IT Recruitment Agencies: A waste of money or an effective way to hire offshore devs?

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However, if you aren't sure that hiring remote developers is something you need to pursue, read on: we'll bring to the light both its benefits and the cons you must be aware of before considering this option.

Staff recruitment IT

If you're wondering why so many companies suddenly switched to remote talent, you're not alone in this quest for answers.

"Remote talent" has been a buzzword for a few years now, with the COVID-induced pandemic making it all but a single viable option to continue uninterrupted work for an enterprise.

However, if you aren't sure that hiring remote developers is something you need to pursue, read on: we'll bring to the light both its benefits and the cons you must be aware of before considering this option. 

On this note, let's dive in.

Hiring remote vs. in-house: Comparing the freelance web developer's salary with an in-house one.

The salaries of in-house developers depend on both their years of experience and location. For the sake of this research, we will focus mainly on Senior developers with 5+ years of experience and break it down by location.

Web developer salary: California

The salary of a developer in California tops our list. The proximity to Silicon Valley raises the bar, making the salaries of tech talent in this region one of the highest ones in the country. Thus, a web developer from California looking for in-house employment expects to get as much as $92K on average. In contrast, the most experienced (or lucky) ones expect up to $143K, reports Glassdoor. If you are not ready to pay this much to a single tech employee in your company, let's explore what other regions offer.

Software developer salary: Texas

Now, Texas is another prominent location to look for tech talent. Business-friendly government regulations and lower taxes lure companies to the region. And once there, they start their search for promising candidates to fill open positions.

However, while the region boasts better conditions for businesses, the candidates' salary expectations make it harder to hire locally.

Thus, reports show that a web developer's salary in Texas is $85K on average, with top-of-the-industry specialists getting as much as $133K.

Software developer salary: New York

As expected, the salary range in this region is somewhat similar to Silicon Valley. The demand for tech talent is high, and the variety of prominent employers is mind-blowing - and thus, devs can afford to pick and choose the ones that offer higher compensation and better conditions. 

Therefore, an average web developer’s salary in NYC is $93K, while top minds can get as much as $144K.

Web developer salary: Florida

Florida is another tech hub in the US. It boasts a vibrant technology enthusiasts community that is rapidly expanding thanks to the many perks the region offers to both businesses and tech talent, effectively driving them into Florida.

Therefore, if you’d like to help establish this community, now is the time to make your move. However, before you do, consider these numbers. 

An average software developer salary in Florida is $77K (top salaries reach $122K). While this is significantly lower than the salaries of the tech specialists in California and NYC, it might still be quite steep for an early-stage startup or a small to medium business.

Software developer salary: Seattle, WA

Home to Amazon, Tableau, and Crag, Seattle is among popular destinations for tech professionals. They move here away from the rumbling city noise of other busy tech hubs to enjoy the view and the (relative) peace and quiet this picturesque place has to offer.

But the scenery isn't the only thing they get to enjoy here: an estimated pay of web developer salary in Seattle is a whopping $101K on average, with some devs getting up to $157K.

Software developer salary: Chicago, IL

While not a major tech hub yet, Chicago is home to many seasoned professionals with Big Tech companies. And as such, they expect a certain level of pay to keep up with their lifestyle. Glassdoor peer reports state that, on average, a web dev in the area receives around $91K, with certain exceptions being paid up to $142K. The median salary is on the low end of the other regions on our list. However, the top talent is getting paid just as much as the leading devs in the Promised Land, Silicon Valley.

Remote talent salaries

If these salaries seem over your budget, you can hire offshore developers. Not only do you save on office rent, supplies, and utilities by going remote, but also, the pay expectations of devs around the globe are lower thanks to the lower cost of living. Now, let's illustrate this by adding complex numbers.

Web developer salary: Eastern Europe

Eastern Europe is often considered a Holy Grail by Western companies, as the region is one of the top tech hubs in the world, boasting hundreds of thousands of tech professionals available for hire. They bring years of experience to the table and cost less, thanks to the lower cost of living in the area.

