Is outsourcing better than in-house employees or freelancers?

by Prashant Kumar Digital marketer

In 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.

If outsourcing is the way you are going with, you can hire software developers from Optimal Virtual Employee. They are an excellent offshore outsourcing company that has offices in the USA, South Africa, Australia, UK, and India.