Hire Offshore Developers For A Startup - What Things Need To Be Considered

Offshoring software development helps organizations grab a chunk of niche developers who are open to adapting to new technological trends. It helps them pool their expertise which can eventually help the project to scale and help the business to expand.

By hiring an offshore development company, businesses align the relevant skills required to build the software, enabling the service seekers fetch the right talent. Also, working with an offshore developers is often advantageous due to the difference in time zones between Western and Eastern countries. Companies in the West outsource their development needs to those in the East, where the time difference can be as much as 10-12 hours.

Offshore development helps build a robust and resilient business model by extending the IT development team, building overseas, and entering new markets. It is often more helpful when the business is on a budget, and if they do not have the required expertise within their premises. They can set up an overseas development center in an overseas location like India and get access to hundreds of expert developers. This way, they can save up to 60% on cost and can avail services whenever they want to (or maybe 24* 7).

What is offshore development?

When service seekers must build software, a web solution, or a mobile app, they must hire developers. Businesses can look at your local town or region for IT experts for PHP, .Net, Java, Swift, Kotlin, Flutter, JavaScript, or any other. At the same time, finding suitable candidates could be very tough because large companies like Microsoft, Google, IBM, Facebook, and others are already competing for the best minds in Software Development. So what can a small company or an agency working as an IT Service Provider do? How should they find good developers?

They can resort to offshore outsourcing, which implies they can look for developers from neighboring countries. Plenty of IT experts are available, and they are usually less costly. A software developer in India can be hired for 1/3rd of the price compared to a US-based developer.

Here are some of the critical features of offshore software development:

It is cost effective
It is flexible

High-quality code development quality
More focus on business
Reliability
Shared Responsibility

Describe various types of offshore development models.

A software development company must have a strong knowledge of offshore development processes and align offshore business models accordingly.

Offshore Software Development by Business Models

Fixed Cost Model (Project requirements, time, cost are fixed): When the software development company and the business agrees upon a fixed price of completion and delivery of the project, including clarity of the features, functionality, scope, and complexity of the software project, then a time frame can be set within which the project will be created, tested, and successfully delivered.
Dedicated Development Team: It is a business model in software development that caters to long-term collaboration between the outsourcing company and a service provider (development team). In this business model, all dedicated team members’ work exclusively for the client and have a deep understanding of their projects and business goals.

Time and Material (There is a chance of scaling up the project scope with market demand): It is when businesses have to pay for app development agency's time and money spent on software development. An hourly rate, and markup for materials is specified. But this initial estimation may not be the full price required at the end of the project.

Offshore Development Model by Services

Project-Based: This business model is project centric or project driven where the app development company does a project and then charges a set fee. It is slightly different from a dedicated business model as the scope is not strictly defined and project specifications can change any time.
Offshore Development Center: Software development needs vary from business to business, and their development needs are often not fulfilled in-house. Therefore businesses can outsource development experts from offshore development centers or the top outsourcing companies like India, Ukraine, China, Russia, The Philippines (favorable tax laws), Mexico, Poland, the Czech Republic (promising), Romania, Brazil, and Vietnam.

Staff Augmentation: This model is applicable when the business wants to augment its staff presence and local skills with specialized skills by market demand. Once set initially, the estimated initial time is limited, and the offshore developers are not liable for the project's success.

When should a business hire offshore developer?

A business should plan to outsource one or more services if:

There is a need to access specialized skills and expertise that may not be available in-house.

They need to save costs due to low development costs in some areas of the world.
To gain more flexibility, scale resources up or down depending on project needs.
To focus on core business activities while outsourcing non-core functions.
To market the products faster with access to a larger pool of talent and resources.
Improve workbench competence and innovation.

To mitigate any risks associated with project failures from partnering with experienced outsourcing providers.

Why is it preferable to hire offshore developer for startups?

