It’s an ongoing phenomenon where employees are quitting their jobs en masse, due to low wages, unreasonable working hours, or simply the desire to try out new opportunities.
Unfortunately, IT professionals are not immune to this phenomenon, which has caused a shortage of developer talent worldwide and put software projects at risk.
If you’re worried about facing the costs and effort of hiring and onboarding a developer in-house only to find yourself in a similar situation, consider outsourcing to an external development team instead.
In this article, we’ll go through five more reasons why hiring an external dev team is the better alternative.
Thus, if you want to create a fintech app, you’d need to hire developers with the relevant expertise.
This can be expensive, however.
The cheaper alternative? Outsource the work to an external development team with fintech experience.
Another reason to consider hiring an external team is the current lack of IT talent.
As many as 82% of companies around the world find it hard to hire and retain top talent thanks to a shortage of qualified developers. It’s quickly becoming a crisis, resulting in worldwide losses of $390 billion.
And that’s the beauty of hiring externally. You have the freedom to build a team with the exact skills required for your project.
This is called a cross-functional team.
Let’s go back to our fintech app example.
To build your team, you might hire a financial law consultant from the United States, a blockchain expert from India, and a cybersecurity professional from the UK.
This time frame isn’t always ideal. Smaller companies might be on a tight project schedule, without weeks to spare just for sourcing developers.
In these cases, it’s better to outsource to an external development team.
Getting an external development team can take as little time as a week, especially if you already know your project requirements.
The process is also relatively straightforward.
You start with an initial consultation with the agency to discuss your project. Once you award the work, the agency will create a development team that’s 100% tailor-fit to your requirements.
Finally, you brief your new team, and they can start immediately.
The best thing is that an external development team is usually ready to work from day one.
The outsourcing agency will have already vetted the individual members of the team to ensure they have the relevant skills and experience for your project.
Thus, you won’t need to train or onboard them as much.
Overall, the external team model is the closest thing you can have to an instant hire button at your fingertips. It allows you to get the exact talent you need, when you need it, in record time.
Reducing the cost of development
Working with an external development team is a smart, cost-effective move.
That’s because hiring in-house isn’t just time-consuming— it could also be expensive.
We’ll give you an example. Say you got an in-house staff with a salary of $31,200 per year. You’d think that’s the only amount you’ll spend after hiring.
But in reality, that’s not the only cost you’ll incur. There are also taxes, insurance, bonuses, and incentives to worry about.
All in all, these hidden expenses could cost up to 32% more than the employee’s base wage:
According to the Society for Human Resource Management, you’ll need to spend an average of $4,100 to onboard a new employee to acceptable productivity levels.
Turnover is also a hidden expense that many business owners miss.
The flexibility of an external development team helps you avoid this problem.
Instead of hiring new in-house staff, adding members to your existing core development team to match your current needs is far easier.
For example, you can hire a UI designer during the early and mid stages of development.
Then, as the design gets finalized, you can slowly ease them out of the project as they’re no longer needed.
The same is true with your QA team. Normally, they’re only needed toward the end of the development cycle, so keeping them on your payroll throughout is a huge waste.
In some complex projects, this can extend to around a year! That’s simply not a feasible time frame to work on.
But external development teams help you eliminate this problem.
Most such teams already have experience working together. It’s also likely that they’ve already tackled a similar project in the past, minimizing the lag time required to become fully productive.
Chances are also good that external development teams already have the proper methodologies and systems in place.
For instance, DECODE adopts the Agile methodology for software development.
The bottom line is that external development teams bring experience and expertise to the table. That gives them the ability to deliver quality projects on time.
Ready to hire an external dev team?
We hope you’re convinced that hiring an external team is one of the best moves you could make for your app project. After all, the benefits are too hard to ignore.
Once you’ve decided, the next step is finding and hiring the ideal external team.
This is easier said than done, however. There are a dozen hiring mistakes you could make, especially if you’ve never done it before.
Unfortunately, the wrong team will cause you more harm than good!
Mario makes every project run smoothly. A firm believer that people are DECODE’s most vital resource, he naturally grew into his former role as People Operations Manager. Now, his encyclopaedic knowledge of every DECODEr’s role, and his expertise in all things tech, enables him to guide DECODE's technical vision as CTO to make sure we're always ahead of the curve.
Part engineer, and seemingly part therapist, Mario is always calm under pressure, which helps to maintain the office’s stress-free vibe. In fact, sitting and thinking is his main hobby. What’s more Zen than that?
