Hiring Offshore Development Team Guide for SMEs

In today’s globalized economy, businesses of all sizes increasingly turn to offshore hiring to tap into the talent pool of skilled professionals available in other countries. One of the most popular options for SMEs is to hire offshore developers to build their software applications, websites, and other digital products. Offshore developers bring many benefits to the table, such as cost savings, access to specialized skills, and faster project delivery. 

However, offshore hiring can also be challenging, especially for those who are new to it. In this guide, we will explore everything SMEs need to know to successfully hire offshore developers and build a world-class development team that can drive business growth.

What is Offshore Development?

Offshore development has become popular for businesses looking to tap into the talent pool of skilled professionals in different countries. Offshoring involves engaging an external vendor, often in a different time zone, to build software products or provide specialized services such as back-end, front-end development, UI/UX design, QA, or product management.

Whether it’s a growing startup or an established business, hiring offshore developers can offer numerous benefits, including cost reduction, shorter time to market, and increased flexibility. Offshore development teams can help businesses build and maintain software applications, websites, and other digital products more efficiently while accessing specialized skills not available locally.

To better understand the benefits of offshore hiring, let’s highlight some key reasons why businesses should consider hiring an offshore development team. From cost savings to faster project delivery and access to a larger talent pool, the advantages of offshore hiring can significantly contribute to business growth. So, if you’re considering hiring an offshore developer or a team of offshore developers, this guide will help you navigate the complexities of offshore hiring and build a successful offshore development team.

Why Hire An Offshore Development Team?

Companies today are opting for software development outsourcing over in-house development, and there are several reasons why. One of the key reasons is cost-effectiveness, which is critical for startups that need to manage their limited funds carefully. Hiring offshore dedicated developers from overseas locations such as Eastern Europe, India, or Latin America can be two to three times cheaper than hiring locally in the US, thanks to lower overhead and living costs in those countries. Below are some other reasons companies may want to hire an offshore development team:

• Increased productivity and time savings: A dedicated offshore development team can speed up the development process and reduce the need for training new employees. With an offshore development team, you’ll have more time to focus on your work and core business activities without worrying about managing HR or project management activities.
• A larger talent pool: Especially with developers who have diverse skill sets and backgrounds. In contrast, hiring on-site developers in locations such as California can be challenging due to the high wages and attractive perks offered by large tech companies.
• Flexibility: Another key advantage of offshore hiring, as startups often require quick changes in technology stack or scaling their team up or down. An offshore development team can be flexible and adaptable to changes in project scope and stage, thanks to their ability to swiftly shift developers and hire freelancers according to their needs.

So, if you’re looking to hire overseas developers, consider the benefits of offshore hiring and how it can help you build a successful startup.

How to Find Offshore Development Teams?

Undoubtedly, offshoring provides remarkable advantages for startups. However, the challenge lies in finding the ideal offshore development team. Fortunately, if you are aware of the right places to begin your search, finding the perfect offshore development team won’t be a problem.

1. Freelance Website

Engaging with a dedicated offshore developer or a full-fledged development team is not the only option for offshoring. Startups may also consider working with freelance developers found through freelancing portals like Upwork, Guru, and Toptal. While there is an abundance of freelance developers worldwide that you can hire, it’s important to keep in mind the challenges of managing and coordinating tasks with individual freelancers instead of a team. 

To mitigate these challenges, you can use project management tools, establish clear communication channels, and set realistic expectations. When hiring overseas developers or a dedicated offshore developer, you can leverage the experience of an offshore software development agency that can guide you through the process and ensure a successful project outcome.

2. Offshore Development Provider

When choosing an offshore development provider, it’s essential to consider factors like expertise, cost, and communication. You’ll want to work with a team with experience in the technologies and platforms you’re using to develop your product. Additionally, you’ll want to find a team that offers competitive pricing and is within your budget, while also being responsive and can communicate effectively in your language and time zone. By keeping these factors in mind, you can find the right offshore development provider, team and staff for your startup.

Once you’ve found a potential offshore development provider, vet them thoroughly. Look for reviews and testimonials from past clients, and ask for references you can contact directly. You should also ask about their development process and how they manage projects to ensure their approach aligns with your needs and expectations. Finally, consider setting up a trial project or a smaller project to test the waters before committing to a long-term partnership.

Locations to Hire Offshore Development Teams

1. India

India has always been a popular destination for companies looking to hire offshore dedicated developers due to its vast pool of talented and skilled IT professionals. The country has the world’s second-largest population, and a large percentage of them are working in the IT sector. According to NASSCOM, the Indian IT industry is estimated to be worth $194 billion in 2021, employing around 4.5 million people. Additionally, English is widely spoken and taught in schools, making it easier for companies to communicate and collaborate with Indian developers.

