Without a strong workforce and a highly-skilled team, it’s unlikely your company will get off the ground and achieve true success. As your company continuously hires new employees, you’ll want to keep in mind qualities like growth, innovation, and accessing people with the right talent and skills needed for success. This is where you’ll want to consider whether to go the route of insourcing or outsourcing new team members. It’ll ultimately come down to what is the best fit for your company, as there are advantages and disadvantages to both.
At Egen, we believe that insourcing is the best method to quickly scale your software team in a way that combines software best practices and reasonable cost. Below are the five reasons your team should choose insourcing.
All Team Members in the Same Location
One of the major disadvantages to outsourcing projects overseas as that you’ll likely face issues due to members of your team being in different time zones. Whether it has to do with scheduling meetings for the entire team to attend or determining deadlines of various tasks, having all members in the same time zone eliminates these potential pain points.
Additionally, having your engineers in one place also promotes control over the business. If the project is worked on entirely in-house, then your team has complete control over its progress and any changes that may arise along the way. This ensures that the quality of the deliverable your business provides will be more satisfactory to your clients since you can better monitor your team members. If you choose to outsource, some of this control is in the hands of the supplier, leaving you with little-to-no say as to how the outside company operates and manages their team.
When discussing major developments, new features, or software updates, it’s always better to have the conversation face-to-face, rather than over the phone or by using video software. Even with programs like Skype and Slack, if your team members are across the county, or on the other side of the world, you miss out on the ability to walk over to their desk and hold an in-person conversation. Doing so also allows you to read the person’s body language and hear the inflection of their voice.
In the sense of outsourcing, there are chances of miscommunication between you and your team members. This is because the method for communication has to go through a variety of hoops, starting with head management, then going to the outsource provider’s manager, who then shares the information with the employees. When this occurs, the point you’re trying to hammer home could end up getting lost in translation. On a similar note, for many outsourced or overseas work, there is often a language barrier where English is not the first language being spoken, which can also be a huge hindrance in the efforts of communication.
Speed of Development
When discussing the delivery duration of a project, you may have heard of a specific term attached to outsourcing called the 4x rule. This translates to it taking four times as long for an outsourcer to complete the project, assignment, or function than what you were estimated or quoted. This happens for a variety of reasons, including improper communication or an inaccurate project implementation.
Another factor in regards to the speed of an outsourcer completing projects is the fact that it may not be the only project they’re focused on. Because the employee is likely a contractor or working part-time, you can’t be sure that your project is at the top of their priority list. You also won’t be able to rule out that a remote employee is working on other projects on your companies dime.
This can easily be avoided with insourcing, as all of your employees are in-house and under one roof, so you’ll be able to monitor and minimize any distractions that may occur, which in turn will inhibit faster development and time to market.
Developing Team Leaders
When you choose to consecutively insource projects for various years, your business will cultivate and build up talented team members who have the skill sets your company needs to succeed. For instance, when you’re insourcing new talent, you’ll likely come across team members who could eventually become the leaders of projects that may arise in the future, or be the ones to fix errors and bugs that the team didn’t plan for. This will positively grow your company while it strengthens future leaders who are already invested in the business and is aware of its values.
If your company goes the route of outsourcing, the only you’ll get out of the partnership with the third-party member is the finished project. Some may counter this by saying that outsourcing provides you with a global pool of talent, but you only get their benefits and what they bring to the table for as long as the project takes.
Another major difference between insourcing and outsourcing is the cost attached to both. When you choose to insource a contract team, you’ll have the combination of developments working at a fast pace and your pick of high-quality English speaking engineers from the talent pool. When this is paired with your already on-site staff, it may be slightly more expensive, but the day-to-day work will deliver a higher quality product at a faster rate, which will save your business money in the long run.
On the hiring end of the spectrum, working with a company that specializes in hiring experts like Egen means that your business isn’t responsible for HR, IT, or any infrastructure costs, but you’ll still have the same benefit of having a team under one roof to get the job done. Working with Teams-as-a-Service (TaaS) specialists like Egen will eliminate the pain points that come with hiring and seeking engineers, saving your business both time and money. You can rest assured that they have brought together the best talent, removing any responsibilities needed for training, which could result in more overhead costs.
The potential for saving money is often the main reason companies choose to look into TaaS experts when additional team members are needed for a specific project. This will provide your business with a large workforce without the long-term cost commitment that comes hand-in-hand throughout the various stages of the hiring process.
Contact Egen for All Your Insourcing Needs
As the experts in insourcing, we believe that it is often the better fit for companies rather than outsourcing. With so many potential advantages, we’re happy to assist in the hiring process along the way so your new team members can get right to work on scaling new projects, features, and assignments. If you’re looking to grow your team and aren’t sure where to start, contact Egen. You can be sure that we’ll find people with the exact right skill sets for your company.
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