Benefits Of Hiring An Offshore Development Team

Published on December 9, 2020
Benefits Of Hiring An Offshore Development Team

Building a software development project can be quite challenging. In most cases, it’s tough to develop a useful product without qualified specialists. So, should you hire an offshore software development team? Or will cooperating with in-house developers be a better idea?

It can be difficult to find local talent or a reputable agency in your city to do the tasks you need for an affordable price. It’s a common problem, and that is why many companies opt for setting up a dedicated remote team. Does this prospect worry you?

Well, it shouldn’t! There are plenty of people out there who will handle your tasks without obliterating your budget. Let’s go through the benefits of offshore software development and why you should take advantage of this option.

What is offshore software development?

In a nutshell, an offshore team means delegating your software development project to another specialized company. It’s a type of collaboration where the third-party entity who is trusted to do the tasks is situated in another country, which is called offshore development.

For example, a company based in Canada is delegating its software development tasks to a business that offers software development services in Kiev, Ukraine.

Why do companies outsource their IT operations offshore?

Considering the rate at which the digital industry is expanding, there are many reasons why companies of all sizes hire offshore developers. So what exactly are these factors? Watch the videos of different international companies on their outsourcing journey to learn how they come up with this decision and their results.

To sum it up, lots of time, effort, and capital go into coming up with innovative and creative software solutions for companies that want to stand out from their competitors. Companies unable to hire the most talented recruits are left with less-qualified developers that may not be able to complete their tasks as effectively.

But, when these companies hire a dedicated development team, they free themselves from the obstacle of finding first-class staff while also ensuring they receive the best software solutions delivered to them in the least amount of time. Let’s take a closer look at the reasons why you need an offshore development team.

  • When Outsourcing is Cost Effective

    You reduce operational costs if you hire offshore developers. You will not have to spend your funds on additional expenses (office rent, salaries, insurance payments, vacations, etc.). Instead, you will be channeling funds into the most crucial area, namely the creation of the MVP. What’s more important, due to the lower cost of living, the rates outsourcing developers are usually much lower than their American and Western European counterparts.

  • When it Offers Flexibility

    In most cases, it can be more difficult with an in-house team to scale your team or change the technology stack to match the project’s size. This problem is popular with startups, so flexibility is critical. Outsourcing professionals are flexible and can easily switch their focus from one task/project to another.

  • When Advanced Skills are Needed

    IT outsourcing provides you with broad access to a great talent pool with the right skills. For example, most developers worldwide are already working for well-known tech giants such as Samsung, Apple, IBM, and others. They receive attractive salaries, good benefits, and feel safe with their current employers. Moreover, offshore countries in Asia and Eastern Europe are full of qualified professionals who will be happy to participate in your startup’s development.

  • When Quality is the Core Interest

    When it comes to the quality of the code created by a dedicated development team, this topic can cause ambiguity. One important thing to keep in mind is that a project’s success and its quality don’t depend on the country in which it is released. It depends on the people who built it and how passionate they were about their business.

What are the benefits of hiring offshore teams?

We will zero in on eight crucial advantages that you can if you hire offshore developers:

  1. Access to a Wide Pool Of Great Talent

    The average company spends around ten weeks or even longer trying to find a team of software developers. If you think about it, that is two to three months of wasted time and money. The demand for specialized programmers is high, but finding local talent is a complex task of its own.
    But now, you aren’t restricted by your location anymore; you have access to world-class offshore software development services at your fingertips.

  2. Scales Your Business Easier

    When you open your business, you start thinking about your scaling strategy, and having an in-house team is only going to increase the costs in the long run.

    When you hire an offshore development team, this will help your business scale as per the requirements. You will have a dedicated development team who will help you realize what technologies you should invest in, how you can stay competitive, and how you can improve your marketing and engagement strategies. And since this is your offshore programming team and not just freelancers, they will be there to help you with everything you need at any time.

    Naturally, you can always contact the team’s offshore software development company and ask for more staff, so all your needs are met. It’s pretty clear now why companies hire offshore, right?

  3. Reduced Costs

    In large countries such as the U.S., hiring local IT experts can be very costly, especially if you want the best talent.

