Every organization that connects its activities with a website or web service comes to the same question: what is more profitable – organizing its own IT department or hiring outsourced developers? There is no clear answer to this question since each approach has its own pros and cons. If you are interested in Outsourcing or offshore Web Development, then this article is for you.

Why Offshore Or Outsourcing Are Popular In Web Development

Offshore and outsourcing are practices in which companies hire external firms or developers from other countries to perform various web Development tasks. Let’s look at the main aspects that distinguish outsourcing from in-house web development.

Recruitment And Hiring of Employees

Finding specialists in IT, and in web development, in particular, is not an easy task. Professionals with extensive experience either already work full-time or cost a lot of money. You can hire young or inexperienced specialists, but there is no guarantee that they will not leave for a better position as soon as they gain experience. Selecting programmers, designers, and layout designers is a long and tedious process of checking test tasks, interviews, generating proposals, and waiting for answers, which can drag on for months, or even years. Obviously, when you hire a ready-made team, this problem completely disappears, and you won’t have to deal with personnel issues. The only question that remains is choosing the team itself.

Formation And Motivation Of The Team

It is important not only to find people who have the necessary skills and experience, it is necessary to form a cohesive team of specialists ready to work together. When performing work tasks, it is impossible to avoid conflicts, which can very easily develop into resentment, anger, and mistrust. As a rule, the team consists of employees of different ages, gender, marital status, and values. As a result, management will need to take care not only of technical equipment but also of the psychological mood of all employees. The issue of salaries and motivations is also quite relevant. Some people are ready to work efficiently for a salary, while others need plans, exceeding plans and receiving bonuses. One way or another, the sensitive money issue will have to be resolved with each specialist. In the case of an outsourced development team, these issues also remain with its leader, and the discussion of payment takes place within the framework of the provision of specific services under a contract, most likely with one person.

Employee Training

There are no absolute experts in all matters, especially in the IT field. Knowledge becomes outdated in a matter of weeks; every programmer is in a constant process of obtaining additional information and knowledge. An employee’s training in the company is paid for during working hours, that is, at the expense of the employer. Training in an outsourced team is included in standard hours only if you need to introduce a special new technology or switch to new versions of software. At the same time, it is quite likely that a specialist working in a team on projects of different types has already encountered a similar problem and knows how to solve it, so there is no need to waste time on training.

Accounting

Personnel accounting is a complex task. This is the calculation of salaries and bonuses, vacations and sick leave, contributions to funds, and taxes. This is the issuance of accounting statements, signatures of statements, orders, safety logs, and a bunch of other unhelpful, but obligatory papers. When the staff grows, a separate accountant has to be allocated to manage personnel, which further increases costs. The web development team will independently resolve all issues with HR accounting within the framework of the work of their company. The customer can only draw up standard contracts for the provision of services and formalize the execution of work using ordinary acts.

Operating Expenses

The activities of the IT department are associated with considerable operating costs. This includes renting a separate office, purchasing and maintaining computers, providing good internet, preferably from several providers, and expenses for corporate events and lunches. Absolutely all of these costs fall on the outsourcing team, and when calculating the benefits, you should not forget about this significant share of costs.

Trade Secret

The spy war in the IT business began at the very dawn of the industry. Information security of companies is no longer a luxury, but a necessity. They can steal just an idea, a ready-made customer base, or even the entire product. In the case of a full-time development department, the company is better protected by law: in addition to agreements on non-disclosure of trade secrets, the employer is automatically protected by law according to which all the fruits of an employee’s activities in the workplace automatically become the intellectual property of the employer. On the other hand, when formalizing a contractual relationship with an outsourcing production company, an additional non-disclosure agreement (NDA) is usually concluded, which clearly states the responsibilities of the parties. It is worth understanding that strict sanctions can be a good incentive to maintain trade secrets, but excessively inflated requirements can scare off the contractor.

Control Of Work Progress

You may have the false idea that it is easier to control your own team. However, it is worth remembering that you need to spend time or money on this since you will need to bring in specialists for this work. The only thing that needs to be controlled in the work of an outsourcing development team is deadlines.

Outsourced Development Team: Pros And Cons

A ready-made team is hired by companies that cannot yet afford to hire several employees and/or spend time on their selection and training. If your priority is to save your budget and get results quickly, then you should pay attention to an outsourcing team.

Pros

• No difficulties with payroll calculations
• No problems with recruiting specialists
• Reduced operating costs
• No need to retrain employees
• All communication is through the manager, who himself assigns tasks to specialists.
• Work will begin from the first day – all specialists are ready and processes are established

Cons

• There is no possibility to interfere with established processes
• It’s difficult to choose a good team
• Response times to tasks may be delayed
• It is more difficult to control the protection of commercial information

Final Thoughts

Using offshore and outsourcing in web development allows companies to have access to a wide range of talented developers and development professionals around the world. In addition, this approach reduces costs and simplifies the product development process. If you are interested in offshore web development, we recommend paying attention to the company Digiteum, which provides services for the development of web services, MVP, and mobile applications.

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