According to estimates, the global IT outsourcing market will reach $413.7 billion in 2021, dramatically increasing from $66.52 billion in 2019. IT projects, including software development, are being outsourced at an unprecedented rate globally. SMEs, in particular, are actively pushing for this, and business leaders around the world are becoming savvier about hiring offshore software developers.
All industries worldwide are embracing the outsourcing trend in increasing numbers. Can it be considered safe for business? Are they affordable for startups? Is it a better idea to hire offshore or onshore developers? What is the most effective way to hire software developers offshore?
How does hiring offshore developers benefit your startup?
According to Deloitte’s global outsourcing survey, 72% of companies prefer outsourcing software projects over in-house development. How does outsourcing become so appealing to businesses? How can startups benefit from offshore software development?
You’ll be able to reduce a wide range of costs by outsourcing the software project, such as office rent, recruiting fees, insurance, office equipment, health insurance benefits, salaries, and more. You can now use this fund to grow your business, research and development, develop prototypes, launch MVPs, and marketing.
Gain access to a global talent network:
When you outsource your software project, you take advantage of the skill and experience of large numbers of offshore developers from around the globe who are ready to help you.
Any business trying to build, scale, or change its technology stack or scope of a project will need flexibility. Compared to established companies, startups are more likely to experience such drastic changes. Outsourcing developers have a high degree of flexibility to move between projects when working with you. Additionally, they offer flexibility, so you can focus on your core strengths while leaving the software development to the experts.
Things To Consider While Hiring Software Development Team
1. Market Research
If you want to hire software developers, or are looking for an offshore team, then you should do market research. There are many things that involve software development that you should be aware of. One should do market research about the latest technology, the need of developers, hiring modules, software development costs, and other things.
2. Project Requirements
Although the market research will provide you a better understanding of project requirements, you should be aware of tools and technology to sound technically strong. First jot down the latest tools, software development platforms, suitable functions, features for your projects. It will help you as well as the software development team to understand your project.
3. Check Portfolio
Once you are done with project requirements, now it’s time to choose an apt software development team. We suggest you check their portfolio in order to measure their expertise in your domain. You can hire offshore software development teams from top software development companies in the USA such as Auxano Global Services.
4. Reviews & Ratings
You can check reviews and ratings of any software development team at top review offering portals such as Clutch, Glassdoor, GoodFirm, and so on. Always choose the suitable company with the most trusted reviews. Auxano Global Services is ranked among the most trusted software development teams in the USA by Clutch.
5. Budget On Demand
It’s always suggested that one should clear all the doubts about NDA, idea privacy, source code authorization, and costs before you hire developers. Ask about additional charges, edits, and post-delivery supports. At AGS, we offer transparency on each stage with no hidden prices.
Models of offshore development
Software development offshore can be divided into two main categories: A project-based outsourcing model and a specialist model. It is essential to determine which model will work best for your project before learning how to outsource software development.
An organization that outsources projects to developers hires a team for a short-term, one-off project. The aim is to deliver the goods quickly, and the price is usually fixed.
Rather than hiring on-site developers, many companies employ remote specialists instead. The practice is known as staff augmentation. Depending on the length of time, the period can either be short-term or long-term. Client companies hire project managers or lead developers to supervise the development process since the agency supplies developers.
Our next section will explore the specific steps you must take when outsourcing software development.
What are your options for outsourcing developers?
Take these things into consideration before outsourcing developers to your startup:
Establish clear business goals
To get started, it’s essential to identify precisely what your MVP is designed to address. It is necessary to convey these issues when you outsource developers. You must determine your product’s primary objective. Moreover, you can break this down into smaller, measurable milestones accompanied by deadlines for each milestone.
Assess the project’s skill requirements
To determine the expertise, the technology stack, and the skills required for the project, the next step is to define the business goals. Defining the roles needed for each project is essential: do you need developers, testers, business analysts, and project managers?
Make a budget
Budgets are crucial to a startup’s success, as they determine its fate. This means that you need to plan your strategy carefully. To start, you must decide how much money you need to invest. Additionally, it would help determine what areas you can save a significant amount of money in. Finding investors to whom your MVP will be shown beforehand is essential once you have completed it.
How do we find developers to outsource?
Offshore countries offer several advantages and challenges; each has its pros and cons. Consider shortlisting countries closer to your time zone and culture; however, you should also consider developers who will offer you an enjoyable experience in terms of quality and price.
Let’s examine various geographical regions for outsourcing development teams.
Europe’s Eastern Region
The growing talent pool, cost-effectiveness, and rapid technological evolution have made Eastern Europe a reliable IT outsourcing destination. Outsourcing destinations include the Czech Republic, Ukraine, Bulgaria, Estonia, Hungary, Belarus, Latvia, Moldova, and Romania, Poland.
Outsourcing professional developers to this region is best done in Mexico, Brazil, and Argentina.
Despite this, Chile has also shown good growth in the market by claiming the 27th position in HackerRank’s rankings of the most competent software developers.
The Asia-Pacific region
The number of software developers in Asia is close to 4 million. In terms of developers, the leading countries are China, India, and the Philippines. The number of developers in India is 2.75 million, followed by Chinese developers with 590K and Filipino developers with 190K.
Checklist for Hiring Offshore Development Team in 2022
- Check out their experience
- Access the latest version of the code
- Find out how the outsourcing company operates
- Do not accept the cheapest quote
- Avoid payment models with fixed prices
- Find out whether your team agrees with all your proposals or prefers to debate.
- Make sure you have the right project management tool
- Make a proactive effort
- Demand for frequent deployments
Offshoring can work for you if you are prepared to take on it as a partnership. They don’t work for you, but with you instead. Therefore, you should hire offshore developers who have a plan to bridge communication gaps and ensure the seamless progress of the project. Adopt agile techniques to execute the project, including DDT (data-driven testing) and continuous integration/continuous delivery (CI/CD). This is how you find an offshore team.