In-house Team VS Outsourcing: Which one is Better for Start-Ups!

March 9, 2017 - 8 minutes read

When starting a project, one of the most crucial component is the acquisition of talent. The future of your company may depend on several factors, one of them being the skill level of your workers: the quality of the product along with time management will be key factors that will decide if your startup succeeds or fails.

Hiring talent in-house certainly has its advantages and, depending on the case or situation, it can be beneficial for a company to go that route if it has a lot of budget and if the work to be done has certain limitations that it cannot be done remotely. Barriers to communication and team work have already been addressed by tools like Slack and they are mostly not an issue when working with a remote team however here are a few reasons your might want to consider outsourcing your project rather than hiring directly.

Outsourcing is budget – friendly

When it comes to app development, having a freelancer working for you can guarantee you get the best work done at a reasonable price. With in-house staff, you need a physical space to accommodate the workers, which is already an expense. In addition, you do not have to pay freelancers for vacations, retention, bonuses and other perks & benefits.

Things like insurance, medical and dental benefits can really increase the cost of the payroll, whereas working with freelancer only takes paying them a flat amount of money in exchange for their expertise and knowledge on the subject, which will ideally be translated into a better end product.

In short-term projects, there is no question that outsourcing is the better option of the two: project managers can just agree to pay outsourced personnel a fee for the completion of the job at hand. There is just no point of hiring in-house for a short period of time.

Highly trained and specialized pros

These are experienced and, most importantly, specialized professionals that have been working in their field for a long time, usually with good references and a long track of success. For example, it would be preferable to acquire the services of a freelancer for tasks such as web design & development, content creation, digital marketing and search engine optimization (SEO).

Another twist that makes outsourcing a favorable and viable alternative for talent acquisition is that, when a company finds somebody outside to do certain jobs, it does not have to invest in equipment, software or any other kind of materials or supplies: the freelancers or professionals paid to perform those tasks can provide anything that it is needed: you just have to pay the agreed money and they will take care of everything, saving the business a lot of dollars needed in other departments.

Finding In-house staff can also prove costly from a training standpoint

Not only it is time consuming to find the right person for a job vacancy, but also to train that professional to perform the job under the guidelines you want. By outsourcing, you are getting the services of a trained professional with experience in the area, with some of the same risks or threats that hiring in-house involves.

Outsourcing provides better and easier talent acquisition possibilities

Another advantage of hiring an outsource consultants vs. in – house is that, for the latter; it usually takes a lot of time and energy to find the best candidate for a certain job opening: several factors need to be analyzed since that person would be a part of your ‘roster’, and some aspects of the law may apply, like medical benefits.

In contrast, going with the outsourcing option is a faster option: you can acquire talent easier, thanks to several web platforms with thousands of freelancer offering their services in hundreds of fields, some of them with portfolios and ascertainable experience. If you are good with a PC and internet, it may take very little time to sort the best candidates for a task and reaching them is usually not an issue, since those platforms collect all kinds of data and personal contact information.

In small towns, some of the best talent may already be taken by other companies, a complicated situation that can be detrimental to startups. In these cases, it is a million times better to outsource some of the assignations and tasks by purchasing the services of an independent professional.

For owners and project leaders, maximization of resources can go a long way in determining the success of an enterprise. For this, taking advantage of certain markets is very important. Since with outsourcing you can have access to talent from any country in the world, this can easily be done and you will save some bucks: in nations where the value of the currency you deal with is high (for example, dollars in Venezuela), you can find a very skilled worker to help you in the area you need.

In-house employees’ levels of motivation to complete tasks are not always the best, whereas freelancers will have the drive to succeed to keep their names clean and to be taken into account for future projects, so they have that factor working in their favor, too.

Quality is almost guaranteed with outsourcing!

Wrapping up; outsourcing brings to the table several situations and advantages that makes it the better choice when compared to hiring in – house talent: it provides specialized skills and equipment that is perfect to cover seasonal or temporary needs. The more specialized is the skill you need to be successful, the more difficult it is to find it in – house.

So, if you and your group are trying to start a new project, certain specialized activities are better suited for outsourcing. Take advantage of the multiple benefits of this approach and get your tasks done by certified professionals. Your audience and clients are going to thank you.