For startups and growing businesses, it’s becoming more and more advantageous to outsource their development to countries with a better business environment. One of the greatest hurdles they face is finding a way to hire offshore developers that is both efficient and cost-effective. Commercially-viable strategies are the most effective way to accomplish this.
For over a decade, I have been offering consulting services to businesses on the best way to locate and hire proficient remote engineers. In the wake of the pandemic, the need for remote technological expertise has surged, resulting in many inquiries about the procedures involved in outsourcing a development team.
From my interactions with clients and engagement with professional networks, I have noticed that many individuals believe that they need to either greatly improve their technical interviewing abilities or create strong remote job descriptions to attract developers. While both aspects are crucial, outsourcing developers involves much more than just those factors.
Successfully enlisting the services of offshore development teams requires getting back to basics. This means defining your budget and business type, as well as finding the ideal developers and determining how to remotely engage with them. In this article, we will explore and assess each of these elements in-depth.
A Comprehensive Guide to Outsourcing Software Development: Step-by-Step
Check out this handy reference guide that covers the five essential steps for locating and hiring offshore developers:
1. Define Your Business Goals and Strategies
Before you start hiring, it’s crucial to establish precise business objectives and strategies.
A company must identify the issue that its initial Minimum Viable Product (MVP) will solve. If you can explain how your product or service addresses a specific need, it will be easier to define your short-term and long-term objectives.
To demonstrate your company’s potential for success to your development team and customers, it’s crucial to devise a project roadmap that outlines its progress.
Even for established companies with a clear understanding of their future direction, the impact of outsourcing development on their operations necessitates careful consideration.
For companies to make the most of their newly hired offshore development staff, it is critical to establish clear objectives. This guarantees that new employees understand their goals once they join the organisation.
2. Develop a Budget
For any business, cash flow is crucial for success. When dealing with a startup, it is a particularly delicate situation, as even small errors can have a detrimental effect on the firm since every penny counts. It’s vital to have a clear comprehension of the initial available capital and how much can be allocated to various areas before starting the recruiting process.
The significant advantage of outsourcing developers is the ability to acquire talent at a reduced cost. However, it is essential to consider the financial consequences of this decision before initiating the recruiting process. Make sure to allocate an adequate budget for recruitment expenses since this may be a significant investment.
- Range of Compensation (from the lowest to the highest possible amount)
- Determine the cost of hiring new personnel (which encompasses equipment, time, and documentation)
- Initially, you must determine if it is worthwhile to engage an outside firm, following which you can allocate funds for the same.
The COVID-19 pandemic has prompted certain nations to enact legislation related to remote work. Therefore, it is critical to ensure compliance with all applicable laws and regulations in the country where the recruitment is taking place.
Companies, regardless of whether they are startups or established entities, must consider the additional resources required to recruit off-site developers. For example:
- Project Management Tools (Basecamp, Trello, Asana)
- Communication Mediums for Message Transfer (Zoom, Slack, Skype, Teams, Gmail)
- Hardware and Software for Documenting (Dropbox, Google Drive)
- Hardware and Software for Payroll Management (Deel, Bitwage, Hubstaff, Papaya Global)
3. Define the Desired Candidate (Skill Set and Experience)
After establishing a sound financial plan and outlining a comprehensive corporate strategy, the subsequent step is to evaluate the credentials of the potential hires.
Achieving a clear comprehension of the vacancy and attributes requested in the ideal candidate can significantly streamline the recruitment phase. By having a precise understanding of the sought objective and avoiding compromises, the hiring process can be rendered substantially more efficient.
In order to recruit offshore developers efficiently, it is crucial to contemplate the sought objective and define the competencies required when posting the job vacancies. This will allow for the formulation of technical and soft skill evaluation criteria. Once done, the hiring process can be started, whether it is for individual developers or a complete team. Reassessing the original strategy and refining the requisite job positions is also highly recommended.
