Remote development teams are essentially outsourced innovation laboratories that operate as technology service providers in the modern era. The majority of businesses are now searching for technology partners that can elevate them and bring value to their organization, shifting away from traditional outsourcing objectives such as cost reduction.
According to Deloitte's worldwide outsourcing report, outsourcing is being revolutionized by disruptive technologies such as cloud and automation. It is no longer only about cost savings; offshore software development companies are praised for their creativity, speed to market, greater user experience, and improved performance.
Remote development or offshore development teams are advantageous for firms seeking to hire the best personnel at the lowest possible cost. There are various aspects that firms must consider before deciding to outsource their search for experienced developers; in the majority of situations, geography, language, or time zone differences dictate the decision.
Certain firms may require a certain skill set from their remote development team, while others require a whole product development team to execute their project. In both circumstances, it is prudent to adhere to specific best practices throughout the hiring process of an offshore development team.
Reasons for hiring Offshore Development Team
- According to Quartz, 46% of startups fail due to a lack of funding. This issue is unlikely to occur if you engage offshore developers. You will save money on overhead costs such as office rent, payroll, insurance benefits, vacations, and recruitment fees, among other things. Rather than that, you will direct cash to the most crucial domain – developing an MVP. Additionally, because of the reduced cost of living, developers in offshore countries often charge significantly less than their peers in the United States and Western Europe. Hiring a dedicated development team from Eastern Europe, India, or Latin America can cost up to twice as much as hiring one in the United States.
2. Increased Productivity
- Not only does outsourcing development save time, but it also boosts overall production. Time is critical in this case, as businesses are born in an environment of fierce rivalry. With a specialised development team in place, you won't have to devote time to project management procedures or other human resource tasks such as staff retention, as the vendor firm will handle everything.
- Additionally, you save time on training new staff because each outsourced employee has the necessary abilities. This enables you to concentrate entirely on your work, as all other responsibilities are already taken care of.
3. Global Talent Access
- If access to global talent is a primary factor for recruiting offshore developers, You must investigate the company's actual people, resources and skill sets.
- Verify that the firm to whom you are outsourcing web development genuinely has in-house personnel equipped with the necessary capabilities available to work for you. If their policy is to recruit freelancers as needed, you'd be wise to find them elsewhere.
This is critically important. The Mercer-Mettle Report on India's talent acquisition state for 2019 reflects the following:
- 100% of small enterprises (fewer than 500 employees) identified talent acquisition as a challenge.
- 90% of medium-sized businesses (501-1000 employees) agreed.
- Similarly, 67% of large corporations did (more than 1000 employees)
- The technology, internet, and electronics businesses all cited difficulty acquiring talent.
4. Flexible Scaling
- When you have an in-house software development team, you are always confronted with issues related to flexible scaling. What if you require additional developers? What if only a small number of programmers are required? The offshore development company assures that your business can scale up or down as needed. You may easily scale up or down your developer count to meet your needs. Hiring offshore developers enables you to tailor your development requirements to the number of developers required for each task.
Advantages of Hiring Offshore Developers
- Offshore developers offer a slew of benefits to any IT team. If your business is considering hiring (or not hiring) one, consider the following perks.
- Enhancement of operating capabilities.
- Labour costs are reduced since employees' wages are not taxed.
- Savings in terms of time and money spent on locating the best candidate for the job
- Acquire a considerable competitive advantage.
- It is a novel.
Considerations while hiring Offshore Development Team
1. Geographical location
Your outsourced development team must be based in a location that possesses a world-class infrastructure and is capable of delivering the services you require. For instance, if your spouse does not have appropriate high-performance internet connectivity, the partnership may become tough.
Choose a country with whom you have an established and prosperous commercial connection. This means that your offshore development partner is likely to have a cultural perspective on your business environment. That is a significant plus.
English is almost universally used in international commercial transactions. Before hiring offshore developers in a foreign country, verify the country's English competency. You certainly do not want a language barrier to obstruct your communications.
India is the most popular worldwide outsourcing location for all types of IT requirements. Naturally, web development is involved.
