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Which is Cheaper: In-House Team or Remote Developers

In-House vs Remote Developers

A hiring software developer is a daunting task, and it has become more intimidating amid Corona times. Earlier, you have to write down answers to queries like what is the vision of your company, what are the current projects that you have in hand, what is the hiring budget, and so on. One more dilemma that every entrepreneur and business faces while hiring developers is between in-house and remote developers.

In such a situation where the world is fighting with coronavirus pandemic, and cities are locking down, having remote developers is the best backup plan. Setting up a remote development team in countries like India, which have managed to keep Corona in control so far would be the right option to keep your productivity intact. India with 192 cases, has already adopted all the precautionary measures to prevent Italy-like situations.

Apart from the lowest number of Corona cases among other countries, India also has experienced and skilled resources when it comes to web and mobile app development. With a whopping 10, 345 Engineering colleges across the country, India accounts for 2.2 million skilled IT professionals. Moreover, the pool of these IT professionals is English-speaking, which is a major boon.

Which is Cheaper: Hiring in-house developers or remote developers

The image can help you compare the expenses you have to bear while hiring in-house developers in the USA or the UK and the salary that you will be paying to remote developers in India.

Costs of Hiring an In-house Team?

Salary of Developer

According to the App Association, the average salary of a software developer is around $100,000 per year. Multiply that by the number of people you want to add to your team.

Other Associated Costs

Apart from the salary, there are a lot of other costs associated with having an in-house team. Have a look:

  1. Recruiting Expenses:

This will include having an in-house recruitment team or outsourcing this task to recruiting agencies.

  1. Employment Taxes:

Employment salary varies depending upon the industry and various other factors. This will include workmen’s compensation premium depending on the category of your employee.

  1. Benefits:

Basic salary and employment taxes are minimal in most of cases you are also required to provide some benefits. Typical benefits for a $50,000 salaried employee cover life insurance and health coverage. Other benefits could include long-term disability insurance, dependent care assistance, tuition reimbursement, and dental plans.

Read More: Benefits of Hiring Dedicated Developers

  1. Working Space:

When you are hiring an in-house developer, you have to also consider the expenses that will include the rent of the working space. Moreover, you have to provide your employees with a computer and uninterrupted Internet connection, which will increase your costs further.

  1. Training Cost:

Every other day there is new technology in the market. And, to make sure that your company is aligned with the latest technology, training session at the workplace becomes quintessential. The cost of these training sessions will also add up to the cost of hiring in-house developers.

In the case of a remote team, the training of employees is handled by the company you partner with. It becomes their job to train the employees on the latest technology in the market.

  1. Other Expenses:

Apart from this, there will be other associated expenses such as electricity and the Internet. Expenses like birthday celebrations, 1-year completion rewards, bonuses, trips, and parties to motivate employees.

When you choose to hire remote developers, you need to worry about any such expenses.

Which option offers better cost savings: In-house vs. Remote Developers?

In today’s digital landscape, the question of whether to employ in-house developers or opt for remote developers has become a pivotal consideration for businesses seeking efficient and cost-effective solutions. This article delves into the nuances of this decision-making process, examining the factors that contribute to better cost savings.

Understanding In-House Developers

The Pros and Cons of In-House Development

In-house development provides a sense of control and immediate communication. This can lead to faster problem-solving and direct collaboration among team members. On the flip side, it involves higher overhead costs, such as office space, equipment, and benefits.

Exploring Remote Developers

The Advantages and Drawbacks of Remote Development

Remote Developers offer the flexibility to tap into a global talent pool without the limitations of geographic location. This can significantly reduce costs related to office infrastructure. However, it may pose challenges in terms of communication and time zone differences.

Cost Considerations

Crunching the Numbers: Which is More Economical?

When it comes to cost savings, remote developers tend to be more budget-friendly. With reduced office expenses and access to a diverse range of skills, companies can allocate resources more efficiently. Conversely, in-house developers come with higher fixed costs due to office upkeep and additional administrative expenses.

Quality and Output

Balancing Cost Savings with Output Quality

While cost is a crucial factor, the quality of work is equally important. In-house developers often have a better understanding of the company’s culture and objectives, potentially leading to higher quality output. On the other hand, remote developers offer a broader skill set and fresh perspectives, enhancing innovation.

Communication and Collaboration

The Role of Communication in Cost Savings

Effective communication is vital for successful project execution. In-house teams benefit from immediate face-to-face interactions, minimizing misunderstandings. Remote teams rely heavily on digital communication tools, which can sometimes lead to misinterpretations or delays.

Project Management

Project Oversight: In-House vs. Remote

Managing projects with in-house developers allows for real-time supervision and quick adjustments. However, remote teams can utilize project management software to maintain transparency and accountability, ensuring efficient progress tracking.

Security and Data Protection

Safeguarding Sensitive Information

In-house teams have tighter control over security measures, ensuring sensitive information is safeguarded within the company premises. Remote teams must implement robust cybersecurity protocols to protect data, which could add to the overall cost.

Flexibility and Scalability

Adapting to Changing Needs

Remote developers offer greater flexibility in scaling resources based on project demands. This agility can lead to optimized cost management. In-house teams may struggle to adjust swiftly to changing requirements, potentially affecting cost-effectiveness.


In the eternal debate of “In-House Developers vs. Remote Developers,” there isn’t a one-size-fits-all answer. The choice depends on various factors, including the company’s size, nature of projects, and budgetary considerations. By carefully evaluating these aspects, businesses can make an informed decision that aligns with their goals and cost-saving strategies.

Cost of hiring remote developers?

The only costs associated with hiring developers are the cost of recruiting the employees and the salary of the developers based upon the per-hour charges. Other than this, you need not spend any additional amount on birthday celebrations, electricity or the Internet connection.

Also, there will be no health and insurance benefits and training costs associated with a remote development team. Once you have hired a team, you only required to coordinate with them for project updates. If you are looking to collaborate with the team in India to set up your remote development team in India, then let’s have a discussion over a call. Graffersid is based in Indore, India, which is still safe from the impact of Corona. Indore with 0 cases of Coronavirus is taking all the measures to prevent the virus from spreading in the city. Having a remote development team in Indore is the most reliable amid Corona times where another country is locking down all the major cities.

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