Main Reasons to Hire Offshore Development Team
Looking for an offshore development team? Sometimes it is a challenging decision in terms of choosing where you want to hire offshore developers. Any person that has ever tried to hire and manage even one employee knows how tricky this process can be. In this article we will try to explain what are the benefits of hiring an offshore development team.
With a big team of software developers, hiring can turn into a nightmare. In the areas like Silicon Valley, where all the best developers circulate between the tech giants like Google, Apple, and Facebook it is almost impossible to ramp up a team of great software developers fast. However, there’s always an alternative to hiring an in-house team. If you are a CEO or a CTO of a tech company, you may think of hiring offshore development team.
Some people are skeptical about offshore development, and they have got some point as it is a hard job to find a matching outsourcing vendor, but we are talking about offshore dedicated development team, that is like your in-house team, only they are located in other countries.
- plan development and sprints
- have stand-ups and code reviews with your offshore development team on regular basis
- have access to the large pool of talents in Eastern Europe, Latin America or Asia.
When you’ve found one, you will not regret extending your R&D office by hiring a team of software developers.
The hardest part is to pick an offshore team vendor. However, when you’ve decided on a trustworthy company who will hire your engineers, the whole bunch of problems is crossed out of your agenda. We do not advise you working with few vendors in the same country, because they will reach the same developers to head hunt and it can be a mess.
Choose one you like based on corporate culture and pricing and you will be OK.
Offshore outsourcing is a type of outsourcing that involves the transfer of non-critical business processes to geographically remote companies. In other words, it is mutually beneficial cooperation of companies, in which the physical location of the offices of each of them does not matter. However, when it comes to choosing where to hire offshore developers, businesses often face multiple challenges.
Moreover, the process of managing the team, taking care of the office, paying salaries, and doing all the employment-related work might be time and resource-consuming. In case you have to finish the project within the shortest possible term, but there is a lack of skilled candidates in your area, the best decision is to hire offshore developers, and Qubit Labs will help you with that.
Importantly, in the most prominent IT hubs, there are always high levels of competitiveness between the businesses, so the most competent specialists are “booked” on a multi-year basis. Although some people might find it ineffective or treat such kind of outsourcing as unreliable, the practice proves otherwise. Actually, the global market size of outsourcing services raised to $92,5 billion in 2019. The data speaks for itself, but it would be useful to walk you through the activities, which would be efficient during the offshore company hiring process:
- Pay attention to the English language skills of the potential employees. The quality of the projects highly depends on the mutual understanding within the team. In case a single specialist has a low level of English, one might cause trouble when wrongly interpreting certain nuances.
- Make sure your data and passwords are secure. When transferring certain information to the offshore company, there might be some safety issues and leaks. Check the websites’ reliability before deciding to keep your data there and regularly change your passwords to decrease the chances of hacking.
- Pay at least one visit per year to your offshore location. In such a way, you will make the employees feel connected to your in-house team, meet the team leaders for brainstorm sessions to improve your strategy, and do some corporate activities to enhance the camaraderie.
Modern technologies allow a company to stay in touch with its offshore team and successfully manage all the processes. Remote hiring is another niche that started rapidly developing within the past few years. Significantly, the year 2020 brought its changes, forcing most of the companies to switch to long term remote work. Although initially, it seemed complicated and unproductive, currently, 44% of the US developers work full-time on a remote basis.
In terms of offshore development, employers manage the following:
- strategic plan development and set the company’s goals
- carry out regular status meetings and undertake code reviews
- choose the most suitable professionals among the large pool of talents
There are numerous factors that drive the success of offshoring development, like collaborating with professionals from all over the world and not being limited to a particular area, reducing the costs that have to be spent on maintaining high levels of performance, and ensuring high-quality outcomes. Also, you can hire developers for startups and save good money because the average salaries of professionals from different countries vary to a great extent.
Such a work mode allows to increase the performance and choose efficient solutions while implementing fever resources. Appropriate management tactics and right communication are your “helpers” in working with offshore developers because only when utilizing the correct approach you can encourage employees to achieve set goals. Now, let’s move on to exploring the advantages of having an offshore team.
