In this competitive market, startup founders and midsize business owners are constantly looking for a strong and flawless team to help them reach potential milestones and quickly establish a strong market position.
Building an in-house development team is often difficult for startups and enterprises because associated costs such as office rent, salaries, insurance payments, along with hiring fees add to the overall cost.
Instead of investing in a scalable MVP effect, startups can save money by hiring an offshore development team.
Hiring an offshore development team saves money and time while giving you access to a diverse talent pool. According to Precedence Research, the global IT services outsourcing market will be worth approximately USD 1.06 trillion by 2030, with a CAGR of 8.06% from 2022 to 2030.
As a result, startups and enterprises prefer to hire an offshore development team. So, read on to the end to learn about the factors when hiring an offshore development team.
What is Offshore Software Development?
Offshore software development refers to hiring offshore software developers from countries that offer lower-cost technical assistance than their home countries.
Forming a remote developer team to work on a software development project is what it essentially means. This can be used for various tasks, including simple coding, developing unique software, web and mobile applications, and software support and maintenance.
When working on projects that require specialized knowledge and high-quality outputs that are difficult to find locally, hiring an offshore software development company is an appealing option for most businesses.
Let’s take a look at the factors to consider when forming an offshore software development team:
1. The Total Cost
This is important to clarify with your vendor before signing the final contract. To avoid future confusion, request a quotation for the total cost incurred throughout the project rather than hourly wage rates. Consider the costs you will incur if your developing product needs to be scalable for future needs.
While looking for the right partner, you may come across several service providers who offer low-cost services. However, make an extra effort to find out if there are any hidden costs that, if not discovered right away, could cause you to pay far more than you expected.
2. Adoption of The Right Tools and Methodology
Using the appropriate tools for your project is critical to its success. When it comes to collaboration tools, cloud-based tools are far more effective. Agile methodologies are best suited for remote or off-site development projects. It ensures that product development is transparent, agile, and efficient.
So that your return on investment (ROI) is always high, your software development partner should be comfortable with multiple methodologies, such as Agile, Rapid Application Development (RAD), and Waterfall/Cascade.
3. Product Ownership
Make it clear how you intend to create a software product for your company. There are two options: build it yourself or buy it. A third option is to rent a company’s software solution for a set period.
However, if you are creating a one-of-a-kind product that cannot be replicated, you should choose a vendor who will give you complete ownership of the product once it is finished. If you are clear on all these points, it will be easier to determine which offshore software development partner is best for your organization.
4. Domain Knowledge and Expertise
A company that provides software development outsourcing should have a product development DNA. Specifically, such firms should have product development experts who are mature and well-versed in product life cycle management. The partner company’s top leadership should have specialized product conceptualization, design, documentation, and modernization skills.
On the other hand, the development team should be capable of managing multiple release cycles. While meeting the needs of end users, developers must be able to adapt quickly to future product release requirements.
5. Communication- Key Ingredient To Succeed
The way you interact with your offshore development teams matters. You must take advantage of two time zones; for example, your in-house employees in the United States can finish projects and send them to their offshore counterparts. At the same time, the offshore team in India works nearly the same hours as the team in the United States. This ensures that work is completed around the clock, significantly increasing productivity.
It is also critical to understand the communication channels of the remote development team and whether they ensure security and transparency.
Outsourcing tasks to agile offshore development teams is a great idea. It has numerous benefits, including reduced time-to-market, improved communication, etc. However, before hiring an offshore software development company, initiate research, consider all criteria, and get to know prospective service providers.
If you want to stay competitive, then working with a proven offshore software development company that is dependable and has strong offshore development capabilities is imperative. This will simplify the process of building desired products in a given budget and in a given timeframe.