Can Tech Startups Do Without an In-House Technical Recruiter?
Any good business owner knows that the worth of their company lies in its people. This is why they’re not afraid to invest so much in human resources; successful employees are key to a successful startup. And as any technical recruiter knows, sourcing and hiring such successful employees takes effort and time. This is why it typically takes so long before businesses break even.
However, businesses that are based in fast-paced industries can’t afford slow progress, otherwise they risk missing opportunities or losing out on lucrative deals. The IT industry in particular is a commercial sphere that is constantly changing and evolving at breakneck speed. Because it is related to technical, technological, and — most of all — digital content, IT businesses have no choice but to keep up with the brutal pace or risk being left behind.
The Role of Technical Recruitment in the IT Industry
Given how fast technology advances, it has reached a point where recruitment is no longer the most practical solution for software development — particularly for small and startup businesses. Indeed, more and more IT organizations are choosing to outsource their software development team rather than wait for a technical recruiter to build an in-house team for them.
But is outsourcing all that different from technical recruitment? And if a company can afford to outsource software development, can’t they afford to build and provide for their own in-house team?
Yes, but not immediately — and definitely not as quickly as the industry needs them to. Startup businesses and small businesses are usually under major restrictions, such as:
- Resources (human and material)
- Competition (no one knows who they are yet)
- Demands (they constantly need to readjust and redesign their strategies and approaches as they’re growing to keep up with the latest IT trends)
Simply put, most tech startups don’t have the capacity and capability to hire and train one new employee, let alone several to create an in-house software development team.
Where Does Outsourcing Fit In?
As we’ve mentioned, more and more companies — not exclusively IT ones, either — are choosing to outsource a number of their business processes. Outsourcing has a track record of satisfying the needs of both established and startup organizations in an effective, efficient, and consistent matter.
What makes outsourcing particularly attractive to startups and small businesses is how well it responds to the aforementioned time, budget, and resource restrictions. By hiring an existing outsourced software development team to handle a project, you eliminate several time sucks — repetitive or mundane activities that need to be done, but don’t actually contribute to the immediate growth of the business — that are typically prevalent during technical recruitment. For instance:
- Pre-interviewing and callbacks
- Extensive on-boarding
- Skills/aptitude testing
- Pay roll processing (for each new hire)
- Dealing with downtime (alternatively; coming up with new things for the software developers to do once the main project is finished)
On that note, outsourcing has also proven to be more cost-effective than hiring an actual in-house team, especially if your software development projects are few and far between. Logistically speaking, it’s cheaper to pay a monthly fee for the next three months than to pay three people’s salaries (plus benefits) for the next few years.
In-House Recruitment vs. Outsourcing
Despite that, of course having an in-house team has its advantages — otherwise, established tech giants wouldn’t have them. One is only better than the other depending on the situation you’re in. We’ve always mentioned outsourcing in the context of small IT businesses and startup ventures because that’s where it’s most beneficial. It’s certainly more cost-effective and time-efficient for organizations working under such constraints, but outsourcing lacks the confidence, security, stability, and convenience that only in-house teams can give.
What’s more, if your technical recruiter knows what they’re doing, you can find — and monopolize — fresh, raw talent exclusively for your company. With outsourcing, similar talent will only work for you for a limited amount of time.
So the big question; which one is for you?
Outsourcing Software Development
This option is truly the best one for tech startups and small- to medium-sized IT businesses. Established companies still stand to benefit from outsourcing, but it’s much more practical for organizations that still have certain restrains.
I. A Simpler Process
Compared to the many stages of technical recruitment, outsourcing a team of software developers is a little more straightforward. Aside from a relatively faster screening process, there’s also a lot less initial paperwork and particulars involved in the actual hiring. Prep and onboarding is also much quicker — if not altogether eliminated — which means that the software developers can start right away.
It’s been repeated several times throughout this article, but cost is truly one of the bigger reasons why startups find outsourcing to be so practical. Lower labor costs aside (if you’re hiring offshore or nearshore), hiring an in-house team usually comes with a lot of extra expenses — not counting the payroll. Most outsourced dedicated software developers will have the tools and tech they need to successfully design, develop, code, test, and run your requested software — consequently saving you the cost of investing in or renting equipment of your own.
III. Room to Focus
Another great benefit to outsourcing is that it exponentially frees up your time, effectively giving you space to focus on things that matter. Earlier, we mentioned “time sucks,” and how they can eat up chunks of your time without really yielding anything substantial. When you have an in-house team that you need to manage and oversee, you might find a huge portion of your schedule being consumed by daily check-ins, milestone discussions, and potential emergency meetings driven by unforeseen issues.
By having software development handled by an outside team, you won’t have to worry about managing a handful of developers. You’ll typically only have a single point of contact who might meet with you once a week — for an hour, tops — just to update you on the team’s progress and potential concerns. After that, you’re free to focus all your time on marketing and other business processes that will contribute to your organization’s growth.
Technical Recruitment vs. Outsourcing: Final Thoughts
Overall, outsourcing can’t replace the convenience of your own in-house development team. In fact, recruiting software developers to work exclusively for your company offer several major benefits that outsourcing can’t offer, specifically:
100% Security. No matter how careful both you and the outsourced software developers are, sharing and transferring company data offsite is still a major security risk. Despite contractually paying for them, those outsourced software developers don’t work for you. You have very little control over what they do during their time and, unless they’re working in your office, you have no means of monitoring their network 24/7. Even if there isn’t any malicious intent, any outsourced developer could very well compromise your company’s sensitive information during the software development process.
Immediate Communication. Communication technology has certainly developed by leaps and bounds over the past decade, but it still can’t replace the convenience and effectiveness of in-person conversation. That being said, being able to physically reach your dedicated software developers and communicate with them is a huge advantage — especially if you have a last-minute alteration request or an urgent matter that needs immediate attention. Plus, communication isn’t compromised due to technical failures or equipment downtime.
Therefore, finding and investing in a professional technical recruiter is necessary if you want to someday hire the best and brightest for your company. But while you’re still in the fresh startup stages, outsourcing software developers is definitely your best, most practical option.
Originally published at blog.bydrec.com.