Maybe these considerations will help you calculate to make your decision.
Developing software means investing. It is almost impossible to develop a tool, application, or software that instantly will benefit you. But how do you ensure that your investments are in balance with the benefits that lie ahead? And from what point will you start to benefit from your investment in your tools? You can visualize this with the break-even calculation.
Which costs should you include in your calculation?
Not sure whether to go for nearshoring or to expand your team with local hires? These are some of the costs and savings to take into consideration to make the right decision.
What is the ideal price for a developer?
Many organizations with capacity problems or a need for specific expertise have roughly two choices. One is that they can make use of a fixed network of freelancers. This brings flexibility, but a downside is that these are usually the most expensive developers on the market. Option two is cheaper, that is the option where a new colleague is hired. However, this is a lot less flexible because you often must put a new employee on the payroll for at least six to twelve months. So, look at what expertise you need, for how many hours, but also when in the project.
The right expertise for a fast time-to-market
In most projects, you do not need all team members from day one. It may be more efficient to involve some experts later in the project. So do not only calculate the cost of a developer but also look at how many hours you will need the developer and when exactly in the project. By deploying the right expertise at the right time, you can already realize significant benefits.
When you start putting the team together, you look at expertise, hourly wages, office space, but have you ever considered the amount of time you spend finding the right people?
Are there benefits from hiring freelancers as well as hiring a new colleague uncertain? Then you should consider nearshoring. We list several advantages for you:
- Onboarding made easy. How much training does your team need to get the job done? Starting a new project or onboarding a new colleague can be expensive, while many nearshoring colleagues are used to switching quickly, working independently, and asking the right questions to progress.
- Do you want to unburden your HR colleagues? Or save on costs for recruiters? You can because we have already done most of that work for you. With us, you put together a team from an existing network with experienced developers.
- Flexible and affordable. We give you monthly-based contracts where you can easily scale up and down expertise. Would you like to read more about the costs per hour? Check this article: (https://www.teamasaservice.com/blog/gross-salary-in-costs-per-hour/)
Do you want to know more about your break-even point?
We are happy to investigate the possibilities with you. From short projects, long-term contracts to a complete tailor-made team.