Business6 min read

Insource or outsource development: cost comparison

Hire a developer or use a service provider? Detailed comparison of real costs: salaries, charges, agency rates, and decision criteria.

Jimmy Lefevre

Founder & Product Builder

May 3, 2026
Insource or outsource development: cost comparison

Key takeaway

An internal developer costs around 80,000 EUR/year (salary + charges), versus 40 to 120,000 EUR externally. The right choice depends on project duration, need for control and skill availability.

The essentials - The real cost of an internal developer in France exceeds €80,000 per year including charges, compared to €40,000 to €120,000 for an equivalent outsourced project, but this raw comparison masks decisive factors like flexibility, skill development, and time-to-market that can reverse the equation depending on your context.

The false dilemma that paralyzes decisions

Should you hire a developer or use a service provider? This question comes up systematically when a company launches a digital project. And the answer is never as simple as "one or the other."

The real question isn't about choosing a side, but identifying which combination matches your current situation and your 12-24 month objectives.

The real cost of an internal team

Salaries and charges

A junior developer in France costs between €35,000 and €45,000 gross annually. A senior profile reaches €55,000 to €75,000. Add employer charges (about 45%) and you get the real employer cost.

A senior developer at €65,000 gross therefore represents about €94,000 in total annual cost.

Invisible costs

Recruitment: agency fees (15-20% of annual salary), time spent in interviews, 1 to 3 month notice period before actual arrival.

Equipment and tools: workstation, software licenses, cloud access. Count €5,000 to €10,000 the first year.

Management: a lone developer needs a technical reference. Without supervision, quality and productivity drop.

Continuing education: development evolves fast. Plan for 3 to 5 training days per year minimum.

Turnover: the rotation rate in tech reaches 15-20%. Each departure costs 6 to 9 months of salary in lost productivity and recruitment.

The real cost of outsourcing

Rates charged

Agencies and freelancers charge based on their expertise and location. In France:

  • Junior freelancer: €300 - €450/day
  • Senior freelancer: €500 - €700/day
  • Generalist web agency: €400 - €600/day
  • Specialized agency: €600 - €900/day

A 60-day project with an agency at €550/day represents €33,000.

What the daily rate includes (or not)

An agency includes in its rate: project management, quality assurance, methodology. A freelancer charges less but you must handle coordination.

Hidden outsourcing costs: briefing time, validations, post-delivery adjustments. Plan for 10 to 20% internal time on top of the provider budget.

Need help with this topic?

Our experts can guide you through your development strategy.

Comparison by scenario

One-off project (3-6 months)

Outsourcing wins. Hiring for a limited project makes no economic sense. Recruitment time alone often exceeds project duration.

External cost: €30,000 - €80,000 Internal cost: impossible to amortize

Recurring but variable need

Hybrid model. One internal resource for the foundation, providers for activity peaks. This flexibility optimizes the cost/responsiveness ratio.

Product in continuous development

Insourcing becomes relevant beyond 18-24 months of full-time work. Accumulated business knowledge and responsiveness compensate for the higher cost.

Break-even point: when annual external budget exceeds €100,000, insourcing deserves analysis.

Criteria beyond cost

Strategic skills

Outsource what's not your core business. Insource what differentiates you. A custom development critical to your business deserves internal mastery.

Time-to-market

A seasoned internal team delivers faster on incremental evolutions. An experienced provider accelerates new projects thanks to proven methodologies.

Risks

Insourcing concentrates risk on a few key people. Outsourcing spreads it but creates external dependency.

Finding the right balance

There's no universal answer. The right strategy often combines:

  • A minimal internal technical foundation (CTO, lead dev)
  • External partners for specialized expertise
  • Flexibility to absorb workload variations

We support companies in their development projects, complementing or replacing internal teams, with a skills transfer approach when relevant.

Unsure about the best approach for your project? Let's analyze your situation together. In 30 minutes, we can help you clarify the most suitable option for your context.

externalisationrecrutementdéveloppementcoûtséquipe techfreelanceagence

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