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Ilona Codes
Ilona Codes

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As a Software Engineer, do you prefer to work at start-ups or outsourcing agencies or big companies?

I’m sure every software engineer along with their career has this dilemma: "Should I join a startup or a big corporation?" There are many factors for a decision here and everyone has different circumstances and different offers on the table. Each type of company gives us a different set of skills and a different understanding of the software world.

Let's discuss this! 👩‍💻👨‍💻

Please, share your experience and opinions about where you like to work more and why?

You can also find more insights, thoughts, and learnings about the topic in my upcoming newsletter (+bonus networking cheat sheet)

Latest comments (46)

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nssimeonov profile image
Templar++ • Edited

I always prefered to work at small companies because of the flexibility and sense of freedom - i.e. to be able to work remotely if I want to.

Well, 20 years later I belive this was a mistake. At least in the beginning of my carreer I should have taken that offer from Microsoft and start there for a couple of years just to make some connections, get to know other people, see how they work, what best practices they follow. Then the second best thing would be to go to another big company and connect with more bright people (in a big company you will inevitably meet all kind of people, so aside from the usual ass⭑⭑⭑⭑les and dumb ⭑⭑⭑⭑⭑ you will also meet some really bright people too), see how they work and learn from them.

So basically 5-7 years later and after you have 2-3 jobs at big companies, you're good to go and start working for a startup or small outsourcing agency or even start your own company - you will know HOW and WHAT to do, not struggle to learn this the hard way (like me).

Of course if you see an opportunity - go ahead and grab it, although the safe and smart way to do it is, what I described above. Or start a pet project that can grow in a full-time job or even startup, that will most likely be acquired by one of your former employers - after all you already know what they need and have the connections there.

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ftorrado profile image
Filipe Torrado

I would say to always try early in your career to work in a big tech company with good processes and tech. The processes in bigger companies are what keeps them working in a stable way, as what happens with any big institutions such as countries.

Might not be so visible to developers, but this also applies directly to software. A lot of start-ups get hung up on putting out the fires and chasing the carrot on the stick. Having a good sense on the architecture and overview of systems is a great help to keep a project from becoming a mess.

Most of all, you should work on some subject you are passionate about. I think developers get swayed with some insignificant salary increases in companies that are just money squeezers. Just go make something truly positive and helpful for others. Go do THAT, your power is what you do, not that bonus.

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timofeee profile image
Tim • Edited

I've had the chance to work at various size of companies from 100 - 5000 size. They have their own pros and cons.

While there may be more rigidness at bigger companies, I like the fact there is more opportunities to move around within the company. Since a lot of people tend to change jobs every 2-3 years, I got the chance to change projects instead. I still got to learn new things without having to leave the company and great colleagues.

Someone once told me, it's always about "the work", "the people" and "the money". It's hard for any job to satisfy all 3. You always have to pick 2 out of the 3.

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derkaiserkoenig profile image
Timo Koenig

I agree 100%.
Especially when working in big companies you have to fit into THEIR processes because they won't change anything.. they did it the last XY years and it worked.
Remote: often no option. Use your own hardware: Never, I could be infected with ALL malware and viruses in the world. Use Slack for internal communication: NO way, because the servers are not in Europe. But yes, they give you stability in long-running projects.

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piavgh profile image
Hoang Trinh
  • I love working in a startup because of its environment (people with the same mindset and target) and its productivity.

But after working in this IT field for a while, now I only love working in a startup that I co-founded, or at least I have some shares in its future profits.

Because if you are just an employee in the startup without any shares, your income is very small for sure. And after all, income is also important (because you will have a family that you need to take care of)

  • On the other hand, working for a big company is boring, low productivity, sometimes you will even ask "What do I do here?" because you are just one small piece in the chain.

But the income is stable (and may also great), you just need to work 9 to 5 and then you go home with your lovely wife and children, or you can grab some beer with your friends in the evening.

What is more important than family and friends after all?

  • About outsourcing company, I hate it the most. The salary is not good, you work like a machine, clients ask for ridiculous features ... you know it.

If I can find a job in a startup or a big company, I will never look at an outsourcing company.

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durgagokina profile image
durga • Edited

If you are young ( below 10yrs experience) - work for a startup.
If experienced (above 10 yrs) - work for company that suits your temperament & life style.
Plan to stay with the company at least 2-3 yrs.

Just a thought based on my experience.

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jesusgollonet profile image
jesús gollonet

In the same way that there are amazing and horrible big corps, and amazing and horrible startups, not all agencies are the same. My experience is mostly in a highly specialized type of agency (creative digital production) and we have amazing developers, challenging projects, super motivated folks, and really nice projects to work on that get a lot of exposure. Environment is fast-paced, and I don't think salaries are below market.

