Software Teams: Know the costs of maintaining an internal team

Reducing software development costs is one of the main goals when you want to have a software teams. Because of the creation of internal teams, it is expected that the expenses with hiring and also with the need of equipment allocation and physical space will be unattractive for managers. This is where outsourcing of software development comes in. With this practice, companies can drastically reduce the resources destined to their technology team, allowing them to invest in other important areas without losing the final quality of their project.

Thinking about these points that involve the costs of having an internal software development team, we have prepared an article that details the factors that can make you choose to outsource your technology team.

Cost with rental of physical space

One of the most important points in deciding to have internal software teams is the need to have a physical working space. After identifying that it was not necessary to have a good result, many of the technology companies have been working on a home office basis, modifying the traditionally known commercial structure and decreasing the costs with physical space rental.

In addition, when deciding on an internal technology team and for renting a physical space for devs work, companies need to deal with fixed monthly costs of electricity, server maintenance, power generators, and water, for example. To have the expected result, it will also be necessary to invest larger values in more powerful machines, which can handle the job.

Extra costs with CLT hiring

In addition to supporting the costs related to the workspace, by choosing to maintain internal software teams it is necessary to take care of all the bureaucratic part that CLT hiring offers. When outsourcing this type of service to a company specialized in the subject, the manager will not have extra costs such as payment of taxes, labor charges, vacation and other types of benefits.

Moreover, when this type of hiring is done, the professional may not have the ideal profile for the position, increasing the chances of his investment not giving the expected return. Therefore, opting for outsourcing speeds up the recruitment process, since the professionals will be hand-picked according to your requirements and at a much lower cost than expected.

Another expense that may exceed expectations is in case of dismissal of a professional hired by this type of regime. Especially in cases where the payroll is very high, dismissing a CLT employee means expenses with a breach of contract fine. This can break your business financially.

Development team training

One of the points that can complicate when preferring an internal software development team is in relation to training. If the manager wants to implement a new technology, in which the developers are not so familiar with, it will be necessary to bear the costs of a company to perform consulting and training.

During this whole process, which takes time, execution errors in the project or the use of inefficient methodologies can compromise the final result of your product. In addition, another factor that can hinder the progress of the project is the level of knowledge of each dev, since if you want to use some older technology, newer developers may encounter some difficulties. Finally, with the expenses with consulting, these problems tend to be solved, however, they could be avoided with the hiring of an outsourcing company

Cost and time of hiring

Defining by an internal technology team has great chances to delay the development of your project. That’s because hiring extremely skilled professionals takes time and if you don’t have a specialized HR team, it may not even happen.

When outsourcing the service, the hired company has a Tech Recruiter team that knows where to find good professionals in a short period of time. With this, your project tends to be initiated more quickly, bringing financial return before the foreseen.

Another important factor is that you don’t need to have a personal department team, which would increase your company’s administrative costs. When you choose to outsource a technology team, all this more bureaucratic part is in charge of the hired team, being one less concern for the managers in the day to day of the company.

Conclusion: why outsource your software teams?

After all the important points mentioned above, it is necessary to summarize and present why you outsource your technology team. In summary, with software development outsourcing, the manager has the guarantee that your product idea will be developed by a specialized team. This outsourced team will be totally focused on delivering the project in the shortest time possible and with good code quality.

With a technology team allocated for the development of the project it is possible to reduce the risks of your investment not having the expected return. Another risk that decreases with the hiring of an outsourced team specialized in technology is data security. This is because, by having extremely capable developers, it is a guarantee that your project will have a reinforced security against external attacks that may compromise your system and increase the fragility of your company.

Another very important point is in relation to the technology implemented in the products. Companies specialized in outsourcing IT teams are always following the trends of the area and in constant technical growth on new languages that arise in the world of technology. This search for information ensures that your project will have cutting-edge technology and possible innovations that can make the difference for your company in the market.

In addition, as said before, cost reduction is one of the main reasons for companies to choose to outsource software development services. With outsourcing, good results are generated with a great cost-benefit for your business.


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