What you should know before hiring an offshore software development team?

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cabalpowel
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The trend of outsourcing developers is booming across the globe. The demand for hiring offshore developers is increasing on a daily basis. But why is it actually happening? Well for starters, it’s affordable to hire offshore developers.
Secondly, it allows access to the wider pool of talent. Apart from these two, there are a number of other benefits that you can gain from hiring offshore developers.

But before discussing its advantages let’s understand why startups need to hire offshore developers.

Why you must hire offshore developers for your startup?
According to Deloitte’s global outsourcing survey, around 72% of the companies prefer for software development outsourcing than having their in-house development. But why companies favour outsourcing so much? Below are a few of the reasons which would answer that question.

Cost-efficient
Cost is one of the major startup killers. According to a report by Quartz, around 46% of startups fail as they run out of money. However, if startups hire offshore development teams then it’s quite unlikely that they would meet the same fate. It’s because when you outsource, you don’t have to pay for overhead costs like payroll, office rent, vacations, insurance benefits, recruitment fees, etc.

Instead, you can divert that entire fund towards the creation of an MVP. Not only that but also the rates of developers in the offshore countries are lower than that of the US and Western Europe due to the lower cost of living.

Reduce time and increase productivity
Hiring an offshore development team saves not only times but also increases overall productivity. Time is a crucial factor here as startups are born in a cut-throat competition setting. With a dedicated development team in place, you don’t have to invest time on project management routines or with other HR activities like employee retention, as all of it will be taken care by the vendor company.

You also save time on training new employees as every outsourced employee already possess the required skills. This helps you to focus only on your work as everything else is already taken care of.

Get access to a larger pool of talents
One of the major advantages of outsourcing is that it gives you access to a larger pool talent. It’s difficult to find developers of good quality in countries like the US and Western Europe. It’s because the tech giants have already employed the best lot of developers where they receive benefits, enormous packages, attractive perks, job security, and a sense of comfort.

Whereas, working in startup imply risks. However, with outsourcing, you can hire an extremely skilled and capable developer from Asia and Eastern Europe who would be more than happy to join a startup.

Flexibility
Flexibility is a big concern when it comes to the in-house team. It’s due to the difficulty that the company faces in scaling their team and making changes in the technology stack conforming to the project scope and stage.

On the other hand, such changes are common in any startup environment. Outsourcing developers can be easily moved between the projects and are extremely flexible especially when you collaborate with them through web dev shop.

Outsourcing Developers: Where to Start?
Before outsourcing developers for your startup, consider the following things:

Define your business goals clearly
The first step is to clearly identify the set of problems that you’re looking to resolve with the help of your initial MVP. This is important as you have to explain those problems while you outsource developers. Basically I have outsourced some of my projects from android application development company, and they have done awesome works. You must determine the prime objective of your product. You can also break it down into smaller and measurable milestones along with setting deadlines for each milestone.

Evaluate the skill set required for the project
After defining the business goals, the next step is to identify expertise, technology stack, and the skills that you would need for the project. You must also define the roles that you need for the projects like do you only need developers, QAs, business analysts, PMs?

Plan your budget
Budget is the most crucial component as it decides a startup’s fate. So, you must be extremely cautious in planning it. First, you must define the initial size of your initial capital. Moreover, you must define the areas that can save you a big chunk of money. Once you are done with it, find the investors to whom you would show your MVP beforehand.

Outsourcing Developers: Where to look?
There are several offshore countries that you can choose from; each of them has its own challenges and advantages. You must try to shortlist countries that are closer to your time zone and culture; however, you must also consider developers who offer you the best deal in terms of price and quality ratio.

Let’s have a look at various geographies for outsourcing development teams.

Eastern Europe
Eastern Europe has earned a reputation as a reliable IT outsourcing destination due to its cost-effectiveness, growing talent pool, and rapidly evolving IT industry.

Czech Republic, Ukraine, Bulgaria, Estonia, Hungary, Belarus Latvia, Moldova, and Romania Poland are some the top Eastern European outsourcing destinations.

This region has more than 1,051,000 software developers with more than 50K ICT graduates entering marketing each year. Ukraine and Poland are the two countries that have the most significant number of professional developers in the Eastern Europe region. If we talk about the number of offshore development companies, then Ukraine tops the list with 1600 followed by Poland (500+), Bulgaria (500), and Belarus (500).

Latin America
Mexico, Brazil, and Argentina are the best options for the outsourcing of professional developers in this region.
However, Chile has also shown good growth in the market by claiming 27th spot in the HackerRank rating of the most skilled professional developers in the world.

Asia
Asia has almost 4 million software developers. India, China, and the Philippines are the leading countries with the most number of developers. India leads at the front with 2.75 million developers followed by China and the Philippines with 590K and 190K developers respectively.

Hope this article will help you.

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