Profit center vs. cost center: How company structure affects engineering

Profit center vs. cost center in engineering teams

Profit center:

• Engineering teams seen as revenue generators
• Focused on product development and expansion
• Specialization in specific areas of the product
• Initiatives in place to promote cross-team collaboration
• Example: "Live My Life" initiative for team members to experience different teams

Cost center:

• Engineering teams seen as resources for projects
• Focus on addressing tech debt and project budgets
• Variety of projects to prevent siloing
• Slower pace of work, better work-life balance
• Example: Financial company treating engineering as a cost center

Conclusion:

• Different mentalities in treating engineering as profit or cost centers
• Work-life balance and age demographic differences in profit and cost centers

Overall, understanding the distinction between profit and cost centers in engineering teams is crucial for developers to thrive in their roles based on the company's structure and mindset.