According to a 2018 report by IWG, more than 70% of the global workforce work remotely at least once every week. In America, it’s estimated that more than 3.9 million people are remote workers.

This changing attitude towards where people work is largely driven by new technologies and digital rental offices.

In today’s competitive business environment, skilled IT workers are considered crucial for any organization. Despite being a small segment of the overall labor market, the ICT market continues to face a perennial tech talent shortage.

As a result, most companies are looking for creative hiring methods such as nearshore outsourcing to plug these gaps.

Let’s decode staff augmentation and discuss how to manage a remote team.

Leading Consumers of Remote Workers

The 2010 global economic recession significantly affected IT jobs. The massive lay offs and cut back of new hires left the industry with a “bloody nose”. 

Then came the post-recession period where the same companies found themselves trying to rehire to meet the emerging needs.

Fast-forward to today, the industry is still trying to recoup from the effects of that meltdown. Even more appalling, the number of tech graduates joining the market is too small. And it will take years for the situation to go back to an equilibrium.

Meanwhile, the software development industry is one of the best examples because of the lack of local tech talent. So companies in this industry hire remote software developers more than any other IT sector.

Companies also dealing with customer service, administrative work, and sales are also benefiting from this remote work arrangement.

Global Demand for IT Specialists

With the heightened progress being experienced in machine learning, big data, cloud computing, and virtual reality, the demand for tech skills will continue to rise. This is further compounded by the increased use of internet-able devices across the world.

According to a recent report by Statista, it’s estimated that more than 5 billion people will be using smartphones globally by 2019.

During the same period, more than 675 million of the Chinese population will be using a smartphone with the number expected to surpass half of the country’s population by the year 2020.

The above numbers are a clear reflection that the industry is no longer suffering from the post-recession hangover.

This means companies that want to remain relevant won’t just need responsive websites, they will also need smartphone apps.

Having the right wing men to develop, build, and deploy such apps will need a clear IT staffing strategy.

Hiring Made Easier

Many recruitment executives out there can attest that scoring skilled hybrid IT candidates can be a pain.

This is especially the case with small companies who are perpetually disenfranchised in terms of attracting sophisticated developers, as it calls for them to pay a premium.

The good news is that these companies no longer have to wait in line or even shoulder the burden of maintaining in-house development teams. Working with a nearshore team allows them to work with qualified individuals at the same time they reduce the software development cost.

Any serious company out there is aware that having a hybrid software developer candidate is a requirement, not a luxury.

Advantages of Having a Remote Team

A few years ago, cost improvement was the cardinal objective of outsourcing. Traditional near shoring centers saw massive success.

Today, priorities have shifted. Although cost reduction is still paramount, other requirements, such as achieving strategic goals, are catching up. H

Here is a brief overview of the advantages of near shoring:

1. Reduced Employee Turnover

For a business, it could cost a fortune to replace an employee. It’s estimated that an employee earning $100,000 annually can cost a business 20% of their salary to replace them.

New employees require training which further escalates the turnover costs.

By using remote workers, the retention rate is higher compared to conventional employment.

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The remote work model eliminates all the unnecessary hassle of commute and the expenses that come with it, translating into better welfare.

2. Better Communication

On top of similar language between you and your outsourcing partners, nearshore outsourcing works great considering you get to operate under the corresponding time zone.

Remote team communication becomes easy as you don’t have to deal with overlapping time zones in communicating with a person located halfway around the globe.

With the availability of multiple team communication tools, the absence of time difference means that you can easily manage your project. And most issues can be resolved in a single working day.

3. Large Pool of Skilled Workers

Compared to local recruitment, nearshore outsourcing widens your hiring scope in terms of accessing skilled developers.

By working with a distributed team, chances are high that you will find at least one individual with skills that aren’t easily available locally.

Once you hire dedicated developers, you get the opportunity to bring new perspectives and fresh ideas into your project resulting in more robust digital solutions.

4. Reduced Development Costs

Compared to offshore outsourcing, nearshore outsourcing presents more cost-benefit advantages.

You can save up to 60% of your development budget through nearshore outsourcing since the currency fluctuations between neighboring countries aren’t that much.

5. Better Control Over Your Project

When dealing with your typical offshore engagements, remote team collaboration becomes difficult as you need to have an offshore project manager to direct your team.

It also means you have much less visibility in your project as opposed to when you are dealing with a nearshore company.

With better remote team management software and project management tools, nearshoring affords you the flexibility of real-time communication with every team member for clarification.

Most importantly, you can also schedule impromptu team reviews without having to wait for hours for status updates.

6. Increased Productivity

Nearshoring is largely driven by agile development. You can invite the outsourcing partner to train your in-house on the tools and techniques to implement Agile which would result in increased overall team productivity.

Remote Work Models

As technology continues to expand, the role of IT will continue evolving, and so will the tech jobs.

For a business wondering how to hire a developer, there are three major remote work models to pursue:

1. Global Delivery Model

This remote work model embraces the utilization of both onshore and offshore resources to undertake on IT projects.

The GDM is ideal for companies looking to build customized software development projects without spending a fortune without compromising on quality.

2. Virtual Team Model

This development involves resources working on a project but located in different geographic locations.

The workers mainly communicate electronically. It’s ideal for companies looking to work with qualified professionals without having to permanently hire them.

And since these workers have specific set skills, it also works great for projects requiring specialized skills.

3. Dedicated Team Model

The Dedicated Team Model involves the outsourcing company working with a dedicated to accomplishing a specific assignment.

Generally, this type of model works best for long-term projects that with strict deadlines.

How Can You Build Up a Remote Team?

If you have ideas you feel like sharing that might be helpful to readers, share them in the comments section below. Thanks!

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Myron Monets
Myron is working at Mobilunity as a marketing assistant. He often interviews programmers to get a better understanding of what they do and how they do it. This gives him the ability to learn about new technologies directly from the experts. Also, Myron is interested in management and keeps improving these skills too. Writing helps him to share the experience and get some feedback from people around the globe.