Not to say that there are no cons to working here. There definitely are, but I always feel like the word agency gets a bit of contempt around here and I think it's a pity because I feel depending on your goals and the kind of stuff you'd like to work with, an agency could definitely be a match for many people.

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ssimontis profile image
Scott Simontis

Never doing outsourcing companies again; I have never felt so morally uncomfortable in my life watching companies basically hold people prisoner with visas and green cards. In some cases, overt racism; in general, cultural insensitivity and ignorance. I am not going to name the company but my previous employer was bought by one of the largest outsourcing firms in SE Asia and I quit within 6 weeks because I couldn't live with myself knowing how they were treating everyone. Hell, I was an architect-level consultant and they started trying to treat me like that. Okay, I'm going to end that rant...reasonably fired up now.

I miss start-ups. I love novel ideas and getting to take on so many roles within the company. Creating new things is awesome. I've never actually worked in a big corporation but I have an anti-authority streak inside of me which leads me to believe I wouldn't do well at those companies. I'm covered in tattoos and about to get some piercings, and those things don't seem to go over well in that environment.

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innercitypressure profile image
InnerC#ity

I now prefer the steady paycheck a big company can provide me. I'm pretty lucky in that the big company I'm working for is fairly progressive regarding new development practices. The major downside is that my calendar is often full of meetings taking me in a million different directions sometimes.

I've worked for many contracting companies and they are by far the most fun to work at (happy hour!) but losing a contract just out of the blue because something happened in another city you have no control just sucks and it's happened at every contracting company I've ever worked at eventually. Having to quickly find a new job can really suck!

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mdor profile image
Marco Antonio Dominguez • Edited

Startup

Pros

  • Relaxed dress code (most of the times)
  • Flexible
  • Involved in technical decisions on different levels
  • Too much for learn

Cons

  • No carrier path
  • Salary low-average
  • Stressful (most of the time you have tight deadlines)
  • No stability

Outsourcing

Pros

  • Relaxed dress code (sometimes)
  • Stable
  • Flexible
  • Too much for learn
  • If the project is closed sometimes they have a "bench time"
  • Relocation
  • Carrier Path

Cons

  • No carrier path
  • Salary low-average
  • Stressful (tight deadlines and too many things to learn)
  • In some cases, there is no chance to grow due to the pre-established policies (not getting a promotion or raise of salary, before one year)
  • Some companies have the ideology that any employee is disposable
  • Too many meetings

Big Companies

Pros

  • Good salary
  • Stability
  • Carrier Path

Cons

  • Bureaucratic
  • Not too much freedom
  • Use of company tools not used outside, so you is not valuable experience most of the times
  • Dress code
  • Not too much freedom
  • Limited interactions to take technical decisions
  • Too many meetings

To consider
I'll say everyone has its own priorities, so, choose depending on your needs and possibilities?

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ilonacodes profile image
Ilona Codes

It almost sounds like none of the archetypes of these companies are actually 100% awesome. For everything, good thing there seems to be plenty of drawbacks.

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devonekenobi profile image
devonekenobi

True. You can't get everything in any set-up so learn as much as you can. Maximize whatever you can get in terms of experience and enjoy the ride.

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massivebrains profile image
Segun Olaiya

I currently work in a big corp. The choice of technology is amazing and I like it.

I have worked with a few startups and honestly I was treathened my job security.

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ilonacodes profile image
Ilona Codes

Why was your job security threatened? What happened?

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massivebrains profile image
Segun Olaiya

The startup ran out of cash... They had to go to market as quick as possible which mounted pressure on the engineers. Everyone wanted to leave...

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pauliinasol profile image
Pauliina

I currently work in a startup (relatively new in the industry, been a dev for about 2 years now) and really enjoy the fast pace, ability to work with the newest technologies and I like the learning curve I have had with one product compared to consultancy project style. It is the fail-fast environment and I love to experiment things so very happy with where I am. :)

In consultancy I'd feel that I am not working for a specific purpose that motivates me as you can't really pick your clients and I would feel distance from my team if I had to sit at the client company for example. I enjoy us all working for the same goal in product.

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darkain profile image
Vincent Milum Jr

There are other options, too. But looking at the two presented, I can see why some are scared of breaking into the industry. Smaller and established companies are a viable option too. Not everything is a Microsoft or Amazon, or a startup. Plus there are ways into companies besides placement agencies. I much prefer smaller established companies, because I know the stability of their business AND it's still small enough where people are treated as actual people, rather than just an expense on a report.

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ilonacodes profile image
Ilona Codes

That sounds quite awesome! How does one find such small and established companies?

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cheahengsoon profile image
Eng Soon Cheah

I more prefer big companies