Offshore Software Development: Hire a Dedicated Team for Your Business

It's a story we all know too well. The product takes off the ground, sales are rolling in, and before long our two developers on staff are working themselves to the bone by evening - because let's face it, the backlog just keeps getting bigger. We put out feelers to a local agency and get a quote that looks almost laugh-out-loud wrong - but you know it's somehow still true. And when we try to hire a third engineer, we typically have to start the search process over again - which can be a long and grueling slog. And then, if we get lucky, we might be able to hire someone within 3 months - and then another 2 before they're actually up to speed.

That's usually just about the time when owners start on their quest to find offshore software development. Some find someone who literally changes the game for them - while others just end up losing months and a big chunk of their budget. And not surprisingly, the difference is rarely about where you go - but more about how you actually go about hiring that offshore team.

Below you'll find some key background information on what 'offshore development' actually entails, what it typically costs, the types of roles you can actually fill, and the mistakes you should steer clear of.

What Is Offshore Software Development?

Offshore software development - it's a pretty straightforward concept. You hire some developers or an entire team from another country to work on and maintain your software, and they do it all from the comfort of their own homes. In return, you pay them a monthly fee and set the priorities - they take care of the rest.

Businesses based in the US, UK, UAE, Canada and Australia are usually looking to places like India, the Philippines and Eastern Europe to find good people to work with. And it makes sense - you get some of the world's best engineers for a much lower wage because the cost of living is so much lower in those places.

Why Do Companies Go Offshore

First things first - let's talk about the cost. A US developer can rack up a salary of well over $100,000 a year, and that's before you even think about benefits, a laptop or the agency's fees involved in finding them. In contrast, offshore teams can be 40% to 60% cheaper.

The other reasons get less attention but matter just as much:

• Talent: Let's face it, finding someone with the right skills can be a nightmare in a small city - but when you're looking across an entire country, the chances of finding what you need just get a whole lot better.
• Hiring speed: If you go with a reputable provider, they'll have done all the hard work of finding and vetting their people already, so you can just get straight on with hiring and get the team up and running in weeks not months.
• Overlap: Companies based in Dubai, working with teams in India, are often in sync with each other - ask a question at 10 in the morning, and you can be pretty sure you'll get a response by 10.15.
• Flexibility: Offshore development teams make it a lot easier to scale up or down depending on what your project needs are. You can hire some extra testers, developers or specialists when business picks up and then dial things back down again once the big project milestones are behind you - without being stuck with a huge in-house workforce all the time.

Developer Roles: In-House vs Offshore

Here are some rough estimates for mid-level hires - keep in mind that actual costs are gonna vary depending on who you're hiring and where they're based, so treat these as a rough guide for planning purposes, not a budgeting bible.

So which approach is better? It really depends on the kind of work you're doing.

If you're in a situation where your product is changing all the time, or you need to get some code working that deals with sensitive customer data, then having people in the same room can be worth every penny. But if you just need some steady, reliable output on a pretty set roadmap, then offshore gives you a lot more bang for your buck.

A lot of companies actually end up doing a mix of the two. They'll have one or two senior engineers stay local who are basically the product owners, while the offshore team does the actual building. If you're nervous about going fully offshore, this is a good way to start.

How to Hire an Offshore Software Development Team

There are a handful of reasons why projects go off the rails, and more often than not it's because one of these fundamental steps got skipped.

