Offshoring is an established trend in the IT ecosystem. In 2018, the market size was $85.6 billion – more than economies of Uruguay and Iceland, for example. However, this number decreased compared to the previous year, as well as the outsourcing-related percentage of total IT budgets did it. In other words, businesses tend to opt for the offshore dedicated team rarely.
The fact is a little surprising, isn’t it? However, these changes are great, to some extent, for companies that are currently considering the cooperation with remote developers. The catch is that a decrease in IT offshoring popularity leads to potentially better conditions for customers. It’s obvious as outsourcing firms still have to make money so they actively look for new projects. As they face the customer churn, they will try to attract new partners with lower rates, longer terms, extra offerings, and so on.
Thus, it’s difficult to imagine a better moment to find your own skilled dev team. Let’s find out how this model functions, what its strengths and weaknesses are, and when you really need it.
The conception of offshoring
Firstly, it will be useful to learn about or quickly remind the idea of offshoring. Globally, it’s a part of a bigger concept called outsourcing . This complex term refers to working with solo employees or whole teams outside your company to complete specific tasks that are too expensive or too difficult to complete in house. External workers range from individual freelancers with hourly rates to large outsourcing firms that hire staff on your behalf.
Hence, there are three main types of outsourcing:
- Onshoring – delegate tasks to teams in your country.
- Nearshoring – delegate tasks to teams in neighboring countries.
- Offshoring – delegate tasks to teams in distant countries.
Apart from these points, there are services. Let’s say, you can choose a dev-focused approach to get the app of your dream or select outstaffing aspect to pass on HR processes. The exact processes to outsource vary between industries but you want to handle the core ones inside the company.
Further, we want to talk more about one exact outsourcing model. It’s suitable for any type of services because of high customization level and perfect flexibility.
Offshore dedicated team: Meaning and features
According to its name, an offshore group is located far away from your local area. It stands for cooperation with the chosen outsourcing company that searches for devs for you and manages business processes . Usually, these employees work together for several years and act even better than freshly-established in-house IT departments. Dedicated teams stick to your project only and cooperate with your staff only so you can be sure that they don’t spend time on other clients.
Note that DDTs can be hired via onshoring and/or nearshoring strategies, too. But we will cover offshoring as the most efficient option that comes at a lower cost and grants access to the global talent pool. Thus, check out the key distinctive features of dedicated teams:
- Existing team VS new team. The model provides for diverse choices. Say, you can find cool profs to enhance the project. On the other hand, it’s easy to find a completely new group using offshoring.
- Focus on one project. Regardless of the chosen coop approach, the hired people focus on your tasks. Outsourcing corporations guarantee it and, usually, include this point in the official docs related to the cooperation.
- Long-term base. The projects with a length of more than 12 months are considered the most efficient. DDTs suit various objectives but you want to hire them for long and productive work.
- Two levels. Large companies that need equally complex external teams to cooperate with outsourcing firms, initially. They handle recruiting, integration, training, and support while devs themselves work on tasks.
However, the most notable feature of any dedicated team is its custom nature. Depending on your wishes and goals, you can manage and integrate hired developers on your own. It’s possible to find and hire DDTs without outsourcing partners. Still, we’re sure that a firm can facilitate the process greatly and help you to save even more time and money.
Pros and cons of development teams
Let’s move to a simpler form of SWOT analysis. There are different concepts based on geography, services, and involvement level. The question is: how offshore groups are better than other approaches and how they are worse?
- High scalability. The idea of teams fits long-term projects with potential changes in scope, tasks, and other unique parts of the project. The thing is that a DDT can quickly adapt to changes, move on with the given project or switch to others. If needed, you can hire more devs to fill the gaps.
- Productive collaborative control. Management is known as the trickiest part of the remote work. But you get full control over external collaborators, similarly to the existing internal branches. Professional offshore staff often helps with planning and supervision, plus they deliver fresh ideas.
- Professional developers with key skills. Obviously, access to the global pool is really valuable for businesses. You can easily find developers you need. Ruby on Rails? Kotlin? IoT? DevOps? Cloud? Blockchain? Outsourcing companies always can find the team of your dreams.
- Time- and cost-efficient model. As a result, it leads to wonderful savings on salaries , office space, HR tasks, software and hardware, training, and so on. You can run processes day and night thanks to different time zones, too. And you can forget about the long and boring search for staff as outsourcing partners will do it.