India is presently ranked 63rd out of 190 nations in the World Bank's ease of doing business survey. According to Tholons' 2019 Services Globalization Report, India ranks first among digital nations. The following is the score breakdown (based on a total of 1):
- 0.91 for talent, ability, and quality
- 0.80 in terms of cost and infrastructure
- 0.79 Business Catalyst
- Innovation in the Digital Age: 0.72
2. Determine Project Requirements
The first stage is to ascertain the requirements for your project. It entails determining the number of developers you'll need to recruit, the project's timeline, the date you'd like to launch, and the number of project managers on hand. Project specifications are critical for seamlessly recruiting offshore contractors.
3. Evaluate Skill Set
It is critical to determine the technology stack, expertise, and abilities necessary to complete the project. If you're developing a hybrid mobile application, you're almost certainly going to engage flutter app developers or React Native developers. Additionally, consider the responsibilities necessary to plan, develop, and manage your project.
4. Reject Cheap quotes
Concentrate on cost-effective rates rather than low rates. With low-cost estimates, you may wind up spending extra for the project as a result of someone else having to rewrite the poorly written code. And, once again, never be shy to request developers' Stack Overflow or GitHub profiles to verify the code's quality.
5. Ask for the company's workflow
It is critical to request outsourcing of the company's workflow. You can learn how they communicate with their clients and how they deploy their resources for projects. You can also inquire about their flexibility, i.e. whether they can raise the number of resources available during the course of the project. There is a chance that the company's workflow will not meet your requirements. As a result, it is critical that you ascertain this information prior to hiring the crew.
6. Right project management tools and methodologies
Choosing the appropriate tools for your project is critical to its success. When it comes to collaboration tools, cloud-based solutions are far more efficient. Agile methodologies are optimal for projects involving remote or offshore development. It guarantees product development is transparent, agile, and efficient.
The world’s outsourcing companies' top selections for team collaboration technologies for remote working conditions include Slack, Skype, and Zoom for morning scrum sessions (remote)
- Status reports and project management through the use of platforms such as Zoho and Jira
- CRM tracking and action item assignment – Odoo
- Calls with clients and departments on a scheduled basis (remotely) – Zoom
- Daily status review via various tools - Gsuite, Odoo, etc.
Cloud computing and robotic process automation (RPA) are the most sought-after technologies. According to a Deloitte poll, the vast majority of firms, 93%, are contemplating or using cloud solutions, while 72% are considering or implementing RPA solutions. 70% of respondents believe their service providers can implement disruptive innovations in a reasonable or advanced manner by indicating increasing confidence in outsourcing technological requirements.
Assign specified timescales for finishing the project's many sprints, and ensure that the team can adhere to them. On a monthly or daily basis, it is essential to split the project down into distinct targets or sprints. This makes tracking the progress of the project easier, and while giving timetables, ensure that your team is setting realistic goals. Utilise Google Sheets or Odoo to keep track of the project — and assign team members to provide daily updates. A set timeframe assists in overcoming time zone differences that may cause communication to lag.
7. Should be proactive
Proactivity is a critical quality. As a result, your offshore developers should always be one step ahead and constantly improve the process. If everyone on your team gives their all, things will go smoothly. As a result, you gain confidence in your team and may refocus your attention on other critical issues.
8. Frequent updates
Solicit from your offshore developers a demo of the MVP at the conclusion of each sprint, which is often weekly or biweekly.
Finally, ensure that your team complies with the following:
- It comprehends your directions and tasks. In some societies, people are fearful of demonstrating their inability to comprehend something. Your job is to reassure them that it is acceptable to ask inquiries. It is preferable to resolve all difficulties upfront rather than attempting to resolve them after the fact. If you believe they are saying what they believe you want to hear, bring this up.
- Understands your business and has completed at least one similar project.
- Has experience working with startups.
Summing it up
For a technology startup, the ideal option is to engage an offshore development team. Thus, startup entrepreneurs can save money and time while still delivering a high-quality MVP. However, before hiring developers for a business, you must clearly define your requirements, ascertain the requisite skill set, budget for the project, and begin researching offshore sites. Additionally, be mindful of the difficulties that employing offshore engineers may present – notably, time zone differences, a lack of personal communication, and cultural differences.
- Additionally, take into account the following factors:
- A track record of success
- Access to the most recent source code
- The untrustworthiness of the cheapest quotes
- Payment by time and materials vs. fixed pricing
- Allowing your team to disagree with whatever you say
- Effective project management software
- Extensive deployment