Complete Guide on Hiring Offshore Developers for Your Startups in 2020

Every business is unique based on its functions, aspects, performance, and objectives.

With this individuality, there come business-specific challenges. These challenges are present to handle the competitive needs of the 21st century. 

Building quality solutions has become a major challenge, especially for startups as they don’t have the budget to hire full-time employees for different projects.

For them, the best is to outsource their project to a reliable IT development company having a team of professionals.

They are the ones that are skilled to cater to the needs of different businesses and industries. 

The experienced offshore developers understand the personalized need of the customers, and know-how to create a custom build solution.

From building basic MVPs of the startup companies to creating complex software for large businesses, the dedicated offshore developers know it all.

Outsourcing a project to the offshore development team relieves much pressure and helps you in focusing on your core tasks. 

How Startups Can Survive? 

Consider the below-mentioned factors to survive and succeed in this dynamic environment:

  • Get everything done quickly. The faster your product enters the market, the better it is.
  •  You must be aware of the fact that investors usually fund startups only after seeing the Minimum Viable Product. So, hire a budget-friendly outsourcing team that delivers the solution in an inexpensive manner.
  • It is important that you maintain a balance between speed, price, and quality. Retain the high quality of the product created. 

Does it sound challenging? Well, if you outsource your project, it is easy to develop a quality solution that will impress your target audience.

Before moving ahead, it is important to understand the outsourcing models that exist.

What are the Different Types of Outsourcing Models?

Here are different types of outsourcing based on the geographical location:

a) Offshoring

When the offshore development company is located at a different geographical location i.e. another country, it is termed as offshoring. There is a substantial time zone difference in this case.

b) Nearshoring

In this type of outsourcing, the geographical location is close to your native country and the time zone difference is also negligible. 

c) Onshoring

When the outsourcing company is within the same country, then it is onshoring. 

All these three terminologies are described in brief only to clear the concept of outsourcing. In this particular blog, we will be considering offshoring.

What are the Guidelines Every Startup Should Follow while Outsourcing?

Do Your Homework Before the Hiring 

Choosing the right IT outsourcing is not like selecting random items that are easily available.

You should do proper research, and have knowledge regarding the offshore development company.

There are thousands of offshoring firms out there claiming to be the best, so how will you choose? 

Hire offshore programmers having proven experience in successfully delivering projects. They must have done it for many and can swiftly repeat the same for you. 

Well, before hiring an app builder or website designer as per your requirement for your valuable IT project, evaluate the shortlisted companies. It is important to:

  • Check their market value
  • Dig into portfolios
  • Check client remarks 
  • Explore social media pages
  • Check reviews from reliable sites

Run Credentials Checks

Running a credential check is important. This gives a clear picture of the final outcome.

Ask them for a list of former and existing clients with their contact details. Discuss with them about the project that the offshore coders completed successfully. Ask them if they were satisfied with the results.

Check their LinkedIn profiles and reach them for an unprejudiced review. Ask them specific questions like How the offshore developers proved effective for their particular project and what the USP of the team is.

Note: Ask for random references and don’t rely on the specific ones that they provide to you. 

It is very important that you gather information about their skill set and know-how efficient they are in the state-of-art-technology. This insight will help you in getting a glimpse of what company to hire. 

  • How the development agency or online hired programmers will work?
  • What is their attitude towards their clients?
  • How effective are their solutions?

Once done, you should consider the price vs value they offer.

Price Vs Value

Everything comes with a price. Everything. Some things just cost more than others. 

This is true. Every project cost varies exponentially with quality and turnaround time. 

It is important that the skills of the developer gel well with the expectations. An authentic outsourcing team can never cost less.

All this will guide you towards taking the right decision.

Know About The Offshore Cooperation Models

There are many offshore cooperation models available in the tech market nowadays. The common ones include project outsourcing, dedicated team, and extended team.

Before choosing the one for your project specifically, it is important that you analyze the cost structure. Examine which one cost to quality ratio is appropriate for your business.

Never believe the stereotype that high prices guarantee high quality. Some models charge only for the hours spent by the developers while others make you pay for the idle time of the programmers you hire.

So, it is very important to do your homework before making the final decision.

Project Outsourcing

This one is the most common model. It is a turnkey solution where the company to which the project is outsourced is responsible for the development.

You don’t have to hire any more in-house employees for managing the development as the team will take care of the successful completion of the project.

a) Dedicated Team

Offshore companies offer a dedicated team of developers. They are also beneficial for long-term projects while handling an extensive workload.

So, hire Php programmers or Python developers or Java developers (as per the need) that will complete the project within the decided timeline and ensure a consistent work cycle. 

b) Extended Team

The extended team is the advanced version of the dedicated team model. In this type of model, you can hire the best developers exclusively for your project.

Unlike the dedicated team, they are hired as an extension of the already existing inhouse team and work on your project only.

What Engagement Model Should You Choose? 

