Why Should You Have an External Development Team?

Achieve Faster Growth and Better Results

The challenge for many tech companies is that they have too few developers. Either they can’t find the developers they need, or they are too expensive to hire. As a result, the company lacks essential expertise and falls behind.
This means you’re not able to produce what you’ve planned at the speed you desire, which can lead to reduced competitiveness and prevent the company from achieving the desired growth and profitability.
A dedicated external development team (as opposed to project-based outsourcing) will, in practice, function as your own employees, bringing positive effects on team collaboration and continuity. At the same time, there are significant advantages compared to local hires:

1. Access to Global Expertise

Norway is a small country with limited educational capacity and many employers competing for the best developers. By choosing an external development team, you gain access to a much broader pool of highly qualified talent. Over the past 15 years, Cefalo has established itself as one of the most attractive workplaces for skilled engineers in Bangladesh – a large and rapidly growing tech market. This gives you access to expertise that may not be available locally.

2. Cost Savings

Hiring developers in Norway is expensive. The average salary for senior developers is quickly approaching NOK 1 million a year, according to Kode24. Additionally, there are costs for employer contributions, vacation pay, pension, office space, equipment, and other indirect costs. An external development team in a country like Bangladesh can often provide the same skills and experience at a much lower total cost, resulting in significant savings for the company. These savings can be used to hire more developers and produce more, or to increase profitability.

3. Flexibility and Scalability

An external development team offers greater flexibility when it comes to scaling up or down based on your company’s needs. You can easily adjust the team size without going through time-consuming recruitment processes or uncomfortable layoffs. This allows you to respond more quickly to opportunities and changing needs.

4. Simplification of HR Tasks

Recruiting and managing a development team can be time-consuming. With an external Cefalo team, you save a lot of time and effort in the recruitment process, and you also avoid much of the HR work related to payroll management, employee follow-up, and terminating underperforming staff. We find the right profiles with the right skills, tailored to your company. This allows you to spend more time and energy on other important tasks in your business.

5. Prepared for the Future

Too few Norwegian developers are being trained to meet the expected demand in the coming years. This may make it even harder to find labor in Norway going forward. By establishing an external development team now and creating strong work processes to succeed in a hybrid development environment, you’re preparing your company for the future. This is a proactive strategy that can give you a competitive edge in a market where developer expertise is becoming increasingly sought after

Conclusion

In a time where the world around us is changing faster than ever, it’s crucial to have the right competence in place. A well-functioning external development team can provide significantly more development power for your money, with fewer long-term commitments than full-time employees, thus enhancing your company’s competitiveness.
At Cefalo, we have many years of experience helping Norwegian companies succeed with dedicated external teams from Bangladesh. We would be happy to have an open conversation with you about what such a team can offer and what it takes to succeed!