The Industry 4.0 advent into many domains of the world economy has lifted the limitations on the workforce search employers experienced. They’ve got an opportunity to turn their gaze elsewhere if the local labor market lacks specialists with necessary qualifications or those who charge less for their services. The onslaught of the global pandemic has propelled this remote hiring trend encouraging entrepreneurs to perform their talent hunt in locations with the optimal price/quality ratio.
This outsourcing spike is penetrating an ever-growing number of sectors, with the IT industry setting the pace in delegating various software development projects to offshore vendors.
Among different cooperation models practiced in the niche, the dedicated offshore team is one of the most widespread.
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A dedicated team is a group of developers that work as a whole body on the customer’s project. As a rule, clients prefer such a model when they envisage a large-scale endeavor that is likely to take a long time. The remote crew working in its office makes use of its own hardware and software as well as all utilities it needs. The client pays on a monthly basis (developers’ fees plus administrative expenses for the project coordination). This system is quite cost-effective since the outsourcer doesn’t include the risks in the total cost calculation. In fact, it is much like instantly getting well-stocked and trained in-house personnel that will work full-time for a stipulated period.
The customer determines the dedicated offshore team setup, but it depends on the services that the project would require. This roster is offered by the vendor and typically contains a project manager, yet sometimes clients who want greater control of the project assign their own project manager.
Why is it called an offshore team? Because it hails from a very distant part of the world when the customer’s location is taken as a base point. Let’s have a look at the most attractive offshore destination to outsource an IT project to.
The global number of developers is on a constant rise, being spread almost evenly across the continents.
However, the conventional offshore IT outsourcing pattern boils down to customers from Western Europe and North America looking for developers in other parts of the planet. The explanation for it is the hourly rates for the outsourced services that are significantly lower outside the most highly-developed regions of the world. Where do customers from these countries go for the IT workforce?
Having just a one- or two-hour difference in time from the countries of Old Europe, this region can boast of the vast and qualified talent pool (over 1,000,000) that is increasing apace due to the lenient taxation policies and competent training provided there. Ukraine and Poland account for the greater part of these specialists working for 1600 and 500 IT companies, respectively. Hungary, Romania, Bulgaria, Estonia, and the Czech Republic trail not far behind the latter. These make up a pretty solid offer of outsourcing behemoths offering their services.
If you opt for this destination, make sure you give Russian and Belarus vendors a wide birth, though. Since these two countries launched a cruel invasion of Ukraine in February 2022, their outsourcing market has been shunned by most civilized nations. As a result, that caused a massive exodus of brains and the industry’s decline for years to come.
Learn how to hire developers in Ukraine.
Mexico, Argentina, and Brazil are the traditional outsourcing hubs in the Western hemisphere, with Chile quickly gaining on as the leader. Yet, its geographical location makes the region a suitable outsourcing destination mainly for customers from the north of the continent.
Being remote from the major customer hotbeds, together with the frequently poor code quality, puts this region at an obvious disadvantage. However, 4 million software developers located mostly in India (2.75 million), China (almost 0,6 million), and the Philippines (0,2 million) charge very affordable prices and are too powerful a workforce to be disregarded.
Before deciding on the outsourcing destination, you should answer the crucial question, “Why do I need an offshore team?”
There are four chief arguments that move customers to employ offshore IT developers.
In case you find these reasons weighty enough, go for it! But how should you kick it off?
As a seasoned company that offers top-notch dedicated team services, we recommend paying attention to the following steps before choosing a vendor.
You should shape a clear vision of the problem your IT product is going to solve. By doing that, you will be able to explain to the developers what you expect from them, and they, in turn, will offer their concept of the solution to match your vision.
Next, come the tech stack issues and the roster of specialists with relevant skills. In this way, you will get a list of roles of the dedicated team members. You will see whether it comprises only developers and QAs or you will need a BA and a project manager, as well.
First, gauge how much money it will cost you and whether the estimated sum matches the size of your wallet. Even if it does, look for opportunities to save some budgets without compromising the quality. And make allowance for the possible overhead expenditures.
Once you are through these stages, it is time to decide upon the offshore outsourcer.
With the ocean of options at your disposal, making the right pick is a challenge. Here are some tips on how to streamline the selection process.
It can be done in two ways. First, you should study the available internet resources on the vendor. These include their site, where you can peruse the portfolio and testimonials, as well as specialized ranking websites (like Clutch and GoodFirms). Second, contact the previous clients and ask how satisfied they were with the cooperation process and the final product they obtained.
You must make sure you will be comfortable working with the vendor in question. The notion of comfort embraces convenient interaction channels, the frequency of communication sessions, the capability to upscale the team, and other details that manifest the flexibility of the outsourcers and their readiness to meet the client halfway.
The penny-wise choice is likely to turn into a pound-foolish outcome when you will have to pay twice to remedy the poorly executed work.
As a rule, this payment scheme includes at least 25% of extra payments to cover possible risks. If you don’t want to pay through the nose, opt for the Time and Material model.
When in a conflict, some unscrupulous vendors may deny you access to the code. So, make sure you have it from the outset. Besides, seek to become the admin of clouds, TFS, Github, and other mission-critical platforms and environments.
If the company promises to do whatever you ask, ditch it. Because of the specialization limitations, no vendor can be a jack of all trades. If such promises are made, it is a sign they didn’t study your requirements. Or even worse, they promise what they can’t deliver. And a dishonest partner is not what you are looking for, is it?
Exchanging lengthy emails isn’t the most effective method to control the offshore team’s performance. Modern project management software like Jira is a second-to-none means to track their headway in real-time and introduce timely corrections.
If the dedicated team shows you the product’s demo at the end of each sprint (once a week or twice a month), you keep a closer look at the progress and implement fine-tuning on the hoof.
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Following these basic instructions, you can benefit from the offshore dedicated development offers and minimize possible pitfalls.
The offshore cooperation model has a number of perks for customers who leverage it.
With all the evident assets of this cooperation model, you can handle the bottlenecks related to offshore scheme utilization.
Finally, we have come to the pivotal point related to offshore cooperation – the question of cost.
The total sum is determined for every project specifically. Yet, several factors affect the sum you will have to fork out to pay for the services of an offshore dedicated team.
Among various outsourcing models, the dedicated team is the best fit for customers who want to obtain qualified IT manpower to work on long-time projects. Moreover, by carefully choosing an offshore software vendor, companies can get top-notch expertise at an affordable price.
It is a body of IT specialists from a distant country in a different time zone hired as a single unit to provide software developing services and work for the employer on a long-term basis.
As is the case with any remote cooperation, keys to the successful handling of an offshore dedicated team include robust communication, employment of state-of-the-art project management tools, and appointing a qualified project manager.
To find the optimal partner, you should reject the cheapest offers you see on the market. Then, study the vendor’s record, talk to the former employers, and hold an interview with the representatives of the outsourcer to get an idea of the company’s workflow and values.