Thus, our research shows that software programmers from Poland expect around $71K/year.

On the other hand, Romanian devs expect at least $82K/year. 

Finally, Ukrainian devs are getting paid around $60K/year.

Eastern Europe is often a popular choice for tech companies looking for ways to hire offshore devs because:

• The time zone difference still allows at least 4 hours of overlap with a potential employee;

•The cultural differences are barely noticeable, unlike the stereotypes spreading from popular TV shows;

•Professionals from the region offer high-quality services;

•You can get access to rare expertise thanks to the diversity and size of the talent pool.

Now, let's move a bit to the East and explore what countries like Vietnam and India have to offer.

Now, let's move to the East and explore what countries like Vietnam and India offer. 

Salaries of Indian developers for hire

Recent research showed that between 5.2 to 6M Indian programmers worked for both local and international development companies in 2020. The region is by far a primary outsourcing destination for tech giants from around the globe. Amazon, CISCO, Google, and Microsoft are just a few big names that outsource their development here.

Why? 

Primarily because they can get web development done in India for a fraction of the cost in America. Thus, for instance, if you hire Indian developers, you will have to pay around $48K/year, while in the States, the salary is double this size. The wages of Indian developers used to be lower, but with the growing demand and global tech talent shortage, salary expectations have risen dramatically.

There's still a strong stereotype that the quality of work provided by the specialists from this region is below average. But this is a questionable argument given how many Big Tech companies hire developers from India and entrust them with their products.

Salaries of Vietnamese developers

Vietnam is another popular outsourcing destination for tech companies. While they offer the same quality of work as Indian devs, they charge slightly less, which brings them to the top of the list for companies with limited budgets. Our findings show that the average salary you will have to pay if you hire developers in Vietnam is around $30K. 

You're probably wondering what other reasons to hire remotely you should know about besides lower salaries. If so, we've got you covered.

Why hire remote developers

  1. Saving costs. Salary isn't the only expense to consider when hiring new staff members. Think snacks, rent, appliances, and utilities. Just these things combined and multiplied by the number of people on your tech team have the potential to eat up a real chunk of your budget. You save a ton by eliminating all office-related expenses and keeping your pockets full. 
  2. Increased motivation. Remote employees working within a transparent environment with well-organized and thought-through internal processes are more likely to have a sense of ownership and, thus, take full responsibility and be more motivated to deliver good results. Therefore, make sure to offer proper tools and well-oiled onboarding - and enjoy the motivation with which the developers will get down to work on your project.
  3. Improved productivity. Flexible hours and an opportunity to work when they're most productive allow the devs to give your project their best. You might never be able to experience the same level of productivity from an employee forced to work the regular 9-to-5 job. This factor, combined with the increased motivation we mentioned above, contributes to better results.
  4. Increased retention rate. Employees with a sense of ownership and are sure that their employer trusts them enough to work on their schedule tend to be more loyal to their company. Therefore, remote talent is more likely to stay and be the company's ambassadors when handled right.
  5. Access to otherwise unavailable talent. With the growing number of companies offering digital nomad visas, all specialists whose occupation allows them to work remotely gladly jump ship. Therefore, if you're only hiring in-house, you lose the chance to get access to this incredible talent who is only willing to work remotely.
  6. 24/7 availability. We're not implying that your remote talent would work 24 hours a day. But we're saying that if you alternate between employees from different time zones, you'd be able to organize their schedules in such a way that would allow you to have tech specialists available around the clock. If you're in a business where time is a sensitive matter, a decision to hire an offshore developer will benefit you greatly!
  7. No bureaucracy. If you hire a dev directly through a tech recruitment agency, you avoid the trouble of dealing with the red tape, which, as we all know, can be a real pain in the neck. . In this scenario, the agency will take full responsibility for organizing the hiring and onboarding process for you according to your local jurisdiction regulations - and you will get your hands free for actual revenue-generating work.

