As per Statista, the IT Outsourcing industry clocked $351 billion in revenue in 2021. And it is expected to exceed $396.30 billion by the end of year 2022.
While the IT industry was the quickest to adopt remote working and project outsourcing trends, some agencies are still delaying their growth owing to traditional in-house team building processes.
As per Statista, the IT Outsourcing industry clocked $351 billion in revenue in 2021. And it is expected to exceed $396.30 billion by the end of year 2022.
That said, if you are a web agency that is still reluctant to hire a white label web development partner, you might be self-sabotaging your success.
So, before we build our bridge of conclusions, here we bring you:
White Label Web Development Vs. In-house Development: What a Web Agency Must Choose?
So, let us analyze some key comparison factors:
1) Development Cost
The average salary of a competent front-end developer in the US is on the higher side of $102,284 per year. Moreover, there are additional bonuses and overhead costs attached to in-house hiring.
Meanwhile, you can hire front-end developers from a reputed white label web development company in India for as low as $20 to $30/hour.
To add more depth to this comparison, we must analyze other cost factors.
The overhead costs of hiring in-house developers:
- Annual bonus cost and retention bonus
- Training & upscaling cost
- Office setup cost and hardware (technology) setup cost
- Recruitment cost (Varies from 15% to 30% of an employee’s annual salary)
Meanwhile, you might also have to pay additional recruitment costs to recruitment agencies.
Here is a glimpse of the average loss of productivity in the recruitment process:
Meanwhile, when you hire a white label web development partner, you get perks like:
- No additional hardware setup cost
- No resource retention cost
- No recruitment expense or any productivity loss
Moreover, you do not have to invest time in resources or project management for the white label project-based engagement model.
2) Resource Crunch
Resource crunch is a real problem for many US, UK, and Australia agencies.
Finding the right talent, recruiting them, and retaining them is likely to shell a hole in the employer’s pocket.
A survey states that 45% of employers fail to find the IT talent with the required skillset.
Meanwhile, offshoring web development gives you access to a wide talent pool.
For instance, India is the most preferred web development outsourcing location. This is due to its huge skilled talent pool, lower development costs, high innovation index, etc.
So, hiring a trusted white label web development partner in India helps you bring the best talent to the table without any extensive recruitment hassle.
Lee Kaun Yee, the first Prime Minister of Singapore, once said:
“If you deprive yourself of offshore development and your competitors do not, you’re putting yourself out of business.”
3) Leveraging Higher Productivity
White label web development allows web agencies to leverage high value per cost (or productivity).
When you outsource to a reputed web development partner, you are bound to pay them based on the project scope and timeline.
Moreover, you always have the room to work out these project cost estimations and fix the same.
Thus, the service provider is committed to meeting the discussed project deliverables within the set timelines and fixed project costs. It simply cuts down on the concerns like loss in productivity or increase in the development cost.
Meanwhile, for the in-house team, you need to set and manage the discipline and productivity standards.
A study reports that, in a standard eight-hour workday, an in-house employee delivers 2 hours 53 minutes of productivity.
Wish to outsource web development or hire pre-vetted remote resources?
4) Risks Associated with Project Failure
When you opt for in-house hiring, you take complete accountability for a project.
Further, you need to ensure that you meet the delivery timelines. This is despite the case that your in-house resources take time off due to reasons like illness or personal emergencies.
Moreover, a New York survey says that tech pros are likely to switch a company within 1.5 to 3 years.
So, if a valuable resource takes a leave during a mission-critical project, you need to find a quick replacement. Or you might have to invest substantially into the retention cost.
On the other end, when you hire a white label web development company, they uphold the responsibility of the right deliverables.
5) Project Scope Creep and Scalability
Further, a study shows that 50% of IT projects face the challenge of scope creep. This is related to delays in timelines, exceeded project budget, and limited resource availability.
The same study reports that only 51% of IT projects meet the decided timelines comfortably.
One of the main reasons for project failures is lower on-demand scalability in the in-house hiring model.
However, you simply curtail these challenges by outsourcing projects to experienced white label web development teams who uphold complete project accountability.
Moreover, you can also hire remote resources from white label partners to meet the on-demand scalability requirements.
6) Cost Allocation and Long-term Planning
Hiring an in-house team of web developers requires a bigger commitment from the company’s end. You need to commit to meeting the long-term payroll commitments and regular project flow.
This long-term cost allocation planning will likely challenge your team’s scalability plans. Here is where most agencies drop their team expansion plans.
A promising solution to this challenge is project-based hiring. You can outsource your web project requirements to a reputed white label web development partner.
Moreover, most companies also offer you an option to hire front-end developers for limited contract periods and renew them accordingly.
You just need to plan for short-term project-based hiring without any long-term commitments. Thus, you can deliver more web projects without any long-term investment.
Summing Up the Perks of White Label Web Development
Development Cost: By hiring white label web development, you cut down on the expenses like office space setup, annual bonus, etc. Further, choosing an offshore development partner can trim the project development cost by up to 50%.
Productivity: Unlike in-house hiring, your web development outsourcing partner is obliged to meet the deliverables in the set timelines.
Resource Crunch: Offshore web development practice unveils global talent-hiring opportunities.
Project Failure Risk: With project-based outsourcing, you can transfer the project failure risks to your white label partner.
Scalability: You do not have to worry about project scope creep due to a lack of resources. Your outsourcing partner takes care of team scaling and resource retention responsibilities.
Long-term Planning: White label web development makes your growth easier by cutting down on long-term payroll responsibilities. Instead, you can easily practice project-based hiring.
Webytude: Your White Label Web Development Partner
Webytude, as a team of 50+ Web Experts, has delivered 400+ Web Projects for 30+ Agencies.
We offer end-to-end front-end, eCommerce, and web design solutions. Further, we help you churn bigger and more projects through dedicated web developers.
So, if you are willing to grow your revenue by delivering more projects under your brand name, contact us today.
