Contact us anytime to know more — Amit A., Founder & COO CISIN
It is pivotal for a company to be confident in the team to build new disruptive products and features that can make market penetrations easy.
Not only does this require a length and breadth of technical knowledge, but industry experience and soft skills also count.
Another thing that a lot of companies find themselves at crossroads is development prices. Here, market saturation benefits you.
Since IT is one of the burgeoning industries, even third-world countries offer you some good resources with the required skill sets.
Offshoring hiring thus provides you the benefit of enjoying the same set of services at cheaper rates while not compromising on product quality.
However, trusting a company sitting miles and miles away may take a lot of work. Here in this blog, we will discuss some of the best practices for hiring the right offshore development company and managing them to ensure the project's success.
Let's start by analyzing if offshore team hiring is the right choice for you.
Should you Hire an Offshore Development Company?
Offshore development center is one of the most common practices as the development cost in many countries such as the USA and UK is very high.
Due to budget constraints, many companies need help to equip their needs with full-fledged software.
This makes them turn to the available resources and the resources that offer software development services at the correct rate.
Meanwhile, another option is hiring an in-house development team and getting the product built; there are many reasons why you might need a different fit.
As a startup, not only can the right software development company or software development team define the success of your project, but other factors are equally essential to consider for the company's survival in harsh business scenarios.
While the economies shift and digital investments escalate, you must recognize the need to use your resources wisely as a startup or company in the discovery phase.
Here are some essential factors that would help you make your investment in software products more rewarding.
1. Avoid conflict Between the co-founders
One of the most significant factors for the failure of 65% of startups is the internal conflict between the co-founders.
According to a study by Noam Wasserman, a professor at Harvard Business School, you must avoid it.
2. Quicker Product Development
The faster the product enters the market, the better your chances for success. Also, the quicker the product development happens, the fewer resources are invested in the development process, and the cost of development reduces significantly.
3. Consider launching MVP
A minimum Viable Product or MVP allows you to validate your business model. It is a product with minimum capabilities sufficient for your market launch.
It is a cost-effective way to stay moderate with your product and remain within the budget. It is also one of the best ways to raise investment from the market.
4. Retaining high Quality
Meanwhile, MVP is a primary product; it must have the required quality. Always go for the product's performance, user experience, and cost-effectiveness while undergoing development.
It would increase the chances of success significantly.
5. Working Remotely
Meanwhile, in-house development sounds good; consider how you would manage a team. Especially when, due to the pandemic, the world is moving towards remote operations.
These factors play an essential role in ensuring the success of your software product with fewer resources. It might sound challenging, but if you ponder it, you will find offshore development more beneficial for you.
Here are a few things that would give you more clarity about hiring offshore developers.
Why Hire Offshore Developers for your Software Product Development?
Offshore development is a practice that has been introduced previously in the IT domain. According to a report by Deloitte, 72% of companies prefer outsourcing the development work rather than building an in-house development team.
Here are a few reasons why:
1. Cost-Effective Development Strategy
SaaS development services, custom software development outsourcing, mobile app development, etc., are costly.
Many businesses have failed because they need more money in the middle of the development process. According to a report by Quartz, 46% of startups fail for this reason.
Intelligently utilizing the available resources is very important. Meanwhile, you might have the proper budget for building the product; you might need to allocate it more wisely to make the most out of it.
Also, consider having an in-house development team; you would have to spend your funds on the rent, insurance benefits, recreational activities, recruitment fees, etc.
But offshore development or outsourcing does not require this type of investment. Instead, you must manage the development team or hire a project manager to make it more accessible.
All the saved resources can be used to develop the MVP product. Moreover, suppose you hire offshore development companies from countries such as India, Latin America, and Eastern Europe.
In that case, the development cost can be reduced three times, considering the per-hour cost of resources in Western Europe or America.
2. Increased Productivity and Save Time
A team of offshore developers can reduce the development cost and speed up the development process. Since time is one of the most significant influencing factors for the development cost, always manage time well.
As a startup, you would want your product to be out in front of the users and investors faster so as to raise some money for further product development.
In the competitive setting, you must recognize that a business must compete with thousands of other direct and indirect competitors, and the number is increasing each day.
Without a dedicated development team, you would not be able to get a hold on time as most of the time would be invested in product development.
Crucial business operations such as infrastructure development, marketing, and sales processes, supply chain development, training of the staff, etc., would not get the deserved time.
Outsourcing product development to a SaaS product development company would allow you to get hold of a talented resource already well-versed in the development process.
You would only be required to guide them occasionally. Instead, you would like to review the activities and provide the necessary feedback.
Finally, you would not have to spend time on project management routines or HR activities that burden you unnecessarily.
