The 6 Advantages and 4 Disadvantages of Virtual Teams

Virtual teams are everywhere these days. Did you know that Google’s virtual staff outnumbers its on-premise employees? Or that virtual professionals were behind the development of Slack and WhatsApp?

Virtual teams have proven to be key to the success of products like doTerra, Viber, and Life360 as well – just a few of our clients. In fact, 60.2% of organizations plan to expand their virtual team strategies. 

If you’re considering setting up a virtual squad but are still on the fence, this post will walk you through the 6 benefits of virtual teams and 4 challenges of this model. Let’s dive in!

Why is knowing the advantages and disadvantages of virtual teams important?

Keeping the advantages and disadvantages of virtual teams in mind impacts several areas. Most importantly, choosing this model will affect how your software development process is structured. With virtual teams, companies often hire a provider to manage the project, creating a new dynamic between the client, the team, and the provider. This setup requires strong knowledge of  how to manage virtual teams. 

Another important factor is access to a global talent pool. Weighing the benefits and challenges of virtual teams across different regions is essential, as it lets you choose a location for your remote branch more carefully. 

On the other side of the spectrum, there are challenges of virtual teams. Being aware of them ahead of time allows you to pick a provider who can help you address them effectively. 

Now that we’ve established the importance of weighing the benefits and cons of having a virtual team, let’s dive into them.

What are the benefits of virtual teams?

Working with virtual teams offers numerous benefits, including access to a global talent pool, bridging the skills gap within your organization, and optimizing your software development budget. Below, we go over the main advantages of virtual teams in more detail. 

• Skilled IT staff at a reasonable cost

One of the biggest benefits of a virtual team is the ability to access skilled talent at a fraction of the cost. In the U.S. and EU, businesses often pay top dollar, with average rates around $80 per hour according to Accelerance. By choosing talent from LATAM or Central & Eastern Europe, you can cut those costs in half, accessing skilled developers at an average of $40 per hour while maintaining a high standard of software development.

A quick tip: It’s crucial to work with a provider that not only helps you save but also delivers skilled talent. At nCube, we use a multi-step talent screening process that includes assessments of tech competence, soft skills, culture fit, and English proficiency. Our goal is to provide you with the best team possible  so you can enjoy the low-cost advantage of a virtual team to the fullest. 

• Trimming team maintenance costs 

A virtual squad is an excellent tool for reducing costs, not just in terms of lower software development rates. A major advantage of a virtual team is that it lets you cross out office rent, IT infrastructure, and team retention services from your list of expenses. These costs are typically covered by the provider, allowing you to invest those saved resources into other areas like brand promotion.

A quick tip: It’s a good idea to ask your potential provider about their team maintenance strategy. A stable team is key to success. The better the retention services, the more satisfied and engaged your virtual staff will be. At nCube, we take pride in achieving a 2% unforced retention rate, thanks to our top-tier employee perks and support packages.

• Access to a variety of skills

One of the biggest advantages of virtual teams is that it gives you access to a vast repository of tech talent. You’re no longer restricted to the local market, competing with other companies for talent. Whether you need a developer skilled in general technologies like JavaScript or Python, or someone with niche expertise in AI/ML, IoT, Data Science, Cybersecurity, Blockchain, or Cloud, you can add the right specialist with ease.

A quick tip: Consider regions with a great cost to quality ratio. With a provider like nCube, you can hire a virtual team in talent-rich region with a solid reputation as an skilled tech hub like Central & Eastern Europe or LATAM. We give you access to over 2 million developers these regions, making it easy to find the exact skill set your team needs. Whether it’s an AI/ML engineer in Poland, a Java developer in Brazil, or a Node.js expert in Colombia, we’ve got you covered.

• Boosted development capacity

A virtual team can be a lifesaver when your project faces a growing number of tasks or even a scope creep. When your core team is overloaded and at risk of missing a critical deadline, a virtual team can step in to take on the extra work.

A quick tip: This situation requires immediate action, so consider providers that can meet your deadlines quickly. At nCube, we can send qualified engineers your way as soon as 24 hours after receiving your request. Our screening process is swift and targeted at your needs and we guarantee you’ll meet only relevant candidates.

• Increased productivity

Ever wish the day had more hours? One of the biggest benefits of global virtual teams is that it makes it a reality. With people located in different time zones, you can have 2 teams clocking in 8 hours worth of work per day. For example, when your local developer in the US finishes at 6 p.m., their counterpart in Poland is there to pick up the slack, keeping software development going.

