The rapid surge of internet-based services and offerings has opened up lots of opportunities for many sectors. This massive growth is traced to solutions that act as a bridge for companies to connect with target users, and provide more effective and personalized services.
Unfortunately, several companies are now beginning to have stunted growth because of the shortage of experienced programmers. According to the US department of labor, this shortage is expected to increase to 1.2 million in 2026. As a result, many companies are beginning to consider alternatives to onboarding in-house developers. One such alternative is hiring a dedicated team from experienced providers like JayDevs and the likes.
Confused about hiring dedicated developers or sticking to the traditional hiring practice?
Let’s help you with the differences between the two, so you can make a more informed decision:
What is an In-house Development Team?
An in-house development team is a workforce of programmers who are full-time employees of a company, with a mandate to help it create, and maintain its web and mobile applications. They receive daily instructions from the management team and can work either on-site or off-site.
Pros of In-house Development Team
This option has several advantages, some of which entail:
- Cultural fit: In-house programmers tend to have a better understanding of the company’s culture, and can better create deliverables that align with them. This is particularly true for on-site developers, as they have regular physical interaction with other employees.
- Oversight: This hiring model makes oversight easy as team members exist in the same location and uses the same network as the management team. This can be salient for prompt error detection, and guiding new employees.
Cons of In-house Development Team
As with any other outsourcing method, hiring an in-house development team also has its cons, which are:
- Multiple unforeseen costs: Costs of in-house hiring and maintaining in-house teams can only be estimated, without much certainty.
This is because office rent costs, energy costs, equipment repair, purchase prices, legal costs, etc often change without prompt.
- Less talented workforce: Companies that restrict their employment model to only in-house hiring stand at a risk of losing out of the pool of top-global expertise. Hiring in-house talents from another country is out-of-reach for most startups as the legal cost of relocating tech expertise is highly exorbitant.
- Poor retention rate: Except you’re paying your software developers extremely well, chances are high that they’ll leave your workforce for a better-paying one as soon as they find new opportunities. This might lead to a low retention rate, causing you to spend a lot more on hiring new talents.
Now that you know the pros and cons of an in-house development team, let’s discuss outsourced developers:
What is a Dedicated Development Team?
A dedicated development team is a workforce of software programmers, and other technical specialists hired by a service provider to provide the client with web or mobile app creation and maintenance offerings for a specified period. These specialists are selected per the client’s demands and their skillset.
As with in-house development teams, they also have their pros and cons that entail:
Pros of Dedicated Development Team
The benefit of hire dedicated development teams are:
- High economic viability: Dedicated development teams are cheaper than in-house teams, this is partly because companies don’t have to bother about the cost of equipment, rent, etc.
Also, the cost of hiring a dedicated team differs based on their location, and employees can use that to their advantage by hiring from a foreign nation with a cheaper workforce.
- Quick development: Most vendors only supply highly vast developers that have worked on several projects, as such, these programmers can offer tips and tricks to complete your project faster.
- Scalability: Dedicated development teams are highly scalable as they can increase their developers at a prompt.
- Experienced talent pool: Dedicated developers have experience in terms of years and number of projects. Thus, they can offer insight into your infrastructure, codebase, and business model.
- Flexible payment model: Many dedicated teams provide organizations an option of either paying per year, project, or monthly. This aids budgeting.
Cons of Dedicated Development Team
- Language and cultural differences: These differences impact the relationship between the organization’s internal workforce and a dedicated team. This is particularly common in relationships between companies in first-world nations, and dedicated teams from third-world nations.
- Time-Zone differences: There may be gaps in communication due to time zone differences. For example, when a startup in the USA resumes by 8:00 am, the time in India would’ve been 5:00 pm.
For startups, it’s best to opt for dedicated development team services due to their cost-effectiveness and flexibility. However, companies working on a highly revolutionary project may want to keep all development in-house due to the sensitivity of the project.