You can allocate your time and manage your business better. Also, if you need more technical expertise or skill set, consider having an offshore development.
3. Larger talent Pool
IT outsourcing allows you to hire the best resources from a wider remote developer pool. You would need more access to the resources.
This would mean you would only be hiring the resources for in-house development from your city or a nearby city. But consider how much talent you can find in the global market, and that too at reduced cost and more benefits.
Technical skill sets, infrastructural capabilities, and soft skills are essential to consider in a development team.
It is not just about reducing the cost. After all, it is also about making a quality-driven product. Hiring team members from trustworthy companies in India and Eastern Europe would help you meet your needs better.
Challenges while Hiring Offshore Development Companies
We have discussed the benefits of hiring an offshore SaaS development company.
Now it is time to know what hiring a remote team sitting miles and miles away would mean. Considering that you would not personally see a development team, nor would you be willing to fly to a country to interview the resources, you must make sure your decision of hiring a company is right.
During the development process, there would be some challenges that you must expect beforehand and also have the solution for to make the investment profitable.
The following section will share some easy tips for managing offshore development. Make sure you check them out.
1. Time Zone Difference
If the offshore development team is located in a different time zone, you will need some help managing the time to stay in contact with them.
However, many companies are now operational 24*7, and hiring a project manager would make the task easier for you.
Hiring an offshore development company with experience working with global clientele would have the resources to manage this problem easily.
Also, hire software developers that have worked with a worldwide clientele.
Companies that maintain transparency in the operations and keep you in the loop by daily and weekly reporting are worth considering for your project.
2. Lack of Face to Face Communication
Trusting someone you don't know personally is difficult. The communication barrier may arise. An in-house team is much easier to connect with than an offshore development team.
But, you can quickly get past this challenge by communicating with the team more often. Take video conferences, provide regular feedback, and try to know the people working on your project.
3. Too many Offshore Development Services
There are many companies that have become IT hubs. This means you will find many companies that are either worth considering for your project or are incompatible.
Look out for companies that have proven experience in developing projects that are similar to yours. Check out their portfolio, and before signing a contract, you must communicate with them about all the factors related to communication, cost, budget, time, and technology.
Read the blog - What are the benefits I will get with a custom CRM system?
Managing Your Offshore Development Team
In actuality, there are plenty of IT companies. There are so many technology providers that have proven skill sets to help you build your product.
But it is like finding a needle in a haystack. Technology indeed makes it easier for you to find these companies. But it would take time and patience as you cannot blindly trust any company.
Find the right platforms where you can get a reliable development team. Also, check out the final section, where we share tips on hiring an offshore development team to make the process easier for you.
Your offshore development team responsible for the development process would also require some degree of management.
It would not be as exhaustive as managing an in-house development team, but you would have to do what needed to be done.
1. Discuss your Development Goals
Offshore software development teams work in combination with your existing team. It doesn't have to be an in-house software development team.
It can be a marketing or sales team, database managers, business analysts, or anyone. They are there for more than just single-time services. You can utilize this collaboration over the years and keep adding more value to your business.
This puts some responsibility on your workforce also. Please keep them confident and allow them to share their view on the product.
Suppose you are adding some technology that would affect the entire development. In that case, you must connect the decision-makers of that department to guide your development team. Sharing long-term and short-term goals with the development team would help you better shape the product and divide it into phases that would benefit the company.
Start considering a company as an extended part of your business. Look for collaboration rather than a company that is there temporarily.
Brainstorm on these factors and accomplish them easily with the talented resources and their ability to use innovative solutions to meet your business goals.
2. Avoid Micromanaging
A survey by Trinity Solutions indicated that 60% of the respondents consider changing jobs because of micromanagement.
36% of resources changed their position, and 71% of resources believe it can negatively impact performance.
Given that your offshore development team would be thousands of miles away, communication barriers and distance would make it difficult for you to refrain from intruding on the team's work.
Monitoring their every move and out-ruling their decisions at all moments would make it easier for the offshore dedicated development team to offer their best. Try to find a balance and trust the talent of the resources.
3. Hire Technology Experts for your Project
While the offshore development company would provide you with the profiles of the available resources, you would have control over the project and the team.
It is good to have a tech expert on your project. It would help you make better decisions, especially if you need to be better versed in technology. This would help you bridge the communication gap arising from the tech jargon and the need for more knowledge.
Hiring an IT specialist would require you to look for someone with sound knowledge of different types of offshore Software outsourcing products and modern technology.
The project you are currently working on can either become as you wanted or completely break because the development team would need more direction from you.
The specialist would ensure a higher success rate as an expert in software development. A strong team leader is necessary to know technical nuances.
