Why Hiring Outsourced Teams Can Save You Time

…and Money

Have you ever been there, wondering if you should hire an outsourced team for your project or an employee?

What are the pros? What are the cons? Who killed Kennedy?

In this article, we'll explore the pros and cons of hiring internal or external resources. We won't give you an answer about who killed Kennedy, though.

Should You Hire Internally?

Hiring internally can seem like a solid choice, but it comes with significant challenges. Here are five dangers of hiring employees:

1. High Taxes and Benefits Costs:

   Hiring employees involves paying a substantial amount in taxes and benefits. This includes health insurance, retirement contributions, and other perks that quickly add up.

2. Slower Onboarding Process:

   The process of hiring and onboarding new employees is time-consuming. From posting job ads to conducting interviews and training, it can take months before a new hire is fully productive.

3. Legal and Compliance Issues:

   Navigating employment laws and regulations can be a minefield. Missteps can lead to costly legal battles and fines, making internal hiring a risky endeavor.

4. Fixed Overhead Costs:

   Employees represent a fixed cost, which means you are financially committed regardless of your current workload. This inflexibility can be a burden during slow periods.

5. Risk of Bad Hires:

   A bad hire can be detrimental, affecting team morale and productivity. The cost of replacing an underperforming employee is also high, both in terms of money and time.

Bottom Line: Hiring someone internally can be really slow and have hidden costs. It doesn’t mean you should never hire employees—of course not. But it means you should really ask yourself if hiring an employee is the right move for your company right now and if it will help you reach your goals faster.

Should You Hire an Outsourced Service?

On the other hand, hiring an outsourced service has numerous advantages, especially if you need to complete a project quickly or if your internal team is tied up with other priorities. Here are five advantages of outsourcing:

1. Quick Turnaround:

   Outsourced teams can start working on your project almost immediately. There’s no lengthy hiring process, which means your project gets completed faster.

2. Cost-Effective:

   You pay for what you need when you need it (as long as you are hiring an honest, transparent service provider). There are no long-term commitments or overhead costs associated with full-time employees, making it a budget-friendly option.

3. Access to Expertise:

   Outsourcing gives you access to a greater pool of talent, including senior talent more easily, as these services have a network of experts. Whether you need a developer, designer, or marketing specialist, you can find the right talent for your project.

4. Scalability:

   You can easily scale your outsourced team up or down based on your project requirements. This flexibility allows you to manage resources more effectively and avoid unnecessary expenses.

5. Focus on Core Activities:

   By outsourcing non-core activities, your internal team can focus on what they do best. Internal employees require more management, including performance reviews and support systems, which can be time-consuming and costly. Outsourcing alleviates these burdens, improving overall efficiency.

Bottom Line: Hiring external talent (teams or agencies) is a lot faster and less cumbersome compared to hiring an internal employee. If you have a project you need completed now, you don’t have time to waste in looking, assembling, and managing a team. You need a more lean solution, and hiring an external outsourced team might be the right fit for you.

Pros and Cons of Hiring Internal vs. External Resources

Conclusion

The important thing here is that no matter what you choose, you need to be clear about your needs and your specifications for employees or external services. Knowing how to hire applies to agencies and employees all the same.

At Product Forge, we specialize in helping companies and startups navigate these choices. We assist in:

- Lowering Time to Market: Enable budget-friendly experimentation and get your projects out faster.

- Delivering Faster: Avoid in-house clutter and use expensive resources for key tasks, leaving the rest to your outsourced team.

- Building Bespoke Software: Tailor solutions specifically to your business needs with customized software development.

We help startups and enterprises set up fully independent development teams. You can scale the teams up or down based on your needs, ensuring you just pay for what you use.

Contac Us to learn how we can support you.