In-House vs Freelance vs Offshore Team: Finding the Best Model to Build an Ecommerce Store
Ecommerce is one of the leading domains in modern trades and industries all over the world. The global volume of ecommerce revenue as well as the ecommerce software development market is growing at a very strong rate. New models of hiring software developers are emerging in the marketplace for managing offshore development teams under different customized models. Normally, all those models of building ecommerce stores are based on remote hiring, which offers great features, flexibilities, technological edge, financial benefits, and competitiveness in all major indicators of the modern online businesses.
According to the Grand View Research projection, the global revenue of ecommerce business is expected to reach a whopping $27.15 trillion by 2027 from just $10.36 trillion in 2020 with a strong growth rate of over 14.7% CAGR during the project period. This gigantic and promising ecommerce market offers great opportunities for both startups and SMEs globally.
This article introduces businesses to numerous models of building ecommerce stores and helps find the best way to build a professional ecommerce store with great quality and affordable prices.
Background of Modern Team Building Process
Popular Team Building Models for Creating Ecommerce Store
#1 In-House Team
#2 Freelance Team
#3 Offshore Team
What Team Is the Most Popular One Nowadays?
What Is the Best Way for Building an Ecommerce Store?
Final Takeaway
Sounds good? Let’s dive in!
The change in human resource hiring started with the concept of contingent workers, which started getting traction many decades back. At that time, the worker was meant to work on the site or location of the work, which means that the workers were supposed to relocate from other cities, areas, countries.
After the advent of modern information and computer technologies ICT, the concept of on-premises workers changed and the concept of remote-work or work from home started taking shape. The concept of outsourcing processes, products, and parts of products started in the 1970s. In the early days, outsourcing was based-on the relocation of the entire process to a new destination by opening a dedicated center for outsourcing. This concept was limited to the large organizations and corporations in those days.
But, in the 1990s, the concept of outsourcing started taking numerous custom shapes and models suitable for all sizes of businesses without upfront investment in building dedicated centers and hiring dedicated staff in remote countries and locations. Different ways of hiring tech-talent to work from home or location workspace started emerging in the marketplace. A few of those types of hiring models are listed below.
Like all other business processes, the landscape of human resource (HR) management has also changed drastically during the past few decades due to the impact of modern communication technology and software tools. Software development, especially ecommerce store development, has become a game-changer in transforming the landscape of HR management.
According to Statista information, the total market size of ecommerce software applications was recorded at $5.32 billion in 2019. The total revenue is expected to increase by over $1.2 billion totaling $6.52 billion by 2023. This huge growth in software application development has increased the demand for software developers, engineers, and programmers whose availability has depleted in major markets of the world.
Building an offshore development team and managing offshore development teams remotely through multiple hiring models have become new trends in human resource management. A few very popular team-building models for creating ecommerce stores are mentioned below.
This is the traditional way of building a team of developers on the company’s premises. An in-house team works at the designated workplace directly managed by the employer’s company management and CEO. This team shares and owns the mission, goals, and vision of the company and gets all benefits granted by the local laws, rules, and regulations related to social security and other rights and benefits.
The main pros of building an in-house team include:
The major disadvantages of building an in-house team include:
A freelance team is a combination of tech-talent hired individually for a certain period or a task to accomplish in a team of developers and programmers located at different geographical locations, with diverse cultures, capabilities, control. Normally, the entire team of freelance developers work from their respective homes and are controlled and coordinated by a focal person or a manager. This is a type of contingent hiring for a shorter period and task.
The typical benefits of building a freelance team include:
The downsides of building a freelance ecommerce team include:
An offshore team is a type of outsourcing team hired at a remote location where third-party hires and manages the team and also provides the infrastructure to work on. Offshore outsourcing is one of the most popular types of hiring models in the present day. Numerous companies from major markets like the US, Canada, UK, Germany, France, Israel, Australia, and many others hire offshore dedicated teams in countries where the availability and quality of tech-talent are very high and the price is comparatively low.
The main advantages of building an offshore ecommerce team include:
The downsides of offshore team building for ecommerce store development include:
If we compare the benefits of offshoring with freelance hiring, and in-house hiring, we will come to a solid conclusion that offshoring is the most popular team building model for ecommerce store development. It offers reliability, cost-efficiency, quality, and peace of mind.
Hiring a remote team consisting of offshore programmers, developers, and designers are the most popular model of team building in ecommerce store development. According to the Gartner research information, more than 22% of the CEOs feel that finding the right tech-talent with the right skills is a big challenge. Similarly, productivity and employee retention increase by over 50% if the option for remote work is available for the employee.
In such conditions, the dedicated offshore team building the most suitable option for all types and sizes of companies that want to build professional-level ecommerce stores to enhance their business prospects. The offshore team can be hired in multiple ways with the customized needs, terms and conditions, and service level agreement SLA.
The most common way of hiring an offshore team is outstaffing in which the service provider in an offshore country hires a professional team of ecommerce developers and engineers to work dedicatedly on the client’s project.
The main reasons for the popularity of the outstaffing model of hiring are listed below.
Building an ecommerce store involves numerous phases and multiple steps in each phase.
The major phases of building an ecommerce store include the following:
All those phases are completed with different steps that need technical expertise in those domains of technicalities. So, it is a very complex and professional work to develop a great ecommerce store and requires a great level of knowledge, expertise, experience, and skills. To best materialize the business ideas into an attractive and effective ecommerce store, you need to have a professional team of developers, programmers, and testers. This involves a high level of technicalities and professionalism, which you can avail of by hiring professional team building services.
The best way to build an ecommerce store is to hire a professional and dedicated team of offshore programmers that is fully managed by the professional providers of software development services. The dedicated ecommerce development team commonly referred to as the outstaffing outsourcing team is the most economical and effective way of building a professional-grade ecommerce website that is up to the modern standards and criteria of a successful ecommerce store.
The offshore outstaffing offers the following benefits.
An ecommerce store development project can be outsourced to numerous offshore destinations in the world like Ukraine, Lithuania, Poland, India, Russia, and others.
Outsourcing has become a new trend in all domains of software development, especially in building an ecommerce store. Different ways of outsourcing, like freelance, offshore, nearshore, outstaffing, and others are used for building an ecommerce store. Outstaffing is the most popular model in offshore outsourcing for building ecommerce websites. Offshore outstaffing offers great benefits as mentioned in this article.
Read more about how to get the most out of an ecommerce store without an in-house IT department here.
Kateryna Boiko is a Marketing Director at Mobilunity, Provider of Dedicated Development Teams with 9 years of hands-on experience in digital marketing. Kateryna managed to work with diverse industries and markets and now is keen on sharing unique cases with the world and coach on topics relevant to Web Analytics and Search Engine Optimization.
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