The software development market continues to grow rapidly, and companies strive to choose the most appropriate strategy to achieve their goals. For a long-term perspective, it is necessary to compare and make a decision at the initial stage regarding the decision of creating an in-house team or outsourcing to a remote team.
In this article, we will compare in-house vs. outsourced remote teams, and for this we took into consideration five key factors that affect the achievement of project goals. We will not choose one option from the two proposed models, since every business and every strategy needs a detailed analysis. It would be wrong to say that one approach will work for all cases, but in the case of analysis and selection of important aspects, your project will be successful.
The global pandemic has led to unexpected results, and one of them is proof that remote teams are 13% more productive than the in-house teams. Therefore, many companies have decided to switch to a permanent form of the remote type job after the end of the pandemic.
One of the biggest advantages of a remote team is the ability of the client to focus on urgent tasks in order to avoid failures while leaving the rest of the development stages to the team. In such cases, there is time to analyze new marketing strategies, which means that the client’s productivity increases in quality.
The correct distribution of working time also affects productivity in general, so it can be indicated that, for example, an in house-team has to spend extra time on the road or be distracted by colleagues and their nagging. In cases of a remote team, these factors are significantly reduced and some of these issues do not exist at all.
It has been found that employees who work remotely get more done in less time as they determine their own flexible schedule and pace of completion of tasks. Due to the clear schedule of the in-house team, it is quite difficult to keep a fresh mind, since breaks do not have a cyclical nature, and that’s why the tension increases.
Another point that affects productivity is self-motivation. When an employee independently plans the completion of tasks, they feel more responsibility towards the customer, whereas an in-house team has more of shared responsibility.
An important component of any team is team spirit. Therefore, from the very beginning, it is imperative to formulate corporate ethics, events, and structures for building culture within the team. Obviously, a remote team has the issue of building relationships between employees, making it one of the most difficult needs to fulfill, but it is also a priority since it affects the creation of the product and the result as a whole.
The in house-team model obviously copes better with the cross-culture gap since employees are located in the same region and time zone, and most importantly, there is a direct connection within the team.
The presence in the same physical space will always help to strengthen the emotional connection, and in a situation where workers are from the same country, speak the same language, and understand the same cultural aspects, the process of understanding each other’s needs is rapidly accelerated.
In cases of working with specialists who are not well suited for culture, there are many misunderstandings and a decrease in the speed of results. Conversely, an in-house team is a variant of a more energetic team with a deep understanding of the nuances in the organization of processes.
With the cohesion of developers who form one holistic organism, the project manager gets the option of having entire control over most of the processes. Having the correct communication structure in the team leads to more interaction between employees, which means more systematic progress. Face-to-face communication and seamlessly assisted operations are the basis of digital communication. The in-house team model provides the best opportunities for introducing new communication skills for making quality decisions.
An in-house team is an example of close-knit employees who spend time together to get to know the product in more detail. Remote teams can do the same with a lot more time and the implementation of the right digital tools. Still, the in-house team can follow only one approach, which may not always be appropriate.
The fact remains that after long-term work on a project, the team begins to better understand its specifics. For the top management, it can be difficult to estimate the capabilities and manage remote teams, so for this, it is necessary to choose the right coordinating system for internal employees.
In the case of an in-house team, access to communication is easier, and therefore the remote team model forces the use of new communication options so that each employee has the opportunity to exchange ideas and conduct constructive discussions in a remote format.
The greatest advantage of an in-house team is direct communication, when each employee’s thought is presented orally, which is often clearer than written, and this definitely speeds up the process of discussing project details.
As for the factor of the financial support of the team, we must accept the fact that permanent, in-house employees are more expensive than remote workers. The price of the services of an in-house team is much higher, while with remote workers, it is possible to hire a team from another country for a much lower salary.
The in-house team model is always a long-term project, and therefore the list of expenses should also include medical insurance, business trips, meals, sick leave, and etc.
Another big plus for a remote team is that in the case of an in-house team, the business will have to invest a significant amount in recruiting services. Employees of the in-house team always receive a regular salary, no matter if the project is large or small or how many hours they spend on the final result since their experience works for them.
Cost remains one of the most important factors to benefit outsourcing in general. A remote team is a more economical model for hiring employees, and there are also many companies that only provide remote recruitment services. Remember, with business growth, the number of employees needs to increase too, which can significantly affect the overall budget. Escalating the budget for just additional full-time staff often limits growth opportunities for businesses.
A remote team is the best option for both small and medium-sized businesses and start-ups, allowing the customer to formulate an economical budget and get quality employees and services.
Global Talent Pool
These days, the selection of the necessary staff can be a rather lengthy process, and it is not always possible to find a developer with the skills in demand. Even if you find them, not every business can financially support certain specialists.
Before expanding your development team, should remember about competition, and the requests for IT professionals have steadily increased over the past few years. So, finding junior developers is easy enough, but a manager who will lead them, less so. If you need to hire a new employee for an in-house team, it may be difficult to not only contact the developer, but also to convince them to join the project.
During the expansion of the in-house team, there is a risk that the recruitment process is just the beginning, because with a ready-made team that knows how to work with each other and have already established communication and prioritization processes, a new employee will have to spend time on adaptation. In the case of startups, when the business is quickly inserted the market, time is a decisive factor for the success of the project, so the more months you spend on recruiting, the more likely the project will be not profitable.
Hiring the right specialists for an in-house team requires not only a lot of effort but also a certain level of knowledge in the field of web development.
If we compare hiring employees for a remote team, then there are particular advantages here, as the customer has access to a large number of talents from all over the world with any necessary skills and experience. However, the complexity of the project does not affect the hiring process.
In the current situation, remote work is a model that many businesses have already tried, and in general, the outsourcing industry is growing. There is no obvious choice between a remote team and an in-house team, as much depends on the goals and stages of business development. There are also examples of combining two models, but this requires a more detailed analysis of the specifics of the project.
To choose the most appropriate model, try to analyze the pros and cons and create a list of the necessary factors for implementing your strategy, which will ultimately give you an advantage over your competitors.