How to Hire Remote Software Developers Share: ABTO Software Date Published 20 September 2023 Categories Analysis, Blog, Guide Reading Time 5-Minute Read Startups and enterprises are increasingly hiring remote software developers and delegating web and mobile development, among other related services. In 2022, many organizations faced difficulties finding suitable candidates, especially software developers and engineers. Given that today’s dynamic landscape is data-dominated and data-powered, there is an ever-increasing skill shortage in the information technology (IT) sector. Given these tendencies, IT outsourcing is rapidly gaining momentum: In 2020, the global IT market (both internal and external) was worth $715.93 billion In the same year, the global ITO market was valued at $556.67 billion More and more startups and enterprises are increasingly moving towards hiring remote software developers and delegating web and mobile development, quality assurance, design, writing, and other related services. Some are also transferring payroll processing, customer support, and marketing. No wonder strategic-thinking organizations are approaching end-to-end offshore software development. Explained briefly, this model of cooperation allows companies to get things done without compromising operational efficiency. The Types of Outsourcing If planning to delegate particular services such as customer service, your organization can turn to freelancers. In planning to transfer multiple objectives, in particular complex processes, your company should contract trusted partners to cover every stage, from discovery to deployment and maintenance. You can find assistance by acting upon four types of outsourcing: Onshore Development This approach means transferring some processes to an external vendor located within your country or region. That means more control, almost no communication barriers, and better market understanding. Nearshore Development This approach means transferring determined processes to an external provider from a neighboring country. That brings cultural and language similarities and, usually, lower rates. Offshore Development With trusted offshore talent, you outsource the project to a distant destination: A large talent pool — with this cooperation model, you can access talent from literally anywhere in the world Much lower work rates — certain locations can offer considerably cheaper services Hybrid Outsourcing This model means combining different approaches to find the one that suits your needs and requirements. Services to Outsource Here are the most common services being outsourced: Web and mobile development Legacy migration and optimization Business consulting and analysis Project management Quality assurance UI/UX design And the top industries using outsourcing: Healthcare Retail Education Finance When choosing future partners, examine their industry-specific expertise, their portfolio, and testimonials. With sector-specific knowledge and experience, a reliable healthcare software development company can deliver EHR and EMR systems, ERP and CRM solutions, and custom telemedicine applications. The same applies for other large segments, including the automotive and transportation sectors, as well as the construction and energy sectors. For example, by having extensive technical expertise, a third-party e-commerce software development company can design value-added products that automate retail and wholesale management, analytics, reporting, and accounting management, among other areas. Talent Shortage Impacting Businesses The recent COVID-19 pandemic impacted both workforces and economies causing significant talent shortages. Both startups and mature international enterprises have been recovering but they’re still struggling to attract and retain new candidates. The impact of the COVID-19 crisis was great: According to recent research, 9 in 10 companies are finding it difficult to fill open positions As reported by ManpowerGroup, 3 in 4 companies are struggling to hire suitable talent One reason for the constantly increasing talent shortage is the digital technology that’s revolutionizing operations. Many of those employees surveyed said they’re planning on shifting careers to feel more secure. Another reason for the talent shortage is that most employees are changing their mind about the typical 9–5 schedule. That’s why some are approaching freelancing as an alternative solution. IT Outsourcing: Key Benefits Reduced costs By hiring remote software developers, you delegate complex processes to specialists that have the required expertise. That way, you eliminate software and hardware updates, recruiting, onboarding, and other related expenses, which allows you to enjoy reduced costs. Reduced time-to-hire By using custom offshore software development, you get the team you need, skipping intense routine tasks. This eliminates resource-intensive headhunting, interviewing, training, and waiting for employees to assimilate, reducing time-to-hire and overload. Easy scaling With assistance from third-party IT vendors, you can easily expand your capabilities by involving more experts. Domain-specific expertise With contracted IT vendors, you can access well-aligned professionals that offer necessary expertise and resolve your challenges. IT Outsourcing: How to Find Reliable Third-Party Providers Don’t underestimate market research Before outsourcing software development, compare vendors by focusing on: technical expertise project portfolios key industries technology stacks customer testimonials service costs. Compare locations Before outsourcing software development, consider various location-specific factors, such as salary legislation, and cultural and language differences. Estimate your project’s scope When delegating your project, take note: Large-scope projects will be more expensive, as they commonly require industry-specific expertise Small-scope projects are cheaper, as you can involve fewer specialists Define the required expertise You should define specific technical knowledge and experience you’ll need to ensure that your project will succeed. Complex implementations — artificial intelligence, computer vision, and other cutting-edge techniques — require superior technical expertise, and, accordingly, a larger investment. Summing Up IT outsourcing can bring numerous advantages, starting with enhanced performance and efficiency and ending with facilitated security. More and more business leaders are outsourcing certain services, which is saving them resources, increasing their business’s scalability, and allowing them to focus on critical business operations. If conducted with the right team, IT outsourcing can be a transformative strategy!