How to Hire an Offshore Development Team and Emerge Victorious
10 MINUTES
June 12, 2023
The Rising Demand for Offshore Development Teams
The demand for offshore talents and services has always been, is, and will be. In 2022, the global business process outsourcing (BPO) market was assessed at USD 261.9 billion. It is expected to grow to USD 492.45 billion by 2028.
Also, IT outsourcing is used by 92% of companies within the Global 2000. As for small businesses, at least one business process is outsourced by 37% of them.
It comes as no surprise that hiring an offshore development team can bring many benefits, among which are access to a global talent pool, cutting costs, and scaling your business above and beyond. But we want to dig deeper and show you some aspects you might not have considered.
Breaking Down the 'Why': Benefits of Hiring an Offshore Development Team
Access to outstanding talents
1Global talent shortage pushes companies beyond their local labor markets, searching for new professionals to cover specific business needs.
Long before the talent shortage, it became apparent that you can find the perfect talent fit outside your country, and they will be glad to improve your product and bring their unique expertise for its future scaling.
Complete delegation of recruiting
2According to the Society of Human Resource Management (SHRM), the average duration to fill a job vacancy (when a position becomes available to when it is filled) is 42 days, which applies to various sectors.
You can shorten this time to 28 days by delegating the entire recruiting process and staff management to the offshore development company, often for a fraction of the cost.
Cost-effectiveness
3It’s one of the most popular and rational reasons for outsourcing. About 70% of companies decide to hire offshore to reduce their costs.
It works. For example, with StartupSoft, you can save up to 40% in development costs and use this money for business development.
Growth and flexibility opportunities
4Offshore development teams are flexible. You can easily adjust their size and capabilities according to your business needs.
Thus, you can reach the desired growth more quickly and effectively through resource diversification.
Focus on core business processes
5Once you’ve set priorities for in-house and outsourced tasks, you can entirely focus on your essential to-do business list.
Outsourcing gives you the freedom to manage vital in-house processes, increasing efficiency and staying in line with everything simultaneously.
Offshore teams as innovation hubs
6Rather than viewing offshore teams as a cost-saving strategy, consider the potential for diverse perspectives to spark innovation.
You can access specific professionals and technologies they obtain and are ready to share. Exchanging experience drives our world!
Going global and building brand image
7By setting up offshore development centers, you can expand your business to worldwide markets and reach out to new customers and partners.
Also, offshore teams can become your brand ambassadors and enhance your company’s global reputation and brand visibility.
Debunking Myths: Addressing the Common Criticisms of Offshore Hiring
Time zone challenges
Companies worry that the time zones with their offshore development team won’t line up. But most clients admit it’s not a huge deal, and you can overcome it. Here are some ways to do it:
- Allow your team to work flexible hours but meet the deadlines.
- Schedule regular sync meetings to be aware of everything.
- Use project management tools like JIRA or Asana for everyone to be on the same page.
- Record your meetings and set up an automated status report system.
- Try a ‘Follow the Sun’ model. Within it, you split your development team into several groups in different time zones so that someone is always working on the project.
Culture differences
You can embrace the multicultural team’s diversity and become your superpower and one of the most significant benefits.
Various cultures enrich and enhance your company with different experiences and original points of view.
Quality assurance, control, and communication
You can avoid such challenges by setting mutually beneficial agreements and control meetings. For example, schedule weekly calls or manage projects in tools like Jira.
Once you’ve arranged the process, things will work out for the best.
Legal regulatory and data security
It is risky to outsource and delegate your projects that contain intellectual property. But enlisting the help of legal professionals with expertise in international outsourcing can aid in managing these intricate issues.
Remote can’t entirely replace in-house
At StartupSoft, we believe that remote isn’t the opposite of in-house. The idea is to find a dedicated team who will be your perfect match in everything. Such a team will care as much about your product and success as you do.
The Human Aspect: Building a Cohesive Offshore Team
The successful experience of giant multicultural tech companies proves that working with offshore teams succeeds and contributes to their development and scaling.
For example, Apple outsources its manufacturing and some parts of software development and data analysis. Google has been outsourcing many services, including customer support and software development features, for a long time.
Let’s see what world tech leaders think about successfully managing a cohesive offshore team
Tim Cook, CEO of Apple, highlights the cross-cultural and cross-disciplinary collaboration:
“The magic happens at the intersection of disciplines, not deep within them.”
