Should You Hire Permanent or Contract for Your Next D365 Project?
A clear, practical breakdown for Microsoft Partners making talent decisions.
When a new D365 project lands, one of the first questions every Microsoft Partner faces is:
“Do we hire someone permanently, or bring in a contractor?”
The truth is that both routes can be the right choice. At Shape IT, we support Partners across a wide range of Business Central and F&O programmes, and the best option always depends on project scope, timelines, budget, and your existing team structure.
Below is a straightforward guide to help you determine the right approach.
When a Permanent Hire Makes Sense
1. You want stability and long-term retention
If the role will support several future projects, BAU, or ongoing client work, a permanent hire provides consistency.
They build internal knowledge, understand your delivery processes, and contribute to continuous improvement.
2. You are building or maturing a D365 practice
As your practice grows, permanent staff help define methodologies, strengthen documentation standards, and establish delivery culture.
You are hiring not just for a project, but for the ongoing development of the team.
3. You want someone who can grow internally
Permanent consultants are far more likely to:
- take on leadership responsibilities
- mentor junior staff
- support presales
- take ownership of key accounts
This type of long-term development is harder to achieve with contractors.
4. The long-term cost is more efficient
While salaries are a fixed cost, permanent hires are generally more cost-effective over time when compared with extended contractor day rates.
When a Contractor Is the Better Option
1. You need someone immediately
Contractors typically start far faster than permanent staff. For urgent or failing projects, the ability to start within days is often critical.
2. The project requires specialist expertise
If your project needs niche skills — such as manufacturing, warehousing, advanced finance, integrations, migrations, or complex AL development — a contractor can fill that gap without you needing to hire a permanent expert you may not need long term.
3. Your workload is temporary or fluctuating
Contractors are ideal for:
- single implementations
- backlog spikes
- rescue work
- time-bound migrations
You pay for what you need, when you need it.
4. You need fast results
Contractors are used to joining mid-project, providing clarity, and bringing structure. They often deliver impact quickly because they have been in similar situations many times before.
Permanent vs Contract: A Practical Comparison
| Area | Permanent | Contract |
|---|---|---|
| Cost per month | Lower | Higher |
| Cost over time | More efficient | Can exceed perm costs if long-term |
| Time to start | Slower | Fast |
| Flexibility | Medium | High |
| Long-term value | High | Low |
| Best for | Growing teams, BAU | Urgent or specialist projects |
The summary:
Permanent hires offer stability and long-term value.
Contractors offer speed, flexibility, and high-level expertise.
Which Should You Choose? A Simple Guide
You should hire permanent if:
- The role will be ongoing
- You are building your D365 practice
- You want cultural alignment
- You want to reduce long-term delivery costs
You should hire contract if:
- You need someone quickly
- The skillset is specialist
- The workload is uncertain
- You want immediate impact with limited ramp-up
Many Microsoft Partners choose a hybrid approach: a strong core permanent team supported by contractors during key phases of delivery.
How Shape IT Helps
Shape IT specialises exclusively in D365 recruitment. We work closely with Microsoft Partners to understand timelines, project scope, budgets, and technical requirements, then advise whether permanent or contract is the most effective route.
If you want an honest assessment of what your next project truly requires, we can help you choose the right option. Get in touch with us!