Published On: November 30, 2015
Author: Eric Oliver

Hire In House or Outsourcing

Hire In House or Outsourcing

When you are starting a new business or trying to work within a small budget, you eventually come to the question of hiring in house or outsourcing your developers and designers. How can you build the most productive team without destroying your budget? We have done it all at Future Design Group. We have asked for help from overseas, we have hired internally, and we are here to give you our experience with both.

Many companies praise having their teams overseas while many others have sworn off overseas development altogether. Which should you decide for your company?

The Benefits of Hiring In House

Commitment – An in-house team member would have greater buy-in to your company.

Knowledge – Knowledge and skills manufactured by working on work is kept internal and can be obtained for later use

Location – A worker has greater familiarity with your organization, simply because they’re onsite most of the time.  This is often helpful if you want to quickly get a task out.  It can also prevent the doubling up of work efforts that may happen in communication from your employees to the contractor.

Cost Control – Once you hire someone you’ve greater cost control.  If a task goes overtime and someone is back after hours, the costs remain the same.

The Benefits of Outsourcing

On-Boarding Simplified – Simpler on-boarding process. Finding the right company to outsource to is a less strenuous process than locating a new employee because most companies will require your business.  Rather than managing working out and payment of an employee, including vacation, sick leave and the inevitable raise, an additional company is just a simple contract agreement.

Always Available – Guaranteed continuation and no down time.  Unless you’re working with a small agency, outsourcing work guarantees there are no unscheduled stops like vacation breaks, sickness or scrambling for a replacement on long service leave.

Concentrated Expertise –  Specialized companies are often in a position to recruit experts with deeper experience.  Simply because they work on a range of projects, they’ve wider familiarity with the subject which will benefit the caliber of your project.

Low Investment – You do not have to invest in equipment.  If the role requires specialized equipment like design tools or software, you’ll lead to sourcing these for an employee.  Whenever you outsource, the contractor carries this expense.

The Downsides of Hiring In House

Cost – Medical insurance is ridiculously expensive. So are developer’s salaries. If you don’t have a specialized cofounder who is ready to take a almost all compensation in the shape of equity (considered unicorns these days), hiring a developer could be cost prohibitive.

Time – The length of time it’ll take to find the right developers and convince them to participate will be a lot more than you think. Different from an outsourced worker who you are able to change on a project-by-project basis, a full-time developer needs to be someone who is a fit from both a skill perspective and a cultural perspective. Since demand for skilled developers is indeed high, choosing the best developer may get you far from other pressing issues with your business.

The Downsides of Outsourcing

Quality – One of the biggest issues with outsourcing is dealing with lower quality standards. When you hire overseas, you do not know exactly what you are getting. We have dealt with some companies who provided lower quality work that had to be completely rewritten.  We did not end up having to pay for the work, but had to rush the job to ensure our quality was met.  Sometimes you find the sweet spot, but most times your version of quality varies greatly from their version.

Collaboration – Due to many variables such as language barriers and location, you could be speaking a completely different language to whomever you hire…ha…

Seriously though, your thought process and ideas can be hard to translate to someone whose first language is completely different than yours.  Even if you hire a mediator to be the go between, it will take time and money away from development. Even then, your idea may not be translated to your standards.

Time Zone Difference – Have you ever tried to call someone on the other side of the world?  Well, if you are relying on this person to complete a project, having a large time zone difference can be frustrating. We have had to deal with outsourced developers only being able to speak via Facebook or Skype after business hours because it was morning for them.

So, the Big Answer to Hiring In House or Outsourcing

The right solution certainly relies upon at the state of affairs and generally is a hybrid. If a person is a technical founder who can easily relay technical requirements, read code and reduce the bad practices related to hiring outsourced workers, that may be the better option.

Alternatively, many business owners don’t consider using freelance workers.  Many developers are choosing to work remotely and live a freelance lifestyle. Hiring a freelancer can be a cheaper alternative to hiring a full time person and you may not have to deal with the “outsourced” way of life because they can be local or much close than outsourced developers overseas.

If you’re looking for a developer and also you’re deciding whether to outsource overseas, I’d suggest asking yourself these questions:

  • What am I seeking out in a developer?
  • How much time do I must spend doing the hunt for a developer?
  • Am I able to write comprehensive technical requirements and decide how proper code is written?
  • How essential s collaboration and feedback to achieve my task?
  • Where does value fit into the equation?

Answering these basic questions actually will assist you in figuring out which choice is the best for your business. Also, make certain to talk to other business who have chosen the one or the other and ask approximately their how this effects their business.Talk to many people and get their input.  You may be thinking about budget and time, but other’s opinions can be valuable in helping you decide which way would work best for your business.


Posted In: Business, Challenges, Opinions, Story Time


About the Author

Eric Oliver

Director of Website Development

With over a decade of experience designing and developing websites, Eric has worked in every position of the agency ladder. He is fluent in multiple backend and front end programming languages and has written multiple international best selling plugins for WordPress. He has been part of or is still part of many startups. He is the Director of Website Development for Future Design Group and one of it's founding partners.