The introduction of Industry 4.0 into many sectors of the global economy has removed the constraints that companies had in their personnel search. If the local labour market lacks professionals with the requisite qualifications or those who price less for their services, they have the option of looking abroad. The worldwide pandemic’s onslaught has accelerated this remote hiring trend, pushing entrepreneurs to conduct their talent search in regions with the best price/quality ratio.
Among the several collaboration models used in the specialty, the dedicated software development team is one of the most common.
Meaning and benefits of an offshore software development team
A committed team is a group of developers who collaborate on the customer’s project as a whole. Clients typically pick this strategy when they anticipate a large-scale project that will take a lengthy period. The remote team working at its office uses its hardware and software, as well as any necessary utilities. The client pays monthly (developers’ rates plus project coordinating administrative costs). Because the outsourcer does not include the risks in the total cost calculation, this system is highly cost-effective. In reality, it’s similar to having fully supplied and trained in-house employees available immediately for a set amount of time.
The dedicated software development team setup is determined by the customer, although it is dependent on the services required by the project. This roster is provided by the vendor and often includes a project manager; however, clients that desire more control over the project may assign their project manager.
Why is it referred to as an offshore team? When the customer’s location is used as a starting point, it comes from a very distant area of the earth. Let’s have a look at the most appealing offshore destinations for IT project outsourcing.
Reasons to recruit a specialist offshore team
There are four main reasons why clients prefer to hire offshore developers:
- Cost: Local developers may charge charges that you cannot pay. For cash-strapped small firms and start-ups, the fundamental reason for thinking overseas is cost.
- Technical competency: There is no readily available labour pool with the appropriate expertise or certificates.
- Augmenting Capacity: To establish an uninterrupted development process, you recruit numerous suppliers from different time zones to keep your project running 24 hours a day, seven days a week.
- Concentrating on a certain market: If you intend to launch a product in a specific region, it is preferable to hire offshore developers from that region. This way, you can tweak it to be a perfect cultural match for the target audience and gain vital feedback from others who share your perspective on how to enhance it.
The offshore IT vendor selection checklist
- Look at the facts: There are two options. First, research the vendor’s available internet resources. These include their website, where you may view their portfolio and testimonials, and specialised ranking websites (like Clutch and GoodFirms). Second, contact former clients and inquire about their satisfaction with the collaboration process and the end output.
- Inquire about the business’s workflow: You must ensure that you will be at ease working with the seller in question. The concept of comfort encompasses accessible engagement channels, the frequency of communication sessions, the ability to grow the team, and other factors that demonstrate the outsourcers’ flexibility and willingness to meet the client halfway.
- The cheapest quote is a terrible word: A penny-wise decision is likely to result in a pound-foolish consequence when you have to pay twice to correct the poorly completed work.
- The fixed-price model: This payment method typically includes at least 25% in extra payments to offset potential risks. Choose the Time and Material model if you don’t want to spend through the nose.
- Easy access to the most recent code: When there is a disagreement, some unscrupulous providers may refuse you access to the latest code. So make certain you have it from the start. In addition, strive to become an administrator of clouds, TFS, Github, and other mission-critical platforms and environments.
- Total agreement is a red flag: If the corporation pledges to do anything you ask for, walk away. Because of the constraints of specialisation, no vendor can be a jack of all trades. If such promises are made, it is a sign that they did not thoroughly research your needs.
- It is essential to have a good project management tool: Exchanging lengthy emails isn’t the most effective way to manage the performance of an overseas workforce. Modern project management software, such as Jira, allows them to track their progress in real-time and make timely modifications.
- It is best to deploy frequently: If the dedicated team shows you the product demo at the end of each sprint (once a week or twice a month), you can keep a closer eye on progress and fine-tune it on the go.
The cost of employing a specialist offshore development team
The entire amount is set for each project individually. However, various factors influence the amount you would have to pay for the services of offshore specialised staff.
- Location: You can hire dedicated developers from Africa and South Asia at the most affordable cost ($15-30 per hour). Vendors in Eastern Europe and Latin America charge slightly more ($25-50 per hour).
- Team size: The more developers in a team, the higher the overall salary.
- Project duration: Because each developer is paid for the duration of the project, you must multiply their income by the number of months they labour.
- Scheme of payment: The pricing calculation varies depending on the model selected (Fixed Price or Time and Material).
Among the different outsourcing models, it is the greatest choice for businesses to hire dedicated developers seeking qualified IT personnel to work on long-term projects. Furthermore, by carefully selecting an offshore software vendor, businesses can obtain top-tier knowledge at a low cost.