Is an Offshore Development Team the Right Choice for Your Company?

The number of startups and large-scale digital projects are increasing all the time. As a result, most businesses require high-quality development. But searching for a skilled team of engineers can be timeless, and accordingly, the wasted time for this is priceless.

The question is how can you hire a software development team and make this process of scanning easier and more efficient?

This article can help you to understand the importance of hiring an offshore software development team and, importantly, a step by step guide on how to do this in the right way.

Why offshore?

• Onshoring refers to processes that are carried out in the country of origin.
• Nearshoring implies that the distance between the country of origin and the country of production of goods and services is negligible.
• Offshoring is the relocation of business processes outside of national borders in order to reduce costs associated with the production of goods and services.

Despite differences in timezone (sometimes bigger, sometimes smaller), offshoring is the most efficient way to build your team. Not only because of the mix of the cultures and somewhere cheapest cost, but because it can expand your product territory and achieve more goals.

How can it be possible? Keep reading 😊

What is an offshore software development team?

An offshore software development team is a separate IT specialists in a foreign country. Offshore development is a smart business decision for both large IT companies and startups because it enables a company to establish a presence in another country, gain access to more IT talent, and save money all at the same time. Large corporations like Samsung and Google, as well as emerging startups like Globality, Sift, and Insightful Science, already use this model and have offshore software development offices in Europe.

When working with an offshore software development team, they will assist you in developing a clear timeline that promotes iterative development, team spirit, and communication. They tend to provide their customers with a common goal, such as providing the best experience possible.

Furthermore, the offshore development team easily and precisely understands your specifications. They are analytical, thorough, and well-organized professional programmers.

Reasons to Hire an Offshore Software Team

There are a bunch of reasons to hire the offshore team and some of them such as reducing development cost and, sometimes, time we are already mentioned. But let’s define the most valuable ones:

• Access to a Talent Pool from all over the world

Yes, the talent pool of engineers is constantly growing. With all modern learning techniques it’s no surprise that most junior developers quickly become middle, and the middle ones become senior masters. Here are some stats: according to the 20th edition of the State of the Developer Nation report, there were 24.3 million active software developers worldwide at the start of 2021, including 13 million software professionals. The forecast for the future is impressive: the number of software engineers is expected to be 45 million by the end of 2030.

• Significant Cost Savings

The price of hiring an offshore development team can significantly reduce your development costs. Obviously, there is no set amount you can save, and there is no guarantee that you will save money if you do not work with the right team. When the offshore team is perfectly matched to your business, you can expect to save a significant amount of money which can be spent on your company or product promotion. Illustration above briefly shows us how much it costs to hire a software developer from different regions. Eastern Europe side perfectly represents exactly the right balance between cost and quality, at this point.

• Only Vetted Engineers with Rich Background

When a company hires in-house specialists, it spends a significant amount of time conducting interviews, reviewing test tasks, formalizing employees in the company, signing various documents, and so on. Hiring an offshore development team will save you two or more times the time spent on the hiring process. You only need to find a team, conduct interviews, and review portfolios, for example.

• Tax Burden Reduction

Hiring an offshore development team eliminates the need to pay taxes. After all, you hire specialists from another country, so you don't have to pay taxes for their services. As a result, it saves a significant amount of money.

• Better Flexibility and Productivity

Offshore development teams are extremely adaptable. You can structure your collaboration however you see fit. It is extremely convenient to work with an offshore team. You assign tasks and set deadlines, and the offshore team handles the rest.

Furthermore, you can save a significant amount of time. It is critical that you manage multiple tasks at the same time. Because of the offshore development team, you can focus on other project activities rather than spending too much time on one.

• Shorten the Recruitment Process

Before confirming a hire, the typical hiring process includes a thorough review of dozens of applications and rounds of interviews. This does not include any necessary onboarding or training for a new employee. Hiring offshore developers relieves you of these hiring responsibilities and allows you to focus on the things that are important to a startup.

• High Level of Security and Confidentiality

Offshore developers from reputable companies work with your data in a highly secure environment using the most advanced encryption and data protection technologies. They should provide you with contracts that include nondisclosure and noncompete clauses as an added layer of security; if they don't, be wary. You can relax knowing that no one is sharing your intellectual property because the primary goal of offshore developers is to protect you as a client by safeguarding the information you entrusted to them.

Consider This Before Hiring an Offshore Development Team

Do you need an offshore development team? Let’s go through this super brief following checklist:

• You wish to level up your business.

• Product requires specialists with a specific area of expertise.

• Concentration on the product is your top priority now

• There is no longer any room for in-house development.

• Want to meet your project's time-to-market target.

  
  

If you tick at least one of them for yourself, you definitely should try to work with offshore business development - it easily will benefit your business.

Most Asked Question About Offshore Development WorkFlow:

• How to deal with time zone differences between team members?

