Many technology companies are strong in one field, such as software, mechanics or biology, and reach a project that needs electronics or embedded development. The question is whether to hire, or to outsource the work. There is no single answer, but there are clear signs.
When outsourcing is the right choice
- The need is temporary. One or two projects a year don't justify a full-time position.
- Time is short. Hiring a senior engineer takes months, plus more time until they know the product. An experienced contractor starts within days.
- You need specific knowledge. High-power design, RF communication or remote firmware updates are specialties. It doesn't always pay to build them in-house for one project.
- You need an outside opinion. A design review before production can save a whole round of fixes.
When it is better to hire
- The electronics are the core of the product and will keep evolving.
- There is a steady flow of projects that justifies a team.
- The knowledge must stay inside the company for the long term.
Even in these cases, many companies start with an outside contractor to get the first version to market, and hire in parallel.
How to choose a development partner
- Relevant experience. Ask to see similar projects, not just a list of technologies.
- Hardware and software together. When the same person owns the board and the code, problems on the boundary between them are solved faster. Why.
- Direct contact. Make sure you work with the engineer who develops, not only with a salesperson or project manager.
- A clear process. Stages with clear deliverables and a price known in advance for each stage.
A small, focused contractor is often a better fit than a large design house for this kind of work. Small vs large company.
What must be in the contract
- Intellectual property: all schematics, PCB files and source code belong to the company.
- NDA: a non-disclosure agreement before sharing sensitive information.
- Documentation and handover: exactly what is delivered at the end, so your team can continue without the contractor.
Summary
Good outsourcing is not "throwing work over the fence". It is adding a senior engineer to your team for a defined period, working by your procedures and leaving all the knowledge with you. How it works with us.
Written by Roman Alperovich, founder and lead engineer at ProtoMakers.