Hire an In-House Developer or Outsource Overseas?

When it comes to software development, businesses are faced with the dilemma of whether to hire an in-house developer or outsource overseas. If you are inclined to hire an offshore developer, there are certain aspects you need to take into consideration. The same applies for hiring an in-house developer, as it does to outsourcing development.

 

Pros of Hiring an In-House Developer

1. Buy In

A full-time in-house developer has most certainly bought into your idea. The person also sacrifices other opportunities to work with you. As such, an in-house developer has more at stake than an offshore one. The developer invests his time and dedicates his energy in making your idea a success. Undeniably, he also has a vested interest in the result.

 

2. Easy Collaboration

When you hire an offshore developer, the person does not sit next to you and has no idea what is really going on. Thus, he cannot change directions easily. For instance, a new issue might be prioritized after a casual conversation instead of a scheduled meeting session. The in-house developer is aware of the challenges being faced by the business in other areas as well and can, therefore, offer fixes or solutions.

 

Drawback of hiring in-house developer: Red tape

Many red tape legal restrictions exist within an office. There are laws which you need to comply with for hiring an in-house developer. These laws usually depend on the country you are operating from. For instance, you might not have the choice of hiring the developer as a contractor, but instead hire him as an employee. This, in turn, raises payroll taxes and compliance with labor laws. You may sometimes end up paying 5x the amount that you could have paid to a remote developer/contractor for the same job with similar or even higher quality.

 

Pros of Outsourcing Overseas

 

1. Reduced Overhead Cost

Naysayers have to agree the reduced overhead cost is probably the biggest factor for outsourcing. For instance, when you outsource development to India or other Asian countries like Pakistan, Philippines, Bangladesh, it means that the developer is located there and not in your office. The individual does not requires an office set-up. There are no or minimal operational, educational or technological costs associated with an offshore freelancer. All you pay for is the development cost.

 

2. Increased Productivity

Smart client managers exploit the time difference between the offshore company and the client company to their advantage. They use the offshore company’s non-working hours in order to match their working hours. This ensures that the effort from the development feedback loop is kept as short as possible, thus increasing production speed.

 

Drawback of Outsourcing Development Overseas: Loss of Confidentiality

Losing sensitive data and confidentiality is a major risk of outsourcing overseas. There is always the risk of confidential data being exposed. For example, if you outsource development to India, you may need to pass on certain sensitive information to the developers sitting in India. You have less control over who is gaining access to this data. However, good freelancers do all the efforts to keep the client data secured and private. To be on the safer side, you can ask the freelancer to sign a Non Disclosure Agreement (NDA) including a non-compete clause. Good Freelancers are very professional and understand client’s concerns over data privacy and security.

 

The Verdict

Business is all about faith and trust. A business can only be successful when all parties involved follow certain protocol and adapt to a certain way of dealing. The same applies when you hire an offshore developer. Undoubtedly, outsourcing is the new way of business dealing. More entrepreneurs, established businesses, and startups realize the benefits they gain from this practice and are actively hiring developers and designers offshore on contracts or on Project basis.

Ready to Outsource work and hire an offshore developer? Post a Project on Truelancer and get quotes for Free.