Build vs Buy: should you hire a developer or outsource?
Your agency is growing, web project requests are multiplying, and you face a strategic choice: should you hire an in-house developer or continue outsourcing your projects? This decision can have a major impact on your profitability and growth capacity.
The two options in detail
Before comparing costs, it is essential to understand what each option actually involves.
Option 1: Hire a developer
Recruiting an in-house web developer means adding a permanent team member. In Belgium (and similarly in the UK and Ireland), this involves significant costs that go well beyond the gross salary.
Hiring costs in Belgium (2025)
| Profile | Annual gross salary | Total employer cost |
|---|---|---|
| Junior (0-2 years) | EUR 35,000 - 45,000 | EUR 47,000 - 60,000 |
| Mid-level (3-5 years) | EUR 45,000 - 55,000 | EUR 60,000 - 74,000 |
| Senior (5+ years) | EUR 55,000 - 70,000 | EUR 74,000 - 94,000 |
Total employer cost = gross salary + employer contributions (~35%) + benefits (meal vouchers, insurance, etc.)
On top of these costs, there are often underestimated expenses:
- Equipment: computer, software licences, desk (EUR 2,000 - 5,000)
- Recruitment: job adverts, time spent, possibly a recruitment agency (EUR 3,000 - 10,000)
- Training and onboarding: adaptation time, specific training (1-3 months of reduced productivity)
- Management: supervision, meetings, appraisals (owner or manager time)
Option 2: Outsource
Outsourcing can take several forms, each with its own characteristics:
- Freelancer: Independent developer, often specialised, billed daily or per project. Price: EUR 400 - 700 / day
- Dev agency: Team of multiple developers, billed per project or on retainer. Price: EUR 1,500 - 5,000+ / project
- White-label partner: Invisible technical partner, billed per project, complete discretion. Price: EUR 450 - 3,000 / project
Cost comparison
To make an informed choice, let us compare the annual costs of each option.
Annual comparison
| Option | Fixed cost | Variable cost | Estimated total |
|---|---|---|---|
| Junior in-house developer | EUR 47,000 - 60,000 | Equipment, training, management | EUR 55,000 - 70,000 |
| Senior in-house developer | EUR 74,000 - 94,000 | Equipment, training, management | EUR 85,000 - 110,000 |
| Freelancer (average rate) | EUR 0 | EUR 400 - 700 / day | Variable by project |
| White-label partner | EUR 0 | EUR 450 - 3,000 / project | Variable by project |
The break-even point
The key question is: at what project volume does hiring become cost-effective?
Let us take a mid-level developer costing EUR 70,000/year (all-in) and a white-label partner charging an average of EUR 1,500 per project: 70,000 / 1,500 = ~47 projects per year. If you have fewer than 47 projects per year (less than 4 projects per month), outsourcing is more cost-effective. Beyond that, hiring starts to make financial sense.
Advantages and disadvantages
Hiring
- ✕Immediate and exclusive availability
- ✕Deep knowledge of your clients
- ✕Full control over the work
- ✕Strengthened company culture
- ✕High and permanent fixed costs
- ✕Risk of underutilisation during quiet periods
- ✕Recruitment and onboarding time
- ✕Risk of staff turnover
Outsourcing
- Zero fixed costs, pay only for what you use
- Maximum flexibility
- Access to specialised expertise
- Immediate scalability
- Dependency on a third party
- Less direct control
- Coordination required
- Availability risk (depending on partner)
The choice between hiring and outsourcing depends primarily on your project volume, risk appetite, and strategic vision.
When hiring makes sense
Hiring a developer becomes strategic in certain specific situations:
High and consistent volume
You have more than 4-5 web projects per month, consistently.
Need for intellectual property
You are developing proprietary tools or products.
Complex and iterative projects
Complex web applications requiring rapid iterations.
Differentiation strategy
Web development is becoming a key element of your market positioning.
Management capacity
You have the resources to recruit and manage a technical profile.
When outsourcing makes sense
Variable volume
Your workload fluctuates. Outsourcing lets you pay only for what you use.
Growth phase
You are testing the web development market. Outsourcing lets you validate demand.
Different core business
Your expertise is SEO, marketing, or communications. Development is complementary.
Need for flexibility
You want to accept projects of varying sizes without capacity constraints.
Minimising risk
You prefer variable costs over fixed costs. A partner costs nothing without projects.
Small team
You are a freelancer or a small agency of 2-5 people.
The verdict: a hybrid approach?
In reality, many successful agencies adopt a hybrid approach: they start by outsourcing, then hire when volume justifies it, whilst keeping an external partner to absorb peak workloads.
Start with outsourcing
Validate demand, build your offering, test different partners.
Measure volume
Track your project count over 12-18 months. Calculate the annual cost of outsourcing.
Hire if justified
If you consistently exceed 4-5 projects per month, consider making your first hire.
Keep an external partner
Even after hiring, maintain a relationship with a white-label partner for peak periods.
Conclusion
The decision between hiring and outsourcing is not binary. It depends on your project volume, your appetite for risk, your management skills, and your strategic vision.
Key questions to ask yourself:
- How many web projects do you have per month on average?
- Is this volume stable or fluctuating?
- Do you have the resources to recruit and manage a developer?
- Is web development part of your long-term strategy?
- What level of financial risk are you willing to accept?
Related articles
Case Study: How an SEO Agency
A Liège SEO agency, 3 consultants, a very visible growth ceiling. In 6 months, by outsourcing web development through a white-label partnership, the agency tripled its active client portfolio without hiring. Here is what happened, how, and how to replicate it.
White-LabelWhite-label, freelancer, or offshore agency:
You need to boost your web development capacity but can't decide between a freelancer, an offshore agency, and a white-label partner? This objective comparison analyses all three options from every angle: real costs, reliability, confidentiality, and fit for your agency profile.
White-LabelPilot program: how to test a white-label partner
Before entrusting your reputation to a white-label partner, there is a proven method to validate the collaboration without putting your clients at risk. The pilot program is that method. Here is how to structure it, execute it, and draw the right conclusions.