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Outsourced vs. in-house developer: how to choose

It is clear now that the COVID-19 outbreak is not going to end in the shortest term. For technical startups and other complex projects, it means deciding to hire outsourced developers or question hiring in-house ones. Some fundamental features might help you choose the right developer for your project.

Please, check out our guide on how to choose the employees who can fully satisfy the needs of your company whether these employees are outsourced or not. 

When to hire an in-house developer?

  1. Sufficient funding. If the product you are creating has enough funding for a long period it will work perfectly to hire an in-house developer. Startups also need to spend their money on the recruiting process, which is not a cost-saving method, so sufficient funding is a cornerstone of the issue. 
  2. Highly secured processes. Fintech, banking services, and the other companies where the security of the internal processes must be observed very well should think of hiring in-house developers as it will be easier to control the processes and prevent data leaks.
  3. Long term project. When you have at least a couple of years to finish the project or to reach the stage where the company can afford to change the team or add some new members, an in-house option should suit you well. 
  4. Lots of changes while developing the project. In the situation where the progress of your project is moving very fast and you want all the changes to be implemented immediately, hiring a developer who will work from your office is a good idea. Thus, you might effectively use Agile to work it out together, which is far more effective with personal interaction.
  5. The idea of the project is on the stage of development. Almost in every single startup, there is a stage of idea development. To finalize this concept and help it become a real project, many startups prefer to hire an in-house developer. On this stage to get a team member who might help you finalize the idea from the office is a reasonable decision.
  6. Cultural differences. This one depends on your soft skills and preferences only. If you are not comfortable with online communication at work or believe that cultural differences can be crucial for the success of your project, you better hire an offline developer. Be honest with yourself and your team – it will save you a lot of time and money in the future.

 When to use an outsourced developer?

  1. Flexible funding. When the money flow for your project is limited and developers’ compensation should be rational, some options might allow you to get highly qualified talent at a reasonable price. It is not about underpaying talents, it is about cutting costs on their amortization, training process, and onboarding. 

The service of outsourced developers is a great opportunity to get talent at any stage of your project’s development. Check out the best countries to outsource software development and never lose a chance to get the best developers at low prices.

2. Need for unique talent. Speaking of uniqueness, some talents are very hard to find. Especially, if you are looking for them in one particular location. Why do you need to spend more money on re-location if you can simply hire an outsourced dev, suitable for your project? And such issues as negotiation, payment, and paper routine pass on to a recruitment agency?

3. Time limits for the project. When the time frame for your project is strictly set and you need to find developers to understand quickly the project and the goal, try to hire a team of outsourced developers. Mostly they are the professional who’s been working together for a long time and can easily catch up with you and the team you already have.

4. Fast project delivery. When you need fast delivery of the project and have no time for recruiting, long onboarding, and training the candidates, the services of an outsourced development team will be your best chance. With YouTeam you have an opportunity to deploy a team of developers within 48 hours. Impressive, right?

5. Early-stage project. It takes time and lots of resources to develop a clear idea of a startup. And to accomplish the idea for a technological startup you will need strong technical leadership. Maybe you need a project manager as well, so you can hire both devs and managers at one company. 

It is more cost-effective and time-saving to hire an offshore development team to maintain the technical part of the project and not worry about the quality of the performance.


  1. Non-core tasks for the devs. Each project consists of the core and non-core tasks to accomplish and get to the other development stage. There are core tasks that lead the project through a roadmap, and there are non-core and routine tasks that can be efficiently given to an outsourced development team. 


When there are so many capable and competent agencies that provide recruitment services like YouTeam, it’s not a problem anymore to hire a dedicated development team from any country to deliver your ideas and technologies to the whole world.


Final thoughts

Still not sure if you want to hire an in-house team of developers or outsourced ones? If the above-mentioned points are not enough for you to make a final decision, you may ask for professional help. Recruiters or hiring platforms can build both your in-house or outsourced team. They know the market well and will help you get a clear picture of what to do in your particular case.  


There are many good options on the market. For example, YouTeam who may help you find the best developers for your project. In less than a week, YouTeam can hire for you the developers of any kind – it all depends on the project you want to accomplish with their help and the skills the devs might provide for you.


Finally, if you decide to involve in the project both an outsourced developer and an in-house one, your task is to distribute competently the responsibilities to achieve the goals of the product development.


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