External Agencies vs. In-house Teams

As you’ll already know because you’re windswept and interesting; we record a semi regular podcast where we look into an aspect of life in a technical agency that we think will interest the outside world. We’ve just finished recording the latest episode about internal versus external teams and honestly I think it’s one of the most interesting chats we’ve had.

Joining us on the podcast are Andy Rogers from Rokker and Dan Graetzer from Carousel Group. Both Andy and Dan have tons of experience both commissioning work from internal teams and navigating the selection of external agencies. They were able to speak with clarity about the challenges that each task can bring.

One of the interesting things for me was getting a glimpse ‘over the fence’ into some of the thought processes and pressures that lead people to keep work internal – something that I’ve really only been able to guess at in the past.

Here’s a quick summary of things we speak about.

Agencies developing symbiotic/parasitic relationships with larger clients.

This tendency of larger agencies to act almost as though they are internal teams is becoming more and more common. There are upsides and downsides to this, obviously, in that while bodies like Deloitte et al can mobilise 200-strong dev teams, they also make it more and more likely that their customers will have to keep going back to them in future. (We discuss this subject mostly in terms of how Isotoma are not a larger agency!)

Good agencies are expensive but not as expensive as bad recruitment

The cost of hiring an agency for a given software project is likely to cost around the same as the annual salary of a developer and/or development team. Given this, it can seem galling for potential customers that they’re spending the right amount of money in the wrong place. We discuss how a good agency can help mitigate both the opportunity cost and assume all the tricky recruitment risk in the relationship. (Aren’t we nice?)

Continuous delivery shouldn’t necessarily mean continuous agency billing

One of the goals of any software project should be to build and develop the skills to support it in-house. If you’ve had a key piece of software in production for 18 months and you’re still relying on a third party to administer, fix or deploy it then you might have a problem.

Asking an agency to do something is the easy bit

Commissioning work with third party agencies is one step in a multi-step journey. This journey needs to include understanding how you’re defining your requirements, how you plan to receive it when it’s done and how you’re going to give the project good governance when it’s in flight.

Also there is a good deal of talk about werewolves

We’re not mega sure why.

Hopefully you’ll find it as interesting as we did. You can listen to the podcast and subscribe!

Leave a Reply

Your email address will not be published. Required fields are marked *