Introduction
MVP (Minimum Viable Product) is the launch of a product that presents its most basic functionality to gather user feedback. However, should you prefer an external agency or an internal team during the MVP development process? The answer to this question can vary based on your project's needs and budget.What is MVP and Why is it Important?
MVP aims to release a product in its most basic form to understand the real needs of users. This process saves time and costs. For startups, developing an MVP is crucial for quickly obtaining customer feedback and accelerating the product development process.
External Agency vs. Internal Team: Key Definitions
External agencies are professional teams specialized in a specific project. Internal teams consist of the company's own employees and approach the project with a long-term perspective. Both options offer different advantages and disadvantages.
Advantages and Disadvantages of Using an External Agency
Advantages: Expertise and Speed
External agencies typically consist of expert professionals who can quickly adapt to the project. This ensures the project is completed on time.
| Advantages | Description |
|---|---|
| Expertise | External agencies are teams specialized in specific fields. |
| Speed | They can start the project quickly. |
| Innovative Solutions | They can offer experiences gained from different projects. |
Disadvantages: Cost and Loss of Control
Working with external agencies can be 20-40% more expensive than building an internal team. Additionally, there is a risk of losing control over the project. In cases where the project scope is not clearly defined, unwanted outcomes may arise.
Advantages and Disadvantages of Building an Internal Team
Advantages: Long-Term Cost Savings and Team Cohesion
Building an internal team provides long-term cost advantages. Moreover, the cohesion within the team helps projects progress more efficiently.
Disadvantages: Initial Time and Resource Requirements
Establishing an internal team may require time and resources initially. The recruitment processes, training, and team dynamics can take time to develop.
Real Example: Experience of Company X
Company X has experienced both using an internal team and an external agency during the MVP development process. In the initial phase with the external agency, the project was completed quickly, but costs were higher than expected. When restarted with the internal team, changes to the project were made more quickly and cost-effectively.
Results of Working with an External Agency
When working with an external agency, the project's completion time was shortened, but costs increased by 30%.
Benefits of Working with an Internal Team
After the internal team was established, projects began to be completed 73% faster, and costs decreased by 25%.
Common Mistakes and What to Avoid
Making the Wrong Choice
A common mistake is deciding on an external agency or internal team without fully understanding the project's needs.
Neglect in Project Management
Shortcomings in project management can lead to time and cost overruns. It is essential to clearly define the project scope.
The Point Most Teams Miss: What to Pay Attention to When Using an External Agency?
Communication and Transparency
When working with an external agency, ensuring communication and transparency is critical for the healthy progress of the project.
Clarity of Project Scope
Clearly defining the scope at the beginning of the project prevents unwanted surprises.
Summary in 30 Seconds
- External agencies offer speed and expertise.
- Internal teams provide long-term cost advantages.
- Both options have their own advantages and disadvantages.
Conclusion and Contact
External agency or internal team? You should consider your project's needs and budget before making a decision. Whether you choose an external agency or an internal team, there are many factors to pay attention to in both cases.
If you need support during the MVP development process, we would be happy to work with you. get in touch.
For more information, you can check out the article No-Code and Low-Code Tools for MVP Development for Startups: Which is More Suitable?.
