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What is Better: Remote Software Development Team or In-house Team


Are you one of those entrepreneurs who is continually seeking the ways to minimize the costs, optimize the workflow, and increase the company’s revenue? Are you in need of a new software product, but haven’t yet decided the right approach to this issue?

One of the problems most businesses face is the choice between working with remote teams of developers and hiring in-house ones.

Is it a challenge for you too? We’ve all been there! That’s why UDTech have decided to explain in detail all the pros and cons of outsourcing and hope it will help you to make the right choice.

For a couple of decades, many companies have tended to hire workers from all over the world without reference to their geographic location. The following graph is the direct proof:

Benefits of Working with Remote Developers - Global market size of outsourced services from 2000 to 2017

The greater part of outsourced services belongs to the IT sphere.

Benefits of Working with Remote Developers - Global outsourcing industry revenue from 2010 to 2017

If we take a closer look at the stack of IT services provided on a remote basis, we will see that remote software development and maintenance are the two most demanded services.

Benefits of Working with Remote Developers - Outsourced or off-shored IT functions worldwide, as of 2017

However, why do some businesses still prefer co-located teams?

First of all, let’s accept that both options have the right to exist.

Second, each business has the right to choose which one of these options is more beneficial at this particular moment.

Unfortunately, when deciding to hire a development team, most entrepreneurs are primarily concerned about the price and productivity of each separate specialist, but not about the critical issues, like the team as a whole, and satisfaction of both parties. So, we want to stress that except the ways to save some money and launch the project faster, there is a lot of critical problems to be thought about when planning to run a software development project.

To clear up the most pressing issues, below you will find the pros and cons lists of hiring remote developers and full-time in-office employees.

Benefits of Building In-house Development Team

Well, somebody may consider this type of cooperation as old-school. However, there are still enough benefits in hiring an in-house team to conduct software development projects. Let’s take a closer look at each of them.

High level of engagement

People who are present at least 40 hours a week within the walls of your company’s office have in-depth knowledge and expertise in your product. They are well acquainted with the entire IT infrastructure of your company and, probably, are eligible to help in implementing new features to software products or build them from scratch.

Easy reach

Provided that you build the proper corporate culture, full-time employees do their job daily within the fixed timeframes. Moreover, face-to-face communication simplifies the perception of information. Thus, all new tasks are performed faster and with the least deviation from the point.

Perfect for long-term cooperation

Let’s assume that the company already has a small team of IT specialists that support several projects and you want to add some features that are out of the expertise for your current workers. In this case, it would be more reasonable to widen the existing team. Thus, you can be sure that every issue will be their priority.

Fast feedback, easy coordination, and control

You can’t deny that each team needs constant control. We are not talking about spying on the workers but about basic monitoring of work that’s in progress. The continual focus on the projects and immediate feedback to any request in some situations are priceless, especially when it comes to security or some bugs that must be fixed right here and right now.

The Cons of Creating Own Development Team

The decision to build an in-office (по моему in-house более подходящее слово) team for software development project must be well informed. That’s why, as promised, here is the list of the primary drawbacks you should be ready to face on the way to creating the devoted team of IT professionals.

It takes much time

Hiring one experienced developer is a challenge that may last from a couple of weeks and up to several months. Now try to imagine how much time it will take you to gather the whole team of software development specialists. It is a long-lasting process that requires not only much effort but also a certain level of knowledge in the field of web development.

It is not cheap

Several months of painstaking work on the searching and studying dozens of CVs and interviewing candidates may interfere with your primary responsibilities. At this stage, hiring a professional recruiter might be the right decision. Although, except the fixed annual salary for each new employee, you should be ready to invest a significant sum into the recruitment services.

The lack of qualified specialists

It is hardly possible to pick the team of true professionals who are available at the moment, ready to relocate and with moderate rates. Besides, an increased need for qualitative education in IT sphere is still highlighted almost all over the US and far beyond it.

Salary

Hiring the full-time employees, be ready to pay them stable wages, regardless of the workload. The only way to avoid this is hiring specialists only for project work. After the work on the project is done, your employee will have to go looking for a job again. Such conditions must be negotiated with the applicant on the first interview.

