Neil Bradley of the US Chamber of Commerce offered his predictions for the growth tendencies of small businesses in 2021. “How many people would pass by on Main Street in your hometown—the size of the market—used to matter. The globe is your Main Street these days.

While business development managers look for fresh ways to break into markets, companies are casting a wider net to attract talent across more geographic areas. This article will compare and contrast remote talent acquisition strategies with hiring new staff members in order to quickly grow an IT team.

How Globalization Makes the Hiring Process Faster

The epidemic has sped up globalization by enabling US corporations to hire tech talent abroad in a couple of days thanks to remote work. For firms that are expanding quickly, hiring quickly and across a large geographic area is even more essential in order to launch a product quickly and complete another funding round. In order to assign smaller development projects to employees and concentrate on larger ones, companies also search internationally or locally for talent.

The move to remote work gives workers more freedom, which helps stave off burnout. Additionally, some businesses are choosing to invest their money elsewhere and are beginning to doubt the value of traditional office facilities.

Finally, multinational technical talent adopts the business ethics and values of its foreign employers as organizations figure out how to stay globally consistent while remaining culturally relevant in various countries. Specifically, remote software developers in Latin America and Central and Eastern Europe tend to follow corporate culture trends in the US.

Which Hiring Model Is the fastest?

Hiring Model

Internal hiring takes the longest, despite the fact that many employers think that hiring full-time employees is essential to employee morale and teamwork within the organization. Finding a full-time in-house developer may take months, depending on how you search for and assess prospects. You may use internal resources, networking, referrals, or even steal them from competitors. You may also need to raise your company’s profile to draw in experts.

Although hiring freelancers can be the quickest solution—you might be able to get a developer in a single evening—this approach is unreliable because the greatest talent is rarely drawn to freelance platforms.

While outsourcing companies take care when recruiting employees, companies are considering staff augmentation or outsourcing. However, it takes time to identify and select an agency with the necessary talent. Staff augmentation on demand is a methodology that allows tech personnel from a range of outsourcing companies to be hired within a week.

The hiring velocity and details of the four-team expansion models—freelance, outsourcing, staff augmentation, and employing contractors through Appic Softwares—are covered in this section. We have also added the conventional approach to full-time talent-hiring to complete the picture. While it could be the slowest method of hiring developers, some organizations, like Tesla, require that team members be managed and controlled in the same office.

Freelance

The quickest hiring method is freelance work since you can sign up on a site for freelance work, post the details of your job, and find a match in a matter of hours. Employing independent contractors is appropriate for brief projects, simple jobs, and businesses with tight budgets.

According to Upwork’s 2021 Freelance Forward poll, temporary freelancers make up 65% of all freelancers. The client shouldn’t expect the developer to be totally focused on the project because they may have a regular job and occasionally moonlight. While full-time freelancers frequently handle multiple projects, the quality of their work may fall short of the client’s expectations. 

Candidates using freelance platforms are unable to receive job stability since it conflicts with their business strategy. Consequently, developers find it challenging to draw in the best candidates since they view a stable permanent job as a better option.

Lastly, a freelance developer is free to end a project at any moment; the only thing that can stop him from doing so is a bad client evaluation. Simply put, contractors from development agencies or full-time employees are more committed than freelancers.

In-house Hiring

By definition, internal recruiting is the most involved of these possibilities. Months may pass. In today’s labor market, there is no talent excess, thus merely posting a job opportunity could not draw in the best candidates. Employers had an excessive amount of demand for workers in 2022—there were about two open positions for every job seeker—despite hiring freezes and layoffs.

To locate the ideal applicant, employers will need to use networking, job search engines, and LinkedIn. The HR professional or recruiter should screen every applicant, conduct tests and interviews, and confirm that the developer possesses soft skills that align with the company’s values.

Hiring from inside reduces the skill pool more than hiring freelancers and contractors. It is difficult to find developers who are knowledgeable about both mainstream and specialized technology, particularly in smaller cities.

Nonetheless, full-time employees are how IT businesses use this choice to develop their core team and culture. Since they are more interested in stock options, the early employees delve into the specifics of the product. They are dedicated to improving the product and expanding the business, and they typically remain longer.

Even though they work remotely, full-time local employees are welcome to visit the office as needed. It is simpler for coworkers who are based in the same place to collaborate with different departments and team members. Because of this, hiring internally is the greatest option during the core development stage, but it won’t happen quickly.

Outsourcing

In the event that the business decides to hire development services, it speaks with a preferred agency and goes over the specifics of the project. Hiring a specialized development team comprising a project manager, programmers, QA engineers, and UI/UX designers is possible with the outsourcing approach.

This model isn’t the fastest one, though. The client will have to invest time in locating, evaluating, and getting in touch with each agency. Even when outsourcing firms agree to work together, they might not have all the developers needed for the project on hand. After that, they begin hiring more engineers, a process that may take several weeks. Additionally, outsourcing firms have the option to ask for more thorough records to verify with their business analyst the software requirements specifications.

