Benefits of Dedicated Team vs. Classic Outsourcing or In-house Team

When comes the time to have massive IT work done, this calls for some serious decision-making. It is important to consider all the options like a dedicated team, outsourcing, or in-house team and decide which is best for your business at this point.

If you are planning a short-term or a one-time project, you may consider outsourcing, as you won’t have to hire an entire IT team just to complete this one task. If you are not comfortable with having a ‘long-distance relationship’ with the people who work for you, or your company plans a long-term project that requires some sort of software development, you may go for an in-house team. You will be able to train them, supervise the working process, and communicate with the developers at all times. But the truth is, both of these approaches have their drawbacks.

outstaffing vs outsourcing

Is Outsourcing the Right Way?

As said above, one way to go is outsourcing software development. There are several ways to outsource. For example, you can choose:

  • onshore outsourcing and delegate the work to another company in your city or your country;
  • nearshore outsourcing, which means finding a contractor in a neighboring country, which is actually good for communication within the project;
  • or you can try offshore outsourcing by delegating development to a company as far as another continent, as long as you’re sure that they can measure up to your standards.

Any of these types of outsourcing has its pros: you get to work with professionals anywhere in the world, save some costs, and while they work on your project, you get to focus on your core activities. But there are still risks to consider. With that said, in all cases, you may not be entirely aware of the employees’ qualifications, their real value, and actual expenses. You may have little control over the product development processes, risks, and costs, and in the end, the result may not meet your expectations. And while your goal is a multifunctional high-quality product, the outsource team may shift their focus to cutting costs and gaining a bigger profit.

 

Choosing to outsource you may not be entirely aware of the employees’ qualifications, their real value, and actual expenses

 

You may have little control over the product development processes, risks, and costs, and in the end, the result may not meet your expectations. And while your goal is a multifunctional high-quality product, the outsource team may shift their focus to cutting costs and gaining a bigger profit.

Does My Company Need an In-House Team?

If you decide that outsourcing is not what your company needs, another way to go is to hire an in-house team.

But building an in-house team is not an easy task to do.

  • It requires patience, diligence, and a clear vision of what skills the company might need in the long term.
  • Training the in-house team is a pricey endeavor, and may we remind you, the training never really stops.
  • Unfortunately, you are limited to the resources your local IT market has to offer.
  • Moreover, in the modern economy, the hunt for talented IT specialists is a battlefield. Finding good developers is difficult, time-consuming, and requires the most qualified and expensive specialists of the company to take part in the selection process and the interviews. This will also involve external HR agencies, whose rates take up to 20% of the annual income.

Studies also show that the final cost of attracting a new IT specialist into the company approximately equals his or her 6-9 month salary. On top of it, even if you succeed in scoring yourself a great new employee, his or her adaptation and retention may prove difficult.

 

The final cost of attracting a new IT specialist into the company approximately equals his or her 6-9 month salary

 

To put it bluntly, routine interviews distracting your top specialists, large payments to HR agencies, and the possibility of the oh so valuable employee leaving the company make in-house hiring less attractive.

The NEWXEL Way

Luckily, NEWXEL offers you a cooperation format that is perfect for companies that want to control the development process but do not want to get entangled in the routine connected with building and retaining a team. This way, clients have an active role in selecting employees and complete control over this process, along with completely transparent financial terms.
NEWXEL offers you your very own dedicated team of top-notch IT specialists. We select only the best IT masterminds to work on your product. We make sure the team works well together, meets the requirements of your company, and is that missing puzzle piece for you to achieve your goals.

While we provide you with an external development team, you get to fully manage and control it, as it abides by your company’s rules and shares your company’s values and goals.

You only get involved in the final employee selection and approval. NEWXEL takes care of compiling a pool of candidates, their motivation and retention, office spaces, workplaces, and social packages. Thus, you don’t have to worry about HR, payroll, accounting, administration, taxes, etc.

By working with NEWXEL, you get a team of outstanding professionals and their full support, get rid of all distractions and focus on the truly important – your product, your project, the result, and the success.

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