Should you make an in-house development team or hire remote developers? Sometimes, this question is so big that you wander across lots of factors but still don’t come to a conclusion. There are a plethora of factors involved in making this decision. If your business doesn’t have any in-house development team, you are still determining whether to hire people, or perhaps you have an in-house development team, but it is too overwhelmed and swamped, so you think about bringing more developers through outsourcing.
In the post-pandemic world, remote is now vision as the future of IT development, or it has become a new normal. Even the most rigid and traditional working environments have recognized the benefits of working remotely. They are finally realizing the endless possibilities and opportunities that remote work provides, and they are looking for remote developers.
By employing the right strategy, it is possible for companies to leverage remote-style work, and it will be preferable to being in the office. Here, we are not referring to remote work in general, but we are interested in exploring the best options for the development of AI apps among On-Site AI developers or Remote AI developers.
If you have decided to build an AI-based application for your business or have a million-dollar idea for an AI-based app but can’t decide how to proceed with the development, then this article is for you. So, stick around!
Choosing Between Remote vs. On-Site AI Developers:
Before hire Hire Remote Developers or AI developers you should know pros & cons. Nowadays, the biggest challenge companies are facing is recruitment of the right talent at the right time… If you are a business owner reading this article, then you can understand how difficult it has been to retain tech experts, especially when the deadlines are near, and your project schedule is falling behind compared to what was initially planned.
Time plays a critical role in the success of a business that wants to achieve its goals faster. According to a source, it takes nearly 40 days to find an in-house AI developer, while you can get a whole outsourcing company in just 1-4 weeks. Thus, outsourcing will not only save your precious time but also save your pockets by eliminating recruitment and administrative expenses.
Also, in outsourcing, you get access to a rich pool of talent, and that is the primary reason why many companies are moving to the outsourcing model.
Now, let’s dive deeper into the pros and cons of in-house development teams and remote outsourcing models. After weighing the pros and cons of each approach, we would be able to decide which could be the better move for hiring AI developers for your next project.
In-house Development Team:
As the name indicates, an in-house development team refers to a team that works within your company premises for your projects only, and solely you are responsible for their work output. Your company will choose the developers, conduct interviews, hire them, and take care of their leaves, insurance, salary, etc. There are benefits to having your own team, but the cons also exist.
Pros and Cons of In-house Development Team:
Pros:
1. Similar Cultures:
If you are hiring people within your city, state, or country, then they can easily fit into your company’s culture and vision. There would be nothing unfamiliar or cultural shock for you or your team. The in-house development team will get settled in no time.
As these AI developers work full-time in your company, they will have more control over your project. They will also be more familiar and aligned with your company’s goals, objectives, and specific needs. As a result, they will be highly motivated towards your company’s future and bring maximum value.
2. Instant Availability:
The best advantage of having an in-house AI development is that there are no chances of misunderstanding requirements as there will be in-person communication most of the time. There is a more robust connection or bond among the in-house team members, which improves the efficiency of every individual. They get immediate access to the information, saving time in the process otherwise spent on going back and forth.
Also, in case of any emergency, both the stakeholders and the development can immediately connect with each other. Additionally, being in the same time zone and having the same working hours and office get the work done rather quickly, too, without any ambiguity. Makes sense!
3. High Quality Work:
When you have a team of AI developers in your office premises, the work wouldn’t be only faster, but you can check the quality in real-time. Also, you can get any change in requirements done upfront.
4. Better Control:
You get better control over your project with in-house development. You can decide the deadlines, deliverable timeframes, sprints, and other project attributes. Also, since everything is happening within your reach, it becomes easier to manage the team and remove the ones who are not delivering the expected outcome or productivity.
5. Performance Analysis:
Aside from assuring project success, an in-house development team may greatly assist in identifying the star performers who are making a difference and the steps that must be taken to ensure their retention. The process will help you realize your potential of retaining employees and what you can do differently for future improvements.
Knowing the benefits of an in-house development team will make it sound easier, but it is also vulnerable to risks. Let’s know the demerits of having an in-house development team:
Cons:
1. Recruitment Time:
It takes time to find the right talent for your company. As per the Sparks Group, it takes an average of 51 days to fill a position in the IT field, which is equivalent to 2 months. Now, are you able to wait for so long? Obviously not. Now the question arises: why does it take so long for companies to hire the right candidate? These are the primary reasons:
· Companies may want a perfect candidate, i.e., the candidate should meet all the defined criteria.
· Adoption of thorough screening processes to avoid false positives.
· Great potential hires are choosing the competitors to work with because of uncompetitive salary packages
· Lack of candidates with the required experience and technical skills for AI development.
