Hiring the Perfect Offshore Development Team in 2022
Offshore software development companies have been thriving in the last couple of decades, and it comes as no surprise. The increased demand for online and mobile solutions, caused by the pandemic and millions of people confined to remote work, has altered the IT landscape.
According to McKinsey, companies from all industries have already accelerated their digitalization processes by three to four years.
One has to keep an eye on new possibilities to evolve, and judging by the statistics, the most advanced technology markets globally, including the United States, the United Kingdom, and Western Europe, have certainly had theirs open.
But what makes the remote development centers so popular, and how do you find the right partner?
Factors for Outsourcing: Cost Reduction, Time Zones, Talent Pool, Time to Market, ScalabilityFactors for Outsourcing: Cost Reduction, Time Zones, Talent Pool, Time to Market, Scalability
First of all, cooperation with offshore software development companies provides cost reduction that is very hard to ignore. The hourly rate of software developers in Eastern European countries is 2 to 3 times lower than in the USA or the western parts of the same continent. A similar ratio applies to office rent, tax, IT infrastructure, HR services, and most other overhead expenses. And then you have legal advisors’ fees, vacations, healthcare, and insurance benefits; you do the math.
Indeed, different time zones can be viewed as inconvenient in terms of communication, as Eastern Europe is 7 to 10 hours ahead of the USA. However, budget-wise, this is a significant advantage since you can employ customer support to do the costly American nightshifts at local daytime and reasonable rates. While offshore outsourcing in Asia is considered more economical and covers even wider time zones, it is also true that working conditions there can be below par. Cultural differences might prove harder to surmount, too, resulting in slower software development processes or worse quality products.
Another reason for IT outsourcing is access to a much broader talent pool. Most top-shelf software developers stateside have already been recruited by leading tech enterprises and are not actively looking for new jobs. As a result, it will cost a fortune to lure them away from their lucrative remuneration packages. An offshore development center provides all the personnel you need as a complete, functioning unit from the get-go: accomplished software engineers, project managers, testers, UI/UX analysts and designers, etc.
Time to market is crucial when it comes to cutting-edge technology as competition is fierce and trends change at breakneck speed. A skillful and experienced remote team would have the quality and agility, as well as access to the latest development tools and programming languages that might turn out to be your competitive advantage. And the acceleration of processes will inevitably lead to increased productivity and a wider variety of products, services, updates, and upgrades, which will expand your portfolio.
Scalability is also a significant factor for a successful business strategy, and remote software development centers give the flexibility to plug in and out whole units or individuals whenever your company needs to scale up or down. The in-house recruitment process can be much more rigid in this respect, and even experienced HR departments find that challenging.
So, there are plenty of offshore development centers to choose from, but how do you select the most beneficial overseas partner?
Being spoilt for choice might be a problem, but it is a nice problem to have. Once your business goals have been defined, the choice is there to be made, and you have to start somewhere.
Pick a destination – cost savings, time zones, and cultural similarities are all part of an equation where each detail matters. For example, some Eastern European countries, including Bulgaria, Romania, and Poland, are EU members and subject to EU legislation, making laws and regulations regarding overseas investment more transparent. Furthermore, the quality of tech education in the area is impressive, which means access to a formidable talent pool.
Do your research – look up your potential partners’ portfolios and make sure they include similar projects to yours. They need to have the necessary experience and a deep understanding of your business model as it results in smoother communication and processes.
Do not hesitate to get their former or current collaborators’ lowdown on the particular cooperation, especially if you have worked with or have connections to any of the companies included in the portfolio. Referrals might be a turning point in your decision-making process, so all advice is precious. Pay attention to all seemingly insignificant details as they might snowball out of control in the context of your own business.
Then dig even deeper – check what ratings the leading software providers have at specialized websites such as Clutch, Deloitte, etc. Social media, LinkedIn, conferences, and tech marketplaces are other opportunities to aggregate a substantial database of talent and contacts to base your selection on. Getting in touch with recruiters with comprehensive knowledge of the local market will also provide valuable insights you might not find online.
Clearly define the technical aspects of the project with your technology partners or co-founders and make sure they are involved in each step of the selection and negotiation process. Profound expertise is a must when communicating your business concept, evaluating the required skill set, and creating contract agreements and job descriptions. Non-disclosure agreements, superb project management tools, operating systems, and access to the latest code also need to be prerequisites for the project’s inception.
Last but not least, as vital as cost efficiency is, beware of quotes that seem too attractive to pass up. Expenses can skyrocket at a later stage if quality has been compromised and code needs to be fixed or rewritten from scratch, not to mention further investments in software maintenance and adjustments and the waste of valuable time.
In conclusion – outsourcing services seem to be the way ahead for many industries, and IT is no exception. Offshore software development centers offer solutions that are more effective budget-wise and provide companies with extra scalability, flexibility, and agility, so they have more resources left to invest in their core businesses. Naturally, there are challenges to be faced, and geographical distance, foreign regulations, and cultural differences can prove hard to overcome. Still, a wise selection of overseas partners and sensible business processing will ensure the benefits far outstrip all the hurdles en route.
For the past ten years, Scalefocus has been chosen by companies of all nationalities and sizes (from small start-ups to Fortune 500 caliber) to develop and maintain their software.
Immaculate project management and world-class software engineers are just two of the reasons, and you can contact us to discover more.