Key Advantages and Benefits of Offshore Development
Delegating tasks between the departments is a robust strategy, and working with offshore developers is even more impactful from the management point of view. We have gathered several noteworthy benefits of offshore company hiring, so let’s take a look at them.
Let’s take a closer look at the ones we’ve mentioned.
It may seem incredible, but hiring a dedicated team from a vendor is at least 25% cheaper than having your in-house team. You save on:
- additional office space rent as your company grows,
- employee wages as you can choose countries with lower rates,
- employment taxes and the corporate income tax, as you can enclose all the expenses on outstaffing into the costs,
- gyms, insurances and other benefits for your employees. However, they still get benefits package as it is already included in your monthly bill.
This perk would come in handy for the startups looking to hire skilled developers but face certain budget limits. There is a significant number of developers all over the world that might obtain equal knowledge and experience yet have dissimilar salary expectations. Different economic statuses explain such contrasting demands in the countries of their residence. Moreover, you don’t have to worry about renting an office, buying equipment, and paying taxes because the offshore company provides such services. Thus, you can hire developers for startup and save money at the initial stages of project development.
Usually, the process of software development for startups demands a lot of time and effort because you have to contact potential employees, undertake several interviews, and manage the recruitment team. However, when it comes to offshore company hiring, it allows avoiding the mentioned stages. You just have to create a job description, discuss it with the recruiters, and then decide whether the chosen candidate corresponds with your expectations. Also, a startup hiring remote teams can focus on its main tasks while the offshore development company takes care of benefits and social packages, team onboarding, payment, and back office.
Sometimes, you need to add some features to your project within a short period, or it requires only a couple of specialists to make it work. For example, in the case of offshore application development, it is easy to scale or reduce the number of employees because it takes minimal resources and time. Actually, such teams are aware they have to be ready to adjust to evolving requirements. Thus, a startup hiring specialists in software development does not need to allocate money to set up a team at the outset but add or remove employees in the process.
The IT industry trends rapidly change, so, in the case of creating software development for startups that have in-house teams, it is quite challenging to keep up with the new technologies. However, when it comes to, say, offshore application development, you can find professionals who specialize in any technology or programming language on short notice. Thus, it is much more efficacious to build an offshore team from scratch when hiring developers who have sufficient expertise and are aware of the latest standards.
No Need to Rent Office
Well you will still rent yours, but you don’t need to rent more and run back office for your additional employees. You can finally outsource it to people who like doing it.
It is also a good choice if you want to start a separate project and don’t want to mix your teams for some reasons. If you outsource to Ukraine, there is a lot of developers who can cure the talent shortage easily.
No Administrative Work
Yes, vendor will take care of back office processes: HR management, accounting, payrolls. They will provide your team with office, workstations, internet. Usually vendor takes care of benefits and social package that will suit the country of origin and organizes team buildings. Sometimes they do coaching and learning. Some of them held learning events like conferences, meetups and other to encourage networking.
You do Not Need to Manage a Big Recruitment Team to Hire Developers
It is a common problem in tech companies that you need to grow fast, and your office cannot accommodate even a couple of new engineers.
However, you need to hire additional recruiters because your tech hiring capacity goes low and your current team cannot manage to hire all the needed staff on time. When you outsource your development, you do not need to worry about the recruitment team, the office space or the employment process itself. You just need to send your job descriptions and confirm that you are ok with the chosen experts. Everything else is not your concern.
The coolest part is that you save money, but get the same level of code quality. According to the latest research, the best software developers are from China and Eastern Europe. However, it is easier to work with engineers from Ukraine as they have good English skills, little cultural difference, and good education. They will not have problems with understanding your requirements, and the coolest part of outstaffing is that you can manage your software team directly. You will still have your daily communication and can control the process so there will not be any surprises when the deadline comes.
As you can see, offshore development is currently making giant strides towards becoming the most sought-after type of outsourcing. In this article, we have covered the reasons for cooperating with an offshore agency that can give you the upper hand. If you want to find developers for startup and hire R&D teams, we can suggest that Ukraine is the choice to make.
Qubit Labs is a European software development house that will be glad to assist in making your endeavors succeed. Thus, if you want to ease the process of hiring developers, we will help in dealing with all the organizational moments and provide your potential employees with convenient working conditions. You can contact us to get a consultation or receive help regarding remote hiring processes.