There are three basic engagement models available for outsourcing your tasks. You can choose the one that suits your requirements.

But before that there are a few questions that you should ask yourself:

  • Type of project: Do you have a simple project or a multi-facet solution?
  • Budget predictability: Have you finalized a budget and know how much you are ready to pay?
  • Scope flexibility: Are you aware of the detailed requirements of the final product? Will there be any changes required in the middle of the development process?
  • Time-to-market: How important it is that your product reaches the target audience as quickly as possible?
  • Timeline: Will there be an immovable deadline for the completion of the project?
  • Management: Are you competent in project development?

Answering the aforementioned questions will be an invaluable first step towards deciding what engagement model will be suitable for your respective project.

Now, let’s move on to the quick overview of all the three engagement model:

Fixed Price Engagement Model

As the name describes, this one is a single-sum contract model. It is a classic approach that has one big advantage-you can plan in advance. If you have a limited budget, the model is the best fit for you. 

Features

  • The scope and cost are fixed. It is known at the outset. Everything is defined in detail before the start of the project.
  • You know everything about the project in advance. 
  • No risk to you and your offshore team as the scope and budget is fixed. 

Note: If there is any change in the requirement, it will result in additional costs. 

Time and Material Model

Also known as T&M, you pay only for the total hours that are actually spent on the project.

It is one of the models where you hold the control and are free to replace features of the projects when required.

This one is beneficial for the ones who anticipate their project requirements may change during the development process.

In this model, which features are of the highest priority and you can get them developed iteratively. 

Features

  • Agility and flexibility
  • Reduced management overhead and controlled cost
  • Tangible benefits and measurable results
  • Cost calculated based on the resources or hours allocated every month. 

Dedicated Development Team Engagement Model

In this engagement model, there is a dedicated team that is an extension of your existing team. You can hire developers, designers, quality analysts, project managers i.e. a complete team.

Features:

  • Flexibility to scale up or down the team
  • You can retain the control of every stage of the process
  • No need to worry about recruitment, providing equipment, and infrastructure.

How to Successfully Collaborate with your Offshore Team?

In order to compensate for the geographical distance between you and the offshore coders online, the first step is to build cordial ties with them.

Make them comfortable so that they will work as an integral team with in-house staff. 

Value your new team of developers and this will certainly make your remote team feel respected. 

Give Priority to Effective Communication

Communicate, Converse and Connect. 

These three points are the key to success when you have partnered with dedicated developers.

The language barrier and cultural differences are the major reasons behind miscommunication.

Ensure there is one common language between you and your Android or iOS developers (the team you have hired).

This will certainly avoid glitches. Don’t forget to take the help of the latest collaborative, time tracking and productivity tools.

This will make communication more efficient and ensure round-the-clock availability while minimizing miscommunication.

Ensure Quality Assurance

 Many startups are short of funds and for this reason, they sometimes skip hiring an experienced quality analyst.

Although developers excel in their niche, what a quality assurance specialist can do, a developer can’t.

QA knows how to test-check the product, test the code, and find bugs making the process more efficient.

What Startups Should Expect from a Team of Developers?

a) Budget Friendliness

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Outsourcing your project to offshore developers is way cost-efficient than hiring in-house staff.

This is because the development teams are from India, Ukraine, Indonesia, etc.

For example, when you hire an Indian developer it costs you $10-20/hour whereas you may have to pay $25-250/hour when you are getting services from the US. 

So, hire developers to get cost-saving options as you may already be running low on budget.

b) Innovation and Quality

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Innovative and high quality is what offshore development services are known for.

They have highly experienced professionals that deliver the top-notch final product.

Hiring and then training new developers while making him comfortable in the environment will consume a lot of time. Consider a company that has previously worked on a similar project as yours. 

c) 24/7 Development Cycle

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Your offshore team is an extension of your in-house staff. When you have collaborated with a good offshore agency, it is likely to work when your in-house team is done with their working hours (due to the time zone difference).

This will further result in a 24/7 development cycle that is highly beneficial for your project. 

d) Shared Responsibility

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Risk management is something big to deal with for a startup than established firms.

These risks are mitigated when the offshore company understands that they have a shared responsibility and know they have to give it their best shot.

Wrapping Up

The beauty of outsourcing is-it opens a world of endless possibilities. There is no restriction on geography, and there is no need to bait local talent when you can hire global experts.

When you have a startup, collaborating with an outsourcing firm will save time, and cut costs.

Efficient planning helps you to strategically utilize the resources to the maximum potential.

Are you looking for the right offshore developers for hire?

It is a little challenging task as you have to look out for the perfect blend of professional expertise having the best skills.

The developers should not only specialize in all different facets of the core product development but also excel in concept execution.

They should be pro in product customization as well. Quick adaptability to the new environment despite the time zone and cultural differences is an advantage.

The fastest result without compromising on quality standards is what you need. What are you waiting for?

Choose a reliable offshoring company and a favorable engagement model and get your fruits of labor.

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