Here’s our usual song:
1) Clients hire us for a project — usually a side project that their core developers can’t get to.
2) They realize they like working with us, and we get hired to do more projects.
3) We become an extended part of their development team.
And of course this is our favorite song, narrowly beating NSYNC’s “Bye Bye Bye.” We are passionate about custom software and delivering a personalized product that will do everything our clients want, and nothing they don’t. We pride ourselves on honesty and quality.
But, we need to get real: there are obvious pros and cons to going with in-house vs. outsourcing software development. We would love to be able to work with everyone, but some businesses are better suited to using an in-house developer instead of hiring another developer, like us. Here are some key pros and cons we came up with so you can make the best decision for your business and software needs.
Pros of hiring in-house
The first (and perhaps most obvious) pro for having an in-house developer is that you can directly manage them. You will better understand their specific skills and focus areas, and they will be better integrated into the team.
Note: It’s important to know that this is only a pro if you have built a successful development team to begin with. If there are problems with your existing development team, a new hire will most-likely adopt those problems as well.
Better yet, with an in-house developer, it will be easier for you to bring them into your internal leadership structure, which we highly recommend doing if you want to improve your IT department.
The final pro in the debate over in-house vs. outsourcing software development is that communication is just naturally easier in-house. You can get in a room with anyone (maybe not now, but soon), work through problems in-person, and overall experience more beneficial face-to-face interactions.
Cons of hiring in-house
Of course, this system isn’t without its faults (which is why we’re around). First, hiring people in general is an expensive and tedious process — the recruiting process alone can cost about 30% of the developer’s salary! Not cheap. Not to mention the costs of training and retention.
It can also be hard to find people who actually have the skills you’re looking for. They may say they do, but they may not, even if they themselves don’t realize it.
The last con, and this is key, is that developers typically move on to a new company after only two years with your company — sometimes even when your company has great management. The tech industry is notorious for having high turnover rates.
We hope the pros and cons for in-house vs. outsourcing software development we laid out will help you make an informed decision about what’s best for your company. If you think you’d like to hire a development team in-house, awesome. If you want to outsource your development to another company, equally awesome. If you’ve decided to go with another company, allow us to make a case for ourselves.
Pros for hiring Steele
Remember the turnover rate we just mentioned? We work hard at creating a company culture for software developers that beats the odds. The good news for us is that we can stay with clients longer than other developers can because our staff predominantly stays the same. This means we don’t have to retrain new team members. Read our blog post to find out how we beat the high turnover rate (less than 5% retention) in the technology industry.
Second, we have a wealth of experience in custom software, specifically for companies in Transportation, Education, and Real Estate, which honestly, can be tough cookies. You know how it’s your real estate agent’s job to know the ins and outs of the local market? We know the ins and outs of custom software so you don’t have to. Lastly, our experience integrating and developing a myriad of software systems means we can work efficiently and mitigate the cost of time and development.
In-house vs. outsourcing software development—honestly, the choice is for you to make for your own company. It’s not our place to tell you that outsourcing your software development needs to another company (or even to us) is what’s best for you. We only hope that this article is a valuable resource in helping you decide what’s best for your company.
If you decide you want to outsource your software development needs, or if you just have additional questions you need answered, feel free to connect with our team today!