The advancement of technology has opened a world of possibilities for SaaS development. Cloud engineering, big data, CRM systems, and multiple software for online meetings make remote work easier. But what’s easy is not always the best.
There are plenty of options when it comes to hiring your team, and these can be narrowed down to three. Check these out and get all the information so that you can make the best decision.
Three Main Types of Staff for IT Development
In-house Development Team
The typical in-house approach has its benefits. This is why major SaaS like Amazon and PayPal go for it. This strategy consists of hiring professionals located in your own city or region for the development, maintenance, or upgrade of a particular project.
Of the three options, this is the most expensive, yet more cost-efficient in the long term. Your staff will be employed full-time and hence committed to your brand: your interests are their interests.
In-house development is more effective when it comes to solving problems. Also, 5 years from now, you will have a team fully specialized in your product. The main con is that if an employee leaves, then you must hire and train a new one.
By choosing this strategy, you must keep your employees happy. You will also be in charge of paying social security, indemnifications, and other expenses so that you comply with local labour laws.
Remote Developers or Remote Staff
Halfway between in-house and outsourcing, we have the remote development option. This is a team that works for you but is located elsewhere. Thanks to this, you can leverage the difference in minimum wage between your area and the area of your team. For a company in the US, for example, hiring staff from Estonia or India is cheaper than back home.
However, keep in mind that you must still comply with the labor regulations of the country in question. This will demand thorough research, as any mistake can lead to lawsuits and legal issues.
The bright side is that, at some point, you will have a better understanding of these subjects, making things a little easier. You will get the long-term benefits of an in-house team at lower costs.
Finally, for your remote staff to integrate seamlessly with your in-house team, you will need good organization and probably CRM systems.
Outsourcing is generally linked to the term ‘offshore’. Even though offshore outsourcing is very popular, this is not the key point. ‘Outsourcing’ means handing out a task or a project to a third party. This can be offshore, nearshore, or even onshore. Naturally, the first two options are more popular as they entail lower costs.
With this approach, you save yourself the task of recruiting, handling payrolls and paying for social security. However, you also have less control over who works on your project.
The main benefit of outsourcing is the ability to hire staff as you need them. You get to enhance the team when you need more work done and reduce it in times of low income or fewer tasks. Outsourcing is great for short-term projects or specific tasks. Otherwise, you will end up paying more money and spending extra time. Long-term projects need constant iterations, problem-solving, and knowledge of the product.
Why Shift Your Project to a Tier 2 City?
During the past two years, we have been witnessing a clear tendency of development in Tier 2 cities. After the COVID-19 pandemic, home offices became more popular, with companies choosing this as their regular working model.
Naturally, this caused a migration wave back to Tier 2 and Tier 3 cities, giving an opportunity for IT professionals to move back home and work remotely. In the IT industry, this tendency was further supported by the governments that implemented a variety of incentives. These are mainly focused on attracting IT businesses and consist of skill-development programs and IT-oriented SEZs.
In this scenario, companies find a great solution: keeping their client base in Tier 1 cities while shifting processes to Tier 2 centers. Thanks to this, it’s possible to reduce costs when hiring any kind of team (in-house, staff augmentation team, or an outsourcing provider).
What Should I Choose?
If these three options have remained, it means they work. Some of the greatest IT companies have chosen these approaches to create the best products. Now it’s time for you to decide which one fits best for your startup.