A graphic with a thumbs-up and an exclamation mark icons and the text: in-house hiring vs. staff augmentation

In-house software development has been a popular option for businesses for many years. It allows businesses to have more control over the project and the team, and it seems like a logical solution to the problems of high costs and lack of talent in the software industry. However, there are many challenges that come with in-house development, from recruiting and retaining top talent to managing the budget. In this blog post, we will explore those challenges in depth and offer staff augmentation as a better alternative.

The challenges of in-house software development teams

In-house teams, though undoubtedly effective, can be difficult to build and maintain. They are also not very flexible and often lack access to niche areas of expertise.

Access to talent

One of the biggest challenges in in-house software development is finding qualified candidates. The market is competitive, and top talent is in high demand.

A competitive recruitment market

Access to top talent in the software industry is limited, and the competition for good talent is fierce. This means that it can be difficult for hiring managers to catch and hold candidates’ attention in a crowded market.

Expensive hiring process

Furthermore, the recruitment process for an in-house team can be long and costly, which adds more strain on budgets and resources. This is true whether hiring is completed by in-house recruiters or recruiting agencies.

Skill gaps

Once a team has been hired, it is not always possible to fill in any skill gaps in the in-house team. This can lead to poor quality work or missed deadlines.

Lack of specialized know-how

In-house teams may lack the in-depth specialized skills and knowledge required for a project. This is especially true in rapidly evolving software industries where trends and technologies change quickly.

Why in-house software development might still be a good option

Despite the challenges, in-house software development teams can still be a useful option for businesses in certain circumstances. It offers more control over the project and team, as well as over the company's products and data, meaning that it can be easier to stay on course and get results. 

In-house developers can be more responsive to changing needs and they have a better, more nuanced understanding of the company’s goals and an insider's view of every relevant business process. As a result, in-house teams can sometimes be particularly effective in the long run in terms of delivery, cost savings and product quality.

Thanks to their long-term firsthand experience with the product or service, an internal team also has the potential to create a product that better meets customer needs in terms of usability, flexibility and satisfaction. They are more likely to feel a sense of ownership over the product, understand the company's business strategy and believe in its values.

Staff augmentation services as an alternative solution

Software developers outsourced through the staff augmentation model can be the perfect solution that allows companies to overcome the common challenges of an in-house team without losing any of its benefits. This makes choosing team extension as a way to build an IT workforce a good business practice.

Specialized skill sets

With staff augmentation, business leaders can bring in specialized know-how in specific areas and access to top talent in the market. Outsourcing providers stake their reputation on their teams' expertise, so they use effective vetting processes, allowing them to ensure that their experts are highly skilled, experienced and knowledgeable.

Efficient hiring

Staff augmentation allows businesses to be much more cost effective and efficient in their recruitment processes, avoiding long recruitment times and expensive fees. Traditional recruitment (including through a recruiting agency) of a software developer usually costs as much as their monthly salary, making in-house recruiting a risky investment. Staff augmentation, on the other hand, takes up to a couple of weeks and allows for quick replacement of team members should it become necessary.

Bridging skill gaps

Skills gaps in the team are easily taken care of by bringing in specialists during key points in the project lifecycle. Due to a high level of technical expertise on the provider's team, finding and recruiting highly specialized software developers is a manageable challenge.

Flexibility and scalability

Staff augmentation teams can be scaled up or down in an instant, making them perfect for projects with changing needs, companies working with tight budgets, and agile teams.

No administrative costs

Staff augmentation removes the administrative burden, as companies can hire team members on-demand in a fully transparent way, with all the costs and billing handled in an organized system - usually a single monthly invoice to the staff augmentation service provider. This allows for better budgeting in the long term, with more predictability and visibility into how funds are being spent.

No need for office space or hardware

With staff augmentation, companies do not need to worry about providing office space or hardware for outsourced team members. This also brings cost savings and flexibility in terms of project development in different locations if needed. 

Proactive problem solving

Staff augmentation teams tend to be proactive in problem-solving and can find creative solutions to difficult tasks. They are hired for a specific job, which means they rarely get distracted by other tasks or issues within the organization. Additionally, staff augmentation providers like DEVTALENTS focus on hiring people with both a natural tendency for proactive problem solving and the skills that allow them to make good technical decisions.

A broad scope of experience and know-how

Finally, staff augmentation teams have a broad scope of experience in different technologies and sectors, ensuring that the project has the best possible chances of success. They can more easily compare the pros and cons of  various solutions to choose the right one, and can easily provide expertise with niche technologies when needed.

Why trusting an outsourcing company and augmenting staff may be best for your business

In conclusion, in-house software engineering teams have many potential benefits but they come with a range of challenges, such as the difficulty of recruiting the right talent in current market conditions. Staff augmentation can be a great solution in this case, allowing the client company to access experienced talent in an efficient and cost-effective way. It also offers a broad scope of experience in different technologies and sectors that ensure the project has the best possible chance of success.

Staff augmentation teams are flexible and can easily scale up or down in order to respond to changing project needs. Finally, they are proactive in finding solutions and in technical decision making.  All in all, staff augmentation can be a great way to get the expert support needed in software development without having to go through a lengthy recruitment process.

Olga Trąd

Marketing Manager

Fascinated by the spirit of innovation that permeates the IT industry, Olga has never abandoned her roots as an IT content marketing specialist. She draws on years of experience in the technology sector to shed light on interesting trends, solutions and practices.

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