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Saving Time, Reducing Costs

BY White Label IQ

3-minute read that compares the costs of in-house web dev to the hybrid model of outsourcing.

$99,4001
$99,4001
How much?
  • Yep, that much.
  • That’s an average Senior WordPress Developer’s salary according to ZipRecruiter.

Plus some.

If an agency is planning on helping out its clients by doing web development in-house, there are a couple highlights that help put things in perspective…

The median salary for a Senior WordPress Developer or a Senior PHP Developer is high. And, of course, employers need to add on benefits and recruiting costs (and time to onboard) on top of that salary.

Now, consider the multiplier effect… an agency would want some other specialized talent in the mix, too. Sure, it’s possible to find a unicorn employee who is talented in front-end development, backend languages, systems admin, quality assurance, and defining scopes and deliverables. But unicorns are rare.

As websites and client demands get more and more complicated, having a host of specialized talent on hand allows a much broader ability to deliver on the kind of digital transformation that truly engages and personalizes customer experiences online.

So, one would need several of those salaries listed above (or ones like it).

“Let It Bleed.”​

—Not just an album by The Rolling Stones.

“Let It Bleed.”​

—Not just an album by The Rolling Stones.

It’s no secret. 

Digital business is booming. 

And talent is scarce (translation: costly). 

The U.S. Bureau of Labor Statistics reports 22 percent growth in the demand for software developers—much faster than the average for all other occupations2

An option for avoiding all of that upfront cost of time and money is outsourcing—a flexible staffing solution that can be used short term or long term.

WHAT’S THE DEAL WITH OUTSOURCING?

1. Outsourcing isn’t free nor cheap but it saves the hassle and expense of recruiting and staffing, and its cost is economic—it can pass along transparently:

OUTSOURCING: Average Salary Benefits Utilization (i.e., zero downtime) Effective Rate
$0 $0 100% $39–$69/hr.
IN-HOUSE DEVELOPER: Average Salary Benefits3 Utilization4 (i.e., 25% downtime) Effective Rate*
$99,400 $20,000 75% $72/hr.

2. Outsourcing is a partnership that fills gaps:

  • Provides a flexible staffing solution to grow business, and it can be temporary (Agency doesn’t have to commit to hiring staff as a fixed cost right up front)
  • Creates the time to understand the demand and consistency of clients
  • Offers a way to scale and shrink as needed
  • Is consultatory so the agency learns about web-dev processes and best practices

3. Outsourcing with a hybrid model is a blend of on-site and offshore:

  • Account Executives are in the U.S., on the agency’s schedule
  • Client is contracting services directly with the agency, not the partner
  • On-site coordination eliminates offshore language or cultural barriers
  • Work is delivered exactly to SOW

As marketing agencies meet the demand for web-dev, outsourcing is an option. But it needs to be sought and considered as a partnership, not just a service—providing something it needs but doesn’t have, something that makes it better as a result, yet something that is more consultatory and strategically aligned.