    Keep in mind that the payroll makes up only a small part of the overall cost. The rest includes things like workspace, equipment, daily amenities, and other extra employee benefits that really add up in the end. All of these together make forming a full in-house team very expensive.

    Going offshore to hire a dedicated development team in countries like Ukraine and Serbia can cost significantly less since the cost of living in these countries is much less as compared to Singapore or the U.S.

    It does not mean that the developers are any less talented, just that their location is different. Essentially you will be recruiting the same talent for a lower cost.

  4. More Time to Focus On Other Important Tasks

    By outsourcing developers, you will save yourself and your company lots of time. This is especially true for start-ups that are always going back and forth between the core business functions but don’t have a lot of man-power. Smaller start-ups usually don’t have many budgets set aside either, so outsourcing is a great option for them.

    When your company has immediate access to qualified talent and expert offshore development teams to work for your technical section, you and your team will easily focus on other essential tasks concerning your business. While with an in-house team, you would have to keep up to date with their progress always, an excellent outsourcing provider will have your required tasks done by a specific due date.

  5. Access To The Newest Technologies

    As a small business, it’s nearly impossible to have access to all the latest and trendiest technologies because of their cost. Since these companies deal with offshore software development services, they use most of their time to improve technologies and learn new software skills to bring a lot to the table.

    You are also getting high-quality procedures, documentation, and structured strategies along with many new technologies. Your hired company will always update and replace systems when it is necessary.

  6. No Need For Capacity

    If you suddenly face an influx of work, you won’t have to turn these tasks down due to a lack of space in the office or resources. Hiring an offshore development team means you won’t have to provide them with office space or technologies; they will already have this wherever they are located.

    So, you will only have to pay for their work without worrying about anything else.

  7. Opportunity For New Incentives And Projects

    Do you have a list of tasks you haven’t gotten around to yet? When you have an in-house team that requires space, resources, and technologies, it can be hard to budget for new and exciting projects.

    By hiring an offshore team, you will be cutting down your costs, and this will allow you to start working on other ideas along with everything else that must be done.

  8. No Need For Full-Time Employees

    Many companies regularly take on short projects, and it can become expensive to hire a full-time working team. On the other hand, hiring offshore developers can be done within a tight budget and for a specific time frame.

    When the project is over, the company and the offshore team can go their separate ways without maintaining these workers full time.

How to Hire remote IT Specialists for your business?

  1. Define your business goals clearly

    Before you hire offshore development talent, define all your goals. It’s one of the obvious steps, but unfortunately, many don’t take it seriously. What product do you want to create? What type of developers do you need? What skills should they have? What’s your proposed budget? It’s crucial to identify such questions at an early stage. Your list of needs and goals should be as precise as possible, having all the project’s necessary aspects.

  2. Evaluate the skill set required for the project

    What skills should your future development team have? What is their level of knowledge? There are different developers, including web engineers, mobile developers, front-end or back-end teams, Full-Stack developers, and more. Make sure your vendor’s skills match your product requirements.

  3. Plan your budget

    The first thing you will need to do is discuss the cost of the project and make sure that the agency you will be partnering with describes the services and infrastructure covered by the general costs.

How to Find a Development Partner for Your Company

Another essential issue worth paying attention to is the countries in which the best offshore talent is located. Working with an outsourcing company from another country can have both advantages and disadvantages. However, it can still help you in choosing the best country for the remote team.

  • Eastern Europe

    As for Eastern Europe, many countries such as Ukraine, Belarus, Poland have long been recognized worldwide as the leading sources for offshore development. Developers from Eastern Europe have comprehensive experience and are fluent in various programming languages. For example, everyone knows that Ukrainian web engineers know Java, JavaScript, and Python well. While PHP is the most commonly used programming language in Poland, it is followed by Java and .NET. It’s also worth noting that offshore specialists’ hourly rate in Eastern Europe is between $25 and $40 per hour.

  • Asia

    In this case, many companies prefer India as a country for hiring a web development team. India has lower rates than others, ranging from $18 to $25 per hour. This is the main reason why many businesses want to partner with Indian specialists. However, you need to understand that there is one significant drawback – it’s difficult to get the desired quality.

