“There is a huge shortage of Technical Talent across the world”… Surely we all know this by now. And not only because our Talent Acquisition teams keep reminding us. However, and here comes the really bad news, the shortage will only get more fierce over the next years.
So how can startups keep building their development teams with limited budgets? Especially when they have to compete for Talent with the bigger brands: Start building a remote development team.
“Hooray for Tech Talent, as they will only be more in demand”.
“Not so much hooray for all those companies out there that are in desperate need for these type of profiles”.
One of the trends that we are spotting is that slowly but surely the companies out there with the coolest brands and the biggest scale are swooping up most of the senior talent.
Long story short, the companies who spend most on employer branding or advanced Tech recruitment strategies, are winning the war for Tech Talent.
But what if you don´t have millions to spend on attracting (senior) Software Developers?
What if your brand is not as visible as Google, Facebook or Uber?
What if your business is located in a city that does not have the appeal of the known tech hubs like London, Amsterdam, Berlin or Barcelona?
One of the models that is becoming more and more popular is what we call “Outstaffing”.
In short: Building a remote development team of Software Engineers and other Tech Talent that are completely integrated with your in-house team.
“Aaahhh the good old outsourcing model?” No, not really… I mean really not.
The biggest difference between “Outsourcing” and “Outstaffing” is that in an outsourcings model you hand over a big part, if not all, of the software development process to your outsourcing partner.
Outstaffing is focussed on building a team from scratch that works 100% under your flag and reports into your CTO / Tech lead. You will own the Development process and are fully involved in hiring the right employees that fit your needs and company culture.
“Aaahhh, so it´s more like building your own remote development team?” Yes, more or less!
The main difference though is that you don´t have to set up a legal entity or go through all the legal bureaucracy in the location of your remote development team. Your outstaffing partner will take care of all this. As well as they can arrange office space for your team etc. Of course they will also take care of the recruitment of your new team.
Pro´s and con´s:
As always every model has it´s pro´s and con´s. One of the main challenges a company faces with distributed teams is the lack of in-person interaction between locations. Although this might not sound ideal, with the current offering of video communication tools and other technologies you can also apply your Agile principles in a distributed environment these days.
Why more and more small- and midsize startups choose to build a remote development team:
They will have a huge competitive advantage when it comes to attracting senior Tech Talent, which will also be more affordable at the same time. By working with an outstaffing partner they run little risk which is certainly a plus for their investors.
Bottom line is: In order to be able to stand a chance in this so called “War for Tech Talent”, you have to open up to new ways of working. Whatever model you choose.
Would you like to learn more about the possibilities to build a remote Development Team?
Contact us here and we happily inform you in more detail about our Outstaffing solution [contact-form-7 id=”127″]