3 Challenges Of Hiring In-house Software Team

Technology has profoundly transformed the world of modern business. Many companies are investing heavily in software development to protect and strengthen their market position. The software itself, a flexible entity that organizes internal operations, fosters consumer interactions, supports the e-commerce infrastructure, and assumes a myriad of other complex tasks, is the keystone of this technology-driven transformation. A crucial choice—the approach that an organization in the field of software development takes—lies at the heart of this revolutionary journey. The decision here is between building an in-house software team and adopting the alternate strategy of outsourcing software development.

While the idea of an internal software development team may be appealing to certain stakeholders, it is crucial to carefully consider the opposing viewpoint. In the discussion that follows, S3Corp. will go into detail about the major difficulties involved in hiring an internal software development team, highlighting the top three challenges that need careful attention.

1. Dire talents shortage

The shortage of human resources is considered to be the first element that roadblock to create technology product and speed up delivery time to market. According to the Business Insider report, every year there are about 500 graduates from IT major, while the demand for recruitment is up to 3500 new vacancies.

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Facing human shortages, it became a hot sector with easy job search capabilities. There are some camp-boot which attract much attention. But trained not from a specialized primary school in a short time, junior developer graduates with the ability to meet simple projects. The lack of talent in the software industry for initiate technology inventions is still a problem.

2. High cost of hiring in-house software team

Due to technological shortages, talented programmers have more job options. If your business does not have enough reputation, good working conditions and offer the high salary, they will fairly apply for. The result is entrepreneurs are ready to pay high salaries to attract recruits. This also led to software development costs accounting for a large proportion of total operating expenses.

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According to statistics 2023, average US labor costs amount to $ 100,000 per year in the technology industry. Some surveys also show that despite high salary but small scale, firms in developed countries are hardly able to attract talent in software industry.

Meanwhile in some developing countries, with young manpower and cheaper labor, it is becoming the great software destinations. Vietnam software outsourcing, India, and China become the destinations for software outsourcing. With a well-trained and experienced team of software outsourcing, they are able to meet the stringent requirements.

>>>> See more: Vietnam Software Outsourcing: 7 Reasons Make You Amaze

3. Location

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The location is also one of the challenges for enterprises to attract programmers. Besides lacking of genuine talents along with many job opportunities in IT sector, coders graduated from university often move to tech hot-spot and focus on finding job in high tech areas. For instance, in the United States, engineers after graduation often focus on Silicon, known as America's famous technology valley, with big men such as Google, Facebook, MBI.


In this age of digitization, finding top talent in the field of software development is an essential challenge to many businesses in wealthy countries. Businesses must look into creative solutions to bridge the growing gap between the need for software knowledge and the talent pool. The increasing costs of keeping in-house software teams make this situation much more complicated, driving businesses to look for more affordable options.

The emerging trend of outsourcing centers situated in developing countries is an increasingly common option on the horizon. These facilities provide very competent and skilled staff at remarkably reasonable prices. The constant attraction of information technology centers only serves to accentuate this change in the environment of software development. In this complex setting, the idea of software outsourcing emerges as a strategic remedy, allowing businesses to close the aforementioned gap, satisfy stringent standards, and thrive in a technologically advanced environment.

Vietnam, India, and China are just a few examples of nations that have undergone this paradigm change. They have shown how software outsourcing can be used as a crucial tool to help organizations navigate these challenging times with accuracy and ultimately thrive in a setting that is constantly being altered by technological innovation.

Solution to These Challenges? Software Outsourcing Services

In developed countries like US, UK, AU..., the importance of the software department is further enhanced when the products require higher security and exactly in any detail. But the shortage of qualified human resources, cost or labor moving in high tech zones makes many enterprises face many difficulties in the recruitment process. Hence, Choosing software outsourcing service becomes one of the best solutions in this situation.

S3Corp., a leading provider in the field, offers a transformative approach to software development. By outsourcing to experts like us, businesses can unlock innovation, meet their technical needs, and navigate the complex terrain of the modern digital world without the constraints imposed by in-house teams.