Landing Top Developers: Talent Platforms vs. Developer Shops

In spite of layoffs and turmoil in the Big Tech world, 54% of tech organizations still experienced tech skills shortages in 2023. There’s no doubt about it: Software developers will always be in high demand.

Gone are the days when full-time, direct hiring was the only approach. Businesses are turning to diverse models to hire qualified developers. Increasingly, they are relying on contractor marketplaces/talent platforms or developer shops and services to secure the best software talent.

Both of these models offer a breadth of services, approaches, and specializations. Often, you can find not only developers but also quality assurance engineers, UX/UI designers, and other professionals. For the most part, both types of organizations carefully vet all candidates on your behalf, too. It’s a streamlined and efficient approach that allows you to find the best tech professionals fast.

However, contractor marketplaces and developer shops differ in employment model and approach. Which model is right for you? Here’s an overview of what you can expect.

Core Foundations of the Contractor Marketplace / Talent Platform

Team Ownership

When you hire developers through talent platforms, you have team ownership. The contractor marketplace vets the candidates, so you know you’re getting top talent. But you act as the manager.

At Terminal, for example, we might serve as the Employer of Record (EOR) or facilitate contract to hire. Or, you could hire developers directly through us. In any case, you lead your own team. You’re the employer, whether you hire full-time, permanent team members; augment your team with full-time contractors; or build tech teams to support ongoing development efforts. This is a longer-term solution.

You also have full control over your team. You own the performance relationship with the developer, and you set the standards and evaluate their work using your in-house metrics. 

Community-driven Approach

Using a talent platform, you can interview numerous developers to find the best fit for your team and hire them immediately. This model contrasts the dev shop model, where you have a limited ability to find alternatives if you don’t think the supplied talent is a good fit.

Essentially, the contractor marketplace or talent platform is a community-driven approach. You can review and interview individual candidates who have been pre-vetted, using your existing procedures. While we thoroughly evaluate developers, you can still perform independent technical vetting and soft skills assessments to ensure you find the right qualifications and fit for your business.  We streamline onboarding through our Remote Management Platform and handle all the logistics. The goal is to find the best fit for your company—not just the most skilled developers.

Core Foundations of Dev Shops and Services

Project-based Model

Dev shops and services essentially “loan” you talent through various models, such as staff augmentation or outsourcing entire projects. While the developer may be working with you under your management, they still ultimately report to the contracting company. They may complete end-to-end projects on behalf of your company instead of with your developers, although some companies offer the latter option, too.

Often, this is a project-based model. Some companies do offer longer-term engagements where the tech talent works on multiple projects longer-term, but they still ultimately report to the outsourcing company. Dev shops may roll developers off your projects since you’re contracting with them for the service, not the developers themselves. This can cause disruption in workflows and delay your release. Between projects or engagements, software developers typically remain “on the bench,” so to speak. 

Intermediary Approach

Through this model, you’re partnering with the outsourcing company, rather than the developers themselves. That means that it’s a less people-based approach. Many dev shops won’t even allow you to interview the developers themselves before they begin working with you. You won’t be able to do independent technical vetting as you normally would with a long-term hire.

Given that you don’t have team ownership, you don’t have full control over the performance relationship with the developer. That means that while you may be able to deliver feedback through the dev shop, you usually won’t be able to evaluate them directly.

Building Long-Lasting Relationships

“We have so many initiatives that are still in the pipeline, but we are not getting enough people to kick them off,” one executive told Deloitte. That’s what you need: people. And not just any people—developers who fit in seamlessly with your existing team and deliver high-quality results. Without the talent on your side, your innovative ideas will never come to fruition.

While development shops may emphasize partnerships, talent platforms emphasize relationships. It’s more than just ramping up efforts and getting more manpower—it’s about securing talent that’s part of your team. 

Through a contractor marketplace like Terminal, you can find developers specifically to help you meet your goals, not just to address skills shortages. You’ll be better equipped to cultivate talent that aligns with your work environment and culture, setting the stage for a more cohesive organization. This is critical for producing cutting-edge projects in an ever-competitive—and ever-evolving—technology landscape.