Types of Remote Models: Global Delivery (GTM) vs Virtual Team (VTM) vs Dedicated Team (DTM)
As the workforce continues to see a shift towards convenience for the employee, the number of remote workers in many different industries continues to rise. In the IT industry, hiring remote developers is a great advantage to businesses. Those who take advantage of hiring remote developers gain access to high quality development, competitive costs, and a variety of unique development skills. Businesses open the doors to more possibilities when they hire remotely, because they give highly qualified developers the option to apply for their position even if they aren’t from the area. This gives them the advantage of finding the right person for the job, not just who is available in their area.
According to Stack Overflow, 10% of developers work remotely full-time and 19% of developers work remotely part-time. Major companies like Microsoft, IBM, Apple, and Dell hire remote workers for several different positions. Remote positions can range from customer support to quality control, and everything in between. Many developers work remotely on software outsourcing projects for a variety of different companies. Apple offers specific projects, like macOS software engineers, that are requested frequently.
What is a Remote Team Model?
While remote teams all have common properties, there are different ways to collaborate with tech talent from all over the world. While some companies thrive at peak diversity and approach having people from different countries on board like a privilege, other business managers will struggle to handle cultural and time zone differences.
To be flexible enough and cater to all types of companies, the remote work culture offers various collaboration paradigms. Global delivery, virtual teams, and dedicated teams are the most popular models on the market.
Types of Remote Models
With an increase in popularity of remote work, three remote models have taken the scene in the IT world. The global delivery model, virtual team model, and dedicated team model each offers its own benefits when hiring remote workers. They deliver a variety of IT work based on the specific needs of the development project. Since each development project is unique, businesses need a dedicated development team that can meet their requirements and deliver the quality work they desire.
Global Delivery Model
The global delivery model provides quality IT services through a flexible system that uses both onshore and offshore resources. Once customer requirements have been gathered and analyzed, IT outsourcing companies can determine whether the global delivery method would be the best option. By using resources from multiple sites across the globe, this model allows for a more customized development project. Global delivery services can help to minimize costs, gain access to the best expertise and knowledge, and provide 24/7 resources around the clock work. This method is highly effective when executing IT projects that need a fast response to changing customer requirements.
Virtual Development Team Model
The virtual team model refers to a group of individuals who work together from different geographic locations and communicate electronically. One of the major benefits of virtual development team model is the idea that the group is truly a team who are engaged in interdependent tasks. Each member has their own set of skills and expertise, and they communicate electronically to collaborate on each development project. Virtual development teams can gather the best talents without a geographical restriction. An effective virtual team can offer a full suite of services from independently employed individuals to deliver the highest quality development project results to their clients. Clients benefit from cost savings, highly skilled global talent, and an increase in productivity.
Dedicated Development Team Model
The dedicated development team model is generally used for long-term projects. In this model, an outsource company works with a dedicated project team to meet the requirements of each assignment. This model is often used when specific expertise is required. When a team doesn’t have the knowledge needed to complete a project, the dedicated team model is an effective way to collaborate with expert individuals who have the skills needed to deliver results. Clients who use the dedicated team model have more flexibility and scalability. Since the scope of the work is not generally defined with a dedicated development team, requests can be changed at any time.
The pros and cons for dedicated team model are out in the open – on one hand, the main office gets access to the know-how that couldn’t be accessed in-house. Also, a dedicated team requires a lower amount of commitment from the company and is easier to maintain in the long run.
On the other hand, businesses have to share technology and practices with a dedicated team, partly losing control over them. When choosing a dedicated team, it’s crucial to keep tabs on intellectual property protection and ensure that a third-party contractor doesn’t use the company’s contributions, while working on other projects.
Advantages and Disadvantages of Remote Models
There are both advantages and disadvantages of hiring remote workers. Since each model has its own unique characteristics, some might be better for a specific company or project than others. Here’s a look at the pros and cons of each model:
Remote Models in the Workplace
Many popular companies use remote models to increase productivity and drive better results for their business. Large corporations like IBM and General Electric use the virtual team model to boost performance. Larger companies have found employees to be more productive and have a more positive morale when they have the option of flexibility. In 2016, FlexJobs created a list of 100 companies who hire remote workers. Amazon, Aetna, Wells Fargo, and the U.S. Department of Transportation are other popular companies mentioned on the FlexJobs list.
You Chose a Remote Team Model: What’s Next?
Now that you decided on the most efficient remote team model for your project, finding skilled employees is the next step a business manager should take. Here are the best practices for onboarding a top-notch dedicated, virtual, or global team:
- Find people with well-developed soft skills. Since a project manager will not be able to check on a remote team frequently, to succeed, you will need self-starters. Make sure a prospective candidate is proactive, ready to handle end-to-end tasks on his own, and is not comfortable when communication – both in writing and on camera.
- Create a toolkit. Decide what software you will need to stay in touch with the company’s remote workforce teams. Most remote companies use project management tools – Jira, Redmine, and others, messenger apps, and time trackers to measure employees’ productivity. Make sure the entire team is familiar with the instruments you use for communication and project management to avoid onboarding issues and bottlenecks.
- Establish the payroll model. Paying per hour or in a single downtime transfer for the entire project are both common models. If you are looking for blended workforce for a complex long-term project, consider paying for something rather than opting for a fixed monthly salary. Fixed pay is a good idea if the project requires employees’ constant presence and small incremental changes that are hard to rate.
- Decide what the success metrics are. Before working with remote teams, decide how you will evaluate its performance. The most common benchmark metrics are conversion rates, daily active users, website visitors, app downloads, and others. By capturing performance metrics, a business manager ensures he’s not paying for work that doesn’t pay off.
- Encourage regular team meetings. While having daily calls might be too time-consuming and distracting for developers, discussing the project developments on a weekly or bi-weekly basis is a solid practice to follow for successful remote team collaboration. Regular chats motivate remote teams, give people a sense of purpose, help detect and resolve potential bottlenecks.
- Handle time zone differences. It’s hard to coordinate teams if there is a huge time zone difference between members. That’s why a manager needs to ensure no one is cut off the decision-making loop. Have all the calls and meetings recorded, run documentation with crucial project guidelines, and share crucial updates via several communication channels – this way, if a team member had to miss the meeting due to inconvenient timing, he will stay updated on project developments.
So Why Remote Developers?
A flexible workforce will continue to gain popularity as technology advances more and more in the future. When companies choose to hire remote developers, they take advantage of several benefits for their business. By managing virtual teams, businesses can improve productivity, hire more qualified employees, lower overhead costs, and increase revenue. And, with a variety of remote models, there is an option available for businesses and industries of all sizes and types to benefit from this new method of daily operations. With remote developers, the possibilities are endless as businesses grab workers from across the globe whose expertise and skills can bring their projects to a whole new level.