Scaling Your Business with Offshore Development Teams

Initially, it may appear logical to hire developers who live locally, as it facilitates conveniences like physical proximity to the team, easier communication and task monitoring, as well as problem-solving. Nonetheless, as it can be challenging to find locally-based development experts who are native language speakers, it may not be the most effective choice. Fortunately, an alternate solution exists, which is increasingly preferred by businesses seeking proficient professionals – offshoring IT roles. Let’s examine the advantages of appointing an offshore development team for your enterprise.

Proceed to:

  • Explanation of an Offshore Software Engineering Team
  • Benefits of Hiring Development Team Internationally
    • 1. Hiring programmers from foreign countries is a more cost-efficient option.
    • 2. Greater Access to Proficient Skillsets
    • 3. Ability to Scale Up
    • 4. Access to Cultural Diversity
    • 5. Enhances Your Company’s Competitive Edge
  • Which Option is Superior – Offshoring or Hiring Locally?
  • Can Geographically Dispersed Teams Succeed?
    • 1. Time Zone Conflicts
    • 2. Diverse Cultural Practices
    • 3. Difficulty in Direct Communication
    • 4. Overwhelming Amount of Service Providers
  • Selecting the Appropriate Individuals for Your Offshore Development Team.
  • Works Offers Hassle-free Recruitment and Hiring of Elite Software Developers for Your Offshore Team in Only 14 Days

Explaining an Offshore Software Engineering Team

Offshoring is the act of shifting a company’s activities to a foreign nation. In developed regions, services and products undergo high costs linked to labour and transportation charges. Nevertheless, developing nations possess an abundant availability of capable labour at a lower cost. Therefore, some companies opt to migrate certain operations to such countries, where they can compensate their staff at a lesser remuneration while simultaneously keeping their prices comparable for end-users.

The manufacturing industry was amongst the front-runners of offshoring practices, which have since become prevalent. With the progress in technology and the surge of international trade, this approach is now being widely implemented by various enterprises. For instance, most of the companies in the IT sector are currently taking advantage of offshoring their development teams.

The Advantages of Recruiting Overseas Developers

When companies intend to expand their development teams, they often consider offshore resources. Handling geographically dispersed software development teams is not new and has gained traction in recent times, particularly owing to the pandemic’s impact.

In the past, reducing costs prompted companies to frequently outsource IT personnel. To secure services at a lower rate compared to recruiting a US-based software developer, numerous organisations preferred to outsource to India.

It is important to distinguish between offshoring and outsourcing. Outsourcing entails delegating responsibilities that are usually overseen internally to an outside company. In this case, personnel are recruited from a distant location, but they will not be hired as company staff. When outsourcing human resources, that function’s management is relinquished to the other enterprise. Conversely, offshoring eliminates the need for any intermediate company and allows the organisation to maintain authority over their data. As a result, we shall discuss the benefits of employing remote software developers.

1. Recruiting developers from overseas is more cost-effective.

One common knowledge is that engaging a software developer in the US can be expensive. The cost of recruiting a developer can have a significant influence on a company’s financial performance, especially in pricey locations like Silicon Valley. When hiring a software developer, it is crucial to consider not only their pay but also their working conditions, tools, and other benefits. However, organizations can save a lot of money by working with a team of overseas developers. Expenses on infrastructure can be minimised, and highly competent programmers can be located and hired from nations with lower average salaries.

Refer to the table below for a quick comparison:

This salary information was obtained from Glassdoor for reference purposes; actual remuneration may differ (depending on the level of expertise, experience, skills, etc.).

2. Greater Availability of Expertise

When contemplating tech hubs, Silicon Valley, New York, and Atlanta are frequently preferred. Although these areas provide an easy way to obtain qualified professionals, it comes at a high cost. If you are situated in a region where IT experts are scarce, you don’t have to opt for the least viable choice. A feasible alternative is to seek your coding requirements overseas.

The best and most skilled individuals in the Information Technology (IT) industry make up offshore development teams. The prevailing pay rates and requisite expertise will influence the selection of potential candidates from whom you can make your choice. In countries like Ukraine, Czech Republic, China, and India, cities offer relatively modest salaries for developers. However, the resulting software products are of exceptional quality.

3. Capability to Expand

Entrepreneurs worldwide aspire to establish thriving businesses. They aim to expand their operations on a larger scale, allowing them to cost-effectively manage the growth of various departments, such as sales, finance, and marketing. Hiring an offshore development team could help you expand your enterprise without compromising any of its present divisions.

By enlisting remote developers, you can have access to specialised skills to help you stay competitive in the market. Additionally, you can leverage their expertise to create your own software products, such as websites and applications, to uphold your competitive edge. Moreover, by hiring permanent staff instead of contractors, you can guarantee that they are fully integrated into your business’s culture and processes.

4. Availability of Cultural Diversity

According to the Harvard Business Review, teams with varied cultural backgrounds typically perform better. These teams, comprised of individuals from diverse cultures and geographic locations, are often capable of generating more creative and innovative ideas.

Each member’s unique perspectives and ideas enrich the team. Despite programming seeming like a rigid, numerical process, innovative thinking is vital when confronted with a problem.

By working with an offshore development team, you can avail yourself of diverse problem-solvers with varied experiences and perspectives, a benefit that can aid in overcoming any challenge.

5. Enhances Your Company’s Competitiveness

In order to achieve success in the market, it is vital to be proactive and adaptable. Employing and adapting to the latest technologies is crucial, rather than relying on outdated methods. Businesses must be prepared to depart from the traditional “this is how we’ve always done it” mindset in order to remain competitive. Doing so will help ensure continued success.

