Many business owners encounter a choice between hiring a permanent in-house employee for a new position or retaining the services of a software development consultancy to meet their needs. This is rarely a simple choice, and business owners have multiple factors to consider before making a decision. Each option has unique concerns in terms of cost, so business owners need to carefully analyze their operations and cash flow before committing to one or another. At Fairway Technologies, we understand the importance of making confident decisions that will impact your business in the future, so consider the actual costs of both before making your decision.
Costs of Hiring In-House
Hiring an in-house employee is similar to purchasing new equipment; you need to consider the upfront costs as well as the long-term costs of ownership, or in this case, the long-term costs of paying your new employee. A new hire is going to expect a competitive salary and benefits package in line with your industry’s standards. If you offer signing bonuses or other incentives for new hires, you’ll need to factor those into your calculations as well.
Employees will expect pay increases and better benefits over time, so make sure you can handle the growing expense for the foreseeable future. If you are unsure whether or not your operation can handle another permanent hire, consider the possibility that a consultancy will offer a better return on investment for the time being.
Retaining a Consultant
Hiring a software development consultant instead of a new in-house employee can have distinct advantages, especially in the long run. Most consultancies offer consistent pricing so you should be able to gauge exactly how much they will cost in the future. If you are worried about scalability, make sure the consultancy can meet your needs before committing. Software development consultancies are specialists who should be capable of delivering amazing work. However, they are not as personally invested in the success of your company as a new hire would ideally be.
Benefits of a Consultancy
Some company owners’ choices between in-house hires and consultancies will be easier than others, but hiring a consultancy can have distinct advantages for any organization. If a consultancy meets the following criteria, it may be worth investigating what they can specifically offer your company:
- Tailored services. What can the consultancy do that directly benefits your company?
- Scalability. Can you adjust your services as you grow? Will you be able to slim down your services to save money if need be?
- Flexibility. How well will the consultancy work with your existing team and software applications? Will you need to integrate new applications to accommodate the consultancy?
- Justifiable cost. Can you clearly see how the money you will spend on the consultancy will be used? Are there mandatory included services you don’t need?