4. Factors in the Time Difference
We have already discussed how the time difference would be challenging. But you can easily manage this challenge by utilizing the overlapping hours.
As a company based in India, we always stay in communication with our UK-based clients in the mid-day as that is the time when the shifts start there. We follow a similar time zone management strategy for our other global clients.
Factoring in the time difference is one of the most important things. You can build a more efficient schedule by communicating with the team.
Overlap meetings, scrum calls, weekly reporting through video conferencing, and daily communication through different channels would make it easy for you and the team.
5. Treat your Offshore Development team as a Partner
The offshore software development company you are considering working with is not a simple service provider. They are a part of your team, where you can collaborate for a long time.
It is essential to look for a company that believes in long-term relationships.
Another important thing here is if you are considering them as a partner. It is important to develop some hierarchy in the system.
This would make project management easy for you.
Similarly, they would give their best in the project when you are creating a development company as a partner. They would know the association will benefit them in the long run.
They would start considering changing their schedule, provide you with reasonable offers on the project maintenance, and also dedicate more time to finding solutions that are compatible with the business.
Acknowledgment of their efforts is also good as it would boost their confidence and they would be more productive and efficient on your project.
Maintaining a long-term relationship is not just the responsibility of the offshore development team but also yours. Consider strengthening your relationship with them.
How to Find a reliable Offshore Development Team?
We have discussed in-depth the benefits of offshore software development teams, challenges, and easy tips to manage the offshore development team.
Now it is time to ensure you are working with the right team. Hire dedicated resources from a reliable company through these critical factors.
1. Where to find the Right Resources
It is essential to consider where you are starting to find reliable resources. You can easily find quality resources on many platforms.
There are many talent marketplaces where companies provide their information. Find these marketplaces easily through Google Search.
Another good way to find people with proven skill sets is by asking for recommendations. If you know someone that has undergone offshore software development, connect with them to learn about the company and their experience.
Social media platforms, such as LinkedIn, Facebook, etc., are an excellent way to connect with the right resources.
Networking places such as hackathons, seminars, and conferences are other places where you can find enthusiastic and knowledgeable help.
2. Proven track Record
Affirming the company's reputation by visiting its websites is a good start. Once you have spotted a company you are interested in sharing your project with, look them up on google and other reputable websites such as Clutch or GoodFirms.
Also, search for them on LinkedIn, check out their activities, visit their website, and know if they are active in maintaining their reputation.
Google, LinkedIn, and Facebook are also places where people leave reviews and feedback about their experiences with these companies. If you see a lot of red flags, it is time to consider another company.
3. Ensure that you have the Source Code
There are cases prevalent in the IT domain where the development company denies them source code or access to the code because of an internal conflict.
So, ensure you don't fall prey to this unprofessional behavior and are getting the most out of your association.
Own accounts such as GitHub, TFS, Cloud, and other platforms to ensure you always have access to the code.
4. Evaluate the GitHub Account
GitHub is a good tool. It is a showroom where the development team collaborates on open-source projects and contributes.
Quality of code is essential to ensure the performance of the product. The code should be clean, readable, and well-structured. You can also consider the metrics like:
- Date of joining GitHub
- Total number of followers
- Number of contributors
- Relevancy of the keywords
5. Check the Workflow
Find out how the company interacts with the clients to ensure transparency in communication. Ask about the scalability of the team.
Make sure you can add or remove the resource anytime from the group.
6. Avoid the Fixed Price Payment Model
A fixed price model includes a minimum of 25% additional cost to cover the risks. Time Material Model or dedicated team model is the preferable engagement model for companies with relatively tight budgets, especially when outsourcing the project.
7. Project Management and Communication Tools
Since offshore software development puts you at risk of communication difficulties, look out for a company that has invested time and money in making the development process and management hassle-free; consider a company that relies on an omnichannel communication platform.
Also, utilizing modern project management tools such as Slack, Jira, Trello, Basecamp, and others would help you keep better track of the project and make messaging easy and fast.
You could discuss, comment, and check the progress quickly.
8. Proactive Team
Proactiveness is an excellent soft skill. It would allow you to leverage the top trends in the industry as your development team would guide you on how you can utilize their services and improve the experience of the product.
Suppose your talented offshore team members of resources are actively doing their job well and are providing you with the best results. In that case, you can concentrate your time and energy on other business-building activities.
Wrapping Up
Working with an offshore development team has proven effective for many companies. It is an excellent way to reduce your outsourcing software development cost and takes some significant responsibilities off your shoulder.
You can develop an action plan to overcome these challenges quickly and enjoy the collaboration.
Are you looking for a SaaS software development service? Please share your project with us and get a free quote on your project, including Google cloud platform cost to get a complete breakdown of the time and money required to build a software product.