Working with offshore specialists may present challenges due to time zone differences. If maintaining regular communication with your offshore team members is critical to you, this point should be carefully considered by setting up the most comfortable time for each one in your team.

• What to do with cultural differences in the hired team?

People from different countries may have differing views on what professional communication and working methods should entail. The language, dialect, and other accents of your offshore team can impede smooth and effective communication. That’s why you should reach out to the region with the most comfortable cultural legacy as you and your team have.

• I would like to talk directly with my employees, face-to-face.

Face-to-face communication can help you better understand each other. To compensate for the lack of live communication, use video calls to better understand your team. Thanks to modern tools, like Zoom, Google Meet etc, and today's speed Internet connections, it’s not an issue to set up a live call with your coworkers.

• There are too many options to hire and vendors to pick up from. How to be sure in my chosen option to hire an offshore team?

Aggre, a large number of offshore software providers can both benefit and confuse you. When there are so many companies and platforms offering IT Staff Augmentation and partnerships, it can be difficult to choose the best one.

Let’s jump below on sections about locations and, finally, to a step-by step guide on how to hire an offshore development team, and hope in the end of reading this article this question will be not a problem any more 😉

Suitable Destinations to Hire an Offshore Development Team

North America is widely regarded as a world leader in technology. However, the majority of US-based businesses face a significant challenge in the form of developer scarcity. Similarly, Western European countries are grappling with the challenge of developing a domestic talent pool while keeping development costs low. Naturally, it comes the question: which location represents the appropriate cost-ratio value with a wide talent pool and high skills expertise of programmers? Here is a brief list of more suitable locations you can reach out to for a development help:

South America

Given their proximity to US startups, South American countries have emerged as offshoring powerhouses. Brazil, Argentina, Chile, Colombia, and Mexico are driving the region's IT outsourcing industry. Brazil and Argentina are popular choices due to their large talent pools and low hourly rates. Yes, the cost of offshore software product development in South America ranges between $28 and $105, according to the Accelerance report. Developers in these countries are fluent in English, and the IT industry receives strong government support.

Asia

Asia has long been a well-known location for app development outsourcing. At least 4 million IT professionals are available to work on any project in the region. It's no secret that the primary motivator for outsourcing to Asian countries is cost.

Because of the abundant supply, offshore software developers can charge competitive rates, which is the region's most significant advantage. They cost between $20 and $45.

Developers in India, China, and Vietnam have what it takes to create a fully functional app, but you must be mindful of linguistic and cultural differences.

Eastern Europe

It’s truly the top region to choose your offshore team from. Eastern European countries such as Ukraine, Poland, Romania etc have established themselves in the IT industry. The region combines cost-effectiveness, talent, cultural and linguistic similarity, and a manageable time zone. While Eastern European countries may not compete in price with Asian developers, they make up for it in consistency, quality, communication, and timeliness. In general, the hourly cost for a developer is $25-$100 here.

Step-by-step Guide on How to Hire an Offshore Team Right

Hiring an offshore team, as opposed to hiring internally, does not necessitate a lengthy (and costly) hiring process, contracts, salary negotiation, or onboarding. These developers can start working right away. Here is 5 proven steps on how to find an offshore team for your product:

1. Determine your needs in development.

Or, simply saying, create a job description. It needs to be clear, you should be specific in terms of what skills you are looking for and accurate in the quantity of developers you need.

2. Choose your offshore development location.

It can be Asia, or North America, or Eastern Europe etc. Consider time zone differences, cultural differences, tech talent requirements, and software development rates when deciding on a destination.

3. Google it 🙂

Obviously, sure - Google or other search engines can help you compile a lengthy list of offshore development companies according to your chosen destination to evaluate in terms of service quality, expertise, and security standards.

4. Verifying matters.

Of course, at this step your list will be much brief but the aim is to pick one trustworthy vendor, so resources such as Clutch, GoodFirms etc will be in handy here.

5. Communication is key.

Once you defined a reliable vendor don’t forget to recall the following:

• don't go with the cheapest quote (after carefully analyzing your needs and the expertise required for your project, reputable IT vendors typically provide competitive quotes);
• check the opportunity to talk with the hired team directly (nowadays, we still have examples of agencies with a long chain of connection between customer and developer which is really not a good thing).

Or you can contact Devler.io - and reduce this approach list to a couple of steps 🚀

Hire Your Offshore Development Team with Devler.io

Devler.io based on the experience of Eastern European developers. This platform is for matching great products with skilled offshore engineers.

What are the benefits of Devlers, you ask?

Let’s see:

• Only verified engineers (they go through the strict vetting process)
• High English communication level and excellent soft skills
• Convenient time-zone (due to Eastern Europe location)

Would you like to know more about - welcome to our main page 😉

Let’s build your team with Devler.io platform: hire an offshore team efficiently with ease!