5 questions to ask when hiring a technical team

The opinions expressed by entrepreneurs contributors are their own.

Imagine this: your business is booming, your team is growing, and you are now thinking about the next steps for the future of your business. One of these issues may involve taking departments in-house. This is the scenario I encounter regularly.

Throughout my career, I started a successful business that grew into 150 franchises across the country. I currently run a full company and advise other technology companies while mentoring various founders. What's unique about my experience is that I've run businesses with a basic technology competency and others without. When asked to hire an in-house technical team, I recommend a few questions when considering your decision:

1. How big are your expenses?

It's critical to assess how much you're spending on a technical team outside of your organization versus what it would cost to bring them in-house. Typically, if you're spending over $1 million a year on an outside tech team, now is when you can start making those Apple comparisons. For around the same price, you could probably have a team of 2-4 software developers and a strategy manager. Are you getting enough value for your overhead?

Related: Demand for Tech Talent Forces IT Leaders to Adjust Recruitment Strategies

2. Is this the core of your business?

Consider your core skills and personal expertise before making this decision. If you run a non-tech business, do you need an in-house tech team? Who will oversee the nuances of technology decisions if you are not an expert yourself? Of course, if you're an underlying tech company that needs a single interface to run the business, this decision may be an incentive to bring someone in-house sooner.

Related: How Independent Software Developers Fill the Skills Gap

3. Where are your freelancers?

Many technical teams rely on foreign independents for a significant part of their production. Although I have had success with foreign partners, I have also encountered critical problems. There is often a disconnect with time zones – forcing you to take meetings well after business hours – coupled with communication breakdowns and quality control issues. You never want to rely on someone who is unreliable to ensure the success of your business.

4. What would an in-house technical department look like?

Once you think you're ready to build this in-house technology department, you need to plan and budget for some additional considerations. I explain this by telling my clients to imagine that they are building a house. You wouldn't hire a general maintenance person to do all the necessary work. Of course, you would want an electrician, a plumber, a builder, an architect, etc. The same thought process applies to a technology team. You will need qualified specialists in specialties to meet your exact needs. This is the advantage you get with an external independent team, unless you budget for all the specialists that would be needed.

Let's go further and assume that you are recruiting for this internal department. Software developers are notoriously career nomads. This is not an insult; you can't blame them for jumping from job to job. Typically, if they're good, they get exponentially more opportunities in just a few years.

Typically, it takes the developer four to six months to master your technical needs, then on average, they're gone after 18 months. This means you only have one solid year to see their full potential. When you need to hire someone, you often pay recruitment fees which can be a significant percentage of the employee's salary. On the other hand, you can keep your developer happy by matching their salary potential if they leave, but that also costs a lot. It's not a cheap game to play, but the benefits...