The Benefits of Distributed Teams: What You Need To Know

Thanks to COVID-19, remote teams are now being deployed more widely. Only a small percentage of US employees had the option of working from anywhere before the epidemic. Over a year later, that number has already fallen to just under half. Now, as major software companies have begun to embrace the advantages of hiring a global workforce, the phrase ‘distributed teams’ has gained enormous popularity. There’s no denying that distributed teams are indeed the new norm for many.

Having a distributed team has many benefits

Employers and employees both benefit from distributed teams. It’s possible to form international development teams from anywhere in the world. The duties of distributed teams are not dependent on physical presence. They can work from any place in the world. You can set up a distributed team by creating a dedicated offshore team, partnering with an outsourcing company, and recruiting freelancers from other countries.

Working remotely has distinct benefits, regardless of the circumstances. Determine if your company is ready for this move by asking yourself: Is it difficult for you to locate the best local talent? Are your current staff lacking technical and soft skills? Does staying close to home cost you a lot? If you’re scaling up, why are you moving so slowly? Are you having trouble focusing on your company’s core competencies? If yes, then your company can benefit from working with distributed teams.

Distributed teams: the importance of choosing a suitable location

Not only can you acquire excellent talent, but you can avoid paying the outrageous costs of hiring locally by assembling a distributed team overseas. Choosing an offshore location isn’t as easy as it seems. You have to weigh the advantages of each country. For instance, countries like China offer cheap labour but don't have strong cultural compatibility, English-language skills, or the specialised tech talent you need.

However, countries like the Philippines, Singapore, or India (the capital of offshore IT) offer some of the fastest-growing IT hubs that can meet every requirement. For instance, Bangalore, India employs 1.5 million workers in the IT field alone. India also has the second-largest English-speaking population in the world, making it a great country to create a distributed team.

Choosing the right engagement model: outsourcing vs. offshoring

It’s important to choose the right engagement model for your company to meet your particular business requirements. Businesses can create distributed teams in various ways. The most known approach is traditional outsourcing. In this model you collaborate with an independent contractor located in another part of the globe. Outsourced workers are often working part-time, meaning that neither the outsourcing company nor the employees that they hire are your employees. This lack of team ownership means it’s not a long-term sustainable solution. This model is popular because it’s a cost-savings approach.

... why offshoring wins the race

Simply saving costs is not the goal for every organisation. Often the aim is to hire top-talent to fill skill shortages, but remember that those you hire through outsourcing don’t belong to your company. They are contractors that serve multiple clients simultaneously.In contrast, offshoring meets requirements outsourcing can't because it leverages the large talent pools of emerging economies. Whereas outsourcing sometimes lacks customer focus and results in poor quality work. Offshoring offers greater workplace flexibility and control over HR and recruiting matters and enables organisations to recruit committed and knowledgeable developers. They are permanent, full-time employees (like your local team) but are based overseas. By teaming up with an offshoring partner, you can hire dedicated developers and leverage distributed teams' benefits.

At The Scalers, we help innovative global businesses build highly talented software development teams in Bangalore — the second largest tech ecosystem in the world.