Guide to hiring offshore software developers

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Are you considering hiring offshore developers? But aren’t entirely sure how to get started? Well, don’t worry we have got you covered with a guide on how to hire offshore developers. Check it out.

Businessman reading guide to hiring offshore software developers in his modern office

In this comprehensive guide, we will delve into the world of hiring offshore software developers. We will equip you with the knowledge and insights necessary to navigate the process. Also, it will help you make informed decisions. Whether you’re a startup aiming to scale up or an established company seeking to optimize resources. This guide will empower you to tap into the vast potential of offshore software development and drive your business to new heights.

In today’s fast-paced and competitive business landscape, having a skilled software development team is crucial for success. However, finding top talent locally can be challenging and expensive. This leads many companies to explore alternative options. Enter offshore software developers—a pool of global talent that offers cost-effective solutions without compromising quality.

We help you understand what offshore software development is. How to build a team with the right skills, select the right staffing vendor, and every step of the hiring process. Join us on a journey to hiring offshore developers.

What is offshore software development?

Companies no longer require employees on location to perform a wide variety of activities. Today, talent has a diverse range of locations, even a few outside its borders. Basically, it’s possible for businesses to find work and specialist skills around the world.

Offshore software development can tap the talent of global experts by acquiring more talent. Various countries are full of qualified specialists with different expertise. Therefore, companies can choose the most suitable coders for their projects.

A good illustration of offshore software development is 👉 mobile application development 👈 which occurs when a firm outsources work to a partner within another region. Let’s say a tech company in the United States partners with a Software House in Eastern Europe to build your mobile app. This is offshoring.

Where can you hire an offshore development team?

You can hire offshore developers from various locations around the world. In order to make this task easier you can hire offshore developers from an 👉 IT staff augmentation vendor 👈. They will help you source, vet, and hire developers from any location in the world. Furthermore, they may also guide you when it comes to locations you should consider hiring offshore developers.

Additionally, when considering software development outsourcing you need to make sure that the offshore development team has experience in the type of project that you are looking to create. A vendor may help you pick top locations for your project-specific needs.

Best countries to outsource software development

Best countries for offshore software development

There are a number of countries that offer top-tier talented developers for you to hire. As you see in the image above, some of these include 👉 Poland 👈, Ukraine, Argentina, Bulgaria, Romania, China, the Philippines, and India. Some reasons they are considered the best include:

  1. The strong technical education system and skilled IT workforce.
  2. Competitive labor costs compared to Western European countries.
  3. Cultural proximity to Western Europe and North America facilitates collaboration and communication.
  4. Favorable geographical location for working with both European and North American clients.
  5. Good English language proficiency among IT professionals.
  6. Established IT outsourcing industry and experience working with international clients.
  7. Rapidly growing technology ecosystem and innovation hubs.
  8. Robust technical education system and emphasis on software development.
  9. Competitive pricing and cost advantages.
  10. A large talent pool of software developers and IT professionals

It’s important to note that the suitability of a country for offshore software development can vary depending on specific project requirements, client preferences, and market conditions.

5 steps to hire dedicated offshore developers

Here are the 5 steps you need to take in order to hire dedicated offshore developers.

Male entrepreneur discussing about business reports with female colleague the skill gap

Identify your skill gap

The first thing you want to do is identify your company’s skill gap. What skills are you missing & need to fill for a specific project? You may know what skilled developers you are missing ahead of time, due to customer demands. Or perhaps, it’s a project that falls into your regular tech stack but you don’t have enough hands to do the job.

But in the case that you are struggling to identify there is a really easy way to identify your skill gap. You can identify it by doing a 👉 talent gap audit 👈. I know this sounds scary and complicated, but we promise it isn’t. It’s actually quite simple.

We can break it down into 4 steps:

  1. Start talks internally. Set up a meeting where chat with your CEO, CTO, CIO, hiring managers, project managers, etc. Talk about who is already part of your workforce. Also, what roles take on what responsibilities? Are there particular projects or teams that are suffering? If so, what skills may be able to help fix that?
  2. The next step is to create a survey and talk to your current employees. They can give you their perspective on what roles they think are missing. They may also help you decide between a couple of tech stacks for a specific project if you cannot decide on one in particular. They will be able to give the advantages and disadvantages of each.
  3. Compile and analyze the results. See what skills are actually missing. Also, decide whether you need them on a permanent basis or a temporary basis. Do you need these developers onsite? Or will an offshore team do the job? If you are looking for software developers on a temporary offshore basis, then you should try 👉 IT staff augmentation services 👈.

