An organisation needs expert engineers to create software products and services from scratch and scale up. However, building a solid dedicated development team is not easy. Due to the high turnover rate of talent in the software industry, organisations question whether their employees have sufficient technical skills.
The lack of qualified candidates makes it difficult to fill job openings. Western markets face a severe shortage of tech talent, making it nearly impossible to hire local talent. https://www.future-of-ia.org/
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This means they often spend a lot of unnecessary time and money sourcing a team of competent developers.
Even when an organisation hires the right developer, it doesn’t ensure he or she will stay with them forever. If its employee turnover remains high, the recruitment process will have to be restarted within weeks or months, resulting in setbacks that can stop software from reaching the market on time.
The offshore dedicated team model
Several decades ago, more than half of the western world faced a skill shortage. They found a solution to this talent crisis by outsourcing software development processes. Using outsourcing, organisations could assemble a team with the right partner quickly. The thinking went: ‘a third-party vendor is more cost-effective than hiring a local employee’.
However, outsourced engineers are not your direct employees but belong to a contracted company you hire to do the work for you. Because of this, getting more control over hiring and recruiting and being more hands-on with the product may be difficult.