Forbes indicates that 21% of startups fail within the first year, while 30% more decline during the second year of their existence. The software development world is harsh for newcomers. However, if your company is among the lucky ones, you will face another challenge – extending your software development team. To grow, a company needs to offer more products and services. When achieving that, you need a bigger team and resources. Here, we will speak about the ways to extend your software development team.
Software development team extension vs. Outsourcing
Several options are on the table when a business looks for ways to extend its team. However, from the broadest perspective, it is about two choices: either expand your local team or outsource the project or its parts. When choosing the latter, you can entrust the work to an outsourcing firm. It will take care of executing your project within a particular scope, budget estimates, and timeline. It may seem like a panacea: You hire a vendor who will work on your project for you. Yet, the truth is that when outsourcing the project you may face some communication issues and potential misalignments.
It is best to consider an extended development team model if you are looking for long-term engagement. At this point, such ways as hiring in-house, outstaffing, and freelance come to mind. These approaches can help you to add the missing elements to your software development team. Let’s explore these methods to extend your software development team and dive deeper into each one.
Building an in-house team
There is a continuous debate between in-house hiring and outsourcing. Sources like Forbes participate in the conversation and try to establish some middle ground. Simply put, this extended software team development method is about adding a required skill set to the existing team of developers while preserving a company's organizational structure and keeping all strategic competencies in-house. In most cases, businesses use in-house hiring when only a small team extension is needed.
When to choose
For improved management, smoother communication, and a positive team environment, in-house hiring is the right approach. It allows team members to work side-by-side, making it easier to manage the workflow and control all work processes from the same place. Moreover, it makes communication easier. Finally, in-house hiring with a software development team working on-premise creates a more positive work environment and helps managers to promote an atmosphere of collaboration.
If you don’t have a sufficient budget to manage an extended development team model and don’t have time for a lengthy hiring process, in-house hiring is not the option. The approach entails high costs. The medium salary for an on-premise seasoned software developer can go to about $100,000, without taxes and overhead expenses. Besides, it takes months to hire through in-house hiring, and don’t forget the time dedicated to onboarding. Finally, there are complicated termination rules coming along with the selected approach.
Onboarding freelance developers
The final type of the extended development team model is all about hiring freelance developers. When choosing a proper vendor is a problem, there is always an option to use freelancers. This phenomenon gains more traction due to its simplicity and affordability. There are major websites for hiring all kinds of freelancers. Upwork, Toptal, and Fiverr are where you can find professionals meeting your specific needs for reasonable prices.
When to choose
Hiring freelancers is the best approach to extending a software development team if you are looking for reasonable prices, problem-free termination, and efficiency. This model allows the best degree of cost elimination. You do not need to consider elements like office spaces, workplace provisions, or software licenses. Besides, you pay hourly and only for the work done. Prices for freelance developers range from $80/h in North America to $28/h in Asia.
Yet, if you are concerned with security, motivation, and team communication, hiring a freelancer is a no-go. Working with freelance professionals puts sensitive data at risk. Moreover, freelancers are not always driven by ideas and values shared by your company. Finally, when the factor of “independence” is at play, there are always communication issues.
Hiring an outstaffing firm
Outstaffing is a type of the extended development team model. In simple terms, the method entails hiring a new team member who keeps working in their workplace while you act as their employer. These professionals work directly on tasks you assign them and are bound to report directly to you. Usually, the method is delivered by an outstaffing agency of your choice.
When to choose
If you do not have access to a global talent pool, pursue cost optimization, and do not want to be bothered with aspects like onboarding and termination, outstaffing is the method to look at. You will select a vendor, for example, nCube, that presents pre-established access to a global talent pool, screens and picks top-notch professionals that meet your needs, and takes care of onboarding and setting up communication processes. With outstaffing, you express your preferences for the extended software development team, and an outstaffing agency does the rest. At least, that's what our team at nCube does.
As you can see, there are several ways to extend a software development team. When working on a complex project and scaling your business, consider in-house, outstaffing, or freelance hiring. When choosing the best way to extend your team, consider the context, what you are prepared to handle, and what you don’t want to deal with when you expand your team. When it comes to choosing an approach, only you have enough competency to pick the best development team extension model to bring your business to new heights.
Our team at nCube sees outstaffing as the ultimate method to extend a software development team with skilled developers. We have access to a vast pool of technology talent in Eastern Europe and Latin America and can help you expand your team without growing pains. Contact us to discuss if our model is the best choice for your business.