There are three common ways to get software built: hire developers in-house, use an agency for a defined project, or work with a dedicated team. The right one depends on how long the work will last, how fast you need to start and how much control of priorities you want.
The three options
- In-house developers. Employees on your payroll, working inside your company.
- Agency or project supplier. An outside company that delivers a defined piece of work for an agreed scope.
- Dedicated team. An outside team that works only for you, on your priorities, as an extension of your own.
When each makes sense
In-house fits when the software is central to your business and the work will continue for years. You get full control, deep product knowledge and no dependence on a supplier. The costs are time and risk: recruiting takes months, a bad hire is expensive, and you need enough work and management to keep people productive.
An agency fits when the project has a clear scope and an end date, such as a new website, a one-off integration or a first version. You buy a result, and the supplier manages the people. The trade-off is that product knowledge sits partly outside your company, and changing direction mid-project usually means renegotiating scope.
A dedicated team fits ongoing work where you want control of priorities but cannot wait to hire, or where demand will rise and fall. You direct the work day to day while the supplier handles recruitment, employment and replacement.
| In-house | Agency | Dedicated team | |
|---|---|---|---|
| Control of priorities | Full | Through the agreed scope | High |
| Time to start | Slowest | Fast | Fast |
| Best for | Long-term core product | Defined project | Ongoing work, uneven demand |
| Main risk | Hiring and retention | Scope disputes | Needs clear direction from you |
What each one charges for
Figures vary too much by role, seniority and location to quote, but the shape is useful for comparing quotes. In-house means salary plus employer costs, recruitment, equipment and management time, whether or not there is enough work. An agency charges for a defined scope or a day or hourly rate, and scope changes usually change the price. A dedicated team charges per person, per month or per day, for as long as you keep the team. Ask every supplier what is excluded from the quote: onboarding time, project management and replacing people who leave are the usual gaps.
Questions that settle it
- Will this work last more than a year, or is there an end date?
- Do you have someone who can direct engineers every day?
- How soon must work start?
- How much product knowledge must stay inside the company?
- Can you afford the delay and risk of recruiting?
Many companies use a mix: a small in-house core with outside capacity around it. Whichever you choose, check that the code and accounts are yours, that documentation is kept current, that there is a defined way to end or change the arrangement, and that you know who is accountable when something fails.
The full guide is on the Cognivise blog. To see how we set up outside teams, read about dedicated development teams.
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