Outsourcing Vs an In-House Developer
Written at 09 May 2016 14:37 by Stefan Materzynski
The Big Question
If you are a creative person and your business develops rapidly, you are sure to face the in-house vs. outsource dilemma sooner or later. It really plagues the world of business. The decision is likely to have a tremendous impact on your company, so you should take time to carefully consider both options. Although there is no „one size fits all” solution, it is possible to define advantages and disadvantages of both options.
When you employ a developer to work in your office, it means that you have an in-house employee. There is a certain set of situations in which expanding your staff is a good move. If your company has a very specific work culture which is a key competence to your business, then hiring individuals who will be able to adjust to your needs is definitely necessary. No outsourcing company will be able to understand and meet your requirements in a way that an individual will. What is more, it is much easier to communicate with in-house staff because nothing is as effective as face-to-face contact. Of course they are also very efficient because, unlike people working for outsourcing companies, they can devote their whole time to your projects.
When the work involves highly confidential information or trade secrets you should also go for an in-house developer because hiring outsourcing company would mean running the risk of information leakage.
It all seems very inviting, but there are actually many disadvantages to in-house employment. First of all, there is a number of responsibilities that go along with hiring a new employee. The sole process of recruitment can take weeks, if not months. When it’s finished, you need to provide him with a training, buy new equiqment or software certificates, ensure that he has a place to sit and enough work on an everyday basis. Of course there are also administrative expenses such as sick days, holidays, etc. Besides, you are always in danger of hiring the wrong people, thus losing a lot of time and money. To make things worse, it may occurr that even though your in-house team is good, it lacks the knowledge to create sophisticated software you need. And then the whole business may easily fall apart.
Outsourcing is hiring a service provider or an agency to manage some part of your business. Its opponents say that it is more expensive than in-house employment, which is not really true. If you go for outsorcing you do not have to bother with additional costs, such as providing your team with specialized equiqment - they already have it. Yet it is true that outsourcing means being on the mercy of an agency which can change the price of its services or make you wait for its support. And of course people from the outsourcing company will never be fully „yours” and will never devote a 100% of their attention to your project.
Despite this, ousourcing has actually a number of advantages over in-house employment.The first of them is onboarding process. It is much easier to find the right agency than find an employee. You are also sure that there will be no schedule stops due to sickness or vacation break. The second advantage are fixed costs. The agency will charge you only for the time spent on your project. What is more, you pay not per person, but per time, so instead of one employee you will get a team of experienced specialists who will be able to do a lot of work in a short period of time. Thus you have a guarantee that your project will be completed, no matter what it is about. There will be also less lag time because an outside team is usually able to start immediately - they do not need training.
Summing up, outsourcing enables you to minimize the risk, increase quality and cut costs. Ideally, it also increases efficiency and lets you to focus on matters which may be more important to your business.
Before making a final decision you should define your needs and consider which option would be more beneficial for YOUR business. As it has been mentioned at the beginning of this article, there is no „one size fits all” solution. The character of your company and the project should be the most important factors. So assess your needs. Decide whether the position involves a core competency of your business or confidential information. If you take money into account, think not only about how much you’ll pay in both cases, but also about the costs of your time. And definitely check whether the project is big enough to justify the money you will have to pay for recruiting new people.
Pine Cove Consulting