare Cost to Benefit
When evaluating how to best fill your technology needs, consider the cost-effectiveness of each of your choices. Weigh the initial cost savings against the long-term price of each staffing solution.
In-house staffing: Hourly rates are less, which can result in a substantial savings over time. Recruiting fees can be 20 percent or more. Advertising is expensive. Finding, vetting, and training good candidates takes time. There is no guarantee of long-term commitment, so you may not recoup your initial investment.
Freelance/independent contractors: They often specialize in their area and charge only for the hours they work, so they can be less expensive than a consultancy. They’re often working with multiple clients, so they might not be as motivated to provide the work quality you need, and they might prioritize jobs that pay more. Freelancers can sometimes exaggerate their talents, leading you to believe they can deliver more than they actually can.
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Offshore/nearshore: This may seem like the least expensive option up front. Consider whether the potential language barrier and different business etiquette will have a negative impact your company. Communication issues and missed deadlines can result in higher costs later.
Software Development Consultants: This can be the most expensive option, but quality often pays for itself. Outsourcing companies may promote appropriate software development and project management best practices. They give guidance on software implementation to make your company more successful. They can also identify issues with in-house processes that bog down productivity to dramatically improve efficiency.
Collaboration and Autonomy
If you can find the right talent in-house, they can make your project and your company a success. If those people are simply not available, outsourcing may be your best option.
The right software development consultants can integrate into your existing team. Your staff can continue to operate in their areas of strength but with additional support from outside experts.
At the same time, outsourcing allows technology directors to turn difficult projects over to a team experienced with software development, technology integration, website design, and mobile applications. It’s like creating a technology dream team for all your technology needs.
Are you ready to discover which option is best for you when it comes to building your technology dream team? Check out this Technology Hiring Prioritization Tool. It will walk you through an assessment of priorities for your team – all the way from budget to communication preferences – and offer a team expansion recommendation based on your specific needs.