In order to be successful in business, it is necessary to stay abreast of current events, your competitors’ strategies, and industry trends.

Before the pandemic, remote work was increasingly gaining popularity, but it has now experienced an exponential rise. To acquire skilled IT personnel, exploring remote job opportunities is among the most effective sourcing methods. It can also serve as an effective means of attracting talented programmers to work for you. Recent research has shown that remote work is preferred by employees, with monetary compensation not being the most important factor. Offering them the freedom to work from anywhere can enhance their productivity and overall satisfaction.

Offshore or Local Hiring: Which is Better?

Collaborating with a remote software development team can prove to be challenging if you’re accustomed to local recruitment. Engaging offshore software specialists can be an excellent option, but it hinges on the technology, tools, and processes employed by your organization.

Review the infographic below to grasp the possible effects on your company when deciding between offshore and in-house developers.

Can Remote Teams Attain Success?

Initially, engaging an offshore team can prove challenging, but success depends on the capability to efficiently employ tools, resources, and strategies. Offshore development management delivers several benefits but also entails possible challenges. We have identified the four most prevalent issues and furnished guidance on how to evade them.

1. Time Zone Confusion

When partnering with engineers in different time zones, it is crucial to consider the possible impact of jet lag. For effective team management in a distributed environment, it is advantageous to employ both real-time and asynchronous communication channels. While it is not obligatory to spend the entire day in meetings, frequent conversation about projects and duties must be conducted to manage any potential setbacks or hindrances.

While hiring engineers from overseas, it’s crucial to take into account the differences in time zones.

Additional recommendation:

  • Identify the time zone(s) you are willing to work in (this would make it simpler to search for candidates within that time zone).
  • Make clear that you will require them to be online at designated times and deliberate on this with them during the interview phase of the recruitment process.

2. Different Cultural Norms

Partnering with individuals from diverse cultures can present an array of possibilities and obstacles. By exposing ourselves to fresh viewpoints and ideas, we can take advantage of inventive solutions to complex issues. However, misunderstandings may arise due to disparities in language, dialect, or idiomatic expressions, as well as differences in workflows. Communication is critical in such situations, and interaction is the secret to productive collaboration.

To manage cultural diversity, the most efficient approach is to guarantee free communication between team members. Engaging in significant discussions to clarify any probable misunderstandings will aid in cultivating an environment of trust and openness.

3. Lack of Direct Communication

It is comprehensible that the absence of in-person interactions may pose challenges for certain managers to proficiently handle remote teams. In the absence of unambiguous communication channels, it may be simple to feel that the team is not functioning smoothly or that all members are not on the same track. Furthermore, remote work can be difficult for staff who are away from their acquaintances and loved ones.

It’s crucial to strategize and actively promote interaction among individuals in diverse locations. This should encompass more than simply employing chat software like Slack or conducting regular video conferences. Furthermore, it’s essential to offer chances for remote employees to communicate with one another, as well as to devise innovative team-building measures and create a productive work environment.

4. Presence of Excessive Suppliers

Given the vast number of companies proposing IT partnerships and staff augmentation services, it’s prudent to rely on professionals for your IT recruitment requirements. Selecting the appropriate agency from the myriad of options can be a daunting feat, with each firm asserting to offer exceptional outcomes.

The regrettable fact is that numerous agencies lack comprehension of your company’s principles and procedures. They are chiefly concerned about remuneration and may undervalue the requirement for multiple developers. To circumvent this, it’s important to conduct thorough research on the various agencies and to see beyond the conventional ‘recruitment assistance’ sales pitch.

Discovering the Appropriate Individuals to Work on Your Offshore Development Team.

Interestingly, India is not the solution. For two principal reasons, numerous companies have resorted to India for offshore development teams.

  1. The bulk of developers working in India are skilled in English.
  2. Typically, a developer in India can anticipate earning about $673 per month, while in the United States they can expect to earn $8,021.

In case your entity is contemplating using offshore development teams, cost-effectiveness is a crucial aspect to contemplate. It’s imperative to guarantee that employees are fairly remunerated for their labour, as insufficient wages can bring about diminished quality of work.

Ambitious cost-saving in personnel recruitment is an imprudent error. In situations where the developers appointed at a low cost lack the essential skills and abilities required, the outcome can be wastage of time, money, and resources in attempting to execute a solution.

It’s recommended to take all variables into account prior to making a decision that could adversely impact the company’s principles and finances. It’s crucial to ascertain which countries are most suitable for contracting software engineers based on specific requirements and budget. Additionally, it’s important to have a dependable recruitment procedure in place to appraise the technical proficiency of possible employees.

Additionally, various countries in Eastern Europe hold highly-capable developers who are proficient in English, enlisting them as an optimal choice for offshore development teams.

Latin America accommodates an abundance of highly-accomplished IT professionals. According to Evans Data’s Global Developer Population and Demographic Study, the IT workforce and developer populace in Latin America is expanding expediently, ranking second to Asia.

Works Empowers You to Enlist and Appoint Elite Software Developers for Your Offshore Team in Merely Two Weeks

The benefits of establishing a development team overseas are multifold, from reaching a larger pool of talent to lower wage expenses and more effective coders. If you’re searching for a software development team to hire, you can either undertake the time-consuming route of meticulously investigating diverse social media platforms or you could avail the services of a reliable enterprise such as Works.

As a remote recruitment enterprise, for the past decade, we have effectively aided numerous businesses in filling myriads of positions. Our services encompass publicizing vacant positions, executing interviews, and appointing candidates from across the globe. This is usually accomplished within a fortnight. If you wish for us to assist your entity in discovering the apt personnel for the HR department, kindly do not hesitate to contact us.

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