When & Why Should You Hire Offshore Developers?

Quick Summary: Hiring offshore developers can be a cost-effective way to fill skill gaps and accelerate product development, but it's not always the best solution. Before deciding to work with offshore developers, businesses should weigh the benefits and drawbacks, consider the project requirements and team dynamics, and ensure that they have a clear plan and communication strategy in place.

Digital transformation is an important aspect for all businesses. That's why the demand for building web applications, mobile apps, or software is increasing every day.

The offshore software development industry is quite competitive and the margin for error is slim. Thus, it's imperative to have an expert team of software developers to fulfill your IT requirements. But as we all know, hiring developers locally is not easy.

• Local software developers have a higher hourly rate (in Australia, the USA, New Zealand, etc)
• The hiring process itself is tiresome and costly
• You need to keep your infrastructure up to date (hardware & software)
• Retaining them is another big challenge

Thus it is recommended to hire software developers from an offshore country.

Why Should You Hire Offshore Developers?

The important thing about outsourcing or global sourcing is that it becomes a very powerful tool to leverage talent, improve productivity, and reduce the work cycle. - Azim Premji (Indian Business Tycoon)

1. Labor cost

One of the major reasons behind outsourcing is to decrease labor costs. Rather than employing plenty of full-time employees on the payroll, outsourcing allows you to hire a flexible workforce.

2. Efficiency

As professionals are specialists in their particular area, they are very familiar with the ins and out of everything. This way, the outsourced tasks can be completed effectively by highly-trained experts who can implement their skills and knowledge right away.

3. Customer satisfaction

When you have the core business objectives to focus on, you will produce the products and services faster, and that is always a hit. There is no need to establish a separate department at your workplace, as most of the tasks can be outsourced. With this, the ability to respond quickly to issues and complaints can be handled smoothly.

4. Globalization

Hiring remote developers from an offshore country helps to boost your business reach. Moreover, depending on your outsourcing partner, you gain a time zone advantage from the new arrangement that helps in operating 24 hours a day (if your local & remote teams are working together).

The other reasons include:

• Reduce and control operating cost
• Gain access to specialization
• Free internal resources
• Insufficient resources 

Factors that influence successful outsourcing include:

• Understanding the goals of the company
• Realistic strategies
• Choosing the right outsourcing partner
• A structured contract
• Effective communication
• Support

When Should You Hire Offshore Developers?

1. Business scaling

Growth is a very crucial element of expansion. If your business is unable to incorporate various growth strategies like cost reduction or technology needed to improve performance, you might be hindering the ability to thrive in the marketplace.

Setting up an offshore development center offers operational flexibility and gives a competitive edge by helping in streamlining your business process, maintaining consistency across various geographies, enter into the international markets, or scale up/down efficiently.

Plus, this allows your organization to be flexible and nimble without diverting themselves from core competencies.

2. Restricted budget or cost reduction

Startups usually have a restricted budget. And, it becomes very difficult for them to hire experienced professionals. Plus, providing systems, setting up infrastructure, and arranging other resources adds up to the cost.

If your business is facing this situation, it's time to think out of the box, leading you to hire developers from an offshore location. By hiring offshore developers, you can have a team of experts and that too while saving up to 60% in comparison to working with an in-house team.

3. Core skillset is required

When all the business functions are housed together, everything becomes complicated. Development requires a good amount of time as well as attention.

Suppose that you operate a finance business and want to build a Flutter mobile app to digitalize your business. The requirement is just to build a mobile app, and hiring a developer locally on a permanent basis would be costly. So, what's the option?

4. Challenging to meet customer expectations

Is your company struggling to invest and keep themselves updated with the latest innovative technology? Do you have software that requires 24*7 development or updates?

Hiring developers from an offshore location in collaboration with your existing local team can help you fulfill your requirements without increasing the operational costs.

5. Team productivity is dropping

Outsourcing is not about handing over the projects or tasks that your in-house team is not efficient, but it is advisable sometimes to outsource your core competencies as well.

The simple solution would be to build your product engineering team in a foreign country like India.

In fact, by outsourcing those specific tasks, you can free up time for in-house departments and flex their productivity muscles. Outsourcing has the ability to streamline the process or aid your team to complete a time-consuming task while not abandoning your daily tasks.

6. When you are experiencing seasonal spikes

Outsourcing companies specialize in anticipating and planning for peal call volumes, and they have the training abilities to ramp quickly when required. Supplementing staff when the customer base is growing allows your business to grow while staying focused on important tasks.

7. Team Abilities become Doubtful

Outsourcing can amplify your team’s skill set. For example, the marketing team can check nine out of ten things but lacks one area. But, by outsourcing this task, you will be able to complete the ecosystem.

No matter what type of business it is, building it up via strategic outsourcing helps a lot.

While talking about the IT sector specifically, most businesses don’t specialize in different types of technologies. To establish and manage the project, outsourcing to a technology partner that has a good understanding will help the business thrive.

High-time to propel your business forward

As per the  Deloitte Global Outsourcing Survey, budget-friendliness still remains one of the major benefits of outsourcing, but the main motivation behind this has changed. Nowadays, companies outsource in a way that they work with partners and integrate services that they themselves are unable to provide.

For startups and entrepreneurs, outsourcing is a primary key to propel their startup forward faster and more efficiently than they could with a small team.

Common Myths About Hiring Offshore Developers

1. An in-house team can handle everything

You have limited manpower, but focussing on high value is extremely important. Giving all the burden to the team means they will focus more on quantity than quality.

Furthermore, outsourcing enables the in-house team to perform tasks they excel in and gives the opportunity to the remote team to work on their specialized skills.

2. More money is spent

Sometimes, outsourcing becomes costly. And it only happens when you collaborate with a non-competent outsourcing partner. Thus, by doing some research and signing NDAs as well as a legal contract can save you from such issues.

If your client is satisfied with the work that you are delivering and the quality is top-notch, the money is well spent. It should be seen as an investment that is worth the cost and gives a better outcome.

Let the experts handle the tasks

We are a trusted and leading offshore software development company in India. Having a wide range of experts in multiple technologies, we can fulfill your IT requirements effectively.

Share your requirements with us now & quickly scale up your business with an offshore development team.

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