“Remote Tech Headquarters” Solution for Startups
Startup Challenges – Resources
Many startups face worldwide supply and demand challenges in recruiting talented and reliable technology engineers. There are generally three options available:
Many well-funded startups believe an in-house team is the best option. But this option may prove prohibitively expensive for SMB and pre-Series-A startups. On top of the pressure to provide competitive salaries and the fully-loaded costs with benefits, startups may face hefty recruiter fees to source quality talent in a competitive tight market.
Engaging an outsourced team is often the next choice if setting up an in-house team is not feasible. This approach is often used in lower-cost outsource venues.
While there are many high-quality outsourcing firms, the reality is that outsourced teams don’t have any stake in the success of the startup. They may view the project purely as a mercenary engagement, and a cohesive cultural match between home and outsourced teams simply may not exist.
As a result of many of these issues (ranging from misaligned incentives to cultural fit and communication to management), even a seemingly good choice from a budgetary perspective may end up becoming a disaster when it comes to actual product delivery. For those startups looking to secure VC funding, utilizing an outsourced team is sometimes viewed negatively by investors.
Companies opting for the fully distributed team model decide to pay top dollar to hire what they believe to be the best talent in the world for each role. These companies optimize for top talent over cost and prioritize maintaining their company culture.
How can Proxet help?
We are offering the fourth option: The “Remote Tech Headquarters” solution:
- Engineering team members are recruited by the business with the help of Proxet recruiters.
- Company, not Proxet, negotiating salaries and benefits directly with employees.
- Engineering team members are employees of the company, and not Proxet.
- Selected team members integrate with the business culture.
This solution offers all the benefits of an in-house team without the same overhead.
Businesses can leverage the cost structures of cost-competitive geographic locations but keep all control and management within the organization.
This solution effectively offers an in-house team, geographically separated, but technologically close. Remote office management is seamlessly managed and integrated with appropriate processes and communication tools.
Creating an international subsidiary company brings another significant benefit: in a year’s timeframe the company may choose to transfer some of the people to the USA based on either L1A or L1B visas.
The most significant hurdle is the first one — getting started. Ramping up a remote tech team involves upfront costs and overhead in creating a subsidiary company in another jurisdiction, and setting up a remote office and recruitment capability Proxet provides the following: