A Complete Guide to Hiring Offshore Software Development Teams

It can sometimes be hard for companies to keep up with the speed they grow. Projects can be too demanding sometimes; therefore, outsourcing some tasks becomes a helpful alternative. Thanks to globalization, even offshore outsourcing has become a lot easier nowadays. 

There are three common types of outsourcing and offshoring:  Onshore, nearshore, and offshore outsourcing.

• Onshore outsourcing: hiring people in your home country for specific projects or tasks.

It has an ethnocentric approach, eases communication, and diminishes cultural shock; Nonetheless, it is the most costly of the three. 

The contractor operates in the same region as the company; Therefore, you need to consider taxes and labor remunerations when you pay the expenses.

• Nearshore outsourcing: hiring contractors or teams in a neighboring country.

While it provides advantages in communication (similar cultures), it tends to be costlier than the offshoring of services.

• Offshore outsourcing: hiring partner operates in a more remote region, like Asia or Europe. 

Although hiring offshore software development usually brings communication issues due to time zone differences and cultural and language barriers, it is the most flexible option. It also tends to be the most cost-effective and has a vast pool of talented resources. 

Deciding which one to use is never an easy task. However, given their many benefits, offshoring IT services are becoming a popular alternative. 

Software development requires time and resources. Technology changes fastly, making it costly to catch up with an in-house team, especially for smaller companies. Therefore, offshore software development has become one of the most sought-after alternatives. 

Aside from the talent and cost-related benefits, other advantages of offshoring are a reduced load of work for the company, a faster delivery of projects, and flexibility. Such advantages result in increased efficiency and leverage a company’s growth. Henceforth, more companies are noticing the potential of offshore software outsourcing.

Offshoring of services is when a company hands a project to a third-party developer; It can either be the whole project or just some tasks that the company cannot handle on its own. The offshore development team works in a remote location, usually another country.

Big companies sometimes create an offshore software development center and hire dedicated developers. 

Among the tasks offshore software developers can do for you, you can find the following:

✅ Mobile app development: 

Offshore app development frees you from having an in-house team. Hiring an offshore software development team gives you access to top-notch talent that will help both your app projects and your pocket. 

✅ Web development: 

Offshore web development can help you boost your company’s online image. The flexibility that an offshore software development team offers can help you create an innovative page in much less time than it would take to do it at home.  

✅ UI/UX design: 

Another common offshoring IT service is to have developers help you come up with a suitable interface to create a great user experience. By cooperating with offshore developers, you take a complicated task off of your shoulders. You can focus on core related issues while they create an intuitive, modern, and easy-to-use experience.

✅ QA services: 

Offshore developers are still humans and can make mistakes. However, making sure software runs smoothly without bugs that could affect the user’s experience is time-consuming. A great way to get a fresh set of hands and eyes is to hire an offshoring development team for quality assurance. 

Deciding to use offshore development services is not a decision that companies can make on a whim. They have to consider many factors such as budget, cultural barriers, and how urgent the project is before deciding whether they will hire offshore software development services or not. 

💡 When you are on a tight budget

Offshore software development cost is much lower than keeping a specialized time in the company. You don’t need to allocate as many resources since you won’t train anyone nor pay taxes or other administrative expenses.

Additionally, you won’t spend on equipment and software. Thus, making offshore software development a more cost-effective solution.

💡 When you want to improve your services/products quality

Hiring offshore development teams allows you to reach highly talented individuals around the world. You can hire excellent talent to help your project advance and yield positive results. 

If your products or services are diminishing in quality, it might be a red flag that indicates that you cannot keep up with the market requirements. It is an indicator that you should consider hiring offshore developers or even an offshore software outsourcing company.

💡 When you need more flexibility

Another advantage of offshoring is that you may hire an offshore development team for one or a couple of projects rather than a full-time contract. Therefore, you can easily explore other options to find the best match for your needs. 

💡 When you need to speed up development time

The flexibility of offshore software development also brings another advantage; it usually takes less time for developers to finish your project. First, the recruitment and selection process is simple. Second, you can hire as many experts as you need. 

Therefore, the time offshore software companies and individuals need to finish tasks can diminish as long as you allocate tasks efficiently.

💡 When you want to focus on your core business strategies

Offshore outsourcing software development companies allow you to fully dedicate your time to the core tasks for your company. You will be able to focus on the core activities rather than micromanaging the time-consuming obligations of a software development department.

You are probably wondering how to hire offshore software developers after learning all the benefits offshore outsourcing brings to the table. 

You will have to do some extra work on your side before you start offshoring IT services. Here are some of the best practices that will help you make the best decision:

🎯 Research your target audience.

Spend time to know what your clients need before hiring a company or team for offshore outsourcing software development. You will make a more fitting choice if you find out the technologies they work with, which platforms they use, and where their traffic comes to their websites and apps. 

You can benchmark with what competitors are offering to gather a general idea of additional services or features you will need to get from offshore sourcing to gain the upper hand in the competition. 

🎯 Identify your needs.

Dedicate a few hours to analyzing your needs before hiring any offshore developers. Find out what technologies you will need for different objectives. For example, you might need offshore programming to develop an app. 

However, hiring an offshore web development company is better if the project involves creating a website. Many offshore companies even offer consultations to help you determine your needs. 

🎯 Define your goals.

The lack of a proper strategy hurts any project. A company with clear goals knows the steps they need to take to reach them. Setting SMART goals you expect the offshore development team to obtain is the best way to assure high quality and efficiency.

SMART goals are specific, and they clearly define what you want to reach. They are measurable so that you can check your progress. Make them achievable and relevant to keep the offshore developers interested. Finally, timely goals include a limit that creates a sense of urgency and encourages better management.

🎯 Choose the right offshore IT companies.

As we mentioned, we can find many companies that offer offshore web development and other IT services out there. How to choose the best one? Consider the following tips.

1. Check references, reviews, and rankings: 

Put on your detective hat to find the most trustworthy offshore software outsourcing company. Look at their website for references from previous projects and partners. You can also find websites where customers evaluate firms and read their reviews before selecting a company. 

2. Privacy is important:

There are many risks involved when offshore outsourcing. Assure the company you work for will respect your intellectual property and your customer’s data. A great way to secure your idea is by making the offshore software company sign a non-disclosure agreement (NDA). 

Here are some of the most important aspects to consider when offshoring IT services.

💭 Location 

During the past few years, India has positioned itself as one of the best offshore sourcing countries. It offers the best price-quality relationship. Eastern Europe and Latin America are also popular options depending on your needs (Time difference, language, culture).

💭 Agility and Cost-Effectiveness 

Companies need flexibility when outsourcing and offshoring. You will have to ponder what type of contract you need depending on the nature of your product. Fixed contracts may be cheaper and more fitting for smaller projects. On the other hand, the flexibility required for big tasks might be costlier. 

💭 Skills and Expertise 

Offshore custom software development and other IT activities require highly technical knowledge. You need to research the company you are interested in collaborating with to assure that they will deliver and meet your requirements. Read their information online like websites and reviews to check if they can provide what you need.

💭 Security Issues

Data breaches and cyber-attacks are a constant threat to IT companies. Therefore, you need to investigate the company’s internal framework for data protection when deciding to go for offshore development.  Make sure that they comply with international security standards. 

💭 Communication Issues

Finally, most of the time, you will be working with people located far from you when offshoring IT services. Communication is key to success. Assure you understand each other’s language and culture as they can become obstacles otherwise.  Moreover, make sure you will be able to overcome time-zone differences.

--- Originally written by Roger Rene Ortega Figueroa ---