One of the main reasons why companies choose to hire Indians for their offshore development team is cost-effectiveness. The average salary of an IT professional in India is significantly lower than that of their counterparts in the US and Western Europe, making it an attractive option for startups and small businesses. Despite the lower costs, Indian developers are known for their exceptional technical skills and have contributed to the development of some of the world’s most popular tech products. In fact, some of the biggest names in the tech industry, such as Microsoft, Google, and Adobe, have set up development centers in India to tap into the country’s talent pool.

2. Argentina

Argentina is also a popular destination for hiring offshore developers. The country boasts a large pool of skilled IT professionals who are proficient in the latest technologies and programming languages. Many Argentinian developers have experience working with clients from the United States and Europe, making them well-versed in Western business practices and communication.

In addition, Argentina’s time zone is advantageous for many North American companies, as there is only a two to three-hour time difference between the two regions. This means real-time communication and collaboration can be achieved, which is crucial for successful software development projects. The IT industry is also a significant contributor to the Argentine economy, with the country ranking among the top five Latin American countries in terms of IT exports. This indicates the robustness of the IT sector in Argentina and the high level of expertise available. With competitive prices and top-notch talent, Argentina is undoubtedly an attractive option for businesses looking to hire offshore dedicated developers.

3. Vietnam

This country has emerged as a popular destination for outsourcing software development due to its skilled workforce, competitive prices, and favorable business environment. Vietnam has a rapidly growing tech industry, with an increasing number of startups and tech firms setting up shop in Vietnam’s major cities such as Ho Chi Minh City and Hanoi. The government has also been actively promoting the tech industry’s development by investing in infrastructure and creating policies to attract foreign investors.

Vietnam’s software developers are known for their expertise in various technologies, including web development, mobile app development, and AI/ML. Vietnam ranks as the 2nd most attractive country for offshore IT services, ahead of other popular destinations such as China, Mexico, and the Philippines. In addition, the country boasts a large pool of tech talent, with over 300,000 software developers and a growing number of IT graduates each year. With competitive pricing and a reputation for quality work, hiring an offshore development team in Vietnam can be an excellent choice for startups and businesses looking to save on costs without compromising quality.

4. Indonesia

Indonesia is another offshore destination that has been gaining popularity for IT outsourcing. According to Fulcrum, the country’s digital economy is expected to reach $130 billion by 2025. The Indonesian government has also implemented various initiatives to encourage the growth of the IT sector, such as the “Making Indonesia 4.0” roadmap, which aims to accelerate the adoption of Industry 4.0 technologies in the country.

One of the significant advantages of hiring Indonesian developers is their relatively lower cost compared to their counterparts in Western countries. The hourly rate for software development services in Indonesia can be 50-70% lower than in the United States. However, despite the lower cost, Indonesian developers are known for their high proficiency and quality of work. Indonesia also has a large pool of IT professionals, with over 400,000 graduates annually. Moreover, Indonesian developers are proficient in various programming languages, including Java, Python, and JavaScript, which are popular in developing web applications and mobile applications. These factors make Indonesia a compelling option for businesses hiring overseas developers or an offshore dedicated developer team.

How to Hire An Offshore Development Team?

When it comes to hiring offshore developers for your startup, there are several key factors to keep in mind. 

• One important consideration is creating a detailed job description that outlines the specific skills and functionality required for the project. It’s also vital to look for a developer or team with a proven track record, such as high rankings on sites like Clutch and positive client reviews. 
• Another key factor to consider is workflow and flexibility. You need to ask about how the outsourcing development company interacts with clients and how they allocate developers to projects. You should also make sure that they are willing and able to adjust their workflow as needed to accommodate your needs.

To ensure that your offshore team is a good fit for your project, it’s important to be proactive, communicate clearly, and insist on frequent deployment. You should also make sure that your team understands your instructions and assignments, as well as your business and industry. Finally, look for a team with experience working with startups and similar projects in their portfolio. By considering these factors and being proactive in your hiring process, you can find the right offshore dedicated developer to help bring your vision to life.

Why Choose Rikkeisoft?

Rikkeisoft is a leading software development company in Vietnam specializing in providing top-notch offshore development services to clients worldwide. The company has been in the business for over 10 years and has a proven track record of delivering high-quality software solutions to various industries. Rikkeisoft employs over 700 experienced developers who are experts in various technologies, including AI, blockchain, cloud computing, and mobile app development. The company has completed over 1,000 projects, working with clients worldwide, including the USA, Japan, Australia, and Europe.

One of the significant advantages of choosing Rikkeisoft as your offshore development team is cost-effectiveness. The company offers highly competitive service pricing while maintaining the highest quality standards. Vietnam’s lower cost of living compared to Western countries and the availability of highly skilled professionals make it an ideal destination for outsourcing software development. Rikkeisoft’s developers are proficient in English, ensuring seamless communication and collaboration throughout the development process. The company also has a strong commitment to customer satisfaction, with a dedicated team of project managers who ensure that all projects are delivered on time, within budget, and made to your needs and expectations.