Since 2020, remote software development has continued to grow exponentially because of one major factor: cost savings. While the pandemic affected businesses in several different ways, it also revealed opportunities for businesses to take advantage of.
Due to the push for more remote work, businesses were able to select top-quality software development agencies to help them improve on cost savings. In fact, the Deloitte 2020 survey revealed that 70% of companies prioritized cost reduction while finding the right software development company.
Building a dedicated software development team in-house costs far more than most companies are able to manage. This is more apparent as Tech Giants such as Meta, Twitter, and Microsoft continue to downsize, firing thousands of staff. A software development company will give you access to a dedicated and skilled team at much lower costs than creating your own team.
Businesses also get to enjoy cost savings from not having to build their own infrastructure, while leveraging on the talent and infrastructure of a software development company. This ensures the business still gets high-quality work without any additional expenses
Some of the major expenses associated with starting your software development team in-house are:
Businesses have to budget for recruiting, HR, and training costs every single time they want to hire a member of the team. Other expenses include fees for posting job opportunities on different platforms and headhunter agencies charging money for their services.
As software development is a very specialized field, the company’s internal HR department resources may not suffice. Therefore, there will be a need for the involvement of software development companies that specialize in IT recruitment.
Hiring an in-house team necessitates the need for sufficient space to house them. The office also needs to be fitted with the best gadgets, furniture, and software licenses to enable the team to do their work well. This all adds up to significant costs for the company, and distracts from more important aspects of the business,
Hiring a software development company helps businesses focus on more important matters while ensuring a high-quality product at a fraction of the price. Such businesses do not have to worry about:
- Recruitment and onboarding costs
- Hiring a whole team of developers full-time
- Securing additional workspace, furniture, and gadgets for a development team
- Paying staff while there’s no task at hand
These are some of the reasons why it’s better and more cost-effective for companies to hire a remote software development company. For more information, visit us here to get a free consultation.