This is crucial when looking to build an offshore development team in order to make the project successful. You don’t want to hire developers with the wrong skillset and encounter financial and time setbacks. 👉 Avoid hiring the wrong person 👈, but set clear expectations when it comes to the skills you need.

Research companies, locations, and staffing providers

You need to be able to 👉 find the right IT staff augmentation provider 👈 for you, to help you hire offshore software engineers. When you work with an offshore software development company you want to make sure that they are reliable and trustworthy. Moreover, you should double-check that their profile meets your project needs. You can do your research online and check out reviews of various software houses in the location of your choice.

Some key things that you want to ensure when partnering with a staffing provider or an offshore software development company are:

  • Fluency in English
  • Small time zone differences or flexibility in terms of working hours
  • Fitting tech skills
  • Cost-effective
  • Experience in your industry or the industry you are developing for
  • Ability to meet your standards in terms of software development

Moreover, you want to decide what location is best for you to find offshore developers & hire a development team to run your project. Also, find a location & company that is cost-effective for you & doesn’t break your budget. Along those lines, it’s also important to consider the price-to-quality ratio. You need to find the balance between cost saving and still creating a high-quality offshore development team.

Two business people shaking hands before a job interview

Shortlist candidates & conduct interviews

Once you pick the right company for you, make sure you have the opportunity to vet potential candidates. The company should provide you with blind CVs so that you can check out potential software developers. Based on these CVs you can pick who you would like to interview. Moreover, you can run potential candidates through technical skills tests. Technical skills that can be tested via live coding or a take-home assignment.

Finalize contracts, hire offshore developers & onboard your new developer or team

Now that you know who you want to hire, you can finalize contracts and details about your cooperation with your new software development team. After you agree to a start date, you need to 👉 onboard your software developers 👈. A strong onboarding will help keep developers working on your offshore team. Moreover, it will help create bonds and create excitement around the project as a whole. Once the onboarding is finished, your project managers can take the reins and steer the project. Project managers need to be able to find a management style that works for everyone on the team. They need to highlight roles, responsibilities, and tasks. Once they do that, work can begin.

Close up man writing code on the laptop in some offshore location

Offshore developers begin working on your software development project

Now the offshore development processes can begin. They can tackle the project that you need to be done. This offshore team will have a project manager, QA testers, and even other developers. This team can offload your in-house team by tackling this project. The team will work to meet the deadline that you assigned from the beginning. When you hire offshore developers, you still maintain control because you are not 👉 outsourcing 👈. You still have input on how things are done, you can verify quality and so much more. But you have peace of mind that the project is being completed and you were perhaps able to take some responsibilities away from your in-house team.

Programmer working at a table in an office

Comparing offshore developer rates

Let’s take a quick look at offshore developer rates around the world. As a company, you want to make sure that hiring developers doesn’t break your budget. Choosing a budget-friendly location can save you a big chunk of money.

A few examples of offshore software development rates:

  1. Poland:
    • Junior Developers: $30 – $40 per hour
    • Mid-level Developers: $40 – $60 per hour
    • Senior Developers: $60 – $90 per hour
  2. China:
    • Junior Developers: $15 – $30 per hour
    • Mid-level Developers: $25 – $45 per hour
    • Senior Developers: $40 – $70 per hour
  3. Brazil:
    • Junior Developers: $20 – $35 per hour
    • Mid-level Developers: $35 – $50 per hour
    • Senior Developers: $50 – $75 per hour

Keep in mind that these rates are approximate. They can vary depending on the specific location within each country and the company or individual developer you engage with. It’s always advisable to request quotes or negotiate rates directly with potential service providers. This way you get accurate and up-to-date information.

A brief note on project management with offshore software development

One of the many offshore software development challenges is project management. Being a project manager on an offshore development team can be hard for a few reasons:

Man slapping forehead near woman after he realises there was a misunderstanding communication issue

1. Communication and Language Barriers:

👉 Managing a team 👈 that is located in a different country or time zone introduces communication challenges. Language barriers, different accents, and cultural differences can lead to misunderstandings. Misunderstanding can lead to delays and reduced productivity. Effective communication becomes crucial. In order to ensure everyone understands project requirements, tasks, and expectations.

