The future of work is remote, and in no industry is this truer than in programming and software development. A globalized workforce allows companies to harness the skills of programmers from around the world, saving time and money in the process. Many companies, including Stripe, ESPN, and Coffee Meets Bagel, have capitalized on working with top developers no matter where they live. Here are some of the main benefits companies gain by working with remote software teams.

Benefit from increased productivity

It’s not just software teams: across the board, remote workers are more productive. One survey found 77% of workers were more productive when working remotely; 30% of those surveyed reported that they “more in less time than when they worked in-house.”

Remote software developers gain the flexibility to work when they’re most productive. Not everyone is most productive between the hours of 9am to 5pm. Dispersed teams can spread their coverage out over 24 hours, completing tasks when each person is able to focus and accomplish their best work. If there’s an issue that needs to be addressed immediately, there’s a good chance someone in a different time zone is on the clock and ready to troubleshoot. For companies who are paying each developer by the hour, you’re paying for hours worked – not hours spent at a desk looking at Facebook. This translates to better work for your money.

Gain access to top talent everywhere

When a hiring manager recruits from a pool of candidates in an immediate geographic area, their ability to hire the best developer is limited. Expanding your software team to a global pool of applicants gives your company the best possible fit for the project. According to Hackerrank’s 2019 Developer Skills Report, “41% of employers say that talent shortage is an issue they face when hiring developers.” Recruiting around the world allows a company to bring in an engineer from Silicon Valley to work with a Java specialist from Poland and a software developer from the Philippines. Talent shortage: solved.

Save on employee costs

Depending on the position level and your location, it costs an average of $4,000 to recruit a new employee. From writing the job description to posting the position and bringing someone in to interview, the costs of hiring a full software team can add up quickly.

Companies save on relocation and recruiting costs and can source talent for less when hiring remotely. It’s estimated that a fully-functional remote engineering workforce will save between $11,000 up to $50,000 per employee, per year. “Talent who works at home does not require any office space, computing equipment, coffee, and covering of commutes,” notes one blog. Engineers, developers, and programmers are among the highest-paid professionals in the world. But, it’s all relative to where the person is located. Exchange rates make it possible to pay a remote worker well without breaking your budget.

Increase employee morale and retention

Research firm Gartner found that “By 2020, organizations that support a ‘choose-your-own-work-style’ culture will boost employee retention rates by more than 10%.” Millennials value flexibility in their career, and remote work is one way to deliver that promise. Allowing your employees to determine when and where they work enforces self-motivation and engagement with your teams’ work. Engaged employees are happy employees, and happy employees stay with a company longer.

Remote work is becoming the norm, rather than the exception. Hiring a remote software team future-proofs your IT department. “With an increasingly remote workforce, you should be setting up these systems now to remain competitive in the future. Don’t be the company that gets left behind because you are unable to attract the right talent to get the job done,” writes one development blog.

Eliminate the risks of outsourcing

Some companies only need short-term, project-based assistance; others need a full-time remote team to help achieve their company mission. In this second instance, many companies would attempt to take a shortcut, outsourcing their project piecemeal to freelancers or a third-party firm. They lose the ability to control the project, never build a dedicated team, and spend more time and money on quality control than if they had hired a discrete, vetted team of remote coders. Hire a dedicated remote software team coordinated through one party to retain “full control over the workflow and eliminate the risks associated with outsourcing.”

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This article from Emily Heaslip was previously published on Index Code.