Today, technology is evolving at an exponential rate. As a result, businesses have no choice but to invest a massive amount of time, effort, and capital to stay at the top of their game and ahead of the competition. There’s no doubt that the software industry is becoming increasingly saturated. In fact, some experts in the field believe that there will be over a million software companies in the world within the next few years.
In such a scenario, the big question is: how are businesses going to find the best talent who can help them build relevant, powerful, and innovative solutions? Will local teams suffice, or will they have to build a global development team? Let’s explore.
Solution 1: Building an in-house local team
For decades now, the most straightforward approach to building teams has been to hire local candidates from the talent pool available. And two of the main advantages of this are:
1) Your team is in one place
2) Language and cultural compatibility
However, in 2021, building a local team can come with its own set of disadvantages as follows.
An acute shortage of talent
Without the right engineers to back you up, your business cannot build state-of-the-art products or services. Whether you’re looking to scale your existing development team or build a new one, hiring the right engineers is key. This means that you need access to proficient, skilled, and reliable developers who are specialists in their industry.
However, this is easier said than done, especially in the US and Western Europe. And that’s because of the acute shortage of engineering talent. In fact, according to some studies, over 54% of businesses globally report a talent shortage, with most of them concentrated in the West. In such a scenario, hiring only local talent to build a well-rounded development team can be challenging.
Higher cost of operations
Similarly, because of the massive talent shortage, hiring skilled developers in the West means paying an absolute premium. While the salaries are sky-high, it’s only one aspect of the operational costs. You also have to pay recruitment fees, rent out an office space, purchase software and hardware equipment, and throw in a couple of employee-centric benefits such as health insurance, travel allowance, and a yearly bonus.
All in all, you’re going to end up paying way more than you imagined to hire and retain local talent.
Solution 2: Building a global dedicated development team:
On the other hand, building a global development team means building your own offshore team in another country. This team belongs to your company and is just like your local in-house team, except that they’re located elsewhere. And thus, without the geographical limitations. You get to eliminate the disadvantages that you would face hiring only local engineers.
That being said, building a team in another country may pose a few challenges, especially if you team up with the wrong offshore partner. Some of them include:
- Communication barriers
- Cultural differences
- Low-quality software
However, these challenges can be eliminated by choosing the right offshore partner — a business with years of experience in building global development teams and top notch processes established.
Building a dedicated development team commonly brings many advantages as well as follows.
Lower operation costs
Because the cost of living in a developing nation like India is significantly less than in the West, the salary that you would be paying a developer from India would be much less than for a local developer. Not only does your company gain access to outstanding talent, it also operates more cost effectively.
The ability to scale quickly
The large talent pool and the lower prices mean that you don’t have to worry about scaling your development team. This is precisely why more and more businesses are embracing the concept of building a dedicated development team in emerging tech nations of the world.