Reduce Costs by Hiring Remote Teams For Software Development Projects
Outsourcing was a popular way of hiring remote software developer teams back in the day. It did help greatly in reducing costs for a lot of offshore companies. However this old model of hiring cost-effective personnel has gone out of fashion in recent years .It has made way for an updated way of hiring remote developers – distributed teams. This is because over time with the growing competitiveness in the business world, the tradeoff between lower costs and higher skillsets had started becoming too expensive for firms in the long term. Companies need more long term software engineers to work on their products as a team with skills that match global standards. Thus, distributed teams took over outsourcing to be the main choice for employers to hire remote teams of software developers for their projects.
Remote teams when hired through appropriate platforms can bring about incredible cost savings for businesses. Many business managers and recruiters remain apprehensive about the viability of working with remote teams; but it is still important to evaluate the cost advantages that it can potentially bring to their company.
Reduced Operational Costs
2021 saw businesses get hit hard financially. Reducing their operational costs became vital. Most businesses managed to achieve this successfully by hiring remote software developers for their projects. They do it by eliminating all the recruiting and infrastructure costs that otherwise come with such tasks. It was also during the pandemic that companies like Gaper and Toptal found traction. Instead of following the old outsourcing model, their business model allows client businesses to hire teams of engineers and developers exactly like an in-house team. The only difference is that they work remotely.
The team may comprise a small number of developers, or it may constitute a complete team of junior, senior, mid-level developers, UI/UX and graphic designers, software architects, QA engineers, business analysis professionals and project managers.
Cost Advantage by Country
As long as you are not compromising on the quality and skill set of the teams you collaborating with (by hiring remote engineers from reliable companies). You may be able to save significant costs of labour by hiring them from countries that offer you competitive rates. Some European countries have average hourly rates of $25-$50 while Asian countries’ have rates ranging from $15-$40. It is extremely important to remember that you should not hire remote engineers from a specific country. Just because the cost is lower relative to your local rates.
This approach may have you end up with subpar engineers who leave your firm after a while and cost you more in the longer run. The idea is that it is possible to hire vetted and trained engineers remotely without giving up work quality. If your company does not have the means to do these evaluations. It is better to hire directly from another company that takes care of this hassle for you.
Conclusion
83% of US firms consider remote hiring a success. Because their developers are hired after thorough vetting and assessment (either inhouse or through businesses like Gaper or Toptal). They are able to achieve that competitive edge, flexibility and productivity. This allows these companies both the cost savings and the talent acquisition that is made more efficient through remote hiring.
A lot of the costs that are included in these savings are actually latent costs. You may not be able to quantify them right now. But they only become apparent when compared to a counterfactual scenario. A scenario where the skill set of remote teams is not harnessed or an alternative but cheaper option is resorted to.
It is also important to note that hiring remote teams of software developers for your projects affords you the flexibility and scalability. That helps you through uncertain times by acting as a cushion against financial strains. 2020 was a huge case study in the benefits of hiring remote developers. Companies who did that were able to smoothly continue their work through the pandemic. While others with more rigid work policies and structures had to bear greater strains.