Extra expenses

In addition to employee’s annual salary and commissions for recruitment services, you will have to rent an office, buy furniture and properly organize a workspace for each member of the team. Besides, some projects require the purchase of expensive equipment. All of these are spendings, which cannot be avoided.  

Extra time

Hiring qualified developers is a challenge, and turning them into a team that works together on creating quality software products is quite another thing. The organization of corporate culture and nurturing dedicated teamwork will take much time.

Benefits of Hiring Remote Web Development Team

Now, it’s time to talk about all the delights and pitfalls that you may face when hiring a development team outside the company. First, let’s consider the impressive list of benefits.

Hourly rate

Independent development teams precisely estimate the time needed to implement all the features. When you know the number of hours, you know how much it will cost you to develop a product, and this is the only cost you will have to pay the team.

Price

It is one of the most important issues that most businesses face. For example, hiring specialists in North America is often not profitable. Developers in the US are overpriced, and their rates exceed the rates of development teams located in Eastern Europe several times. Just have a look at the average rates for different development services all over the world.

Collaboration with Eastern Europe is cheaper, given that here developers have the same skills and expertise than the US ones.

Benefits of Working with Remote Developers - Average rates offshore developers. Eastern Europe.

A lot of professionals available in the market

The search for remote development services gives many times more chances to find professionals who will meet all the set requirements and be able to cope with any tasks.

Immediate start of your project

The close-knit team can start working on a project immediately. Hiring specialists in-office is a long-lasting and, usually, sequential process. When outsourcing, the team is already formed and ready to start at any moment.

The perfect choice for small and medium-sized businesses

Outsourcing the specialists gives the particular advantage to companies and start-ups that do not have sufficient funds for hiring and subsequent maintenance of the staff. Everything is simple – find a remote team, set a task, pay for the work when it is done. After that, you will no longer be bound by any obligations. If necessary, you can always contact the team for further technical support of the product.

No management issues

The work of both, office teams and outsource developers need constant monitoring. In the first case, you have to spend your time and go into the details of all stages, or hire another employee who will do that for you. Off-shore teams already include an experienced project manager who always keeps abreast and reports all the latest information regarding your project.

Drawbacks of the Work with Remote Developers Team

Along with the numerous benefits, cooperating with remote teams has several pitfalls.

Lack of knowledge of your product

Communication with the outsource teams always starts from scratch. No one knows your product better than you. Therefore, to achieve the best results, you need to find a team that has experience in implementing projects in the field that is as close to your product as possible. This helps to avoid many problems in the future.

Different time zones

When cooperating with remote developers, their location can cause some issues with time management. Significant time differences can interfere with the ability of specialists to respond to your requests instantly. However, this disadvantage sometimes can be considered as an advantage. This problem can be easily solved with the help of professional project managers or eliminated if you find a remote team in a suitable time-zone.

Language

The first language of the IT world is English. Although most representatives from all over the world know it well enough to communicate with the clients on a par, companies are still facing a language barrier. The only way to avoid this problem is to check the English level of the remote team and find out whether it is enough for easy communication.

Combining work on several projects at once.

Offshore development teams often combine the work on several projects at the same time. Along with improper time management, this may blur the terms of the product delivery. To avoid it most teams, assign your project to the dedicated talents who will work on implementing your project only.

Conclusion

Software development is complicated and, often, a long-lasting process that can be completed by true professionals. The decision to create a team of developers alone, as well as the outsourcing option, have almost equal rights to exist.

However, there is only one significant difference – the disadvantages of in-office employment will always remain on the agenda for any business. While the problems of outsourcing can be eliminated, and some of them can be easily put up with.

So, now it is for you to decide which path is yours. First, prioritize your values, and only then make your choice. To recap all of the pros and cons, look at the table below. Maybe, one of them will be deciding factor for you.

Issue

In-house Team

Remote Team

Fast communications

Time zone issues

Deep knowledge of your product

Free to hire

Salary & extra expenses

No management issues

Long-term cooperation

Rapid implementation of the task

Deadlines

Ability to expand the team

Deep expertise and experience

Fast hire

Fast start

For more info on the ways and features of working with remote developers leave us a quote. If you want to receive the latest news from UDTech, subscribe to our newsletters and stay tuned.