Should biotechnology startups build an internal development team or outsource to the experts? The pros and cons of each.
You’re a founder of a biotechnology startup, and you're working on solving some of the world's most challenging problems like producing a late-stage cancer treatment or developing methods of creating medicines that target cell behavior rather than individual proteins.
Software development is an integral part of a company's growth. It can help make products more user-friendly and efficient while streamlining your workflow. However, there are many things to consider when deciding whether you should build an internal team or hire an external team of software developers. In this article, we'll go over the pros and cons of each option so that you can make the best decision for your biotechnology startup.
What is the difference between an in-house development team and an outsourced development team?
An in-house development team is exactly what it sounds like - a team of software engineers that are directly employed by the company and therefore work directly under the leadership team within the company. Founders will often spend a lot of time and resources building out this team - since the recruitment process is often lengthy and time consuming, taking on average 49 days. For companies where their core product is not a digital product, this can be a big waste of time.
On the other hand, outsourcing is a business practice where a company hires a third-party, like SciMed solutions, to execute on a certain project, provide consulting services, or handle operations for the company. When working with outsourced teams, you’re often working with the best of the best as what you’re hiring them for is their core competency and expertise. Which is why we hire engineers and developers who have on average 15 years of experience in the biotechnology industry.
The Pros of Hiring an Outsourced Team of Expert Developers
Building a custom solution that meets all of your needs is a difficult project for any software engineer, which is why hiring an outsourced software development team like SciMed is often the best way to go. There are numerous benefits to outsourcing software development, including:
Access to the best talent and industry experts. By hiring an outsourced team, you’ll gain access to the best talent in the industry and benefit from their years of experience solving similar complex problems, and you can avoid expensive trial and error phases and deliver results faster. This is especially helpful when you’re building a new product. Because of our years of experience in the industry, we’re able to see potential roadblocks before they arrive and ship the best product that meets your needs.
Access to the best software development practices. When working with an outsourced development team like SciMed, we take care of all aspects of your project including requirements gathering and documentation, design, development and testing.
Outsourcing to a team of expert developers empowers you to focus on building your business and leaves you more time for other important challenges to solve. Letting a team like SciMed allows you to focus on what matters most: the essence of your product or service, not its technical implementation details.
With an outsourced development team, you can scale up or scale down the resources on your project as needed. Is there an important launch date you want to hit? We can put another developer on your project to help you hit your deadline. Is your project stable and only in need of occasional maintenance? We can offer as-needed development services so that you’re only paying for what you need.
The Cons of Outsourcing Your Development Team
Hiring an outsourced development team might not be the right route for every startup, here are some reasons as to why:
Giving up control of your project. Outsourcing means letting go and trusting another team to help you achieve your vision. Some teams may have issues with this because it means not having complete knowledge of what’s going on with your product. At SciMed, we go the extra mile to create long term relationships with our clients and ask the needed questions to fully understand what it is you’re trying to build.
Communication issues. Communication can be difficult with outsourced teams since they may not always be accessible. For this exact reason, we communicate with our clients regularly and clearly to make sure all stakeholders are aligned and on the same page. You can trust we’ll provide end-to-end support for your product throughout its lifecycle.
Insufficient support and maintenance. Many outsourced teams simply hand off a product once it is shipped and that’s it. We know systems crash and problems arise, which is why we provide ongoing support to your team while you’re using the product. We stick with you to avoid running into problems down the road.
Hiring an External Team at a Startup - Considerations to Keep in Mind
If you’re not an expert developer, it can be overwhelming to build an internal development team. However, by hiring an external team at a startup, you’ll be able to focus on your core competencies and leverage their expertise. This way, you can quickly scale up and save time and money.
Partnering with the right team, like SciMed, will help you get started in the right direction while saving you the hassle of having to hire personnel with years of experience in the field. You focus on growing your business, while we handle all your software development needs.
The Pros of Building an In-House Development Team
You need to build a product that will continuously need updates and iterations, and you’ve decided that building out an in-house team of developers is best for you. Here are some of the benefits to internally building out a development team:
More control over the project and team. This can be a good thing especially if you’re looking to develop a custom software solution that requires specialized skills or knowledge of your company’s business processes.
Flexibility on scope of work and timeline. If something goes wrong or takes longer than expected to complete (e.g., you run into unforeseen obstacles, a key employee leaves, etc.), you can easily push back a launch date without incurring additional costs.
The Cons of Building an In-House Development Team
Building out an in-house development team does have its perks, but there are still some things to watch out for and consider before doing so:
Finding the right people can take time. You’re not just looking for someone who knows how to program in a certain language but will also fit into your company culture and have the skills needed to support your product development needs.
Training new staff on new technology, processes, and cultures takes time. Do you want someone with years of experience working with old technology? Or do you prefer to find someone who has been trained in newer technologies so that they can help build out your team with these skills as needed? Either way, bringing new people on board will require training them in various aspects of your business before they’re ready to hit the ground running - which can often take up to one full year.
Limited flexibility when hiring for specific skill sets. If something comes up that requires a different type or level of skill than those currently available within your team, then finding and training replacements may take longer than if there were more flexible hiring practices in place upfront - and this could result in delays impacting product delivery timelines.
The cost for an internal team can be high when considering an annual compensation package that might include salary, benefits, and HR support.
Partnering with SciMed: Your Outsourced Team of Expert Software Developers.
These are just a few of the ways that you can build a strong team and ensure the success of your startup. We hope that this article has given you some ideas on how to get started building a great product, as well as what steps to take when considering outsourcing or hiring an external team at your company. If you’re interested in launching your product quickly and efficiently while leveraging the industry's best engineers, get in touch with us.