2. Time Zone Differences:

Coordinating work across 👉 different time zones 👈 can be challenging. Scheduling meetings, resolving urgent issues, and maintaining a smooth workflow may require careful planning to accommodate the varying working hours. This can lead to extended project timelines and slower decision-making processes.

3. Cultural Differences:

Offshore teams often come from diverse cultural backgrounds. This can impact communication styles, work ethics, and problem-solving approaches. Understanding and adapting to these differences can be challenging for a project manager. They must strike a balance between maintaining the project’s standards and respecting the cultural values of team members.

Close up on virtual company meeting. Manager collaborating with team to complete software development project. Collaborating with offshore software developers

4. Managing Remote Team Dynamics:

Building and maintaining a cohesive team spirit can be more challenging when team members are physically distant. Facilitating collaboration, fostering trust, and creating a sense of camaraderie can be difficult with offshore software developers. It’s more difficult in comparison to managing an on-site team. Establishing effective virtual communication channels and organizing team-building activities becomes vital.

5. Quality Control and Performance Monitoring:

Ensuring consistent quality standards and monitoring individual performance can be more complex in an offshore setting. Limited visibility into the team’s day-to-day activities can make it challenging to identify and address issues promptly. Implementing robust tracking and reporting mechanisms can help mitigate these challenges but require additional effort.

6. Legal and Regulatory Compliance:

Offshore development often involves navigating legal and regulatory frameworks specific to different countries. Understanding and adhering to these requirements can be complex, particularly when it comes to data privacy, intellectual property rights, and contractual agreements. Project managers need to stay updated on relevant laws and regulations to mitigate legal risks.

7. Risk Management:

Offshore projects may encounter additional risks. Risks such as geopolitical instability, currency fluctuations, and infrastructure challenges. Anticipating and mitigating these risks becomes essential for project success. Effective risk management strategies, contingency plans, and proactive communication can help minimize potential disruptions.

Despite these challenges, with proper planning, communication strategies, and a proactive approach, project managers can overcome the difficulties associated with managing offshore development teams. Leveraging technology, building strong relationships, and fostering a collaborative environment is key to ensuring successful project outcomes.

Digital nomad offshore software developer with laptop working for an offshore development company

TL;DR: Summary of how to hire offshore software developers

Offshore software development refers to the practice of hiring software development teams or individual developers located in a different country or region than the client’s location. It offers several advantages such as:

  • cost savings,
  • access to a global talent pool,
  • and round-the-clock development capabilities.

The process of hiring offshore developers typically involves several steps.

  1. First, the client identifies their project requirements and determines the skills and expertise needed.
  2. Then, they research and shortlist offshore software development companies or freelancers.
  3. The client evaluates their portfolios, reviews, and testimonials to make an informed decision.
  4. Once the developers are hired, communication channels and project management tools are established to facilitate collaboration.

Offshore software developer rates vary depending on factors such as location, skill level, experience, and project complexity. Rates are often more competitive compared to local developers, with hourly rates ranging from $15 to $70 or more, depending on the aforementioned factors. However, it is important to consider the quality of work along with cost savings when selecting offshore developers.

While offshore software development offers numerous benefits, it also presents certain challenges in project management. These challenges may include communication barriers due to language and cultural differences. You are also dealing with time zone differences which affect real-time collaboration. There is a strong need for effective project management and coordination across distributed teams. However, with proper planning, clear communication, and the use of appropriate project management tools, these challenges can be overcome.

The benefits of offshore software development include cost savings through reduced labor costs. Also, you gain access to a wider talent pool. Additionally, you have accelerated development timelines due to round-the-clock work. Additionally, you gain flexibility in scaling resources, and the ability to focus on core business activities. All while leveraging specialized development expertise.

Do you want to hire offshore software developers?

Overall, offshore software development can be a strategic and cost-effective approach for businesses. Especially those looking to leverage global talent and optimize their software development projects. Want to learn more about hiring offshore developers? 👉 Drop us a line 👈. Let’s chat about how you can hire offshore software developers using IT staff augmentation. We can provide you with a free no-obligation conversation to see if this model is right for you.

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