1. Get clear on exactly what you need - don't just wing it - write down the product, tech stack, and how many people you want on the project. Vague briefs usually create costly disputes down the line.
2. Now, do you want to go with a dedicated team (where those developers are only working for you) or project-based work (where the scope and deadline are nailed down and your only worry is paying by the clock)? If you know you're gonna be adding features and tweaking stuff down the line, a dedicated team is probably your best bet.
3. Don't just look at the price tag when picking a provider, other factors matter way more. Get them to send over some case studies - preferably from people you can call and ask questions. Find out how they screen their developers and what happens when someone quits in the middle of a project.
4. You need to talk to the actual developers who'll be writing your code. A salesperson is not gonna write your code for you.
5. Before you even start, get everything cleared up about communication habits. What's the daily standup look like? Are you gonna be using a shared project board? Are you gonna get a demo every week to see the progress? Also be realistic about scheduling - Sydney and Texas are not in the same time zone, after all.
6. Get all your bases covered by getting an NDA (Non-Disclosure Agreement) on file and a written agreement over who owns what IP (Intellectual Property). And for goodness sake keep your code repositories in your own accounts.
7. Run a trial, it's usually as simple as doing a two week project on a small module - it's way more enlightening than reading through any proposal you get.

Risks to be on the Lookout For

Offshore development isn't all sunshine and rainbows - and anyone who tells you otherwise is probably trying to sell you something.

• Communication tends to be the first thing to break down. But usually it's not because of language barriers, it's because two people have assumed the other is on the same page - silently. A good write up of specs and a 10 minute daily catch up with the dev usually sorts out most issues.
• Code quality can take a dive when nobody is keeping an eye on it. You should have a senior reviewer on-site, or else ensure you're picking a team that brings its own tech leads.
• Turnover is a major issue with outsourced work, specialist freelancers often drift off, and even some agencies churn through staff. Providers that have a pool of reserves to fall back on handle this a lot better.
• Scope creep can quickly blow your budget out of the water. Do make sure you ask how change requests are priced up before you sign on the dotted line.
• Data security is a major concern in the UK, UAE and Australia where privacy legislation is tight. So make sure you ask about how access to systems is controlled, how equipment is secured and how they handle GDPR. If they can't give you a straight answer, that's a real red flag.

Skip the Setup: Work With a Managed Offshore Partner

Building your own offshore operation means taking on all the HR headaches - hiring in another country, dealing with payroll across borders, shipping equipment to people you've never met... and then still having to find the talent to do the actual development. That's a whole lot of admin before you even get to the coding.

The Remote Staff does all that heavy lifting for you. They help US, UK, UAE, Canadian and Aussie businesses hire top offshore developers who work full time on their projects. Recruitment, payroll, equipment, HR support,and also you name it, the company sorts it out. You get to focus on the work.

How The Remote Staff Compares

Why Choose The Remote Staff

Most offshore projects don't fall apart because the code is being written by mediocre developers. They fall apart because nobody bothers to take charge of the hiring, get everything sorted out for the handover, or iron out the daily problems. That's the gap we're actually targeting.

• You get to stay in the driving seat: Your developers show up to your stand-ups, use the tools you're already using and follow the same roadmap you've set for your project. You don't have any unnecessary middlemen getting in the way of your code.
• No need to run a marathon to find the right person: We shortlist people who already have the right skills for your tech stack, so you only need to interview people who are already qualified and have the right fit for your project. No need to dig through loads of CVs.
• One bill each month, no fuss: We take care of all the payroll, contracts, equipment and HR support, so you only see one invoice each month, not a stream of separate ones.
• Our timezone works for you: We work with clients in the USA, UK, UAE, Canada and Australia, so your teams actual working hours overlap with yours.
• Scale up or down at your pace: Start with one developer and gradually add someone to QA or DevOps as and when your product needs it. Conversely, if priorities shift and you need to scale back - no drama, no hassle.
• Your code and IP are yours from day one: We've got an NDA in place and assign the IP rights to you straight away, and your code repos stay in your accounts the whole time.

If your current plan is to just sit tight for another three months, waiting for that elusive local developer to come along, this option is a heck of a lot quicker.

Frequently asked questions

Ready to Hire Your Offshore Development Team?

Offshore software development isn't going to fix a dodgy business plan - but what it will do is give you more engineering capacity than you could afford to hire locally - as long as you're clear about the work, make sure the provider is right for you and keep the communication channels open.

Start small, test the fit and see how it goes from there. If you're after a dedicated team without the hassle of hiring and HR, then The Remote Staff are the people to talk to about building one for you.