The Real Cost of Building and Running an Efficient Engineering Team

When businesses consider internalising their development efforts—whether through a self-managed offshore partner or by creating a dedicated internal team to replace an external software partner—it’s tempting to focus on the apparent cost savings of hiring a few skilled engineers. After all, the promise of reduced expenses and direct control over the work can seem like the perfect solution.

However, the reality is far more complex.

It’s Not Just About Coders

Building a successful development team requires more than just great engineers. Software development is a team sport, and successful projects demand a variety of supporting roles to deliver results effectively:

• Project Managers to ensure timelines, priorities, and resources are managed.
• Business Analysts to bridge the gap between business needs and technical implementation.
• Quality Assurance Testers to guarantee the reliability and quality of deliverables.
• Tech Leads or Architects to set the technical vision and make key decisions.
• Decision-Makers who oversee the strategy, provide technical direction, and ensure alignment with broader business goals.

Without these complementary roles, even the most talented developers can flounder. Engineers are experts at building solutions, but they often need guidance, structure, and validation to ensure their work meets the organisation’s needs.

The Hidden Risks of Building a Team

• Oversight Challenges: If you’re not highly technical, how do you ensure your engineers are delivering what they promise? Delivery is king, but without the right checks and balances, it’s all too easy for “talking the talk” to overshadow actual results.
• Quality Variability: Finding great developers isn’t easy. Even seasoned professionals must “kiss a lot of frogs” to find the right talent. Key indicators can help in identifying high performers, but every hiring decision carries an element of risk—and even the best screening processes can sometimes fall short.
• Team Cohesion: Hiring skilled individuals doesn’t guarantee a cohesive team. Engineers, analysts, and testers must collaborate seamlessly, which requires ongoing effort, leadership, and cultural alignment.

The True Price of Success

The cost of assembling a high-functioning development team isn’t just about salaries—it’s about the broader investment in creating an environment where that team can thrive:

• Tools and infrastructure to support efficient workflows.
• Leadership to guide the team and make informed technical decisions.
• Training and development to keep skills sharp and aligned with business needs.
• Time spent recruiting, onboarding, and aligning individuals into a cohesive unit.

Why TSD?

At TSD, we’ve spent years refining what it takes to build and manage high-performing development teams. We’ve seen what works—and what doesn’t—through our own successes and lessons learned. With our TSD Elevate Framework, we offer more than just advice; we provide a proven system to strengthen your engineering capabilities, mitigate risks, and ensure you don’t have to face these challenges alone.