- Issues with hiring and management. However, some strengths may apparently turn into cons. If you want to get the best results, you will need an expert to cooperate with hiring companies. As well, you will need to spend more time observing foreign groups in comparison with in-house ones.
- Not a universal choice at all. You want to consider expenses and potential ROI to understand whether it’s the right choice or not. In the next section, we will provide some suggestions. Still, it’s your homework to realize the suitability of DDTs. Remember that the described model isn’t a magic wand.
- Poor efficiency for short tasks. Particularly, this model of cooperation rarely becomes profitable for projects with a length shorter than 12 months. You may consider hiring freelancers in this case, for example. Dedicated teams are much better for long cooperation with unclear final date and changing requirements.
- Time and culture miscommunications. Last but not least, offshore staff lives in different time zones and countries with a unique culture. You should take this aspect into account to manage teams in the best way. Avoid words and images that can hurt specific ethnic groups or religions and try to organize flexible development.
When an offshore dedicated team project is good
Well, so what about exact projects and conditions under which you require a DDT? When will this model work the best? Honestly, there are a few answers depending on the industry, market, capabilities, etc.
For example, an aerospace company may start an offshore project to pass on software tasks and focus on, well, assembling rockets. Offshore developers can help healthcare practices by handling CRM systems and databases while physicians focus on saving lives.
Still, there are a few points to remember regardless of the industry. They show when any brand should think about a partnership with DDTs:
- Dynamic tasks and unclear objectives. Often, there are large deals that constantly change during the life cycle. An innovative startup is a good example. If you don’t have a clear vision of the industry because you build this industry at the moment, a dedicated team can save the game.
- Lack of resources to build an in-house team. No less often, SMBs don’t have enough time, money, knowledge or desire to create internal IT departments. In this case, they can hire a DDT and develop a lifelong partnership with it. Thus, offshore devs will work as a part of the company for many years.
- Potential need in new devs. Flexible objectives lead to a change in scope and, importantly, skills needed. You want to have guarantees that the demanded expert will start working without delays. Consider working with firms that manage dedicated teams and expand/replace them upon request.
- Strong desire to cut down costs. Be extremely careful with this point. Entire teams are pretty expensive and they feature acceptable ROI only during long projects. You have to plan and calculate everything to be sure that this model is profitable and suits the company’s strategic goals.
Working with custom outsourcing companies
We’ve mentioned this form of cooperation several times in the article so let’s take a closer look at it. An outsourcing brand acts as a middleman. It provides for all crucial stages, including HR, integration, and communication.
In DICEUS , we have a lot of experienced devs in different industries. Depending on the requirements, we can form a team of the developers with the most relevant skills or expand your own IT department with remote workers. If it’s needed, we also can find new specialists in 2-5 days thanks to a large HR database. We guarantee the knowledge level, provide the required tools and tech support. You can always contact us to solve scalability issues, find new staff members or change the tasks.
Our developers handle various services, including but not limited to:
- Development of custom products.
- Consulting services.
- Modernization of existing apps.
- QA and testing of software.
- Re-engineering and data migration.
Traditionally, the last section is dedicated to urgent questions. We try to answer briefly so you can get the most valuable info in one or two sentences. Feel free to use FAQ as a reminder with quick insights.
What is an offshore dedicated team?
It’s an outsourcing model that stands for hiring several developers located in distant countries. They work remotely but act as a part of your business. These groups often work with other companies that manage them.
How the model differs from other outsourcing ideas?
In terms of location, offshore teams always work from different areas located far away from your office. In terms of services, they feature the highest level of flexibility. You can pass on different tasks and even replace devs.
What are the main benefits of this model?
It refers to great savings because you can work with devs located in countries with low rates. As well, you get the needed experts quickly because of worldwide search. Finally, DDTs feature simple control.
How to manage offshore dedicated team?
On the one hand, you can control and oversight remote workers on your own. This approach requires a knowledgeable in-house staff member with enough time. On the other hand, it should be easier to group up with an outsourcing company that handles managerial issues.
How to select the best team?
You must understand your wishes, at least, for the first time. Thus, you will be able to hire people with relevant skills. It’s important to evaluate the performance and results, check other projects and accomplishments.
This model may be a game-changer for different companies that start or continue long and difficult projects. If you don’t have money or time to manage devs, an external firm will be a viable choice. It finds the best professionals for any specified tasks, trains workers, and handles current processes.
If you have questions, ask us and we will find the most suitable cooperation model for you!