In-House vs Remote Developers: Pros and Cons

Remote Teams Hire Remote Developers Updated On May 18 2023

Quick Summary:
Which is the right pick for your project? Scale the pros and cons of in-house and remote developers to make a desired team. In fact, you can build the remote team you want with a stringent budget and timeline.

Presently, remote working is inching towards the future of work, or many consider it the new constant. Even companies with austere working models have realized the importance of working remotely. And finally, they are coming to terms with the untold benefits and opportunities remote working offers.

With the right blueprint, companies can make remote landscape work for them, and it rigs out to be preferable to being in the office. But I'm not here to discuss remote work in general; rather, I'm interested in finding an ideal choice when it funnels down to in-house vs remote developers.

So, if you are inching towards building an amazing app or a website, the reasonable question is how you will make it a reality. Often, it's not even a question of how you will create it but who is going to work on it.

Let's understand the nitty gritty of how you can organize your software development team. So, stick around to unfurl the biggest question!

Key Takeaways

Flexibility: Remote developers offer flexible working hours and location, while in-house developers provide easier collaboration within a physical office space.
Cost: Remote developers can be more cost-effective, eliminating expenses like office space, while in-house developers may require higher salaries.
Talent Pool: Remote developers provide access to a global talent pool, while in-house developers may be limited to local talent.
Collaboration: In-house developers benefit from face-to-face interactions, while remote developers rely on digital communication tools.
Productivity: Remote developers can have higher productivity due to fewer distractions, while in-house developers may have better alignment with company goals.

The Biggest Question: In-House vs. Remote Developers

The biggest difficulty for companies is to hire the right talent at the right time. Besides, if you dwell from an HR domain, you would agree how daunting it is to find and retain a tech specialist, especially when your project is falling behind how it was initially planned.

After all, time is of the utmost importance for businesses to achieve goals quickly.

According to sources, hiring an in-house developer takes about 4–8 weeks, whereas you can find an experienced remote team from a trusted outsourcing company in merely 1–2 weeks. Therefore, right to say that an outsourcing company not just saves time but also on administrative and recruitment outlays.

Accompanied with it comes easy access to a rich pool of talent. This is why most businesses favour outsourcing. Though, before making a decision, it's important to weigh the pros and cons of remote and in-house teams.

Let's dig in!

What is a Remote Developer?

A remote developer performs the same role and responsibilities as an in-house developer. The only significant difference is that remote developers are situated in a different physical location than the rest of the team.

Moreover, unlike regular in-house developers, you can find remote software developers on a part-time, full-time, or contractual basis for your project needs.

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Advantages of Hiring Remote Developers

1. Access to global talent

There's no denying remote development allows you to step into a global talent pool, providing you access to experienced and skilled experts across the globe. This expanded talent pool maximizes the probability of finding the right developers with the right expertise and experience for your project's success.

Furthermore, it allows you to quickly put together a team with the necessary skills, minimizing the time spent on recruiting and onboarding.

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2. Time zone advantages

Engaging a remote development team distributed across different time zones proves an added feather in the hat, especially for quicker time-to-market. Therefore, with a well-defined team structure, development goes around the clock.

"According to Deloitte, 57% of companies believe outsourcing allows them to focus on their core business operations."

Tasks and deliverables can be delegated between team members in different time zones, allowing progress to be made even when some team members are unavailable. This exceptionally reduces development cycle time and speeds up project delivery.

3. Flexibility and scalability

Remote development teams provide flexibility and scalability that expedite time-to-market. And, as your project evolves, you have the flexibility to scale the team quickly by adding remote developers to meet evolving demands.

Often, remote teams are more agile in adjusting their size and composition than in-house teams, enabling you to swiftly acknowledge project requirements and timelines.

4. Cost-efficiency

There are numerous software outsourcing companies worldwide that ace in providing dedicated remote teams or even individual developers that fit your business model.

“In a survey by Deloitte, 59% of companies contemplate outsourcing as a cost-cutting tool.”

Give a thought about how much you can save by outsourcing development - infrastructure, salaries, recruitment expenses, and the list goes on. Put, cost-effectiveness is one of the crucial factors to consider when choosing between in-house vs remote developers. And outsourcing costs are based on the following factors:

Resources needed - Developers, testers, quality analysts, project manager
Timeline of the project - short-term or long term
Flexibility and scalability options
The complexity of the project

5. Varied business model

When working with an in-house team, you follow the same business engagement model - giving salaries to employees every month in exchange for the work done. But when you work with an expanded remote team, you get numerous options to choose from:

Hourly model - This model is where you pay remote developers on an hourly basis. Plus, you can keep a check on the quality of work and experience of developers.

Dedicated remote team - Rather than hiring one individual, you can choose a dedicated remote team to outsource your project development.

Project-based model - This model lets you work with a team at a fixed price.

The customized approach of the above-mentioned models to cater for your needs.

Recommended read: Choose The Right Model To Hire Remote Developers

6. Expanded working hours

A remote development team allows businesses to extend their working hours and accomplish round-the-clock productivity spanning different time zones. This can be especially beneficial for customer support or development teams working on projects with stringent deadlines.

Tasks can be easily consigned between team members in different time zones, ensuring progress happens even outside regular working hours. Besides, it allows businesses to improve customer responsiveness.

Disadvantages of Remote Developer?

While outsourcing brings various perks, there is also some potential disadvantage that businesses should pay attention to:

1. Communication challenges

Effective communication is inescapable for successful outsourcing relationships.

Working with a remote team or an outsourcing company may introduce communication challenges due to time zone differences, language barriers or cultural differences. These challenges can cripple collaboration, create misunderstanding, and potentially impact project delivery and outcomes.

