Hire Outsourced Developer vs Build In-House Team - How to choose and not to make a mistake?

hire developer outsource in-house

This question seems to be on every eCommerce businessman’ mind. And it does not depend on the country where he/she runs this business (the USA, Australia, the UK, Germany or another).

First of all, you should understand that there are no wrong types of developers hiring. You just need to decide which one is better for your future project. In today’s article we are going to compare outsourcing with hiring in-house team. And to show you the right direction to move, we will outline some of the advantages and disadvantages of this hiring options. However, before you have to answer a couple of questions. It will let you understand your current needs.

  • Do I need additional resources for startup or for development of already existing project?
  • How complex is my project?
  • What budget can I allocate for it?
  • Do I have an internal qualified resources to oversee the process?

What can Outsourcing Agency offer you that Freelance and In-House cannot?

The Benefits of Hiring Developer from A Professional Outsourcing Agency

Together Everyone Achieves More. One of the main benefits of turning to a professional agency is the opportunity to hire an entire many-sided team able to release an absolutely ready product provided with all necessary features. Taking into account that developers from one agency have been working closely with each other on a variety of projects, we understand that each of these developers has his/her own experience to contribute to the common cause. Thanks to the diversity in skill level and skill sets, team members are able to share their ideas with each other and help to understand technologies, which some of them have never used before. In contrast to outsourcing, freelance cannot provide you with all these benefits. And it is no less hard to build an in-house team with all this variety in skills and experience.

Specialized equipment. The development may require a large facility, specialized equipment, or operational efficiencies. Fulfillment operations are frequently outsourced because of the need to stock large amount of inventory and manage it efficiently.

Short Term Commitment. The next benefit of outsourcing is the opportunity to get a developer on a project basis without hiring him\her for a long term. It is very convenient, because sometimes a company or retailer needs a developer with one skills now and needs someone with absolutely another skills in several months. Actually, the length of the project has always been a good way to determine what option of hiring you really need. If it is a one-time project with a completion date, hiring a professional agency is the best option for you.

More time to focus on marketing. The essential part of any business is an attraction of new customers and communication with already existing. To have products/services is not enough, it is important to find those who will be interested in them. The wrong way is to be focused on one aspect of your business. For instance, you expend all your time in the development of your products. But who is promoting them? An agency will take over all development fuss and bother, and you will have a time to spend on marketing issues.

Expert management of development process. You should know the degree to which you are able to lead the project on your side. Usually, it is a complex process that requires some additional knowledges and time. As practice shows, most of business owners cannot manage a project by themselves. So, the best way here is to find a reliable managing service provider. It will gives you additional benefits such as: source control, quality assurance, and a workflow process that will give you what you really need.

All-round Support. And the last benefit you can get from outsourcing is an all-round support. All professional and reliable agencies offer expert support such as consultancy, marketing, SEO, bug fixing and others. So, as a result you can get not just a developed product, but also a qualified assistance with ready product promotion.

Outsourcing is more cost-effective approach. Usually, to hire developers from an agency is less expensive than hire in-house team. You can use their services only when there’s a need, till the issue is open. The lower cost brings you one more benefit. If it is important for you to release your product within the shortest possible time, there is no need to invest all your money in the first instance of your product. Turn to a reliable development agency and their professionals will help you with it. And when you see a real demand for your product you can continue its development and upgrade.

If we speak about outsourcing overseas, we can state that it is even less expensive. On average, you have to pay a local developer about $150/hr when oversea developers’ services , for example in Ukraine, cost at least three times less. It will allow you to save some amount of money and invest them in marketing for example.

Outsourcing Is Good Option, But Be Careful And Smart

As we can see, an outsourcing really gives the benefits of experience, reduced recruitment costs and concentrated focus on tasks execution. It is a great opportunity to get the project done on a small budget, but also you should not forget that sometimes it can be risky. Be very attentive when you are choosing an agency to work with, because on the market there are many inexperienced and negligent service providers.

At SaM Ecommerce we both deal with startups and help to upgrade already existing online businesses for many years. Our specialists focus on three things when helping people who turns to us:

  • Quality. One of the biggest issues when outsourcing overseas is quality control. It is almost impossible to be sure of the written code quality. We have several recommendations for you. First of all, you can hire a local expert who will consult and help you with some legwork. The second advice  is to ask candidates to do a technical interview. It is better to use personalized tests instead of ready tests offered by other outsourcing agencies. Make sure that a candidate really can code. (Curiously enough, but some of the programmers who apply for jobs, cannot code).
  • Collaboration. Collaboration is an essential part of software development. It is more difficult to collaborate with agencies overseas than to do it with local services providers. Of course, you may not face with major cultural issues. Everything depends on which country you choose to hire a developer in and on the company’s approach to the workflow. Sometimes, it can be difficult to understand what another side needs or asks to do. Our advice is to write extremely specific requirements and find the service for communication that will suit your needs in the best way. 
  • Time issue. For many entrepreneurs it is too difficult to be 100% remote from a development team. They have to wake up very early or even in the middle of the night to participate in calls with the development team. However, you should know that an experienced companies that value their customers’ trust, usually shoulder this burden. 

In conclusion, we would like to say that everything depends on the situation. It is impossible to give one advice that would be right for all of you. We just hope that our article will increase your knowledges of outsourcing and in-house development hiring as well as help you to understand what you really need. It does not describe freelance hiring option. But we should tell a couple of words about it. Freelance is one more way of hiring. Many talented developers choose the freelance lifestyle.They are much cheaper than hiring someone in-house. It is up to you what to choose. But if you still have some questions, feel free to contact us. Our expert team will be happy to help you!

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