How to Plan Your Budget for IT Development Team Successfully ?

Oksana Zabolotna
HBD at Qubit Labs

Budget planning is a critical aspect before hiring a development team effectively. Understanding all budgeting stages will help you prioritize, optimize and effectively plan to employ team strategy. 

A careful budget leads to a better understanding of the number of professionals you need, their skills, experience, location, etc. However, there are some other things to consider. This article provides essential tips about careful budget planning for the IT development team. 

 

Summer Is the Best Time for Planning Team Growth 

Summer is the best time for planning the budget and team hiring. There are a few reasons for that. Summer is indeed the most pleasant time to brainstorm the plan for a “working season.” With work slowing down due to vacations and many people being away, it provides an ideal strategy opportunity. 

As autumn approaches, holidays wind down, and the “Hard Mode” kicks in, it becomes essential to have a well-formed hiring and team planning strategy before this phase begins. Utilizing the summer months for strategic thinking and planning allows the company to gear up for the busier autumn period, enabling higher efficiency and better adaptability to expected changes.

 

US Talent Shortage in 2023: Companies are Looking for Better Costs

According to Korn Ferry gauges that by the end of 2030, in the United States, upwards of 85 million positions could go unfilled because there isn’t the ability to fill them. These deficiencies could result in as much as $8.5 trillion in income misfortune.

While these fantastic numbers allude to worldwide deficiencies across different enterprises, in the US tech area alone, the nation could lose up to $162 billion in income amid the current – and anticipated – tech ability lack.

These tech ability deficiencies are making organizations search abroad for new talent. So what is the best decision for the US market to extend the team? As we know, salaries in the US are pretty high, but the lack of specialists makes the hiring process a complete headache. In this case, IT outsourcing can help the best. Let’s see what countries will be suitable for US companies. 

 

Where Is It Better to Hire Remote Teams for US Companies?

If you are a US-based company looking to extend your team with remote workers, pay close attention to the Eastern Europe region, Mexico and Brazil. If you prioritize your team being in the same time zone as you for an attractive price – take a closer look at Mexico and Brazil. If you are looking for specialists with extensive skill sets and you want to develop your enterprise for foreign markets – choose Eastern European countries. These destinations are well-known for their affordable rates, but they have exceptional quality of services. Delegating your task to software engineers from these regions will help companies to cover their skill gaps most efficiently. Here at Qubit Labs, we allow companies to find the most suitable developers quickly and cost-effective. 

 

How to Calculate Team Expenses?

Considering all expenses and planning a team budget is challenging, but you can easily delegate part of this task to us with Qubit Labs. We provide individual research based on the technology, number of specialists, skills preferences and preferred locations. We research multiple sites and make a document with salaries of preferred specialists, tax level, and other location peculiarities and risks (like English level, legal aspects, cultural similarity, education level, etc.)

At Qubit Labs, we offer comprehensive startup team consulting services that cater to various stages of your venture. From ideation to investor presentations, we provide expert guidance and support.

We assist startups in the early idea stage in building a solid development plan. Our technology audition service examines your concept, requirements, and goals to help you choose the most suitable technologies for your product. We provide detailed estimations, budgeting, and timelines for developing an MVP, ensuring a clear roadmap for your project’s success. 

If you’ve completed your MVP and are ready to move forward with product development outsourcing, we take the burden of location selection off your shoulders. Our team thoroughly researches various destinations, considering expertise, available talent pool, and skill levels. We provide a custom exploration of the best areas for your tech team, including legal aspects, tax regulations, rates, and salaries. This comprehensive research becomes a valuable tool for investors when presenting your team development plan.

At Qubit Labs, we understand that each customer is unique and tailor our services to meet your needs. Whether you need team engagement, technology selection, or location planning assistance, we’re here to ensure your startup’s success with our expertise and personalized approach.

Need to Calculate IT Team Budget? Get a Price

 

Budget Planning Checklist for Development Team

Budget Planning Checklist for Development Team

Define Amount of Specialists  

Start by considering the number of tech specialists you need, their expertise and level of skills. What technologies they must be experts in. All these factors are matters when you plan team budgeting. 

Choose a Hiring Model 

Prioritize a hiring model when planning team budgeting. Would you instead extend the in-house team and choose better communication but a higher price or outsource with a broader talent pool but weaker management?

Choose the Location

Here are lots of factors to consider before you choose a country. You have to check on the salaries of local tech developers along with the level of tax, legal issues, and recruitment features of each country. It all requires specific bits of knowledge of each market. Qubit Labs will help you choose the top hotspot for hiring your team

Recruitment Expenses

Here is crucial to decide how you plan to engage your team. Would you hire specialists yourself or delegate it entirely to an outstaffing vendor? Another option is to hire software engineers through recruitment agencies. Keep in mind that all options will include some expenses for recruitment. 

HR Management Expenses

Somebody has to be in charge of onboarding, retention, and supporting new participants of your team. At that stage, a professional HR manager can help significantly. Check with your outstaffing vendor if they cover expenses for the HR manager they provide. If you don’t want to work with a vendor – think about hiring an HR manager.

Cooperation with a Vendor 

If you hire an outstaffing vendor who covers talent mapping, hiring, onboarding, payroll, HR management, retention, and other services, learn about their service fees in advance to add these costs to your budget plan. (Also learn everything about IT vendor management.)

Project Manager

The project manager helps to manage and coordinate all working processes in your team. Consider if your project requires a full-time PM or double-check with your vendor if they can provide one that will work part-time for an additional cost. 

Additional Costs 

Another crucial thing to consider is if your team needs an office space to work and have an opportunity to run a hybrid work model. Also, your team might require work equipment like laptops, earphones, etc. 

Medical Insurance 

Remember that all participants of your team must be provided with medical insurance. Your outstaffing vendor can take care of organizing this for you but it also will add some expenses to your budget.

Educational Expenses 

Last but not least, invest in your team’s education and motivation. You can provide them with language courses, attend professional seminars, organize team building, etc. 

We have extended experience in hiring for following clients like Insurance Menu. Insurance Menu is a US-based sales collaboration platform for insurance carriers and broker partners to grow your shared business book in the small group market. We hired one specialist for their project, but Insurance Menu later hired a dedicated team with us. 

 

Conclusion

Don’t leave your budget to chance. It is essential to count each step carefully. Considering the budget is of utmost importance to avoid unpleasant surprises in the future. Qubit Labs can be your invaluable partner in this process, providing expert assistance and support to ensure efficient budget planning.

With our new service startup team consulting, you receive the analysis of the best countries for team engagement, including the best rates, law regulations, tax regulations, level of expertise, number of preferable specialists, etc. We develop careful talent mapping and help prepare documents for investors with all persuasive cases. 

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Oksana Zabolotna
HBD at Qubit Labs
Oksana is a team leader of sales and marketing team at Qubit Labs.