The fiercest competition in the marketplace puts severe pressure on the depleting profit margins of every business. In such circumstances, the cost of hiring a programmer plays a significant role in modern business ecosystems.
Let’s have a deeper perspective on how companies can overcome the challenge of the cost to hire a computer programmer in the marketplace.
How to Hire a Programmer?
There can be numerous ways to hire a software programmer in today's global talent-hiring marketplace other than the traditional on-premises hiring. All those methods to hire a programmer help businesses to cope with the cost of talent hiring. The most popular forms of hiring include the following:- Freelance Hiring
- Dedicated Remote Hiring
- Multiple Forms of Outsource Hiring
- Nearshore Hiring
- Offshore Hiring
- Outstaffing
- Traditional Hiring
All of the above forms of hiring have their own merits and demerits. The traditional or on-premises hiring is more reliable, safe, and critical to business security and confidentiality, but the computer programmer salary in this form of hiring is very high. Similarly, to hire a freelance programmer is the most cost-efficient and easy to hire, but it is the most unreliable form of hiring.
Let's expand the cost analysis of the major approaches used for remote hiring in the present-day marketplace.
Costs to Hire a Programmer in Different Hiring Approaches
According to the latest research, only American companies save over $5 billion by using the services of remote workers through different forms of remote hiring approaches. Those approaches include outsourcing, outstaffing, freelance, offshore, and nearshore, and their sub-models of hiring. The main reason for this gigantic saving pertains to a huge saving in operational and development costs.A huge chunk of that saving also includes the cost saved from real estate, and other infrastructure capital investments as well as the operational charges. The power also plays a vital role in saving money by hiring programmers remotely.
The average cost of hiring a software engineer through the freelance approach is very low. You can hire a freelance programmer at about $24,875 per annum in Ukraine. If you choose a worker from India, you may get it at even lower prices. If you look at the average salaries of freelancers from the USA or Western European countries, they are about 3 to 5 times higher than the same salaries in Ukraine.
Similarly, the dedicated outstaffing can offer you even lower and fixed prices with the guarantee to complete the project on time. You can also have control over the remote team and save a substantial amount of money in this form of hiring. The cost of the outsourcing model is a bit higher than both freelancers and outstaffing models. But, outsourcing offers a comprehensive solution, which is fully managed and connected through one account manager. This is the easiest way for companies to handle their repetitive and less important processes.
By using different models of hiring, you can save a huge amount that you will have to pay in case of traditional on-premises hiring. In traditional hiring, you need to legally bear, paid leaves, medical insurance, social security, bonus, supplement payment, and general overheads at the office. In other models, you are not legally bound for those fringes. In the nutshell, all of the remote hiring approaches save money in the range of 3 to 5 times the money spent in the USA and other developed countries in the Western European countries.
Top 10 Approaches to Reduce the Cost of Hiring a Programmer
How to reduce the cost of hiring a programmer is a complex question. There are no strict rules or standards that define the formula for saving the cost of hiring programmers. Numerous approaches and best practices are used in the industries to reduce the cost of hiring. The top 10 of those approaches are described below.#1 Assess Your Requirements Accurately
Before you choose the correct way to hire a programmer, you need to assess the job requirement very carefully. Any floppy assessment will lead to bad hiring, which may end up as a costly decision. So, always assess the job requirements from technical as well as soft skill perspectives. You should also make sure to define some of the most common and routine activities of the job position.# 2 Choose the Right Hiring Model
Choosing the right hiring model helps you save a substantial amount of money and time. Internal hiring is very easy and less costly, but for that, you will need an alternative person to replace the position, which you choose for a new job. You can also get help from your internal employees to help you in referring to some of their friends with the right skills required for the desired position. Nowadays, the most commonly used models include:- LinkedIn Click to Pay Model
- Online Job Boards
- Use Professional Employer Organization (PEO)
- Directly Contacting with Outstaffing Service Providers
All these models have their own merits and demerits. So, choose the right model of hiring through the right service you deserve.
#3 Prefer Remote Hiring
Traditional hiring is much costlier than remote hiring. So, choose different forms of remote hiring that save you cost and provide you with a good quality of work.#4 Choose Freelancer for Less Short Projects
Freelance software programmers can be hired at very cheap prices from multiple countries. It may have some service reliability and quality issues. So, you should choose freelancers for short projects to save costs substantially.#5 Establish Offshore Development Center for Bigger Projects
If you want to kick-start bigger projects in the future for longer periods, establishing an offshore development center (ODC) is the best option. You can save a substantial amount and maintain the best quality that you like by establishing a remote center for the software development work of your bigger projects.#6 Choose Outstaffing for Medium Size Projects
The medium size and small businesses can reduce the cost of hiring of programmers by choosing the outstaffing. It is a dedicated remote team for a certain project or task at a fixed price. This offers great benefits for medium-size and small projects.#7 Choose Fixed-Cost Outsourcing for Less Important Business Tasks
Fixed-cost outsourcing of less important tasks is a very useful approach to reduce the cost to hire a software programmer. You can outsource some of the tasks at fixed prices. You can reduce the development cost by choosing this option.#8 Choose Nearshoring for Long-term Projects
The location plays a critical role in case you choose the remote teams. The nearshore option helps you save money in physical traveling and other modes of communication. You can also use the time-zone overlap very effectively to the overall cost of software development.#9 Make a Blend of Hiring Models to Avoid Bad-Hiring
Bad hiring costs the company badly. To avoid any such circumstances, you should choose multiple types of hiring for your software development team. This reduces the risk factor and helps you save you from any bad situation.#10 Always Choose Professional Software Development Partners
Whichever the method of hiring you to choose, it is highly recommended to choose the professional partners. If you choose your software development partners or programmers carelessly, you will suffer hugely. So, always research and assess your software project partners carefully. It will save you the cost of development.
