Choosing Between in-House and Contract Engineers. So What?

Product development executives often view outsourcing as a suboptimal alternative to in-house development, with the popular sentiment being “I don’t believe in outsourcing.” This belief is likely rooted in the idea that you get what you pay for; while it is possible to save money by outsourcing, the final product may become lower in quality and the executive may have less input on the outcome.

In recent years, attitudes towards outsourcing have begun to change. This shift has created a mutually beneficial situation for both overseas engineers and CTOs of U.S.-based organisations, as it provides them with access to high-performing, long-term embedded engineers from a variety of global marketplaces. When the availability of competent engineers is limited, CTOs can leverage the best talent from the engineering community in emerging markets. To support this need, many companies have been established to facilitate the process of hiring, training, and supervising remote engineers, as well as managing administrative tasks such as payroll and ensuring legal compliance.

The implementation of H-1B visa restrictions has made it increasingly difficult for U.S. companies to hire foreign labour directly, thus limiting the career opportunities and accessibility to talent for both companies and engineers. Furthermore, the advent of the COVID-19 pandemic has shifted the paradigm of remote work, creating a more unified concept of offshore, nearshore, and in-house workers. This has further accelerated the trend of permanent engineering staff augmentation.

TechCrunch has stated that in the current globally interconnected environment, it is possible to benefit from the advantages of the United States without having to physically move there. These advantages include access to cutting-edge technology, the ability to explore startups, and the advantage of world-class research. This means that foreign engineers have the opportunity to experience the best of both worlds, being able to stay in the familiar surroundings of their home country, while still having the opportunity to connect with the global superpower that is the United States.

The COVID-19 pandemic has caused a shift towards remote work in the recruitment sector, according to TechCrunch. Organisations are now taking a closer look at traditional recruitment practices and have realised that teams can be just as effective, if not more so, when they are not in a physical office. Managers who were previously hesitant to trust remote employees’ productivity now have evidence that the majority of remote employees can be just as productive as those working on-site.

Chief Technology Officers (CTOs) can reap many of the benefits of hiring locally, such as interviewing and selecting candidates, managing them as full-time employees, and tracking their performance, without the time, expense, overhead, and risk usually involved in an internal hiring process. With the increasing prevalence of remote working, the line between internal and external staff has become increasingly blurred. Long-term engineering staff augmentation provides CTOs with the opportunity to take advantage of this situation.

It is important to distinguish between long-term staff augmentation and project-based outsourcing. The latter approach can be a risky endeavour, as it often involves assigning a static, low-value project to a remote team. The primary aim of this type of outsourcing is to reduce costs, so the primary focus is on obtaining the lowest prices possible.

When seeking to build a long-term software team, it is essential to identify individuals who possess not only the technical competencies and experience, but also the right attitude, motivation, and proactivity to help the team reach its goals. Having engineers working with the organisation in the long-term means that the product, team, and company culture will all benefit from their contributions. Fortunately, the world’s best engineering talent is ready and willing to collaborate with top-tier firms to create innovative products. Finding the right personnel quickly and with minimal management overhead is feasible, thanks to the services of the leading long-term staff augmentation staffing companies, which evaluate both hard and soft skills to connect exciting enterprises with top engineers from around the world.

In recent times, the major difference between in-house development and outsourcing is the party responsible for financing the engineers. It is an established fact that a significant number of the most talented software developers are situated in countries besides the United States, and they are actively searching for opportunities to join successful teams and build exceptional products with long-term commitments. There is an increasing tendency for robust software teams to be constructed and maintained via long-term staff augmentation as remote teams become the standard and demand for engineers remains steady despite the current pandemic.

Related Article: 5 Tips for Becoming an Excellent Technical Hiring Manager and Recruiting Top Talent

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