· The company is a startup, and that’s why it couldn’t attract many resumes.
2. Higher costs:
The recruitment and training cost is much higher than hiring remote development teams. As per the Glassdoor analysis, in the US, an average company spends about $4,000 on hiring new employees.
Also, the costs are not just limited to hiring; there are other costs involved, like infrastructure costs. You also have to bear the costs of testing tools, software, laptops, devices, servers, salaries, employee benefits, insurance, etc. All these overhead expenses would be much higher than outsourcing developers.
3. Employee Retention:
It is not just limited to AI developers; employees, in general, tend to switch if they get better opportunities in terms of pay scale, location, etc. It is generally difficult for companies, especially startups, to match the market-competitive salaries. That’s why many developers leave during the crucial phase of the projects, and you are back to where you started. To find the new fit, you have to go through the same extensive screening procedures once more. The development process has not only slowed down but also exceeded your HR budget.
AI Development Outsourcing:
In the AI development sourcing process, companies have to meet their requirements with an external AI development company for their AI-based projects. These outsourcing companies are masters of this field and have a team of highly qualified AI developers who are capable of meeting any business requirements.
Pros and Cons of Remote Development:
Pros:
1. Cost-Efficient:
There are hundreds of software outsourcing companies in countries like India, Malaysia, Singapore, etc., that offer dedicated remote development teams or even dedicated individual resources at highly reasonable rates who will solely work for your business. In this model, the developer will work on your projects, but the outsourcing company will be responsible for all associated things such as salary, infrastructure, employee benefits, etc. However, you will have full control over the developer, and you can even track his work.
It will significantly reduce the development costs by at least 50%. Cost-effective is the foremost factor that comes into consideration when choosing between in-house or outsourced software development. The outsourcing costs of your AI app project will depend upon the following factors:
· Project Timeline – Short or long-term project
· Complexity, features, and functionalities of the product
· Flexibility and Scalability Options
2. Multiple Business Models:
In in-house development, you are restricted from following a traditional model in which you have to give a fixed salary. However, the outsourcing model gives you high flexibility when deciding on a business model. The popular business models are:
· Hourly Model: You have to pay the developers for the hours spent on your tasks. In this model, you can also choose whether you want an experienced developer or a beginner to work.
· Dedicated Remote Team: The cost structure will be an hourly model, but instead of hiring an individual, you can outsource a team of developers for your project.
· Project-based models: Here, you will offer a fixed price for a defined scope of work.
· Or a combination of any of the above-mentioned models to suit your needs.
The flexibility of outsourcing allows you to hire staff as needed, which is its most vital feature. To keep up a long-term relationship is not required by law. When the project is finished, the contract expires. Furthermore, cloud computing is enabling developers to operate remotely more easily, eliminating the need for physical borders.
3. Expertise:
It can be difficult to find experts on the technology you work with in your geographical location. An outsourced remote teaching team opens the doors of limitless hiring opportunities and huge pools of global talent who are knowledgeable and have all the technical skills to work on your project.
4. Faster Delivery:
In the outsourcing process, you are exonerated from the hassle of attracting, finding, shortlisting, and hiring full-time employees, which means you can start on your project as quickly as possible. No time will be spent on hiring, onboarding, or training people.
Also, by handing over your development activities to a third party, you can seamlessly shift your focus towards the things that matter the most or that have been overlooked for accelerated growth.
5. Latest Technology Usage:
Software outsourcing companies keep updating themselves with the latest technologies and trends in the IT industry. Also, they have better exposure since they work with clients from all around the world, everyone with their tech-stack requirements. Thus, you can leverage the latest technologies like AI, ML, Blockchain, etc., in your project.
Cons:
The only disadvantage you may feel in outsourcing is the communication gap. Undoubtedly, you get seamless physical communication with in-house developers, while in outsourcing, you can only have text, video, or audio calls with the team. Also, if the team is situated in another time zone, then it will be an added obstacle. However, these obstacles have already been overcome through these methodologies:
· Most outsourcing companies have a project coordinator or project manager whose role is to become a POC for the clients and development team. The POC handles all the requirements and communications and is available at the client’s preferred time.
· A single communication medium, such as Slack, is used for all project-related information.
· Daily meetups are performed to ensure everyone is on the same page.
Who’s the winner finally? In-house or Outsource?
If we compare the pros and cons, then obviously, it is outsourcing. But it also depends upon the requirements. If you don’t have any cost or infrastructure restrictions, in-house development is also a good option.
Wrapping Up:
At Octal IT Solutions, the best software development company in India, You can hire dedicated developers for best AI development services. We have a vast team of developers who are proficient in remote work for clients. Let us know your requirements.
