offshore software development team at Proshore
Remote development

How to set up an offshore software development team

An offshore software development team is a cost-effective extension of your in-house team – discover how to set one up for success.

Talk to our Accounts director, Jeroen, to see if our ready-to-code offshore teams are a fit for you.

An offshore software development team is a group of software developers and IT professionals who work outside their client’s home country. Companies usually hire offshore teams to work on specific projects, tasks, or ongoing support and maintenance activities.

An offshore team works exclusively for one client. Because they don’t work for multiple clients at the same time, they can focus their attention and commit to one client’s needs. On top of that, their client gains all the usual benefits associated with hiring offshore software development teams.  

Offshore teams are often engaged in long-term projects. They become an extension of your in-house team and work closely with you to meet project goals and objectives. If that sounds like something you could benefit from, here’s what you need to know about hiring an offshore team.

Why consider an offshore software dev team?

There are many reasons to choose an offshore development team. Here are some of the main reasons to take this approach to software development:

Specialist skills

Specialist skills

Offshore development teams are made up of professionals with expertise in specific technologies, programming languages, and domains. This allows you to tap into specialist skills that may not be readily available in your in-house team or location.

Cost efficiency

Cost efficiency

Offshore teams are usually based in regions with lower labor costs. This provides significant cost savings compared to hiring full-time employees in high-cost locations – something particularly beneficial for startups and small businesses.

Scalability

Scalability

Offshore software development teams can be easily scaled up or down according to your project needs. You can adjust the team size and composition to match the demands of your development initiatives, ensuring flexibility in resource allocation.

Faster time-to-market

Faster time-to-market

With an experienced, offshore team, you can accelerate the development process and get your products or solutions to market faster. This is especially important in sectors with rapidly changing market dynamics.

Focus on core competencies

Focus on core competencies

Outsourcing software development tasks to an offshore team allows your in-house team to concentrate on core business activities and strategic initiatives, while the external team handles more technical development work.

Reduced recruitment burden

Reduced recruitment burden

Hiring and onboarding full-time employees can be time-consuming and costly. With an offshore team, you can bypass the recruitment process and access ready-to-code professionals.

24/7 development cycle

24/7 development cycle

If your offshore team is in a different time zone, you can benefit from a continuous development cycle. Work can progress around the clock, reducing project timelines.

Risk mitigation

Risk mitigation

Established offshore development providers have processes and methodologies in place to manage project risks effectively. They also offer contractual guarantees and service-level agreements to mitigate potential issues.

Predictable cost

Predictable cost

An offshore software development team should come with a predictable and transparent cost structure, making it easier to budget and plan for your development initiatives.

Quality Assurance

Quality Assurance

Many offshore teams have a strong focus on Quality Assurance testing, helping to deliver high-quality software products with fewer defects.

Reduced overheads

Reduced overheads

When working with an offshore team, you don't have to bear the overheads associated with maintaining people in-house, such as office space, equipment, and employment benefits.

Compliance and legal obligations

Compliance and legal obligations

Experienced providers of offshore teams should ensure that your projects adhere to relevant regulations and standards.

Global expansion

Global expansion

If you're considering expanding your business to new markets, an offshore software development team can provide local expertise and support to facilitate this expansion.

How do you set up an offshore software dev team?

At Proshore, we take a 3-phase approach to setting up your offshore team. Here’s how it works:

Get a customized plan that addresses your challenges

Jeroen and the team analyse your challenges to come up with a customized plan and proposal based on what you need.

Meet your new team

Your plan covers setting up team roles and tasks. Babish, our CTO, assembles the best team available from our talent pool and shares it with you for approval.

2-month trial period

Test your team’s output during a 60-day trial period. Not happy with someone? We work with you to replace them at no extra cost.

Expand or scale down

Add new talent to your team or scale down based on your goals and roadmap. No recruiting, hiring or HR paperwork.

Best practices for collaborating with an offshore software development team

For a number of reasons – including different time zones, language barriers, and cultural differences – collaborating with an offshore team can be challenging.

Here’s a table of best practices and advice for getting collaboration right:

Keep communication clear

Keep communication clear

Maintain open and transparent communication channels. Establish a communication plan with meeting schedules and reporting structures.

