Today, more and more entrepreneurs & business owners are looking to hire dedicated software development teams remotely. This is a very cost-effective and highly-efficient solution for remote software development.

This article aims to provide some guidelines, and reviews some of the most critical mistakes in the process of setting up your dedicated software development team. You will explore how to avoid some common hiring mistakes as well.

How to Hire Dedicated Development Teams

You might ask yourself, do I need to hire an application development company or is it better to hire a freelance developer instead? It might get harder for you to make a quick decision. Let's break it down for you.

When you hire a good software development company, you are automatically entitled to the reliability, quality, variety of technologies, diverse experience, speed, constant updates, support and most importantly better ideas to market your product. Resources can also be scaled up or down, as per your requirements.

But yes, with a software company, the costs are slightly higher than hiring a freelancer.

First of all you have to be clear about the aim of your software development project. What kind of software company are you looking to hire?

Regardless of any location restrictions, a large number of companies now offer software development services online. Here are some of the options you might be considering.

  • Hire software developers in the same country that you are located.
  • Hire software developers from another country, maybe in a different time zone.
  • Hire software developers from a neighboring country.

Once you decide to go with any of the above options you have to search for the companies that best fit your project requirements. You can use either of the ways listed below:

When you hire freelance software developers, there are lower costs, more flexibility, and dedicated skill set in some of the specific technologies. But with freelancers, there are reliability issues and sometimes communication troubles. Having said that, you can still hire highly skilled developers from all around the globe.

How to hire a software development team?
Photo by Kaleidico / Unsplash

Hiring an In-House Development Team

Now let's talk about the in-house software development option. For enterprises or start-ups there is nothing better than having an in-house development team. It becomes much easier and more manageable for the company. If you need a quick change in your product or an update, you can walk to them and just ask for the changes you desire.

Let's have a look at some of the pros and cons of hiring an In-House Development Team.


  1. Clear understanding of the company goals
  2. Team always available
  3. Mutual collaboration
  4. No language barriers
  5. Face to face discussions


  1. Increase in cost
  2. Infrastructure investment
  3. Lack of diverse skills
  4. Time consuming

Hiring Remote Software Development Teams

Outsourcing is task delegation. So, outsourcing to a software development team is basically an arrangement made by a business to hire a third party to develop the desired software instead of doing it in-house. This approach saves time, and also the cost of in-house employees. Here are some of the pros and cons of outsourcing to software development teams.


  1. Cost saving
  2. No employee hiring hassle
  3. Access to global skills
  4. Affordable
  5. Increased focus on core business
  6. Flexibility in business processes
  7. Risk management
  8. Modern technologies


  1. Partial loss of control
  2. Cultural difference
  3. Time difference
  4. Communication gap
  5. Confidentiality issues
A software development team looking at their task board.
Photo by You X Ventures / Unsplash

Common Hiring Mistakes to Avoid

Let me leave you with a few tips to avoid while hiring a software development team.

  1. Don't place everything around money. If you end up hiring a team with the lowest bid, you might think everything worked out well but later on your expenses will be much higher.
  2. Don't hire development teams or individuals without technical interview or past experience.
  3. To start the project without clearly stating the requirements is another mistake.
  4. If you don't have a clear vision of your software then it may lead to misunderstandings and unfavorable outcomes later on.

In Conclusion

If you are a startup that wants to hire a software development team online, you have two options. Either you can go with an individual freelancer or you can hire a dedicated development team. Both options have their pros and cons. It all depends on your project requirements & budget.