The question of whether a company needs to outsource their tech team or just incur the cost of maintaining an in-house one has been haunting everyone for a long time. The answer is still unclear to date with both options having significant benefits and downsides.
Let’s try to understand both of these and how they might affect the organization as a whole.
Whenever a company has to make the difficult choice of choosing between the two, they should, first of all, take into consideration the various aspects of their project, such as its scope, deadline and the budget allocated.
In brief, an In-house tech team will have an in-depth and better understanding of the product the company has to offer and will significantly help improvise the day-to-day operations. But if you are developing a mobile solution, which most of the businesses are gradually shifting towards nowadays, you would be better off with an outsourced technical team since they can easily outline all the things you have to work on.
However, the in-house technical team offers a huge advantage, because you can hire a team of experts who have an in-depth knowledge of your goals and product. They can help build a rock-solid base for the development process while saving you a ton of money on those gruesome advertising campaigns. One should keep in mind that this is the phase which contributes a lot to the success of the company. Therefore, when initially hiring people for the team, the organization should be highly selective on who to take on-board.
But if you are a building a startup which has managed to get some funding via capitalists and want to get a boost in the starting phase of the product development, then an outsourced team will provide you all the insight and tools you will ever need. It’s not only beneficial for those who are involved with startups but can be a huge help for those with established business too. Some companies lack the workforce and the experience required to work on some complex projects as well as fall behind in marking their web and mobile presence on the market.
A member of the Forbes Technology Council and the CEO of Accelerance who happens to a veteran in outsourcing software solutions said in a LinkedIn article,
“You outsource to get a proven software development process so you can focus on your core competency.”
Aside from all the expertise of an outsourced team, you can also save up money by not spending a single penny on the required software and hardware front as well as valuable time by not concerning yourself with the hiring process. This allows an organization to concentrate on other things such as advertising and marketing.
Of course, all of this will dive deep into your pockets, especially for those who are limited on budget. But keep in mind that it will cost you a lot less than hiring employees full time. This is good for companies who are working on smaller or short-term projects since they won’t have to bear the cost of annual bonus and package benefits.
When to Outsource?
Businesses are pretty insecure when they get to know that their projects will be outsourced. This is mainly because they think outsourcing generally leads to a lack of management. In reality, most of these are just myths. A client always has control over everyone even if the team is geographically spread out. Many of these providers can easily cater to all your needs easily.
Even though outsourcing might seem like a good idea given the flexibility, there are some major caveats when considering hiring freelancers. Most of the people who will be working on your product won’t think of it in the long term but rather think of doing the work casually and earn quick money. In other words, they are just not dedicated entirely to their work and are not interested in the longevity of the company.
So, if you have the required capital and can dedicate time and resources to the organization yourself, do it as long as you can, and when the market reacts positively, start freeing up yourself and assign your duties one by one to all those freelancers you have been thinking of. This should especially be the case with customer support. Outsourcing customer support right away might save you some money in the short term, but when you think of the future, this might damage the reputation of the company since the outsourced team won’t be much concerned with the needs of the customer compared to in-house support.
Another situation in which you should avoid hiring a freelancer is when building a product which requires some technical skills. Since building and designing any product requires long-term dedication and someone who is ready to learn in the process, it’s better to hire a developer for the same since a freelancer won’t be interested as much and you will have to shell out more if not the same amount of money in the long run. With an employee, at least you will have the required talent and dedication needed to develop the product the way you want. If you on a very tight budget and cannot afford to take on board multiple employees, hire an in-house lead developer and ask him to keep freelancers under his supervision.
There are no strict rules on whether one needs to hire employees or explore the freelancer route. All of this strictly depends on the type of work and product the company is working on. If you are working on something which no chances of extending deadlines and there is no way the in-house team can deliver it on time, outsourcing in such scenarios are pretty feasible and can help you save a lot of effort as well as time and money. These teams can work closely with each other and can help build a better product by providing a fresh outlook on the same.
From a client’s point of view, an outsourced team which makes it feel just like in-house support is the way to go. If you do enough homework, you will find that there are a lot of companies which work this way. Contact us if you’re looking for a team that dedicatedly work on your goals.