It is critical to bear in mind that the most fitting candidates are not solely judged by their work history, career potential, and social competencies. In addition, they must embody robust communication skills, efficient teamwork capacity, and adeptness in remote work. The following standards should be considered when evaluating prospective candidates:
- Personal qualities or intangible skills.
- Prior job history and pertinent experience.
- Proficiency and know-how in a technical domain.
4. Formulate a System for Remote Hiring
After the preliminary groundwork is done, companies can commence the hiring phase. It is crucial to scrutinize past recruitment procedures to determine areas of success as well as areas that need improvement, particularly for those who are yet to employ remote developers. This is a vital first step.
To initiate the recruitment phase, ensure that you possess the required resources to assess potential candidates. Video applications such as Zoom, Skype, and Google Teams are valuable tools to have at hand. After arranging the essential resources, you may commence the hiring process.
- We are seeking to fill a position that corresponds to the skills of the perfect candidate. Kindly furnish a detailed job description that specifies the time zone, contract terms, and other pertinent information that could aid candidates in assessing the suitability of the position.
- To acquire the top offshore developers, it is crucial to scour the right locations. This includes traditional job markets as well as online communities such as Facebook groups and professional networking platforms like LinkedIn. If you encounter difficulties in identifying the right candidate, partnering with an external recruitment agency can be a feasible alternative.
- After a shortlisting of potential candidates has been made, it is crucial to scrutinize their credentials. The optimal method of evaluating their skills should be determined, such as live coding exams, mini-projects, group tasks, etc. Moreover, it may be advantageous to conduct diverse interviews to gain additional information about the candidate’s personality and their potential interaction with other members of the team.
- Having an efficient onboarding process is vital as it enables new hires to be acquainted with the organization’s values, principles, and practices. It is not merely about introducing them to the company and its members but also about giving them a constructive first interaction with the team.
5. Evaluate Different Offshore Alternatives
It is widely acknowledged that sourcing candidates can be a cumbersome and daunting task, particularly when looking for someone with specific qualifications and levels of expertise. Nevertheless, it can be asserted that comprehending the preceding step is easier than actually carrying it out.
Organizations that haven’t recruited remote workers in the past may encounter difficulty in the process. From selecting an agency to collaborate with, to managing HR duties such as remunerating employees, conducting interviews, devising policies, and keeping records of outcomes, the undertaking can impose a significant burden on both time and finances. Consequently, it could be advantageous to explore outsourcing alternatives.
Offshoring Software Development: Advantages and Disadvantages
While starting a company, I encourage you to invert the problem and ask yourself what reasons you have for not hiring developers from other countries.
It is crucial to evaluate the pros and cons of recruiting developers from overseas before arriving at any conclusions. While determining the practical aspects of this strategy is probably the most immediate issue, it is vital to contemplate the potential repercussions before making a commitment.
Benefits of Offshoring Software Development
1. You Can Tap into Elite Skill Sets without Overspending.
Were you aware that inadequate financing is the second leading reason for a startup’s failure?
Determining which responsibilities to give top priority when launching a company can be daunting. To ensure its expansion, it is imperative to bring on board proficient professionals in the relevant domain. Nonetheless, it might be advantageous to allocate funds to other aspects, such as internet or software stacks. Furthermore, with respect to financial advantages, enlisting developers from other nations is another prospect to consider.
You can find premier developers at a fair cost.
It’s essential to have an understanding of the typical remuneration for software engineers in various locations, and to assess the probable reduction in expenses that can be attained by recruiting experts from overseas.
PayScale, Glassdoor, and Indeed are utilized to approximate salaries.
2. How to Best Publicize Openings for Elite IT Personnel
The employment landscape experienced a significant upheaval in 2023, with numerous employees who adapted to pandemic-inspired organizational changes and remote working arrangements preferring to continue in these positions. Even before the outbreak occurred, enterprises were employing work-from-home flexibility as a means of enticing programmers. Moreover, offering benefits like complimentary gym access, gratis meals, and other perks became standard practice.