Sundar Pichai, CEO of Google:
“Inclusion is about making sure that you have a seat at the table, but more than that, that you are listened to, and your ideas are taken seriously, and you can shape the outcome. The majority has to want it. The majority has to think it’s the right thing. So to me, creating a culture where the majority understands the value of wanting minority voices at the table is what is important.”
Satya Nadella, CEO of Microsoft, has always been on the side of the global nature of Microsoft’s operations and the need for diversity and inclusivity in tech:
“Our industry does not respect tradition — it only respects innovation.”
Offshore Hiring and Sustainability: An Unexpected Connection
Here are the proofs:
- Less or no office space leads to less construction and less pressure on the city’s infrastructure.
- Decreasing resources used because of having no office and all the necessary materials for office supplies.
- Reducing air pollution because of reducing commuting, as your offshore development team works remotely.
- Making an impact and contributing to the countries where you manage offshore software development teams. You provide locals with career opportunities, pay taxes if needed, and positively influence the economic environment.
Exploring New Frontiers: The Emerging Markets for Offshore Hiring
Ukraine
Ukraine’s IT industry has shown extraordinary tenacity, registering a growth rate of 20% in 2020 and 10% in 2022. Recognized for their dedication and dependability, Ukrainian IT specialists consistently produce superior quality work, irrespective of prevailing circumstances.
According to Djinni, a Ukrainian talent platform, the average front-end developer salary in Ukraine is $2 500-$4 000 monthly.
Junior front-end developers — $600-$1 350 per month.
Middle front-end developers — $2 700-$4 000 per month.
Senior front-end developers — $3200-$5999 per month.
You can check more detailed Ukrainian developers’ rates in this article.
Vietnam
Vietnam is actively increasing its technology parks and incubators due to its attractive low costs and abundant tech talent, enticing an increasing number of Western companies to delegate their software development tasks to the region.
Following the Glassdoor data, front-end developers get $851 on average monthly in the Ho Chi Minh, Vietnam area.
Junior front-end developers — $681 per month.
Senior front-end developers — $1 521 per month.
The Philippines
As Asia’s most cost-effective outsourcing hub, the Philippines boasts a strong IT workforce of over 190,000 professionals, according to the Philippine Software Industry Association.
Junior front-end developers — $428 per month.
Middle front-end developers — $744 per month.
Senior front-end developers — $1 247 per month.
Indonesia
Indonesia, the world’s largest island country, is often overlooked as a tech hub but has a rapidly growing and innovative IT sector. With a population of over 270 million people and increasing internet and smartphone penetration, Indonesia offers a huge market for digital services.
Junior front-end developers — $479 per month.
Middle front-end developers — $704 per month.
Senior front-end developers — $1 527 per month.
The Future of Offshore Hiring: Embracing AI and Automation
You can benefit from AI-powered tools in such ways:
Tech skill set assessment
1You can completely delegate this process to your offshore team. With the help of AI tools, it can develop various online tests, games, and simulations to assess developers’ skills objectively.
Examples of such AI softwares: HireVue, CodeSignal, HirePro Video Interview.
Onboarding
2Development plan and personalised learning
3AI can personalise a plan for continuous and professional development for each specialist. The learning process can become more engaging and effective.
Examples of such AI softwares: UKG Pro Talent, retrain.ai, Phenom.
The Changing Landscape of Offshore Hiring: What to Expect in the Future
The landscape of offshore hiring is rapidly transforming. According to the McKinsey Global Institute’s research, remote work could unlock a potential $2.9 trillion in economic value by 2025, predominantly through offshore hiring.
The key drivers will be technological advancements, shifting labor market dynamics, and globalization trends. Increasingly, companies favor cost-effective, flexible, and talent-rich offshore markets.
In essence, the future of offshore hiring is more dynamic, dispersed, and undoubtedly more digitized. Today, you don’t have to be a large enterprise to allow yourself offshore hiring and win from it. Various offshore companies have different services and prices for any budget and goals.
Get acquainted with one such company!
StartupSoft is here to hire an offshore development team for you
95% retention
1No bragging, but we’ve built teams with 95% retention and 100% delivery rates for 100+ startups.
Like-minded team
2We help you hire a like-minded team that commits and cares as hard as the in-house teams.
Hire x3 faster
3Also, we hire x3 faster and save over 30% in dev costs with your custom-built offshore teams.
Shall we try?
If you’re looking for a reliable partner that would hand-pick top tech talent for you, we’d recommend checking out StartupSoft. We know we might be biased, but we’re quite confident we’ll be able to make that perfect tech match for you.