Top 5 Reasons Why Tech Companies Avoid Hiring Remote Teams

By: Segiy Sergienko, 23 Mar 2020
3   min read
Reading Time: 3 minutes

Keeping an organization successful requires rational resource management in conjunction with avoiding risk. In some instances, tech companies avoid hiring remote software development teams based on a misunderstanding of how remote software development works. Companies are fearful of losing control over their intellectual property or receiving a final bill that significantly exceeds the price estimated at the start.

Despite the fact that many successful startups, as well as a number of more-established companies, have had long and successful experiences using dedicated software development teams for solving their business needs, many potential customers of remote software developers still harbor doubts. We interviewed many of our customers and prepared a list of the five most common concerns that push companies away from hiring dedicated software development teams.

Fear of Misuse of Funds

Companies fear hiring a team that doesn’t have the expertise they claim to. Hiring unqualified people can lead to a project going in the wrong direction. This is a justified fear. So why hire a remote team at all then?

The benefits are that = doing so means not having to recruit all new staff, as well as not having to spend extra time and money on the training of personnel or in the purchasing of equipment. But you must ensure that the contractor meets your expectations.

How to solve it

Ideally, your company’s chief technology officer should be responsible for evaluating the potential software development team’s technical expertise and performing a competency assessment. The CTO can carry out technical interviews with the team at the start of work, or give them a small task to test their skills.

Fear of Paying More than the Market Price

You need to understand the contractor’s pricing strategy. For example, is time an issue for you? If the contractor is from the premium segment, then they need to deliver the prototype as quickly as possible, faster than the competitors. This is important when time is against you.

As a rule, most software vendors currently use a combination of on-site sales office + delivery office or offices in a geographical area where the labor force is relatively cheap. In this format, you get a product of appropriate quality at an appropriate price.

How to solve it?

The algorithm of actions is the same: testing a small part of their work to see the time and the quality, both of which are easy to measure.

Fear of Losing Control Over Intellectual Property

Is it possible that the software you purchased will be sold by the remote developer to third parties? Yes, it is. But you can’t exclude it in any other case either. Even full-time in-house employees may be tempted to share your intellectual property with someone.

How to solve it?

Examine the contract provided by the company carefully. The contractor should ideally be based in the same jurisdiction as the client, or at least not in a jurisdiction with a dubious reputation. For this, it’s better to ask an experienced lawyer for advice. Check the reputation of the remote team using all available public information. Be sure to check their references.

Fear of Working with a Distributed or Remote Team

Lack of control over the work of a remote developer or team is another reason some businesses decide not to hire out. (Read more: How to Make Customers Happy with Transparent Project Management). You don’t know these people, you have no idea about the conditions they work in, their motivation, nor responsibility level. You can see and control your office employees every day, but cooperating with a remote team won’t work the same way. Hence, you may feel doubts and uncertainty about the contractor’s ability to work in accordance with the plans of your team.

How to solve it?

Begin with 1-2 experienced remote employees. Almost every experienced technology company has at least once dealt with this one way or another. As a rule, experienced employees focused on results don’t need constant control from you. Nevertheless, monitoring the result, as well as providing corrective feedback, should be mandatory. Otherwise, the remote team members will lose motivation sooner or later. Regular control of the work of the remote software vendor helps minimize the risks of disruption to your company’s schedule.

Fear of a Remote Team in a Different Time Zone

This can be a problem, because talking with a contractor at night isn’t always convenient, even if cooperation with the remote team promises big savings and impeccable quality.

How to solve it?

The standard practice is for remote teams to adjust to the client’s time zone – no matter where they are located. There are usually shifts that cover the entire day, so the team is available pretty much 24/7, whenever you need them. As long as the communication is properly organized, time zones shouldn’t be an issue.

Contact us for consultation and discussion of your project requirements.

For more information and effective setup, you can tell us about your project details and we will help you find the best solution to achieve your business goals. Sirin Software is recognized by many companies and ratings, also we track Top Market Trends and Inventory Management Software Systems.

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