Hiring a Software Developer Vs. Software Development Company

Hiring a Software Developer Vs. Software Development Company

There comes a point when almost any business faces the need to develop a custom app or piece of software to guarantee constant growth. 

The question is, should you hire a software development company or a freelance developer? To help you with this decision, the team at Bydrec is on hand to walk you through some pros and cons of both options.

Both startups and enterprises require software development. For startups, there are often no software developers on board as the business is in its infancy. For many enterprises, the IT team either has too much on their plate or is viewing outsourcing software development as a cheaper alternative. There are several ways you can go about creating custom software developed for your business. The two most common options are hiring a software developer or hiring a software development firm.

Hiring A Development Company 

Not all businesses can hire a candidate catering to every aspect of the production process. Enterprises would love to have a more extensive hiring base and new know-how from different parts of the highly globalized world we live in. The benefits of hiring a software development company include more profound expertise, collective experience, and teamwork, among others. 

Saving Costs – Instead of hiring permanent employees for an ever-growing process, it is always better to save costs by hiring an offshore or nearshore company. The difference between the options is vast, and thus enterprises have an opportunity to go for economizing processes.

The Hiring Of Labor – Using specific individuals to use the best timing and location strategy will decrease dependability and banality. The process will be simplified and more wholly focused on the needs of your business. It is a great way to develop the range of your projects and gives you less to worry about for a longer time. Specialization is projected to increase the economies of scale. More emphasis can thus be given to the core elements of the business.

Managing Unplanned Loads – Peak times prevail during times of the year. Having an outsourced expert team ready to evaluate and handle the particular process will permanently save you and your business from the time lag that comes with it. It is always a better idea to take help from the people who know how to handle the situation.

Security – If your company is not comfortable handling cyber data, it is better to trust a company with expertise. In this era of digital breaches, your company's crucial data shouldn't be compromised in any manner. Loopholes are minimized. 


Having a team of experts in each role that is also great at working together brings value to the company. 

Hiring A Software Developer: Pros & Cons

Alternatively, the full-time employee option guarantees that he/she works for you for the project timeline, typically devoting 40 working hours a week. A full-time developer might be paid on an hourly basis or provided a monthly salary, and the employer then has to provide office space and equipment, taxes, insurance, vacation, and other benefits.


Valuable member. A full-time employee will understand the business in detail, be a part of corporate culture, promote your company/brand elsewhere. This worker is fully accountable for performing the work, and you can measure it all the way through.

Motivation. Being a part of a company and working to retain permanent employment and income motivate full-time developers. Besides, they often work longer hours when there is a set date for project completion. Plus, there are things like performance reviews, management, and work rules.

Ongoing training. As often there is a need to switch to new technologies and frameworks, having full-time employees will make this learning process a team effort. 

Scope of work. As an employer, you can request the type of job and approach from a full-time software developer. You can maximize their capabilities, assigning different tasks depending on skills or tasks at hand.


Compensations and taxes. A full-time software developer is entitled to payment on top of salary, such as paid leaves, health insurance, payroll taxes. These are usually deducted from salary and should be a part of the work contract unless there are legal issues.

Work efficiency. While full-time employees mostly tend to be motivated and eager to do the job, there's also a flip side. The lost productivity issue is severe and estimates state 700-750 hours a year are wasted on gossip, social media, and coffee breaks. 

Legal obligations. Indeed, you are more secure with a full-time developer than with a freelancer, as they tend to be more responsible, as they're relying on the salary. Still, it's much harder to terminate an employee if things aren't working out, and you will have to take care of a severance package and any legal issues.

Hiring a full-time developer costs much time, effort, and money. You also need to take care of the contract and all other legal obligations. The unquestionable advantage of having an in-house developer is the freedom of assigning tasks at hand.

Hiring a Freelancer 

There are two situations when hiring a freelance developer might work for you:

1/ Your project is straightforward

2/ You already have a development team but lack a particular skill.

Perhaps you need a simple website with standard functionality, and then you do not need a whole team working on it. Or maybe there is a skills gap in your in-house team that you need to fill for a single project.

The range of options for hiring allows enough freedom of choice for everyone. In truth, working with a reputable software outsourcing company saves you a lot of time and effort and ensures the highest quality end-product. 

Contact  Us

If you are in the planning stage for a new software project, give the team at Bydrec a call at (866) 219-7733, and let's talk it over.


Topics: software development projects, software development, software development nearshoring


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