A startup, can think about hiring developers from other companies to save hardware and recruitment cost, to get skilled developers which they cannot hire in-house, and to get hand-on with industry standards:

If they require someone to develop software, web applications, and mobile apps, they must hire full stack developers or an expert from offshore development team.

If they want someone who can answer their phone calls, respond to emails, and handle live chats, they must hire someone from customer support.
If they require someone to perform data entry and processing tasks like data cleansing, data mining, and data analysis, they should hire experts from the data entry and processing department.
If they want to optimize their website, make it more visible, and increase search engine rankings. In that case, they must hire digital marketing experts from search engine optimization (SEO), social media management (SMM), pay-per-click (PPC) advertising, and content marketing.
To support their back office, they must hire dedicated developers who can handle scheduling appointments, booking travel, managing calendars, and conducting research.
Businesses need to outsource finance and accounting experts if they need someone to handle finance and accounting tasks like bookkeeping, accounts payable and receivable, financial reporting, and tax preparation.

Furthermore, according to a study by Deloitte, in 2020, 70% of companies outsourced their software development projects to save money. Here are some significant reasons why tech companies choose to outsource:

31% outsource to improve service quality
28% choose to outsource to talented professionals
37% prefer to outsource to increase the amount of work.

About 78% of businesses across the globe are satisfied with their outsourcing partner.

Startups should consider hiring offshore developers for their technical expertise and cost-effective solutions. It will enable them to access a highly skilled team while optimizing their budget and accelerate their product development.

What are the steps to hire offshore developers?

Outsourcing can enable businesses to overindulge, as they hire web developers, or hire mobile app developers from offshore development team. It is an essential first step to a startup's success. The stepwise guide to choosing the offshore development team is as follows:

Identify your startup requirement

Ask for recommendations

Check review platforms

Prepare a shortlist

Conduct the first interview

Ensure requirements align

Sign the contract

What are the most popular services to outsource in the future?

When deciding what kind of work can be outsourced, it is essential to consider the core competencies of your in-house team. Some of the most commonly outsourced software development services are:

Web app development
Mobile app development
Custom software development
Enterprise software development
Cloud computing services

Automation
QA Services

Who currently holds the leading position in the offshore software development industry?

Software development industry has become highly competitive and myriad reputable companies offer offshore development services. So, to find out which company is ranking, ascertain their reviews, client testimonials, ratings and rankings on research agencies, and their overall reputation in the marketplace.

Businesses who wish to outsource search for companies that are good with their business acumen, are professional and aloof from their budget worries, meet deadlines, minimize risks, and stay to the point. They often consider the scope of the project, size of the team, expertise, quality assurance, cost efficiency, infrastructure, compliance, communication and culture of the companies that they wish to hire.

Capping all these factors, Konstant Infosolutions has emerged as a forerunner in offshore development industry, showcasing its unwavering commitment to excellence and innovation in IT outsourcing. With its proven track record and extensive experience they have been the frontend warriors providing the top-notch offshore development services to businesses worldwide.

Businesses seek consistency, the ability to deliver, efficient collaboration, timely delivery, adherance to industry's best practices, and they can surely trust outsourcing companies like Konstant Infosolutions for that. And why not, after-all, their strong focus on client satisfaction, coupled with a flexible approach sets them apart as a leader in the offshore development landscape!

Why hire offshore developers for startup from Konstant Infosolutions?

The globalization of the software industry has led to a trend in offshore development. Hiring an offshore development company does more than optimize business costs. A specialized team of offshore developers is like a cherry on the cake, which eases the process of understanding the project's requirements. It helps businesses ruminate over the initial idea and measure the challenges and potential profits in the long run.

At Konstant Infosolutions, they have a great track record in helping startups. Their developers, programmers, test engineers, project managers, and other specialists are top in their fields.

Whether you want to hire a freelance software developer or a whole team, you can find the perfect outsourcing partner in Konstant Infosolutions for one or more of these reasons: