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Let’s Delve in Contract Web Developer Rates

If your bank account is terrified with just an idea of hiring in-house developers, because it’s terribly expensive, there are alternative methods of getting the best talent pool to satisfy your project needs. Consider involving WordPress developers for hire or any other programmer you are interested in on contract for your team. More and more experts all over the world tend to shift to contract work, so the talent pool you’ll face will be enormous.

Self-employment has become an aim for over 50% of the workforce. According to the study, 65% of workers would shift to contract work if given the opportunity. What is more, the contract work trends have touched executives as well. 79% of them think that contract workers provide a competitive advantage. It is predicted that up to 50% of the workforce will be involved in freelancer and contract work within the next 5 years.

All software startups or projects are unique, so the contracts governing them are also quite flexible to include all the details vital for both parties. There are some core clauses that should be in every agreement for contracted employment. They include:

  • Expectations and Responsibilities
  • Payment Terms
  • Confidentiality and IPR
  • Independent Contractor Clause
  • Work Report
  • Legal
  • Termination

points of developer contract

Pros and Cons of Hiring a Developer on Contract

Every hiring model has its pros and cons, so we assume, the choice will depend solely on the specific requirements of the company or startup where you’re looking for a application developer for contract. One of the most significant advantage of hiring a contractor over local hiring is software developer consultant rates. Surely, you cannot hire a web developer for contract work and expect this work model to be perfect.

ProsCons
Software developer contract rates are lower than in-house dev ratesNo conversion in fact
Flexibility: contracts are negotiableLess control over your employees
No tax deduction for employerNo fixed rates
Reduced overhead
Staffing flexibility

 

Contract Web Developer Rates: How Much a Company May Save

save cost with contract developer

As you see in the section above, there is a significant difference between hiring contract developers vs hiring those as staff programmers. First of all, it’s all about the developer contractor rates, as there is a significant difference between payments for in-house employees and payments for contracted workers. Let’s assume you need a team of skilled Java developers for your new project. You will save money, as Java or IOS developer contract rates are lower than the rates of common developer working in your office. Or if you’re looking for WordPress devs to make a new website or to join your existing team, you will save money. Although you might pay your WordPress developer on contract more than a regular employee for the same work, you will still benefit, because in-house employees are more expensive than contracted ones. For example, you’re hiring a PHP dev for full time in office. Keep in mind that besides paying a salary to your office PHP dev, you have a number of other expenses that you omit when hiring a PHP developer on contract like office space, employer-provided benefits, equipment, and your share of Social Security and Medicare taxes (7.65% of the compensation total), compensation insurance, and state unemployment compensation insurance. All together, your payroll costs will be easily increased by 20 – 30% or even more.

No health benefits. This is one of the uncontrollable costs that might become a burden for startups and small business. Employers spend nearly $10,000 on health benefits of each employer annually.

3 Success Stories of Large Brands Hiring a Contract Developer

Your in-house dedicated developer team definitely has advantages over contracted one, yet there is a number of disadvantages to consider. Yet, some tech companies known worldwide tend to use contract work. Here are a few success stories of the companies and/or their projects that opted for either ios developer on contract , app developer on contract or frontend developer on contract.

SKYPE

Skype companyFounded in 2003, SKYPE hired a developer team from Estonia to build out their business. Lacking workforce to execute an idea is typical for most of the startups, especially in the early days of the business. In 2011, SKYPE was sold to Microsoft for $8.5 billion.

BASECAMP

basecampBeing a tool for remote workers, Basecamp was actually developed by the remote workers. It was founded in 2004, and had only four people working there. Eventually, Basecamp founders have outsourced a lot of their work. Nowadays, estimated value of $100 billion, Basecamp has more than 15 million users and continues to hire contract developers.

GITHUB

githubOriginally founded in 1999, GitHub has outsourced not only tech tasks. They’ve hired a tech consultant Scott Chacon who in the end appeared to have written the back-end of the GitHub’s sharing feature Gist.  Having attracted over 11 million users, GitHub is valued at $2 billion today. As the head office is located in Oslo, the company currently outsources devs in nearly 25 countries worldwide.

How Hiring a Contract Developer Can Be Beneficial

Hiring contract developers is time-consuming. If hiring locally, you should consider the following issues: hiring process including HR work, interviewing, testing and onboarding. If you hire an IOS or Java developer on contract, the process is simplified and much less time is spent for these procedures. You can skip the hiring process by providing candidate requirements as the hiring agency will handle it for you.

Second, your work process will become more flexible, as you will have a larger leeway in terms of hiring and saying goodbye developers, if it is written in the contract of course. You will experience no inconveniences that refer to firing a worker, since the terms of cooperation with the contractor will be listed in the agreement.

The work on your project will be more efficient, as web developers on contract have expertise in their job, they are highly productive which shortens the cost and time of staff trainings.

Employees work on demand. You can engage contractors according to the changing demand of your company or project by adding or reducing workload.

hire contract developer with Mobilunity

Conclusion on Hiring Contract Developers

Although hiring contract developers might seem unusual (if you haven’t done it before) and risky, it has significant advantages over direct hiring. You can omit significant expenditures, and you don’t have to look for additional furniture, equipment to set up your new team in the office. In most cases you don’t pay insurance, medical and dental benefits for contract workers. Moreover, contract employment will help you to achieve better results in shorter terms with less time and financial expenditures.

Looking for web developers on contract for hire? Contact Mobilunity. We’ll help you to access the best talent pool!

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