December 31, 2015 5 Min Read by Tanya Kumari

If you are looking for ways to save up funds for the development of your company, increase operational capacity and free up your key staff to work upon more important tasks, offshore outsourcing could be the bang for your buck! Offshore developers can help you save money and get your work done quickly. Making your work go offshore is different than outsourcing.

 

Tips for Hiring Offshore Developers

 

Offshore Vs. Outsource

Often, the terms offshore and outsourcing are used interchangeably but subtle differences exist. Outsourcing is when your company decides to hire someone to do some work within your own country or from another country. If you hire an online contractor or agency to work on a project within your own country or from another country, it’s outsourcing.

When a company obtains its services or products from outside the country, it is termed as offshore outsourcing or simply offshore development. The low cost services offered by countries like India is why companies love to offshore telemarketing services to that region. It spares them the high labor costs and is one example of offshore development.

 

Why Offshore?

One of the prime reasons why any firm opts to offshore jobs is to reduce costs. A typical U.S. accountant would be paid an annual salary of $62,000 to do a particular job in a year; the same job could be done by an accountant in India for around $5,000 per year. This means that the organization saves $57,000 just by offshoring the job to a different country.

If you can offshore the hands on projects, you can have your in-house team focus instead on the bigger picture and implement strategic decisions that can help your organization grow faster. The other benefits are apparent. By hiring offshoring development team, organizations can not only increase its overall profits but also evaluate options to increase its base to other countries. With globalization, this is the route many companies believe is useful in the longer run.

IT companies in the States look forward to IT outsourcing as it can help increase productivity. Countries like India are on a time clock that’s 12 hours ahead of that in the U.S. This means that the U.S. team can finish off the day’s work which can be then taken by the Indian team during their working hours at a lower cost. The next morning, the U.S. team will have it easy with the work significantly progressed from the last day. This can help tackle deadlines and work schedule, increasing the work capacity and productivity.

 

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Advantages of Hiring Offshore Developers

Offshore developers bring in a number of advantages to any IT team. If your firm is contemplating hiring (or not hiring) one, take a look at these benefits.

  • Increase in operational capacity.
  • Reduction in labor costs as one is saved from paying wage taxes of employees.
  • Saving of time and money in finding the right candidate for the specific job
  • Gain significant competitive edge.
  • It’s innovative.

 

Leading Countries in Offshore Business Services Worldwide in 2014

This statistic shows the leading countries in offshore business services worldwide in 2014. India leads the statistics with an outstanding index score of 3.14 for financial attractiveness and 2.71 for people’s skills and availability. Offshoring business services in Malaysia received an index score of 2.72 for financial attractiveness and 1.43 for people skills and availability. Vietnam tags a whooping index score for 3.3, highest among all countries, and edges out Egypt by 0.1 of an index score. United States has the lowest index score of 0.49 for financial attractiveness but the highest index score of 2.88 for people skills and availability.

 

Tips for Hiring Offshore Developers

What do you need to look out for when hiring an offshore developer? Here are the things where most companies fumble and what you should do right.

 

  • Understand the Difficulties

Your business strategy will determine if offshoring is useful for you. Understand what you need an offshore team for. If you only need to outsource some work, for example, you only require mobile app development outsourcing services, then it’s better to go for outsourcing than choosing in-house development. Offshoring can work if you’ve clear expectations of what you need. Remember, there can be differences, including cultural differences. There will be time differences as well. While they might work to your advantage as we discussed above, it’s a great idea to keep in mind to strategize properly. You will need to be able to have clear goals and objectives to be on track.

 

  • Do not look at making profits all the time

True, offshoring can reduce costs greatly. However, remember that you will need to choose web, app or software development outsourcing services provider who can actually do the job. Going for contractors or teams who are inexperienced can lead to avoidable delays and missed deadlines.

Do not be afraid to increase budget if you can get quality. As good as it seems to go for one who is ready to settle for a lower price, it may not turn out as you want it to be.

 

  • Look for Reliability and Invest

Nothing beats the satisfaction of obtaining good results from companies and individuals who get the work done in a timely manner and according to the standards set by you.

Do not pick any software and web development outsourcing services provider too soon. Have a look at the most successful and most difficult projects of the candidates and understand that the candidate understands the job requirements clearly. Unclear job requirements can lead to false expectations. Communicate with the offshore team for optimum results. A delay or lack in communication can lead to errors and other problems. You need to invest in training to ensure that the offshore team knows your company values and understands how you want the work to be done.

 

  • Implement a hybrid model

It would not be wise to look at offshoring alone to solve all your needs. You need to look at a hybrid model, where you organization can depend upon everything from storing to the cloud to on-premises to using both offshoring and outsourcing services, to perform to the optimum.

 

Remember, offshoring does bring with it a number of challenges. Some include the fact that you will lose the overall control of work at some point or the other. You may even need to share intellectual property and client confidentiality agreements with the offshore team which can come to misuse. Without a proper research of the team and understanding the legal concerns, you may land yourself in trouble.

You need to thus hire a reputable outsourcing company you can trust upon. Invest time in hiring an offshore team and look at the long term. If you want quicker results, just go in for outsourcing.

 

outsourcing due diligence

Topics : Outsourcing, offshoring



Tanya Kumari

Written by Tanya Kumari

Tanya is the Digital Marketing Leat at Classic Informatics. She is an avid reader, music lover and a technology enthusiast who likes to be up to date with all the latest advancements happening in the techno world. When she is not working on her latest article on agile team dynamics, you can find her by the coffee machine, briefing co-workers on the perks of living a healthy lifestyle and how to achieve it.

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