  • Latin America

    Latin America is experiencing significant growth in the software development industry today with offshore development regions such as Argentina, Mexico, and Brazil. The hourly rate for programmers here can start from $30 to $50 per hour, depending on the engineer’s experience and skills.

Offshore Software Development Challenges

When choosing an offshore team to develop your future project, try to consider the main pitfalls you may face before deciding.

  • Time Zone Differences

    When working with offshore specialists, you may have difficulties with time zone differences. If it’s really crucial for you to maintain regular communication between you and your offshore team members, this point should be very carefully considered.

  • Cultural Differences

    Cultural differences are another big problem. People from other countries may have different opinions about how professional communication and working methods should look like.

    Your offshore team’s language, dialect, and other accents can interfere with smooth and effective communication.

  • Lack of Face-to-Face Communication

    Face-to-face communication can help you understand each other better. In most cases, employees even become friends. However, due to the considerable distance, such a development is unlikely. To compensate for the lack of live communication, you can use video calls to understand your team better.

  • Too Many Vendors to Choose From

    A large number of software providers in the offshore market can both benefit and confuse you. Making the right choice is difficult when there are many agencies offering IT Staff Augmentation and partnerships.

Offshore Development Team with pwrteams

If you’re looking for a great offshore development team, then you’re in the right place.

To find qualified employees for your project, we use all the best tools and in-depth knowledge to search, interview, and screen the best IT talent on your behalf. Once we find qualified specialists open to relocation, you can move them immediately and set them up on your payroll. Otherwise, you are welcome to first test them out on a remote basis until you are ready for a more permanent move. Happy mediums are also possible with a combination of onsite and remote work. As you can see, working with pwrteams removes stress from the entire relocation process, both for you and your future employees.

Our team chooses potential candidates and shortlist the best matching participants by conducting:

  • HR interviews. We run a soft-skills assessment to identify candidates’ cultural matching using the customer’s profile, values, and ambitions.
  • Technical interviews. Our senior technical experts conduct and provide a detailed candidate assessment report.
  • Technical tests. We organize online testing according to the client’s requirements.

Our goal is to create a long-term partnership with our clients. We never “push” semi-matching resources to a customer. It’s why we have a high retention level in the industry. IT talent staffed by pwrteams has a 7-10% retention rate.

Our support team will guide you through the entire process – from the first contact until final selection, and if requested, relocation to a new office.

Hiring an Offshore Development Team: FAQ

What are the main advantages of hiring outsourcing?

  1. It reduces costs
    Going offshore and hiring software teams help you to reduce costs and even find the best talent at a lower price.
  2. It gives more time to focus on other tasks
    It saves you a lot of time, especially if you are a young startup that continuously switches between core business functions.
  3. Access to a vast talent pool
    You aren’t restricted by your area anymore; you have access to world-class offshore software development services at your fingertips.
  4. Access to the newest technologies
    When you decide to hire remote programmers so get high-quality procedures, documentation, and structured strategies along with many new technologies.

What are the top offshore destinations for hiring software engineers in 2021?

The top 5 countries where you can find the best IT professionals are:
Ukraine, Belarus, Poland, Czech Republic, Estonia

What collaboration tools are necessary when working with offshore developers?

Slack is one of the best instant messaging apps for remote teams, especially when developing software.

Also, you can use Skype and Zoom for video calls and messages.

Besides, don’t forget about task management tools, including Jira, Asana, Trello (for small projects).

Should you hire an outsourcing agency or freelancers?

The question of whether to hire a freelancer or an IT staff augmentation company depends on what you want to achieve and get. That is why it is crucial to determine the goals of the project at the initial stage.


So, now the answer to ‘Why do companies offshore?’ is obvious. In this modern world, to stay ahead, businesses have a consistent need to develop software and keep it updated. Hiring offshore IT specialists for your tech tasks is really the most efficient and affordable way to get this done.

Get in touch with the top-notch offshore software developers from pwrteams and scale up your business to reap amazing long-term benefits!

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