These are the main reasons why so many companies choose to hire remotely. Now, the question remains how to do that. And we've got an answer for you here, too.

How to hire remotely

To put it short, there are four main ways to hire offshore developers: through vetted or non-vetted freelance platforms, outsourcing companies, with the help of tech recruitment agencies, or directly.

Direct hire

While it might seem like the most logical thing to choose, direct hire can be a stressful and rather confusing endeavor. 

To hire directly effectively, you need to clearly understand the specifications of the local market you are hiring from.   Cultural context, legal regulations, and places where local talent can be found. These things would be hard to comprehend for an outsider. Add to this list a language barrier, lack of network to begin the search with, and no brand recognition (unless you are a Big Tech company) - and you got yourself in quite a predicament.

You can opt for a "recruiter for hire" option, which allows you to find a local recruiter with an extensive network and understanding of the region to help you spot your next A player without having to do the work yourself. However, if this doesn't sound like something you are looking for, let's explore your other options.

Websites to hire developers

Typically, there are two types of websites to hire developers from: vetted and non-vetted freelance platforms.

Non-vetted freelance platforms are more common among the two. The first example that comes to mind when you think of "non-vetted freelance platforms" is Upwork. Anyone willing can register on the platform, describe their areas of expertise and experience, and apply for jobs or "gigs" available on the platform. 

These platforms attract many candidates, which poses one of the biggest problems: many of the applicants are barely qualified, and many are not 100% honest about their experience.  And so, it takes time to sort through all the applicants. Besides, when an employer hires a candidate (who was 100% honest about their experience) within a few weeks, it becomes clear that the person isn't qualified to work on the project. And thus, the employer not only loses precious time on finding a new candidate again but also puts the product at risk by giving access to it to a rookie.

In the meantime, vetted talent platforms check and verify all the talent before offering the said talent to the end customer. The verification stages vary based on our research. Most such platforms check each candidate's language proficiency to ensure smooth communication with the end customer, soft and hard skills. They offer a test assignment, often with a live code replay. Vetted talent platforms charge extra for their services, but in the end, the time and the resources saved on the search outweigh the expenses for their services. 

Outsource companies

Outsource companies allow third parties to hire them to perform certain tasks, in our case - web development. With this business model, a company can delegate development to an outside agency of their choice and focus their internal team on more crucial tasks.

However, the general concern about this approach is that outsourcing doesn't offer you the level of control over the development process you would strive for. Chances are the team doesn't work on your project alone, and this causes communication issues. The bugs aren't fixed as fast as you'd like, emails stack up, and you have to wait for the answers. Besides, if you're hiring a team of professionals from an outsourcing company, they all work together in a single office while you are being an outsider to your own project. You are missing out on crucial communication and miss important discussions. You might not be aware of all the issues that arise on the go, and when passed on to you, the project will be full of surprises. 

What's important to keep in mind is that this is not a "dedicated team" situation. And that raises a lot of issues.

This approach isn't a "one-size-fits-all" deal. Therefore, before opting for outsourcing and going for Indian developers for hire, think twice, analyze the specifics of your product, and make an informed decision on whether it is a good idea for you to entrust a third-party agency to do the development for you.

Tech recruitment agencies

Last but not least, tech recruitment agencies are another viable option. With access to thousands of developers in their network, they can help you find the perfect candidate within days. 

The principle behind their work is simple: they gather all the requirements from the potential employer, including soft and hard skills of the candidate they are looking for, project specifications, pay rate, and any available information about the project to better understand the details - and start sourcing for talent matching the description of an ideal candidate. Once they find the first candidates, they conduct a series of interviews to identify how well they fit the portrait of the perfect candidate. They introduce the candidate to the business owner if they are 100% positive that this might be the ideal match. 

