Hiring A Software House Company Vs Full Time Developer – Who Is A Better Contractor?

Many firms often face the dilemma of deciding whether to hire a software house company or a full-time developer for their software development needs. There is no single correct solution to this challenge, as both in-house developers and software house company have several benefits and limitations. When deciding whether to hire a software house company or a fulltime developer, some factors must be considered to ensure you choose the best option. Some of the factors that come into play include the nature of your business, the company culture, financial resources required, size of the company, and many more. Not all firms have the financial muscle to acquire a full-time developer; hence opt for hiring a software house company. Some companies prefer not to hire employees for services that can be outsourced, therefore, work with outsourcing companies to meet their needs.

In-House Software Development

In-house software development involves companies hiring full-time developers and integrates them into their workforce. In this case, programmers only focus on the employer’s work, and they are devoted to providing the company with the skillset and time needed for software development. An in-house team also ensures that the company’s sensitive information and data is not leaked to unauthorized people.

Outsourced Software Development

When it comes to outsourcing software development services, the company works with a professional service provider company for its software development needs. Companies that outsource software development services can also choose to work with a team of professionals or an external agency as part-timers. These companies do not employ developers, and their association is limited to assigned tasks only.

Hiring a software house company vs fulltime developer

The decision of whether you should hire a software house company or a fulltime developer can significantly have impacts on your company’s productivity immediately or in the long-term. Here are the advantages and disadvantages of software house firm and fulltime developers:

a. Hiring a software house company

Before you outsource your services, you need to understand who to pick as a contractor for your software project. There are several factors you should consider when shopping for a software developer company. Here are some of them:

  • Company portfolio
  • Cost of services
  • Customer care services
  • Reviews of previous partners


Here are the benefits of hiring a software house company:

  • Quick access to skilled developers: Outsourcing software development services gives you quick access to highly trained developers. You get the opportunity to research on software development outsourcing companies and working with only those that meet your specifications. Software house firms often have a wide range of developers who have different skills and experience; hence you get the job done within the shortest time possible.
  • It is time and resource-saving. Outsourcing software development services will ensure that the company saves you the time and resources required in hiring new employees. There are many necessary finances in scheduling interviews, meetings, shortlisting candidates, and making job adverts. A software company saves you all the hassle that goes into hiring workers.
  • Outsourcing software development services help your company to downsize without leaving a vacuum. Many companies are embracing outsourcing services as they look towards downsizing their workforce and reduce operational costs. As a company, you will not have to worry about recruiting new talent into your crew as the outsourcing company will work for you.
  • You pay for the services, not the tools. When outsourcing software development services, you will only pay for the services you receive and not the required tools. A software development project requires Jira, Docker, AWL, Balsamiq Mockupa, Git VCS, DigitalOcean, and many more.
  • It enhances innovation. When outsourcing your software development services, it becomes easy to change the skill set required as the project continues. As a company, you do not need to hire different developers with all the skills needed as the outsourcing company provides a pool of developers. You access the employees with the skills that you want conveniently.


Some of the limitations of working with a software house company are:

  • Finding the right IT Company can be challenging. Outsourcing of services is on an upward trend, and there are numerous onshore and offshore outsourcing companies. The real challenge is determining the company with the desired employee skill set to work for your company. If you do not conduct due diligence, you might outsource the wrong company, which would compromise the quality of service you get.
  • Outsourcing companies provide only short-term commitments. Working with a software house company is similar to hiring a one-time service vendor. Unlike having a full-time employee committed to the long-term well-being of the company, an outsourced team’s work ends once the assigned project is completed.

b. Hiring a fulltime developer

Hiring a fulltime developer has its advantages and disadvantages.


  • A fulltime developer works towards long-term company goals. Any company has its long-term and short-term software development projects. Although outsourcing services can be ideal for short-term projects, long-term projects require fulltime developers who can dedicate their time and resources to it. Having an in-house team of developers will ensure they dedicate their time and resources to deliver on projects continuously.
  • It prevents any external access to ongoing projects. When working on development projects, it is vital to ensure that they are protected from competitors and unauthorized personnel. Having a fulltime developer will ensure that there is no external access to the company’s projects. This helps the company secure its servers, networks, and other applications from potential malware attacks.
  • Fulltime developers make collaboration within the company easy. When it comes to working on large scale projects, the in-house partnership is vital. Hiring fulltime developers gives the company the benefit of allowing their team to work collectively on ongoing projects. This ensures that employees can complement each other’s strengths to achieve the desired results.
  • An in-house team has a better understanding of company culture and business. Outsourcing services comes with the risk of working with a team that does not understand the company culture and business model. Having a full-time team is vital in helping maintain the company culture and working based on your business model.
  • It alleviates cultural and language barriers. Outsourcing services involve working with people from diverse cultural backgrounds, which could lead to a language barrier. Having an in-house team will alleviate any cultural or language limitations.


  • Financial intensive. When creating an in-house team, the business as to invest a lot of finances towards infrastructure development, employee training, salaries, insurance, allowances, and this is also time-consuming.
  • It can be inconveniencing if an employee quits. Another limitation of having a fulltime developer is that they could not access the services until they hire and train another employee if they left their job.

In conclusion, hiring a software house company or having a full time developer comes with their benefits and limitations. The company has to consider various factors before deciding which option is best for their business model.