Hiring & Retention

Hiring an In-house Ruby On Rails Developer Vs. Outsourcing

Understand the difference between hiring an in-house Ruby On Rails developer Vs. outsourcing. Learn its advantages and disadvantages and choose the best option.

July 19, 2023

6 minutes

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Hiring an In-house Ruby On Rails Developer Vs. Outsourcing

A picture of a MacBook laptop on a desk in the office, next to a little cactus plant, with the code displayed on the screen with the window-view background.

There are two ways when you want to hire a Ruby on Rails developer. Or any other developer in general. There is a significant difference between them. And a lot of times, people easily mix them up. And we understand why. 

Today, we will explain hiring an in-house Ruby on Rails developer vs. outsourcing. Don’t let it confuse you because it is easy to understand. We will explain each term and give you a practical example. We will compare these two methods and choose the best one.

How much does it cost to hire a Ruby On Rails developer?

It can cost you anything from $1,2 to $60 per hour. Depending on 

  • Your RoR developer experience
  • Your RoR developer location
  • Engagement model you choose 

Combine all three factors, and you will get the average salary of your developer. This is because developers with more experience will be more expensive. Junior developers will be cheaper.

RoR developers from South Asia will cost you much less. While the ones from the USA, Canada, and Australia are much more expensive. This is because economic standards vary in different countries.

Engagement models are also a big factor. There are three main models:

  • Time and material model
  • Fixed price model
  • Dedicated development team model

Each one has its advantages and disadvantages. Each one has specific prices. To find out the exact prices according to these factors, check our blog about how much it costs to hire a Ruby On Rails developer.

Hiring an In-house Ruby On Rails developer Vs. outsourcing

Once you decide to hire a Ruby on Rails developer, it’s important to know how. You will have two options. Do the in-house hiring or choose the outsourcing option. Here are the main differences between those two. But also their advantages and disadvantages. 

What's in-house hiring?

A woman with short, brown hair, a developer working from home, on her Apple screenwriting codes at her computer.

In-house hiring is also called internal recruitment. It means that your company handles the whole process. The company chooses to advertise a job within the company. 

You will be responsible for 

  • Doing advertises
  • Search for candidates
  • Conduct interviews
  • Conduct tests
  • Hire a new employee 

You can have the whole in-house team. This team can work remotely, from the office, or do hybrid work. The in-house workers use the company’s resources to finish tasks or achieve work goals.

Advantages of in-house hiring 

Direct control 

In-house will provide you with more control over the whole process.  You can keep track of how the project is progressing. You can change anything you wish in the middle of the developing process. You can even give up on the project if you think it is not good enough. You can ensure that your money and time are being spent wisely.

Quality control is easier

Take quality control at any time. This will help you check if the project is on track and within budget. With an in-house project, you can oversee every stage. You can ensure that quality standards are fulfilled at any time. 

Better communication 

Proper communication between the project team and management. Constant communication improves everyone's understanding of the work. This can help the project to avoid delays. It also keeps everyone satisfied. Clear and open communication encourages further collaboration. It helps to improve the project.

On-site availability

Having an on-site development staff can be beneficial. You can talk with them and make modifications as you wish. If a third person is in charge, you can only see progress every now and then. The presence of the staff on-site can foster initiative and creativity.

Disadvantages of in-house hiring


Expensive choice 

In-house hiring is convenient, but it’s far more expensive. You will need to hire new employees. But you will also need to raise salaries to present employees. Also, you will need to provide special equipment for new employees. This will cost more money. 

Using in-house employment and services means raising the budget.  Which at some point can become too high.

Provide specialized training 

For special projects, you will need special employees. These developers are valuable to your company. But it can be difficult to hire them. The need for training can result in project delays and higher costs.

These developers usually cost more. But even they will need special training that will also cost a lot. You can avoid this problem by outsourcing. This is because they already have staff that have the necessary training.

Slowdown can happen

One disadvantage of in-house hiring is project delays. These delays are costly. They can irritate project customers. These delays can result in bad feedback. Also, hiring extra people to meet the project's expectations can cause delays. This is because recruiting applicants takes time. And so does the training. But also, it is way more expensive.