Assigning complete projects to external teams overseen by the CTO or product owner of the internal team allows IT companies to concentrate on the essential elements of their business.

Unlike freelance platforms, outsourcing organizations are significantly more selective when it comes to hiring, and, like any employer, they entail some risks. Outsourcing, however, restricts communication between the business and outside suppliers because you won’t be directly in charge of every member of the larger team.

Staff Augmentation

Staff augmentation accelerates development, lowers technical debt, and increases time-to-market by utilizing full-time hired software engineers from outsourcing companies. Employers oversee programmers and have direct communication with them, as opposed to outsourcing a project in its entirety.

Employing engineers from outsourcing companies requires a one-year contract and a deposit. In the event that the agency is unable to locate the specialist it needs, it may search the labor market for a candidate, which may take several months.

Staff augmentation services are provided by a software development business that essentially serves as an employer of record to streamline local recruiting procedures legally and lower taxes in the client’s nation.

Employers also save money by not having to pay for health insurance, bonuses, vacations, office space, workstations, or retirement contributions as they would for in-house staff. They will need to set aside time, though, for the onboarding process and acclimating a new hire to the group.

Recruiting Contractors Through Appic Softwares: Staff Extension on Request

Hundreds of outsourcing companies provide full-time employed software engineers to Appic Softwares, and these engineers can begin working on the project in as little as one week. It’s a staff augmentation model that prioritizes quick hiring and a wider pool of potential candidates.

The client can find an expert with the necessary competencies without contacting every agency. An increased pool of talent also increases the likelihood that the business will locate the ideal applicant.

In other ways, this approach fully utilizes staff augmentation; employers would oversee programmers directly, but they wouldn’t worry about paying for perks like health insurance, retirement savings, or commute expenses.

We couldn’t find dev talent locally soon enough, so we had an urgent requirement. We were able to assemble a team of six developers in a matter of weeks after deciding to use Appic Softwares. They improved the hiring process and gave us a brief summary of the caliber and number of developers that fit the desired profile. Soeren Munke, Matterway’s Chief of Staff and Head of Go-to-Market

Chart Comparing Hiring Models: The Typical Time to Hire

Hiring model Works best for Advantages Disadvantages Average time to hire
Freelance short-term assignments and initiatives • Adequate for businesses with tight budgets

• Easy access to an Indian talent pool

 • Poor quality output since independent contractors frequently handle many tasks

• Freelancers are free to end a job at any moment.

• Candidates on freelance networks are not guaranteed a job.

• Data loss risk because most freelancers do not sign a non-disclosure agreement

 1 day or longer
Staff Augmentation Accelerating development and lowering tech debt • Complete control over the development process because contractors collaborate with internal workers directly • Contractors will be less involved in the corporate culture and won’t visit the office.

• If the outsourcing company doesn’t have people on hand, several weeks of sourcing and hiring developers

 1 month or longer
Staff Augmentation On-Demand Accelerating development and lowering tech debt • Complete control over the development process because contractors collaborate with the internal team directly

• Wide range of talent

• A simple way to replace a developer in the event that they are unfit or decide to quit

 • Contractors will be less involved in the corporate culture and won’t visit the office. 1 week or longer
Outsourcing Development assembling a development team for a particular project • The full development team for the necessary range of work

• An outsourcing company is aware of the experts you require for your project.

 • Finding reputable and appropriate agencies takes time.

• Since each member of the remote team is not directly overseen, there is limited communication between the agency and the organization.

• If the outsourcing company doesn’t have the necessary talent for the project, it will take several weeks to source and hire more engineers.

 a few months
In-house Hiring essential development and upkeep • more authority over the administration and guidance of work

• Sensitive data control through the provision of business laptops and equipment

• Simultaneous departmental and team collaboration made easier by one location

• Each new project offers an opportunity to improve the team’s skill set.

 • Protracted hiring and interviewing procedures

• Limited reservoir of talent

• Expensive internal operations due to companies’ contributions to health insurance, workstations, office rental, bonuses, and retirement plans

• Between 20% and 30% of a new hire’s first-year compensation is used for headhunter costs.

 a few months

Final Thoughts

The recruiting model most appropriate for the development team’s quick growth will depend on the project’s size and the employer’s requirements. Employing freelancers is clearly advantageous for small-scale jobs, but it can be problematic for large-scale projects and long-term collaboration because of the low engagement that freelancers can have on an organization’s productivity.

Appic Softwares can help you expeditiously finish the remaining items on the checklist following the completion of a comprehensive work description. Our hiring process ensures that you will find the right applicant who has been thoroughly screened for the position, fits within your budget, and satisfies all of your hiring criteria. Appic Softwares is your key to confidently, rapidly, and easily employing remote workers in India.

We only look for applicants who are the best fit for the role and who have successfully passed our 5-step deep vetting process in addition to a thorough background check. In addition, our sourcing and matchmaking processes heavily rely on our Application Tracking System (ATS).

Contact us!