Drawbacks of Hiring In-House Developers

We are all becoming part of the digitization era, which means all the companies that once relied on offline business are moving to the online business model. Therefore, most companies face the same struggle: should we hire in-house developers or outsource them?

The difficulties are exacerbated, especially for startups, since not every startup has the technical experience, technical skills, IT and physical infrastructure, and, most importantly, the team to turn an idea into a working product. With the limited budget, time constraints, and geographic limits, it’s hard to find the required talent.

On the other hand, hiring in-house developers has its own set of perks and downsides, which are entirely dependent on your needs, projects, and criteria. Today, we’ll take a closer look at the disadvantages of hiring in-house developers. Let’s dive into it.

Staff turnover

Software developers have a proclivity towards changing jobs frequently. It occurs because there is a huge demand for talented coders, and other businesses tend to offer more. They are quickly snapped up by large corporations. If you have a small pool of candidates to choose from, hiring becomes tedious and expensive for you.  

n-house developer might cost you more

In-house developer might cost you more

The price is always an issue that can change everything. Undoubtedly, an in-house developer is more expensive than a freelancer or remote developer. The final price includes lots of expenses like rent, taxes, software, hardware, staff members, and more.    

The in-house employee incurs additional costs that you cannot avoid. Having an in-house team is expensive, from the hiring process to the overhead expenditures. First and foremost, you must ensure that you hire the proper candidate with the right experience. This can only be done if you’re an expert at assessing people’s technical abilities, or if you have the assistance of seasoned recruiters.

You need to pay, even the project is over 

Money is always a concern, as much as you’d like to focus on developing the finest product at whatever cost. Your company’s management and stakeholders expect you to get the most out of your budget.

The cost of hiring in-house developers is high. Full-time salary, health insurance, benefits, retirement plans, bonuses, public transportation subsidies, or parking stipends are all necessities. They’ll require computers, software licences, office space, and supervision. They get paid, even if the project is finished and they have nothing else to do.

Training takes months

Assume your application is performing nicely. It’s popular with users, and it’s profitable. You want to push the road map forward, add more features, and expand into other markets. However, you must teach your developers before incorporating new technology into your product. 

On the other hand, scalability is not an issue for outside development teams. They’re designed to be adaptable, so they can shrink or grow at any time. Outsourcing is appropriate for one-time or short-term tasks with clear deadlines (or points where the project can be transferred to a small internal team).

Constrained to the local pool of talent

If you are hiring in-house developers, you are likely bound to the local pool of talent. You will miss out on the luxury of choosing the best IT developers from around the globe. However, in-house developers can give you a long-term commitment, but can’t bring the best talent.     

It’s difficult to build a team with the right skillset

To ensure that your company’s goals are met, you’ll need to build a team with all of the necessary abilities. Of course, this totally depends on the technology you’re using and its end result. However, building such a team could take months and months.


Nothing is perfect in this world. An in-house developer also has some imperfections and benefits. Building the core team of dedicated developers is quite tough that takes your energy, time, and money. If you are working on large projects and some high technologies, then in-house developers would be great for you, but if you are working on short-term projects, outsourcing is ideal for you.


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