Next, if the business owner approves of the candidate choice, the recruitment agencies for IT make the offer and start the onboarding process once it is accepted.  It is their responsibility to help the candidate better realize their roles and responsibilities, meet the team, and clearly understand all the internal processes inside the team. Onboarding done right increases candidates' satisfaction with the work, grows their loyalty, motivation, and productivity, and strengthens the employer's brand. And one can't really put a price on this experience!

So, if you decide to go with a tech recruitment agency, here's a list of the best ones we recommend choosing from.

Top IT recruitment agencies

Indigo Tech Recruiters

Indigo Tech Recruiters is a Ukrainian agency that helps companies worldwide find their next A player. With more than 15 years of experience under their belt, they boast a large network of more than 300K IT professionals in their database, ready for their next career move.

The agency reports that 95% of their customers return to them more than once, which means that the level of professionalism offered by the talent hub is nothing short of remarkable.

Indigo promises to bring the first candidate for consideration within six days of the application.

Among the services they offer are executive search for candidates to fill C-level positions, HR consulting to organize the internal hiring processes, talent sourcing, recruitment process outsourcing for short-term projects associated with direct hires, and salary surveys.

Why choose Indigo Tech Recruiters?

  1. Success rate. They have proven time and again that they can help companies find excellent candidates within a reasonable time;
  2. Extensive network. The agency has access to a rich talent pool, making it possible for you to fill even hard-to-fill positions;
  3. Attitude. They care about people and thus, treat both businesses and talent with the utmost respect;
  4. Experience. They have been in the industry for quite some time now, know its pitfalls, and can deliver great results;
  5. Cost. Indigo Tech Recruiters offers competitive rates for their services. It's an excellent quality-price ratio.

NTIATIVE

If you're focused on finding IT recruitment agencies in Poland, take a look at NTIATIVE. Some great names like Shell Energy and Humtap have already entrusted this IT recruitment agency in Poland with their product. So, why shouldn't you?

The services they offer include mini recruitment process outsourcing packages, recruitment subscriptions to meet short monthly hiring needs of smaller companies, IT staffing and Contracting for a variety of positions in Marketing, Sales, etc., and IT recruitment.

Why choose NTIATIVE?

  1. Fast results. Thanks to a variety of talent available, they can deliver great results within the shortest time.
  2. Customizable pricing. They can adjust their services to fit any budget, thus, opening up their services to a broader audience.
  3. On-demand backup. The agency offers fast hiring solutions for projects that are already on the go and need a sudden resource backup.
  4. Success rate. While the company doesn't offer statistics on the satisfaction rates of their customers, they claim to have their clients come back to them repeatedly  again for more talent.

MM Enterprises

Finally, we'll finish up our list with a top IT recruitment agency in India, MM Enterprises. They claim to be a leader of the industry in their region, being an ISO 9001:2008 Certified Company. 

Their main services are professional employer organizations, employer of record in India, employee outsourcing, senior executive search, remote employment, and assistance directly hiring Indian talent.

Why do their customers choose them?

  1. Almost 30 years of experience. Their team has been in the recruitment business more than any other company on our list. Thus, they bring more expertise to the table.
  2. Large Indian network. They have close ties with the top 500 Indian companies - and therefore, they boast an incredible talent pool.
  3. Multiple industries. They cater to industries like engineering, IT, accounts and finance, education, etc.
  4. Success rate. They maintain close working relationships with their customers, always ready to support and promptly respond to their needs. This contributes to the success rate of this agency even more.

We've chosen three different IT recruitment agencies to show you that there are many options available in different regions. So, if you need a tech recruitment agency to help you hire your top-of-the-line tech talent, identify the core values you’re expecting from them, what regions and countries you are comfortable with working and begin your noble quest for worthy employees. 

Got more questions about IT recruitment agencies? 

We’re here to answer them!

Contact us
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Author: Катерина Осадчук
73 Views
Category C-level
04.11.2022
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