When should you hire a dev agency vs a contractor vs an internal developer

Deciding whether to hire a dev agency, contractor, or internal developer can be a difficult decision for any business. Each option has its own advantages and disadvantages, and the best choice will depend on the specific needs of your business.

First, let's consider hiring a dev agency. Dev agencies are companies that specialize in providing software development services. They typically have a team of developers with a wide range of skills and expertise, and they can help businesses with everything from building custom software to supporting and extending existing solutions to migrating applications to new cloud providers.

One of the main advantages of hiring a dev agency is that they can provide a high level of expertise and experience. Because they work with many different clients, they have a wealth of knowledge about different technologies and solutions. This can be especially useful for businesses that need help with complex projects or that have unique requirements. 

Another advantage of dev agencies is that they can provide a more flexible engagement and more robust team. They can handle an entire project including strategy, design, development, and testing. They can also scale up or down quickly to meet changing project or business needs. This can be especially useful for businesses that need to offload an entire project, handle multiple projects at once, or that need to adjust their development team on short notice.

However, there are also some disadvantages to hiring a dev agency. One of the main drawbacks is that they can be expensive. Because they have a team of developers, their rates are often higher than those of individual contractors. This cost can add up and can be a blocker for businesses that have limited budgets.

Another potential disadvantage of dev agencies is that they may not have the same level of commitment to your business as an internal developer. Because they work with many different clients, they may not be as invested in the success of your project. If you are not careful, you can also be misled by any agency that is trying to push a certain solution instead of what is best for your business. On the other hand, some dev agencies work more like partners and can become deeply investing in your business success. That is why it is important to find an agency that you can trust and that has your business best interests in mind.

Next, let's consider hiring a contractor. Contractors are individual developers who work on a project-by-project basis. They can provide many of the same services as dev agencies, but they typically work independently and are not part of a larger team.

One of the main advantages of hiring a contractor is that they can be more cost-effective than a dev agency. Because they work independently, their rates are often lower than those of dev agencies. This can be a significant advantage for businesses that have limited budgets or that need to keep costs under control.

Another advantage of contractors is that they can provide a more personal level of service. Because they work independently, they are often more invested in the success of your project. This can lead to better collaboration and communication, and can be especially useful for businesses that need to scale their team for a particular project and want a high level of integration with their existing team.

However, there are also some disadvantages to hiring a contractor. One of the main drawbacks is that they can’t scale, and may not have the same level of expertise or experience as a dev agency. Because they work independently, they usually have one focus and may not have the same depth of knowledge about different technologies and solutions. This can be a disadvantage for businesses that need help with complex projects or are in need of technical strategy or leadership.

Another disadvantage of contractors is that they may not be as flexible as a dev agency. Because they work independently, they may require full-time or minimum engagement levels and they have little to no ability to scale up quickly to meet changing project needs. This can be a disadvantage for businesses that need to meet deadlines, handle multiple projects at once, or that need to adjust their development team on short notice.

Finally, hiring an internal developer can be a good option if you have an existing team that is growing and you have enough work for long-term resources. Internal developers are typically full-time employees who are dedicated to your project, and can provide a high level of expertise and support. They work best when integrating into an existing team with structure and technical leadership.

However, hiring an internal developer can be more expensive than other options, as you will need to provide benefits and other perks. You will need to ensure you have a career roadmap where the individual can continue to grow if you want the new hire to stay for the long-term. Additionally, it may take longer to hire an internal developer, as you will need to conduct interviews and perform company as well as project on-boarding processes.

Overall, the right option for your business will depend on your specific needs and budget. If you need a range of expertise and a quick turnaround, a dev agency may be the best option. If you need a specific skill set, a contractor may be a good choice. And if you need ongoing support and maintenance, an internal developer may be the best option.