Three Ways to Hire Software Engineers: The Right Approach for Your Business

Success in software development projects depends on having the right people in place at the right time. There are multiple ways to hire software engineers, and the right approach depends on your project scope, budget, and long-term goals.

When choosing how to hire software engineers, business leaders have three options:

• Full-time engineering employees
• Freelance engineers for hire
• Software consultancies

This guide explains the pros and cons of each model and when it may be most suitable.

How to Hire Software Engineers Effectively: Exploring Three Proven Approaches

When looking into how to hire software engineers, there's no one-size-fits-all solution. Every business has different hiring needs based on budget, project complexity, and growth strategy.

Whether you opt for full-time employees, freelancers, or a software consultancy, each option has benefits and challenges. Here’s a closer look at the three primary ways to hire software engineers and how each model fits different business goals.

Hiring Full-Time Employees (FTEs)

Building an in-house engineering team is often seen as the gold standard. This may have been true ten years ago, but today's answer is more nuanced. Knowing how to hire software engineers is critical for finding a good fit, but it isn’t easy without existing in-house expertise. It can also carry heavier costs and come with inherent inflexibility.

However, hiring in-house engineering teams can benefit businesses prioritizing long-term software development. 

• Pros:
  
  • Long-term commitment: Full-time engineers are part of your company. They're more likely to stick around long-term, especially if you offer competitive benefits.
  • Strong collaboration with internal teams: Full-time engineers get to know their teams and work as a unit. You're their only employer, and they'll work per your SOPs.
  • High level of control: As an engineer's sole employer, you have more say about how, when, and what they work on.
• Cons:
  
  • High costs: Full-time employees cost more than their salaries. They also receive benefits like insurance and paid time off.
  • Difficult to scale: Onboarding is slow, and if an FTE doesn’t work out, offboarding is costly and time-consuming.
  • Limited flexibility: If your project needs change, you're stuck with a fixed headcount. You're also limited by the skillset of your internal team.
    
• Best for: Businesses with sustained development needs and the ability to invest in in-house talent.

Working with Freelance Software Engineers

When looking at ways to hire software engineers, freelance engineers for hire are an appealing option. They provide on-demand development talent and are typically cheaper than full-time engineers.

Outsourcing to freelance engineers can help with short-term, specific needs while staying within budget. They onboard quickly and typically don't come with lengthy commitments.

However, scaling with freelance software engineers can be unpredictable. Due to the nature of the freelance market, you may not have continuity if you need to revisit a project later.

• Pros:
  
  • Scalable: Since freelance engineers onboard quickly, adding headcount is easy. It's also easy to reduce headcount as needs change.
  • Pay-as-you-go: Rather than committing to the high costs of onboarding employees, you can pay for as much or as little work as you need.
  • Global talent pool: You can work with freelance engineers in Latin America, India, and beyond. It's easy to find contractors on online marketplaces in other countries.
• Cons:
  
  • Unreliable continuity: If you need to expand later or work on the same project again, there’s no guarantee the same freelance engineer will be available. Moreover, it can be difficult to pick up where they left off if their documentation is inconsistent.
  • Less commitment: Freelancers juggle multiple clients, and you're likely one of several. If they get a better offer or lose interest, you'll have to find a replacement.
  • Potential integration challenges: Onboarding freelancers into an existing workflow can require extra effort. You’ll need to determine how much of your internal infrastructure you will share with a third party.
• Best for: Businesses with moderate to high-risk tolerances who need short-term assistance.

Partnering with a Software Consultancy: The Best of Both Worlds

If you want the flexibility of freelancers but need the commitment level of in-house teams, software consultancies are one of the most appealing ways to hire software engineers.

Consultancies can deliver end-to-end projects, but many also offer on-demand engineers for hire. When you work with a consultancy, you can work with their engineers hourly. The consultancy handles vetting, pay, onboarding, and offboarding so you can focus on your projects.

