Managers often simplify cost comparison by only considering salaries versus hourly rates. Nonetheless, this approach fails to account for several critical factors that can significantly affect expenses. These factors often go unnoticed, such as recruitment time, missed opportunities, project delays, employee training, and benefits, among others. When taken into consideration, these costs can add up to almost 29% of an employee's yearly salary. Hence, outsourcing software development can be a more economical approach.

While many companies maintain in-house development teams, outsourcing services can offer unique advantages. For instance, outsourcing is ideal for one-off projects that don't justify the cost of a permanent team. Similarly, outsourcing can save time when a project has a strict deadline and there's no time to recruit new talent. Additionally, outsourcing can help companies better respond to changing workload demands, increasing their agility and flexibility.