Is outsourcing better than in-house employees or freelancers?
by Prashant Kumar Digital marketerIn today’s digital world, almost all
companies need to hire software developers for their business. There are many
ways to hire a software developer; the three main ways are: you hire in-house
software developers, freelancers, or use an outsourcing firm to hire software
developers for your projects. How do you choose which way is right for you?
In this article, let us through their
similarities and differences to help you make an informed decision.
Level
of expertise
When it comes to the level of expertise of
software developers, it does not matter if they work in-house, as freelancers
or are from outsourcing companies. What matters is how much on-hands experience
they have.
Freelancers would generally have the least
experience out of these three. However, sometimes you can come across
freelancers who are experts and have years of hands-on experience.
Cost of service
Hiring in-house software developers tend to
be the most expensive of these three. When you hire an in-house software
developer, you need to pay for the recruiting, training, infrastructure,
insurances, bonuses, and travel allowance.
Outsourcing firms cost less than in-house
developers, especially if you go with an offshore outsourcing firm as you don’t
need to worry about the extra costs involved with hiring software developers.
However, the cheapest way is going with
freelancers. Freelancers usually work on multiple projects at a time; this lets
them keep their asking price to the minimum.
Ease
of hiring
When it comes to hiring good software developers,
there are many hoops you need to jump through. If you are looking to hire an
in-house developer, you need to find someone local or pay a considerable
re-allocation fee. You need to access expensive hiring portals or use costly
recruiting services.
While hiring freelancers, the biggest issue
is finding a good fit. You would need to go through hundreds of profiles to
find someone suitable. The best option is going through an outsourcing firm;
they usually have large teams of experienced software developers available to
be hired on hourly or monthly rates.
Control
By hiring an in-house developer, you can
maintain the most control over the project. As the developer sits at your
location, you can stay on top of things and see how the project is progressing.
Some good outsourcing companies also leave
control in your hands by giving you access to reports and easy communications
methods like Skype, mobiles, chat, and emails.
When you hire freelance software
developers, you, as a company, have the least control over them. They usually
work from home and work according to their convenience. You cannot expect the
same level of reporting from freelancers as you would from software developers
that are in-house or hired from an outsourcing company.
Focus
on the project
You need to hire software developers that
work dedicatedly on your project. If the developer is juggling through multiple
projects at a time, it may cause him to delay or make mistakes with your
project. This problem would occur with freelancers and outsourcing companies
that do not offer dedicated software developers.
To avoid this problem, you can hire an
in-house software developer or hire a dedicated software developer from an
outsourcing company.
Support
If the in-house software developer you hired
to develop your project hits a roadblock, he would not have anybody to fall
back on. He would need to find answers to any issues he faces on his own. The
same goes for freelancers. Freelancers
usually work alone, and if they face any issues with a project, they need to
stop work and then look for a solution.
Outsourcing firms generally have a large pool of software developers, and if the dedicated developer you hire faces
issues with the project, he can get help from any of his teammates. You also have
the option of replacing the software developer in the middle of the project
with most outsourcing companies.
Flexibility
The most flexible way of hiring software
developers is hiring them through an outsourcing company. With most outsourcing
firms, you have the option of increasing or decreasing your dedicated team of
software developers as you require. You do not have this freedom or flexibility
with in-house software developers.
You can also add and remove freelancers as
per your requirement. However, the freelancers would most probably not have
prior experience of working together; this would affect the quality of the
project.
Commitment
When you hire an in-house employee, it is a
long-term commitment. As you invest in infrastructure, you need to think beyond
the project at hand. With freelancers and outsourcing companies, you don’t need
to worry about long-term commitments.
You can hire freelancers, or hire software
developers from outsourcing companies for short –term or long-term projects.
However, if you are looking to hire for a long-term project, you should either
hire an in-house developer or hire a software developer from an outsourcing
company.
Conclusion
All three options for hiring software
Developers have their pros and cons.
·
The cheapest way is to hire
offshore freelance software developers.
·
You have the most control when
you hire in-house software developers.
·
You have the most flexibility
by going through an offshore outsourcing company.
After going through all the mentioned
factors, we can confidently say that the best approach is to go with an
offshore outsourcing company. It is economical, you do not lose control, and it
is a flexible arrangement that you can alter based on your requirements. It has
the best support system and gives access to talented software developers at
low costs.
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Created on Dec 13th 2019 03:26. Viewed 306 times.