Sudden changes

Your employees can quit whenever they want. Even if they are on the contract. They can work for another month and leave. Also, they can take frequent leaves for personal reasons. 

But what if you have a year-long project? You will need to have a backup employee for everything. Or if not, you will need to recruit a new one. That can also take time. These changes can jeopardize project timelines.

Whats outsourcing?

A picture of a MacBook laptop on a black desk, next to a computer mouse, smartphone, and smartwatch with the coding examples displayed on the laptop screen.

Outsourcing is when a company hires a third-party company.  This third-party company will finish a project or a task for your company. Your company will only get in contact with your outsourcing team. You don’t need to do advertisements or search for candidates. You don’t need to hire or recruit. 

Here’s an example of outsourcing:

  • Advertising
  • Office and warehouse cleaning
  • Website creation
  • Bookkeeping
  • Maintenance
  • Recruitment

An outsourcing team is a team of professionals. So giving them your project is a great option. At the same time, you can concentrate on more important tasks. The best thing of all, they will do the whole process. From start to finish. 

One of them is Teamcubate. You will outsource your project to pure professionals. And you will get the lowest prices on the market.  We will find you the best RoR developer for your project. All you have to do is tell us your project and company needs. In a few days, you will have your perfect match. 

Advantages of outsourcing

Much cheaper option 

Outsourcing can help you save a lot of money. You can outsource customer service lines to other countries.  This can be very cost-effective. Outsourcing companies will help you save money on hiring, training, and other resources. Which you all need to finance if you do the in-house hiring. 

Increased efficiency 

Hiring a third-party company can improve efficiency. This is because you can choose a company that already has professionals. Those professionals already have the necessary training. This way, there will be no delays.

More flexibility

Building an in-house team take a lot of time. Hiring an outsourcing team can last 3 to 4 days. This is because outsourcing companies already have the professional developers that you need. Also, you can be flexible with them. Contact them whenever they want, they will always be at your disposal. 

Fewer responsibilities 

Project development needs

  • Equipment
  • Time
  • New technology

When outsourcing, these responsibilities are not yours. But they are the responsibility of the outsourcing company. You don’t have to worry about the infrastructure and employees. You will have less stress. And you can concentrate on other important things. 

Faster project delivery

In-house hiring takes a lot of time. In the meantime, another, more important project can occur. Your employees will need to shift to those tasks and leave the initial project behind. This cannot happen with an outsourcing company.  Many development outsourcing companies can handle various projects. Once you make a deal with them, you will set the deadline. Thus, they will deliver faster results.

Disadvantages of outsourcing 

Less control

Many businesses have their own set of rules. But also ethical guidelines. With in-house hiring, you can ensure that employees follow these rules. Outsourcing to another organization lacks this. Thus, it can be difficult to check if your requirements are met.

Lack of communication 

With less control comes less communication. With in-house hiring, you can check your employees whenever you want. You can also check the project progress as you wish. Outsourcing the process means giving up control. But bear in mind that you will leave it to the professionals.  You will also have less contact.  But again, many of these companies will allow you to contact them wherever you want. So lack of communication is minimal. 

What does in-house vs. outsourcing mean?

In-house means doing a task or a project in the same company that assigns the work. This means the initial company uses its time, staff, and resources to perform a task. They chose this over hiring a third-party company. 

Doing activities in-house provides the organization with more control. It also minimizes any misunderstandings. But in-house services are more expensive. They need more time and have more risks. Yet some businesses still prefer them. This is because they better fit with the corporate culture.

Outsourcing is when a company hires another company to finish a project or a task. That company will do everything. This way, the company will not use its own staff and resources. This is the standard method for many companies. Those are usually customer service lines and well-known brands. Using this method will save you money. It is also a good choice because your employees will work on other projects.

In conclusion 

If you want to hire a Ruby on Rails developer, you need to set your budget. But you also need to know the difference between hiring an in-house Ruby on Rails vs. outsourcing. Let’s make it easy for you. Outsourcing is a better option. 

It is more cost-effective, faster, and easier.  You don’t need to do the searching and hiring. You don’t need to pay for special equipment or technology. The whole process is in the hands of professionals. 

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