Explore the rise of remote engineering teams, key setup factors, cost comparisons across countries, and the extended benefits beyond savings for US startups.
In today's fast-paced and interconnected world, the concept of remote work has gained tremendous popularity. This trend has extended beyond traditional industries, making its mark on the startup ecosystem as well. Remote engineering teams, in particular, have emerged as a viable option for US-based startups looking to unlock various benefits and gain a competitive edge in the market.
In this blog, we will delve into the rise of remote engineering teams and highlight the potential advantages that US-based startups can harness by embracing this approach. We will explore the essential factors to consider when establishing a remote engineering team, including team size and the key designations to hire. We will also look at the overall cost of building a remote team across prospective countries.
In recent years, remote engineering teams have experienced exponential growth. This rise can be attributed to several key factors:
According to a recent report by Gartner,
Consider a hypothetical scenario of a Series A-funded startup based in the USA. This startup is contemplating remote hiring as a strategic move to accomplish time-sensitive projects and gain access to specialised talent that is not readily available in their local market. To fulfil these objectives effectively, they would aim to assemble an agile team comprising approximately 10 to 15 members, structured as follows.
For the team structure proposed above, Wisemonk conducted a detailed research to understand the annual cost of building the team across countries favoured by North American and European companies for remote hiring (as per the Gartner report). We have also added Australia, the Philippines and Ukraine to our list.
As per our analysis, for a US-based startup, setting up a remote engineering team offers an opportunity to gain substantial cost savings. Moreover, different locations provide varying levels of cost efficiency. For instance, Philippines stood out as an incredibly cost-effective option, with the team's total cost at only 10% of what it would be in San Francisco. Similarly, in India, the same tech team structure could be established at just 16% of the cost in San Francisco. Turning to Eastern European locations, the team could be built at less than 30% of the cost in San Francisco. Even within the United States, opting to build the team in Portland instead of San Francisco would result in substantial savings of 35%.
Scalability is an important consideration when assembling remote engineering in a country. As your business expands, having a strong foundation in a country with ample talent resources and a supportive ecosystem becomes essential. By strategically establishing a remote presence in countries with vibrant tech scenes or established talent hubs, you can tap into local networks and benefit from their dynamic growth and innovation.
India, Ukraine, Portugal, Poland, Brazil and Philippines are recommended as the most desired locations for US-based startups to establish their remote engineering competencies. From a long term perspective, these locations provide an abundance of cost-effective, skilled talent.
Beyond cost savings, remote work offers several non-cost related benefits for US-based startups:
At Wisemonk, we help global companies streamline their remote hiring processes in India. We understand the complexities of managing talent operations in India, ranging from employee sourcing and onboarding, managing contracts, compliant payroll management and many more. As a young company, we are built on the individual experience of working with multiple Sequoia and YC-backed startups like Mesh.ai, Shipsy.io and many others.
In case you have any queries regarding building your remote team in India, write to us and we would be delighted to assist you and provide answers.
