How expensive is setting up your own team vs. hiring one that is ready-to-go?

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anchorBuild vs. Hire

Why decide if you can benefit from both? - Augment!

When building a technical team, there are two main options: You can build your own team from scratch or hire a ready-made one. Each approach has its pros and cons that can significantly impact your project's cost and efficiency. However, there is also a third option: You can get external help while you build internal capacity/capability.

anchorBuilding Your Own Team:

anchorBuilding your own tech team involves hiring individuals, onboarding, and making them work as a team.

This process can be challenging and time-consuming. Finding the right people with the necessary skills and experience isn’t always easy, and establishing a fully functional team can take several months. Training and onboarding programs may be required to align the team with the project's goals and the company's processes and technologies.

anchorThe recruitment process alone represents a significant cost for companies.

Job postings, application processing, interviews, and other related activities require both time and financial resources. On average, it costs six to nine times an employee's monthly salary to replace them and train a newly hired employee. Supervisors' valuable time spent monitoring the training progress must also be considered.

anchorThe new hire needs the proper infrastructure to be able to start working.

Additionally, companies must invest in infrastructure and provide the necessary resources for their newly hired team members.

anchorThere’s a bookkeeping difference.

Working with externals is a cash expense, while hiring is an ongoing expense in the books/long-term commitment.

anchorHiring a Ready-Made Team:

anchorAlternatively, you can opt to hire a ready-made tech team.

This often involves collaborating with an agency that specializes in assembling teams of experienced professionals who have already worked together and have a proven track record of successful project delivery. This approach offers several benefits.

anchorHiring a ready-made team can be more cost-effective and time-efficient.

Firstly, agencies have already invested in recruiting and onboarding their team members, eliminating the need for individual hiring and training processes. As a result, you can save significantly on recruitment and training costs. Additionally, ready-made teams are generally well-versed in working together, which can lead to increased efficiency and a shorter time to market.

anchorOpting for a ready-made team may mean sacrificing some degree of control.

While you can still communicate your project requirements and provide guidance, you may have limited influence over the team's composition and processes.

anchorYou are at risk for a long-term dependency.

If you don’t have and don’t build up internal capability, you’ll be fully dependent on the agency.

anchorA Hybrid Approach: Team Augmentation

anchorGradually build internal capacity while leveraging the expertise and efficiency of external professionals.

Instead of first hiring and assembling the team and waiting until they are established enough to build a product, you can work with a partner that augments your team.

You can start building while hiring and establishing your own team in parallel. By working closely with a partner, you can bridge the gap between your current internal capabilities and the requirements of your project. Furthermore, you build up internal capability and eventually will be able to continue without the partner.

anchorYou can also build on something you have no prior experience with yourself.

Team augmentation is a great way to get started with new technologies. Through methodologies like Pair-programming, mentoring, and strategic support, we at Mainmatter help you to make the right tech stack decision, train your team and build the product at the same time.

At Mainmatter, we understand the challenges of assembling a tech team and the importance of building product- and tech know-how. We offer expertise and guidance to help you make the right decisions and support you throughout the process. Contact us to explore how we can assist you in taking the next steps toward building your ideal tech team.

We successfuly augmented the teams of

Jürgen Witte from RailEurope
Mainmatter enabled us to take our Product Development Organization to the next level. They work closely with our team and help us establish new practices while simultaneously delivering on our day to day product initiatives. Their technical and organizational expertise and fresh views allow us to set up the foundation for future success.
Jürgen Witte, CPO@RailEurope
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