A Guide to Building a Distributed Software Engineering Team

Building a distributed software engineering team can be a challenge for any company without the proper time or resources for sourcing, recruiting, and training talented engineers. Encora has deep experience successfully assembling software product teams.

We have prepared this guide about what you need to know before getting started.

Competition for Software Engineers is High

Competition for Software Engineers is High

According to the U.S Bureau of Labor Statistics, software developer employment is projected to grow 22% by 2030. This means it will be increasingly difficult to hire talented software engineers. The growth rate for software developer jobs is 14% greater than for other occupations.

Competition for Software Engineers is High

The Rise of Remote Teams

Hiring vs Extending Your Software Engineering Team

Onshoring, Offshoring or Nearshoring?

The COVID-19 pandemic normalized remote work. Many software companies have changed their policies to allow for a hybrid home/office work model; others are no longer investing money in a physical space at all.

Oranizations that once believed their teams needed to be under the same roof now recognize a company can operate successfully with a distributed team in different countries and across multiple time zones.

There’s a whole world of talent out there. To alleviate the software engineering talent shortage, organizations are extending their teams through Nearshoring.

There is no universal solution for all companies. Hiring vs extending a software team depends on your company’s needs, capabilities, and budget.

Here’s what to consider:

Hiring a Team

When recruiting a team at a remote location, consider:

  1. Being familiar with the legal regulations of the target location
  2. Learning to assess a variety of resumes as resumes are written differently in other parts of the world

Extending a Team

When partnering with a third-party vendor to extend your team, consider:

  1. Do you need a team long term or short term? If you are extending your team for part of a project, the full software development lifecycle or the full product development lifecycle
  2. Do you understand what your commitment with the vendor is? Do you need to help source candidates? Are you expected to provide a project manager for the extended team?
  3. Do your teams align culturally? Choose a vendor that has a work culture, values, and ethics that resemble yours

Choose from diverse models to extend your team:

  1. Onshoring: working with an engineering team in a different city but in the same country.
  2. Offshoring: working with an engineering team in a different country.
  3. Nearshoring: a subset of offshoring, working with an engineering team in a different country but closer to your geographic location, usually within 1 to 4 time zones.

A team located near your headquarters makes communication and collaboration easier because there are no large time zone differences.

At Encora we have learned that the best solution is a solution tailor-made to your company. We hope this small guide has helped you narrow down what you are looking for.

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Encora can extend your team with experienced engineers from around the world. Our global and local capabilities allow us to custom-tailor a software team to your specific needs.

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