Set clear expectations

Set clear expectations

Define project objectives, scope, deliverables, and timelines. Ensure everyone understands their roles and responsibilities. Establish KPIs and metrics for measurement.

Have cultural sensitivity

Have cultural sensitivity

Acknowledge and respect cultural differences. Be aware of varying work styles, holidays, and communication norms. Encourage an inclusive work environment.

Schedule regular check-ins

Schedule regular check-ins

Schedule regular meetings to review progress, address issues, and provide feedback. Identify potential problems early.

Use collaboration tools

Use collaboration tools

Use project management software, version control systems, and communication platforms for efficient workflow management and document sharing.

Maintain documentation

Maintain documentation

Maintain comprehensive documentation of project requirements, design specifications, codebase, and other relevant information.

Empower the team

Empower the team

Trust the offshore team’s expertise and encourage them to make technical decisions within their areas of expertise.

Provide access to resources

Provide access to resources

Remove technical barriers by providing access to hardware, software, development tools, and required resources.

Have a single point of contact

Have a single point of contact

Designate a Project Manager or Product Owner as the main point of contact for the offshore team.

Foster a collaborative culture

Foster a collaborative culture

Encourage knowledge sharing and collaboration between offshore and in-house teams. Promote mutual respect and shared commitment to success.

Give feedback and recognition

Give feedback and recognition

Provide constructive feedback to help team members improve. Recognize achievements and milestones to boost morale.

Address issues promptly

Address issues promptly

Resolve challenges or roadblocks proactively. Encourage early communication of concerns.

Quality Assurance and testing

Quality Assurance and testing

Implement robust testing and Quality Assurance processes to meet required standards.

Data security and compliance

Data security and compliance

Agree on data security measures and ensure compliance with legal and regulatory requirements.

Continuous improvement

Continuous improvement

Regularly review and evaluate the collaboration process. Identify areas for improvement and implement changes.

The challenges of working with offshore software development teams

There are challenges with any type of offshore software development. These also apply to hiring offshore software development teams.

Here are some common issues to consider:

1

Communication barriers due to time zones and language differences.

2

A lack of face-to-face interaction hinders relationships and trust.

3

Misconceptions arising from different work cultures and expectations.

4

Quality Assurance difficulties lead to inconsistencies in coding quality.

5

Concerns about data security, intellectual property protection, and compliance.

6

Limited visibility of offshore team activities and progress.

7

Integration challenges in merging offshore and onshore teams effectively.

8

Turnover of developers in offshore locations, impacting project continuity.

9

Risks of misalignment in goals and expectations.

10

Legal and compliance issues – and possible disputes – around contracts.

The good news is that by hiring an offshore software development team from Proshore – a trusted and experienced provider of ready-to-code tech talent based in the Netherlands and Nepal – you can avoid these pitfalls and overcome potential issues.

FAQs

When should you get an offshore software development team?

Companies typically consider using an offshore team when they require specialized skills not readily available in their local talent pool; they need to reduce development costs whilst maintaining quality; they need scalability for fluctuating project demands, or aim to accelerate project timelines by adding capacity via a remote workforce.

An offshore software development team can be beneficial for long-term collaboration, allowing you to focus on core business activities while entrusting technical development work to experts. This can be an advantage when you are looking for specific software development skills at a competitive price.

The cost of hiring an offshore software development team depends on a number of factors. The following table shows the main factors impacting cost:

  • Location
    Different roles within the offshore team – such as developers, project managers, and Quality Assurance engineers – have different hourly rates.
  • Expertise and skill level 
    Rates vary based on the expertise and skill level required for the project, with more experienced professionals commanding higher rates.
  • Technology stack
    Specific technologies or programming languages may require specialized skills, impacting the cost of hiring developers with expertise in those areas.
  • Role and responsibility 
    Different roles within the offshore team – such as developers, project managers, Quality Assurance engineers – have different hourly rates.
  • Contract type
    Pricing models can include hourly rates, monthly retainers, or project-based fees, affecting the overall cost structure.
  • Additional expenses
    Costs beyond hourly rates – such as setup, infrastructure, software licenses, and ongoing operational expenses – also need to be considered.
  • Cost Savings vs Quality
    Balancing cost savings with the need for a highly skilled team is essential to ensure project success and value for investment.