Attracting highly talented IT staff is now being accomplished, in part, by providing accommodating work setups, like remote work, which accords employees greater independence in managing their timetables. This is increasingly desirable, as workers pursue more equilibrium between their professional and personal lives. Even software developers have their thresholds in terms of work expectations.
According to Terminal, 83 percent of software developers are keen on continuing to work remotely, even after the pandemic subsides.
3. Eases the Process of Scaling for fledgling Enterprises
When aiming to expand a company, it’s imperative to take into account the array of strategies and measures that must be implemented in order to flourish. Distinct approaches may be called for, based on the particular requirements of the organisation, such as financial planning or task supervision. Investing in a capable and experienced team is a superb way to elevate a business from its startup origins.
If you seek to minimise expenses and enhance your business’s capabilities, enlisting offshore developers may be a feasible strategy. These developers aren’t merely external contractors; they are fully assimilated into your enterprise’s protocols and performance expectations. Engaging with remote engineers can be challenging, so we have compiled a roster of exceptional resources for identifying a reliable development squad or business partner.
4. Increased Productivity
Recruiting a development team in another nation could be a cost-efficient remedy, whilst also accelerating the development timetable. As the adage goes, time is money, and this arrangement can prove advantageous for both parties involved.
Timing is critical for fledgling enterprises, as evidenced by a study conducted by Idealab, which revealed that poor timing was the primary reason for startup failure. The significance of releasing products in a timely manner cannot be overstated, as new businesses are spawned into a fiercely competitive milieu, wherein delays can easily bestow an advantage upon rivals.
Moreover, working in a comfortable environment allows remote developers to be more productive. This enables them to devote more time and effort to their duties, leading to superior quality and punctuality of the projects they deliver.
Challenges in Hiring Software Developers Overseas
Unless you possess a sturdy HR unit with proficiency in remote recruitment, administering the recruitment process autonomously could prove time-intensive. Initially, many proficient software developers might already be employed. To ensure a comprehensive search, exploit social media and make direct contact with them, proposing an exceedingly appealing likelihood.
Whilst evaluating remote candidates, it is paramount to take into consideration any dearth of familiarity in the domain. The accomplishment or defeat of a remote team can hinge on their aptitude for effective collaboration and communication. Therefore, when interviewing offshore developers, it’s necessary to meticulously scrutinise these areas.
The plethora of suppliers obtainable can render the process of selecting the most appropriate one complex. Pursuing the wrong alternative could prove to be costly in terms of both time and money. Therefore, it’s crucial to evaluate their offerings and the correlated costs, prior to committing to a decision.
2. Disparities in Culture May Pose Issues
Offshore development teams often feature an array of cultural backgrounds which can give rise to both favourable and unfavourable aspects. These teams are made up of proficient individuals originating from numerous places, each having their own distinct life experiences and perspectives. This can foster greater creativity and innovation, but it can also present challenges, particularly when people from vastly divergent cultures are collaborating.
To efficiently oversee a team composed of individuals from various cultures, managers must maintain frequent and candid communication.
3. Cyber Security Poses Potential Hazards.
This is a subject of opinion as to whether it poses an issue for your business. Nonetheless, if you have established a sturdy security system, there is no need to be alarmed. It’s crucial to keep in mind that an amplified prevalence of BYOD policies among remote workers heightens the risk of cyberattacks. The primary concerns that arise from bringing-your-own-device are hacking, malware, and data breaches.
Storing data on the cloud implies that remote developers could potentially access confidential information. To guarantee the security of your offshore workforce, it’s vital to furnish them with distinctive guidelines, regulations, and limits to abide by.
