Where can I find the offshore development team

Are you planning to set up an offshore development team? Here are 5 common mistakes you can avoid

If technology companies want to scale their software development, it is a good measure to consider several options. For this article we will turn our attention to the most popular: Offshoring with a development team.

When companies decide to go offshore and build a skilled development team overseas (usually in a fast growing tech nation like India) it is far from certain that they know how it succeeds. Or at least like it Well succeed.

And that can create problems that derail the entire project before it even really gets going!

If you're interested in offshore software development but unsure where to start, you've come to the right place.

1. Underestimating the importance of a strong offshore partner

It's easy to research offshore development and be confident that you can do it all on your own. After all, it's all about hiring some cheap developers and renting office space, right? It's like selling a house: man could sell it yourself, but an experienced real estate agent will get a better price, faster, and with much less effort.

When building a development team in an offshore center, it is important to work with an offshoring partner. With the people who know the industry and culture and who take care of the on-site communication for you.

Why?

For two reasons. First, because you are only one person and that means you can only do one person's job. Organizing the recruiting process, balancing the set up of an office and all the extra administrative work is a lot of work.

The second reason is that expanding a business to another country with a completely different social and work culture requires expertise. Our founder Emilien worked in India for years before he really understood how to connect workers from West and East.

What can they do?

You can get support from a company that is experienced in building development teams to help you manage your expansion. We've even put together some advice on choosing the best offshoring partner to make the process easier.

2. Choosing the wrong offshore location

If you're moving your development offshore, it's likely because local recruiting isn't paying off. Knowing where to look for developers is always the first hurdle!

The first instinct for many companies is to look around. We are irrationally prone to prioritizing proximity over talent, costs or a broader infrastructure. For example, a German company might think of Ukraine first, as there is a similar time zone there and it is only a short flight away.

But as soon as your development leaves Germany - is there really a difference between 1,000 and 10,000 kilometers?

Where should you go

India.

India produces around 1.5 million engineers every year, a number that is unparalleled anywhere in the world. India continues to be one of the fastest growing economies in the world and a real gold mine for technology companies.

With an effective recruiting process, you can access the largest pool of talented, English-speaking software developers in the world. Cities like Bangalore are melting pots for IT innovations and home to some of the world's largest technology companies.

And the number of engineers is just one advantage. Another reason is their attitude: they are generally committed, results-oriented, and loyal to the company. And of course there is the attractive cost. With salaries ranging from $ 30 to $ 50 an hour for highly experienced software developers, you can assemble the ideal development team at home for a fraction of the cost.

Other expenses like recruiting fees, office space and social benefits can almost be neglected when compared to big cities like Paris or San Francisco. When it comes to offshoring, the distance shouldn't be the decisive factor - but the quality.

3. Focus too much on costs

One way or another, every business decision you make ultimately creates a cost. If you've done a good research, you'll also know that offshore software developers can get equivalent results at a much lower cost than at your location.

But the key is to look at the costefficiency focus, not just on the bare cost. If you want to grow your software team, focus on value, not raw data.

So where should you draw the line?

The key to this is to do your research carefully and find out what the "average" fees of various offshoring companies are. Ideally, you can examine specific case studies and real numbers.

For example, Company X could charge 50% more than Company Y. But if Company X has a number of positive results (e.g. positive ROI and product improvements) while Company Y does not, the more expensive option is almost certainly the one better choice.

And keep in mind that these costs still are cheap compared to what you find at home. Lower costs are great, however lowest You should be suspicious of costs.

4. Don't set long-term goals

While every development team has goals or results to achieve from day one, it is important to understand that offshoring is not a "quick fix". It's all about the long-term goals.

Offshore development centers are about integrating full-time, permanent developers into your existing workforce. In contrast to outsourcing, offshoring does not end with a project.

What should you do?

Since typical contracts have a term of at least a few years, you should sit down with your offshoring partner and draw up a detailed roadmap. A strategic course of action for the next two to five years. If your offshoring partner doesn't suggest this approach from the start, then you should be concerned!

This is primarily about the size of the team, future projects and any other changes you want to make in the foreseeable future. By discussing these topics, you will formulate a plan of action that will guide your business into the future. This allows you to hire the most suitable developers who best fit your company's goals.

In the long run, that means you will become as successful as possible.

5. Not having the right tools on hand

Let's say you've managed to build a dedicated, world-class development team on the right terms and you're ready to change the business. Without the right tools to manage this team, great difficulties await.

What tools do you need?

A. Communication

Geographical distance used to be a nightmare for geographically separated teams - that's why it never really existed in the past. Fortunately, we are in 2019 and global communication has become easy and straightforward. Without these tools, your business could run into bottlenecks, bad relationships, and loads of confusion.

Instant messengers such as Slack and Skype are available for daily communication. You can invite users to specific “rooms” or have one-on-one conversations using text, audio, or video calls. Slack is also a great medium for sharing images and files, which are very useful for complicated projects!

The ability to share screens, storage in the cloud and platforms with multiple access rights like Google Docs are the most important requirements for working with a remote team.

B. Project management

When working with an in-house development team, it is easy to keep track of each member, their tasks and upcoming deadlines. Of course, this becomes a little more difficult when a team is 7,000 kilometers and several time zones away.

For this reason, implementing task tracking systems is critical. The best way to do this is to set up a productivity tracker where each team member tracks their tasks, progress, and delays. This way you can see exactly how your development team is dealing with their tasks and responsibilities.

In addition to regular meetings to assess progress (using the communication tools mentioned), you can keep all activities under control.

Editor's note:

If you have any questions about offshoring or the creation of software for your company, you are welcome to contact us by phone and we will discuss your concerns together whenever it suits you.

Learn how to use The Scalers to build your dedicated software development team

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