When it comes to hiring programmers for startups, deciding between body leasing, building an internal team, or full outsourcing can be a challenging and crucial decision. But fear not! We’ve compiled all the pros and cons of each solution in this useful guide. Whether you’re looking for a dedicated team or full-time employment, we’ve got you covered.

What you’ll find information about:

  • Hiring Programmers and Building a Team
  • Building an Internal Team
  • Freelance Programmers
  • Body Leasing
  • Outsourcing
  • Building a Product with Software House

As a startup grows, it faces a crucial decision: should it build an in-house team, opt for body leasing, or go for full outsourcing? This choice can make or break the project’s success and has a significant impact on costs and workflow for months to come. With limited resources, and a plethora of solutions available, it’s easy to feel overwhelmed.

Choosing a project implementation model doesn’t have to be a daunting task. At its core, your decision-making process is limited to:

  1. Implementing the project internally.
  2. Augmenting your team with specialists (such as freelancers).
  3. Hiring a dedicated team of programmers.
  4. Full outsourcing of the project.

As you might expect, each of the solutions presented above has its advantages and disadvantages. To help you make an informed decision, we’ve compiled a clear and concise list that describes each solution in detail.

Hiring Programmers and Building a Team

Building a team is both a satisfying and challenging process, especially for startups that have a set time and budget for achieving their milestones.

Building an Internal Team

The most conservative approach is to hire a programmer or build a team of programmers within the organization. For years, this has been one of the more popular solutions, which has its pros and cons.

Currently, the greatest challenge is the recruitment process. IT specialists can choose from a variety of job offers and have specific requirements. Building a team will undoubtedly be time-consuming.


  • Full control over the project implementation process. An employee who implements the project from start to finish will have thorough knowledge of its operation, and project managers in the company have full control over progress.
  • Investment in the future. Your startup may need an experienced programmer or team of programmers on board, so building a team from the start makes more sense than building it later.


  • Costs. Recruitment and employment expenses, as well as maintaining an employee (from salary, through equipment, to days off and coffee). IT industry specialists operate at relatively high rates and can decide between different job offers.
  • You need more than just a programmer. Programmers, developers, testers, UX designers, and other technical personnel are only part of the team. You also require one or more managers, and an HR specialist would be helpful (depending on the size of the team).
  • Experience. Leading a team requires experience in project implementation – from cost and time estimation skills to experience in technology selection and working with people. Startups often start from scratch, so building an in-house team is inherently risky.

Overall, building an internal team can provide many benefits, but it’s important to consider the costs and challenges involved. A successful team requires not only technical expertise but also effective management and communication skills.

Freelance Programmers

Some organizations decide to hire only key employees and supplement their team with freelancers for the duration of a project, such as building a mobile application. In some cases, even smaller projects are built entirely by freelancers. However, this development approach requires significant knowledge on your part. Since freelancers are not directly tied to the organization, they require more control than an internal employee or even a larger company working on your behalf.


  • Lower costs. Freelancers bill hourly or per project, and may cost less than a full-time employee or external company.
  • Flexibility in hiring. You can select freelancers for specific stages of project implementation.


  • Difficulty in finding a specialist. Skill verification is a must-have, but communication skills and project portfolios are also important. Unfortunately, finding a qualified freelancer is just as difficult as hiring a permanent employee.
  • High risk. Leaving even part of a project to an external person can be risky, especially if they are a critical piece of the puzzle. In outsourcing, if one programmer cannot handle the task, it is up to the contractor to find another person.

Body Leasing

We also include Body Leasing under the header of “building a team.” This solution avoids the problems and risks of hiring freelancers by shifting responsibility for providing a qualified employee to a company that provides body leasing services.


  • High qualifications. With body leasing, you can hire highly qualified individuals for the duration of the project, specialists in specific technologies who will complement your team.
  • Lower costs. The costs of body leasing services will be lower than hiring a programmer full-time – especially when considering experience and skill set.


  • Works only as a team supplement. You still need a team that the body leasing service will complement, so in a way you’re back to the starting point of building an internal team.


Outsourcing is a smart move that involves handing over the project implementation to an external company. It’s no surprise that the outsourcing market is estimated to be worth over 528 billion dollars annually, with an annual growth rate of 5%.

Dedicated Teams

One of the best solutions is to hire a dedicated development team for your project. According to a study conducted by Deloitte, companies that employ dedicated IT teams can save an average of 20 to 30% in costs compared to outsourcing or using contractor services. A dedicated team, with their knowledge of the environment and close collaboration with your employees, will be exceptionally efficient.

A 2020 study conducted by Accelerance revealed that 37% of companies use dedicated teams to fulfill their software development needs, while 23% opt for body leasing. The study also found that the primary reasons for outsourcing software development are cost savings (cited by 64% of respondents), access to specialized skills (54%), and increased flexibility (44%).


  • High work efficiency. A dedicated team has an in-depth understanding of the project needs and can work efficiently, quickly, and without downtime to solve previously encountered problems.
  • Cost optimization. Efficient use of a dedicated team results in lower costs. Since the team is solely focused on your project, you don’t have to build and maintain a team for years.
  • Experienced specialists. By using a dedicated team, you reduce the risk of errors. These teams have the necessary experience in project work and working with the technology they are employed for.
  • Customized solution. If you require a team with specific skills, such as Node.js or React experts, a dedicated team is the perfect solution for implementing a team to work in a given technology.


  • Limited application. Dedicated teams are best suited for already functioning organizations or projects run by experienced individuals. If you’re a startup with limited resources, outsourcing may be a better option.

Building a Product with a Software House

Finally, outsourcing your project to a software house that specializes in this type of implementation can be a game-changer. The biggest advantage of creating a product externally is the time savings and the possibility of relying on the expertise of an external organization that has carried out several or dozens of projects in the past.

According to a study, 36% of companies use IT outsourcing to reduce costs, while 46% of companies use IT outsourcing to obtain specialized skills and expertise.

Pros of working with a software house:

  • From start to finish. An external software house will provide a comprehensive solution, starting from concept, through design, development, testing, and later support (including hosting). This is a convenient solution that allows you to focus on your core business.
  • Support at the concept stage. Getting help in choosing solutions, technologies, and functionalities at the concept stage can be invaluable. Sometimes client ideas are unrealistic to implement within a given budget or timeframe.
  • Responsibility. It is the software house’s responsibility to deliver the solution, of course, on jointly agreed terms. You don’t have to worry about what will happen if one of the internal employees quits or a freelancer gets sick.

However, there are also some cons to consider.

  • A multitude of companies on the market. Selecting the right partner to implement the project can be difficult. When choosing, search for companies that have experience working with startups.

Keep in mind…

Regardless of whether you decide to hire a freelancer, a dedicated team, or a full-stop software house, it is essential to pay attention to several factors. These factors can help you make an informed decision and ensure that you pick the right solution for the job.

  • Verify the subcontractor’s skills and portfolio.
  • Check online reviews of the company.
  • Find out what technology the company or subcontractor specializes in.
  • Arrange a short meeting!

Occasionally it is better than searching online to send a request for a quote or arrange a short online meeting to get to know the potential partner.