A quick tip: Time zone difference can be a benefit as well as a con of a virtual team. We can help you set up a branch in your preferred location. Whether you want your team members to be just 1-2 hours apart or you’re fine with an 8-hour difference, we can seamlessly integrate them into your operations.

• Flexibility with staff

One of the biggest advantages of virtual teams is that it’s easy to add engineers and let them go. Virtual staff frees you from the obligation to pay severance packages and allows you to engage technologists for as long as you need them. Whether you need just one engineer or an entire team of 10, 20, or even 50 people, the flexibility is there.

A quick tip: Some of our clients approached us wondering how to build a virtual team over a short period of time. We recommend starting with 1-3 engineers over the course of a month, then scaling up gradually as your project demands more hands on deck.

The main challenges of virtual teams

For a balanced approach, when weighing the benefits and challenges of virtual teams, it’s important not to shy away from the cons companies often face with this model. Knowing the potential shortcomings means being prepared to address them effectively.

• Cultural discrepancies

The biggest con of virtual teams is that only a small percentage of virtual professionals share the mindset and cultural values needed to work seamlessly with EU and US-based teams. Others may require time to fully adapt to your mindset and work culture of your organization. This adjustment period can sometimes lead to communication hurdles, which might impede collaboration at the start. 

How nCube solves this challenge: We go the extra mile to find the right cultural fit for our clients. By working closely with hiring managers and carefully interviewing candidates, we ensure that your virtual team members align with your company’s values and integrate smoothly into your team.

• Language barrier

It goes without saying that speaking the same language is essential for any software development team. It keeps everyone on the same page, boosting productivity and collaboration. However, even though most virtual IT specialists worldwide speak English as a second language, language barriers can still arise.

How nCube solves this challenge: We ensure the developers we provide have strong English communication skills. Most of our team members speak and write English at the B2-C1 level, which is considered full-working proficiency. Our screening process is designed to guarantee that the candidates we offer have adequate English proficiency.

• Communication requires more effort

When your team is spread across the globe, communication issues are bound to arise. In virtual setups, communication is often asynchronous. You may need an urgent response, but the team member isn’t available due to time zone difference. In emergencies, this delay can make or break the project. All of this requires extra managerial effort on the part of the team leader. 

How nCube solves this challenge: From day one, we help clients integrate virtual employees, setting up all the necessary infrastructure and tools for seamless communication. We also work with team leaders to establish mature communication processes and always stay in touch to ensure everything runs like a well-oiled machine. As a result of our efforts, 86% of our clients choose to grow their teams in the course of 6 months. 

• Long-distance traveling

Visiting virtual teams often means long flights, which can be costly, exhausting, and time-consuming. If your team is located on another continent, it can take 12-24 hours to get there for a face-to-face meeting. On top of that, coordinating these trips can be stressful and complicated.

How nCube solves this challenge: We assign a Personal Account Manager to each client, who handles everything – from planning routes to booking tickets and hotels, taking the headache out of travel logistics for our clients.

To put it shortly… 

As you can see, there are advantages and disadvantages of global virtual teams and this model isn’t always the best fit for every project. In some cases, it’s worth exploring other options like offshore development centers, R&D teams, or comparing virtual vs remote teams to find the right approach for your needs. 

Here’s a quick recap of what we covered in this post:

nCube: Your trusted provider of virtual teams

With the right partner, you can enjoy all the benefits of a virtual team without worrying about the challenges. In our 16 years on the market, we’ve helped 122 companies (including brands like doTerra, Life360, AstraZeneca, and Viber) build strong virtual teams – and now, we’re ready to help you too.

• Top-tier talent from Europe and Latin America

nCube will help you build a team of the top 1% of software developers from Europe and Latin America. Our multi-step rigorous screening candidates guarantees you’ll meet candidates with the right technical skills, experience, and cultural fit.

• Rapid team formation

With a network of over 125,000 software engineers on two continents, we can assemble your team in a matter of weeks and send you CVs within 24 hours of our initial call. On average, it takes us 2-4 weeks to build a team. 

• Tech expertise, including niche skills

Whether you need expertise in AI, IoT, Blockchain, Data or other in-demand technologies, our talent pool covers a wide range of skills. Just recently, we helped integrate a Delfi engineer with an aerospace background into our client’s team. So, if you require a specific set of skills – just give us your requirements. 

Ready to get started? Contact us, and we’ll help build your team.