To address these challenges, conducting thorough research, integrating effective communication channels, defining clear expectations, tracking performance closely, prioritizing strong contractual agreements, and choosing a reputed outsourcing company is crucial.

What is an In-house Developer?

An in-house team means carrying out a task or a development operation within an organization rather than relying on outsourcing. The company uses its own employees and time to keep a division in-house.

Simply put, in-house development is done completely within the firm.

Advantages of In-house Developers

1. Full control and flexibility

Having an in-house development team means having complete access to the project development and can customize it to your specific needs. You can prioritize tasks, assign resources, and make changes as per your business objective and evolving requirements.

This level of flexibility and control allows customization and responsiveness, assuring the business's unique vision and objectives are catered to.

2. Smooth collaboration

In-house teams foster smooth collaboration and communication within a company. Besides, team members can easily communicate with each other, promoting knowledge sharing, idea generation, and problem-solving capabilities.

Therefore, working with an in-house team allows for real-time collaboration, faster decision-making, productive feedback loops, and optimized development cycles.

Seamless collaboration with in-house teams nurtures a cohesive and unified approach to development.

3. A comprehensive understanding of your business

Unquestionably, an in-house team possesses an in-depth understanding of your business, its objectives and its audience. In addition, they are well-versed with your company's culture, values, and brand identity.

This comprehensive understanding allows them to match the development process with your complete business strategy, ensuring it mirrors your business ethics, values, and brand voice.

4. Seamless communication and decision-making

In-house team leverage benefits from efficient communication channels, as they are within an organization.

This proximity allows timely and straightforward communication, minimizing the likelihood of miscommunications or delays. This eventually streamlined the decision-making process and allowed faster responses to feedback or emerging trends.

The agility in communication and decision-making helps keep the development on track and respond to evolving requirements.

5. Data and security control

An in-house development team gives you better control over the company's data and security. Besides, you can establish robust data protection measures, keep access, and ensure compliance with privacy regulations.

So, with an in-house team, your business-sensitive information is handled internally, offering you more control over security and minimizing any related risks.

Disadvantages of In-house Development

1. Low employee retention

It's not just IT professionals; employees generally switch jobs if they come across any good opportunity in exchange for a good pay scale. Moreover, they are changing jobs because of a better working environment and flexible working hours.

Though the demand for reliable and experienced resources is ever-growing, SMEs can mostly not pay market-competitive salaries. Therefore, resource leave during the crucial phase of the project, bringing everything back to zero. And you have to start through the same lengthy and painstaking process of finding the ideal candidate.

This not just slows down the development process but outstrips the HR budget.

2. Recruitment cost and time

According to Sparks Group, "it takes on an average 51 days to fill a job opening in the IT field". So it's roughly two months, and can you wait for that long? No, I don't think so.

Why it takes so long to find an ideal candidate? A few of the reasons can be:

Companies may have a perfect fit syndrome - looking for a purple squirrel.
Lack of candidates with the needed expertise and experience
The thorough screening process to avoid hiring the wrong candidate
Not able to attract talented candidates

Moreover, in a survey by Glassdoor, it was found that the average company in the US spends nearly $4,000 to recruit a new employee. Besides hiring costs, the expenses of setting up development infrastructure in-house are far beyond comparison.

All these elements contribute equally to the overall expenditure, which is relatively higher than hiring remote developers.

Finally… Who's Taking the Trophy?

In-house and remote development have pros and cons, as you have seen. But, weighing the advantages, outsourcing development to a remote team makes the smartest choice. Moreover, considering the communication challenge, it can be easily managed and overcome with the right strategy.

Outsourcing may sound ideal for short-term projects, but they are nurturing long-term partnerships. On the other hand, hiring employees for in-house teams consume a mammoth of time, effort and money. And all the efforts, time, and cost will be well-spent if you can retain employees in the long term.

So, choose wisely!

Frequently Asked Questions:

Which is better, in-house development or remote development?

The best option for your company will depend on your specific needs and requirements. Consider the size and complexity of your project, your budget, the skills and experience of the developers you need, the importance of collaboration and communication to your project, and the security risks associated with remote development when making your decision.

How do I decide whether to hire an in-house team or a remote team?

The decision between hiring an in-house team or a remote team depends on factors like project requirements, budget, and desired work flexibility. Consider factors such as the need for close collaboration, cost-efficiency, talent availability, and the ability to manage and communicate effectively with a remote team. Ultimately, choose the option that aligns best with your project goals and organizational needs.

What are some tips for hiring remote developers?

When hiring remote developers, it's important to follow these tips: Clearly define job requirements, assess candidates' remote work experience and self-motivation, conduct thorough interviews and coding tests, check references and past remote work examples, utilize collaboration tools for effective communication, offer competitive compensation and benefits, establish clear expectations and deadlines, provide growth opportunities, and foster a positive remote work culture to ensure team cohesion and productivity.

What are some of the challenges of working with remote developers?

Some challenges of working with remote developers include communication difficulties, coordination across time zones, maintaining team cohesion, and ensuring effective project management and collaboration.

What are some of the benefits of working with remote developers?

Some benefits of working with remote developers include access to a larger talent pool, cost savings, increased flexibility, improved work-life balance, and the potential for increased productivity and creativity in a remote work environment.

How can I make sure that my remote developers are productive?

To ensure the productivity of remote developers, establish clear expectations and goals, maintain regular communication, provide necessary resources and tools, foster a positive work culture, encourage autonomy and accountability, and implement effective project management and tracking systems.

Mangesh Gothankar

Seasoned technology professional with over 19 years of experience leading technology innovation and execution with startups and MNCs. Experience in hiring and creating multiple world-class technology teams. Results-oriented with a passion for technology, recognized for successfully planning and executing major initiatives.