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 of hiring 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 traditional on-premises hiring. All those methods to hire a programmer help businesses 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. Traditional or on-premises hiring is more reliable, safe, and critical to business security and confidentiality, but the computer programmer's salary in this form of hiring is very high. Similarly, hiring a freelance programmer is the most cost-efficient and easy, but there are more reliable forms 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 considerable operational and development cost savings.A massive 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 meager. 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, dedicated outstaffing can offer you even lower and fixed prices with the guarantee of completing the project on time. You can also control the remote team and save substantial money in this form of hiring. The cost of the outsourcing model is higher than that of 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 repetitive and less critical processes.
By using different hiring models, you can save a considerable amount that you will have to pay in the case of traditional on-premises hiring. In traditional hiring, you must legally bear paid leaves, medical insurance, social security, bonuses, supplemental payments, and general overheads at the office. In other models, you are not legally bound to those fringes. All remote hiring approaches save money in the range of 3 to 5 times the money spent in the USA and other developed countries in 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. No strict rules or standards 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 must carefully assess the job requirements. Any floppy assessment will lead to lousy hiring, which may end up as a costly decision. So, continually assess the job requirements from technical and soft skill perspectives. You should also define some of the most common and routine activities of the job position.# 2 Choose the Right Hiring Model
Choosing the suitable hiring model helps you save a substantial amount of money and time. Internal hiring is easy and less costly, but you will need an alternative person to replace the position you chose for a new job. You can also get help from your internal employees to help you refer 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 suitable hiring model through the exemplary 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 costs 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. 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 more significant projects for more extended periods in the future, establishing an offshore development center (ODC) is the best option. You can save a substantial amount and maintain the best quality by establishing a remote center for the software development work of your more significant projects.#6 Choose Outstaffing for Medium Size Projects
Medium size and small businesses can reduce the cost of hiring programmers by choosing out staffing. It is a dedicated remote team for a project or task at a fixed price. This offers great benefits for medium-sized and minor projects.#7 Choose Fixed-Cost Outsourcing for Less Important Business Tasks
Fixed-cost outsourcing of less important tasks is a beneficial approach to reduce the cost of hiring a software programmer. You can outsource some of the functions 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 choosing 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
Wrong hiring costs the company badly. To avoid such circumstances, you should choose multiple types of hiring for your software development team. This reduces the risk factor and helps you save yourself from any bad situation.#10 Always Choose Professional Software Development Partners
Whichever hiring method you chooses, it is highly recommend that you thselecting professional partners is highly recommendedre 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.