4. Novel Ways of Thinking Required in Management
To be an accomplished manager, it’s crucial to be capable of managing a remote team. Those who oversee offshore development teams swiftly recognise that they cannot manage them in the same manner as they would a team present in the office. The fundamental difference is being situated in a divergent physical location. As telepathy isn’t achievable yet, it’s important to keep in mind that your team cannot perceive your thoughts.
Trust is a vital aspect when dealing with offshore teams. It’s crucial that you can count on the individuals you hire, to proffer the services you require, as you lack any direct supervision of their endeavours.
Do You Need Help Finding Offshore Developers? Networking Can Be Advantageous
At Works, we’re a virtual staffing firm that specialises in IT professionals. We comprehend the significance of assuring that the developers selected by our clients fulfil their desires. To guarantee optimum compatibility, we consider their time zone, culture, and protocols when sourcing candidates. Our recruitment process is swift and efficient, with us presenting the ideal match within a mere two weeks.
At Works, we acknowledge the complication of discovering adept offshore developers. Our objective is to supply our customers with the assistance they require to alleviate the process. With a decade of experience in the industry, our compilation of potential candidates is comprehensive, and we can take charge of the HR administration, sparing you time and energy.
We offer a complete spectrum of services encompassing the recruitment, payment, and contractual agreements of personnel. To expedite your progress, submit your employment request to us at https://www.works.so/hire-talent.
Below are the paramount five things to contemplate before introducing an offshore developer:
1. Is it Feasible to Establish an Offshore Development Team? Are My Resources Sufficient?
Overseeing remote development teams entails more than just furnishing a lower salary package. It’s crucial to invest in various resources to ensure efficient management of the team. Before initiating the recruitment process, it’s vital to guarantee the availability of these resources.
- Verify your calculations.
- Examine if this approach can genuinely save you money.
- Setting and sticking to financial goals is crucial as investors won’t invest in a business until they witness a minimum viable product.
2. Is it Unanimous That We Can Employ Developers From Other Nations?
Offshore development services can provide an advantage of cost and access to skilled resources, but there is a chance that other founders or team members may not be in agreement. When managing offshore teams, the time, effort, resources, and processes required can lead to potential challenges. When the stakes are significant, it’s important to reach a consensus.
3. Am I Comfortable Entrusting and Authorizing My Remote Team?
Managing a remote development team is markedly distinct from managing an on-site team. Due to the probability of developers being situated in different time zones, it’s crucial to offer them greater flexibility and trust. Continual monitoring and interruptions will hinder their progress and obstruct them from reaching their goals. If significant direct supervision and management is mandatory, it’s not recommended to recruit an offshore team. To ensure success, higher management should avoid micromanaging employees.
4. Can You Provide Me with Information on Where to Search for an International Programmer?
When conducting the recruitment process on your own, it may appear cost-effective in financial terms, but it can be time-intensive and may prove more expensive in the long haul. Possessing a well-established network of IT professionals can streamline the task of sourcing and employing the appropriate candidate. Nonetheless, the IT sector is deeply competitive, making it arduous to find an acceptable candidate who is willing to work for a reasonable salary.
It can prove advantageous to contemplate employing a remote recruitment agency to assist you in finding a competent individual who harmonizes with your principles and work culture. At Works, for instance, we don’t just take into account skills and experience, but also evaluate a candidate’s personality traits. We analyze a company’s environment to determine if a potential employee can assimilate with the prevailing practices. If you desire to conduct a personalized search and screening process for hiring remote developers, please refer to our recommended resources.
5. What Are Our Allocated Funds for Recruiting Overseas Developers?
Assessing your current financial situation can assist in determining the amount that can be apportioned to an overseas developer. When finalizing the remuneration package, it’s essential to ensure it’s commensurate with the level of experience and expertise required for the role. While some developers may quote lower fees, it’s possible that their work quality may not be of a high standard.
To ensure that your selection of hires doesn’t adversely affect your Minimum Viable Product (MVP), it’s imperative to strike a suitable balance between quality and cost.