The situation is familiar to many: the software development team needs to be expanded. There are two options to choose from: either hiring more in-house employees or obtaining software development services from a consulting company. Which one should you pick?

Why should you pay more to get a consultant?

Even though consultants cost more, many of our clients find working with consultants to be easier. Consultants are seasoned professionals and exceptionally skilled software developers. The pressure to deliver results also motivates good work, as the consultant isn’t in an employment relationship with the client but rather in a client relationship. Based on our experience, the cost difference is justified, especially when considering the outcomes of the work.

Will I become dependent on consultants?

Dependency is always a consideration. Key roles, such as a CTO or lead architect, should be kept in-house. Regardless of your team’s structure, it’s generally not advisable to develop software in a way that only one person understands how the code works. Is this happening in your case? In our experience, it’s worth bringing in the next team member to solve this problem.

On the other hand, an employee leaving can be an even greater risk than a consultant’s departure. When a consultant leaves, the transition is always managed in such a way that the outgoing consultant trains their successor on the project. This happens much less frequently when an employee resigns.

Consulting company Recruiting
Team Expansion The consulting company is constantly recruiting, and they can provide you with a new developer quickly. You start the recruitment process from scratch.
Recruitment Process The consulting company searches for and evaluates developers on your behalf. You manage the costly and challenging recruitment yourself.
Personnel Management The consulting company handles matters related to the developer’s employment. Managing the employment relationship is the employer’s responsibility.
Commitment The consultant commits to one project at a time. A well-treated in-house employee commits to your company.
Price The consultant is more expensive on an annual basis. After recruitment, your in-house employee costs less.
Expertise on the Project The consultant can look at the project with an external perspective and notice things that your own employees might not see. Your in-house employee knows the code inside out and is familiar with its history.
Knowledge Transfer Transferring knowledge into the company requires a handover phase and careful documentation. Knowledge stays in-house if the employee remains.
Risks Costs are predictable and can be adjusted flexibly. Risks are thus smaller. Internal recruitment is always a significant risk, and its realization can be costly.
Termination The contract can be terminated flexibly. The consultant moves to another client’s project Terminating your own employee is a difficult process. The employee becomes unemployed.

Why not both?

In software development, it’s often beneficial to utilize both in-house software developers and consultants. This way, you can combine the strengths of both solutions. From Buutti, you not only get consulting but also recruitment services through CodeMatch. Ask out sales for more info!

An example of our work

To enhance their user experience, Suunto wanted to allow users to use their favourite sports apps on their watches.

Buutti’s consultant Miro worked on the team building the SuuntoPlus sports app infrastructure. During two years of development, the team achieved their goals.

SuuntoPlus was published in tandem with the new high-end Vertical watch and it has been deployed to all Suunto watches around the world.

”Miro voiced his opinions boldly and helped us make better architectural choices,” Suunto’s Head of Partner Product Management Janne Kallio says.

Read the whole story

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