• Pros:
  
  • Flexible and scalable: You can easily adjust team size without long-term commitments. Some consultancies, like FullStack, allow you to swap team members as needs change.
  • Hassle-free management: Your software consultancy will handle the nitty-gritty of managing a team. This is especially appealing when working with global teams, where compliance and global payroll can get complicated.
  • Pre-vetted talent: Software consultancies screen their on-demand software engineers. If they're with a consultancy, their quality is backed by that consultancy.
  • Continuity and documentation: Consultancies have in-house standard documentation procedures. No matter what software engineer is working on your project, your consulting firm will keep track of all documentation to ensure continuity. If you want to reopen a project later, you can do so seamlessly.
• Cons:
  
  • Higher Costs: Consultancies can be more expensive than freelancers. However, they're typically cheaper than hiring engineers in-house.
  • Less Direct Control: You sacrifice some control compared to hiring in-house engineers. However, software engineers with a consultancy can still integrate into your team like any other employee.
• Best for: Companies needing flexibility, quality assurance, and scalable teams without the risks of freelancers or the overhead of full-time hires.

Consultancies are a great way to find the IT talent you need while balancing the best aspects of freelancers and FTEs.

Benefits of Outsourcing Software Engineers

Hiring in-house isn’t always the most efficient solution, especially for businesses that need to move quickly. Outsourcing to nearshore and offshore software teams has gained popularity recently.There are multiple benefits to outsourcing engineering:

• More options: Outsourcing means access to a global pool of talent. You can find the best engineers for your needs, whether they're in New York City or Buenos Aires.
• More flexibility: Outsourced engineering teams can scale up or down very quickly. Whether working with freelance engineers or a consultancy, you have more options.
• Less overhead: Outsourcing software engineering reduces in-house equipment, recruiting, and employee benefit costs.

Due to these benefits, many companies choose to outsource software engineers. It provides the agility to meet project demands while keeping financial risk low.

Reasons to Work with a Software Consultancy Over Freelancers

While freelance software developers offer flexibility and affordability, there are better ways to hire software engineers. A freelance developer might be available today but gone tomorrow, leaving projects without continuity. If you need to scale or revisit a project later, there’s no guarantee they will be available. Additionally, you're dependent on the developer to keep good enough documentation for someone else to use later.

Consultancies, on the other hand, provide stability and long-term support. They ensure that engineers are pre-vetted, managed, and available as needed.

Unlike freelance engineers, who may juggle multiple clients, consultancies maintain accountability and guarantee quality. You can also replace engineers without losing progress as needed. This level of reliability is essential for businesses that value efficiency and want to avoid project disruptions.

Tips for Recruiting Software Developers: How to Hire Software Engineers

When looking at how to hire software engineers, weigh expertise, cultural fit, and long-term scalability. Here are some key steps to ensure a successful hire:

• Define requirements: Identify necessary skills, experience, and technologies.
• Assess fit: Look for candidates aligned with company values and proven expertise.
• Choose the right model: Decide between full-time, freelancers, or consultancies.
• Vet thoroughly: Use coding tests, technical interviews, and references.
• Plan for continuity: Set up proper onboarding, documentation, and communication.

If your business needs more than just individual engineers, consider teams that provide engineering talent and strategic guidance—helping you hire and build successful, scalable products.

The Best Way to Hire Software Engineers in 2025

Understanding how to hire software engineers means evaluating all three models—full-time hires, freelancers, and consultancies—to find the right fit for your business. Each approach has trade-offs, so weighing the pros and cons of different ways to hire software engineers will help make an informed approach. In summary, here are the pros and cons:

• Full-Time Engineers: Stability, but high costs and inflexibility if you need to adjust your team.
• Freelancers: Cost-effective, but scaling and continuity can be unpredictable.
• Consultancies: Best balance of flexibility and commitment, with a cost falling between freelancers and FTEs. They’re a leading method for balancing cost savings and quality in software development.

If you’re looking to work as an engineer, explore FullStack’s hiring solutions to get FullStack Certified and start working with clients.