How to Hire an Outsourced Development Team
There are questions that never lose their relevance. Indeed, asking oneself how my business can become better is something one should never stop doing regardless of how successful the company is. It seems like namely the constant need for improving one’s performance drives companies to look for the solutions that bring fast and efficient results. When it comes to propelling business with technology, there is hardly a better way to do so than to hire an outsourced development team. While we’ll kick off our today’s conversation by explaining the reasons behind hiring an outsourced development team, we will also tell you about the best practices to apply when hiring one.
Why Do Companies Hire Outsourced Development Teams?
Outsourced development teams can be an excellent option for businesses. They provide a number of advantages, including cost savings, access to a larger pool of competent employees, and flexibility. According to Deloitte research, 70% of organizations that outsource development work claimed cost reductions, and 59% reported faster project completion. Furthermore, outsourcing helps businesses to tap into a larger pool of expertise, particularly in countries with a solid technical talent base. For example, countries such as India and Ukraine have a big pool of highly competent software developers. This can lead to better project outcomes and higher market competitiveness.
Moving on, outsourcing teams (or a dedicated development team) bring efficiency on the basis of the model simplicity. Basically, it is a group of software developers hired by a firm to work on software projects but based outside of the organization and usually in a different location. The business pays for its services and oversees the development process, but the developers are not corporate employees. This type of arrangement allows the organization to tap into a global talent pool while maintaining control over the development process.
Outsourced teams offer greater flexibility, as companies can adjust their staffing levels as needed, whereas in-house teams are more permanent. On the other hand, in-house teams give companies more control over the development process, as they can manage and direct the work more closely. Outsourced teams may have more independence as they are contracted to deliver specific outcomes. This leads to lesser control over a dedicated development team and, in some rare cases, introduces risks such as misaligned objectives, language barriers, and cultural differences.
So, what are the main reasons companies hire outsourced development teams? Frankly speaking, there are many. The following list will provide you with several most widely-spread ones:
Outsourcing can be less expensive than hiring a full-time in-house team. Research by Forbes shows that outsourcing can lead to cost savings of up to 30-50% compared to in-house development.
Access to a broader pool of talent
Companies can tap into a larger pool of talent from around the world. The most popular destinations for outsourcing are India, China, the Philippines, and Eastern Europe, with India being the largest provider of IT outsourcing services.
Outsourced teams can be scaled up or down as needed to meet changing business demands.
Companies can choose to outsource specific projects or functions, allowing them to remain agile and responsive to changes in the market.
Outsourced development teams can bring technical skills and experience to a project, providing a competitive advantage.
Outsourcing can speed up product development and help companies get to market faster.
In general, outsourcing allows companies to focus on their core business and save time and resources while getting access to the expertise and talent they need to succeed. And, if you hire a great team that meets most of your initial expectations, you’re likely to improve the quality of your product. A study by Accenture found that more than 80% of companies reported improved quality as a result of outsourcing.
Read more: Outsourcing Guide: Everything You Need to Know About Team Extension
How to Find the Best Outsourced Development Team?
Finding the best outsourced development team can be a complex and challenging task, but you still need to ensure that you find a team that can meet your needs and deliver high-quality results. You’ll need to go through software development outsourcing listings, review websites like Glassdoor and Clutch, or ask for referrals. Plus, a Google search might be helpful to find the best partners in your area. Keep in mind that there are some extra steps you’ll have to take to find the best outsourced development team:
Define your needs
Before you start your search, it’s crucial to have a clear understanding of your project requirements, including the scope of work, budget, and timeline. This will help you find a team with the necessary skills, experience, and resources to deliver the desired results.
Research potential partners
Look for outsourcing companies that have a proven track record of delivering high-quality results and have expertise in the areas you need. Consider reading online reviews and talking to other companies that have worked with an outsourcing company to get a sense of their quality of work and customer service.
Check the team’s skills and experience
Ensure the outsourcing company has experienced developers with the skills and knowledge necessary to deliver the results you need. This can involve reviewing the team’s portfolio, checking their references, and conducting technical interviews.
Assess their communication and collaboration skills
Communication and collaboration are critical when working with an outsourced development team. Look for a team that is responsive, communicative, and able to work effectively with your in-house team.
Establish clear expectations and agreements
Make sure you have a clear understanding of the team’s responsibilities, timeline, and budget before you start the project. This can help to prevent misunderstandings and ensure that the project is completed to your satisfaction.
By following these steps, you can find the best outsourced development team to meet your needs and help you achieve your goals. You should take the time to thoroughly test potential partners, as choosing the right team can significantly impact your project’s success.
Which Countries are the Best When Looking for an Outsourced Team?
There is no one “best” country for finding outsourced development teams, as it largely depends on the specific needs and requirements of the project. However, some countries have a strong reputation for providing high-quality outsourcing services and have established a significant presence in the outsourcing industry. This list usually includes countries with developers who have high English proficiency and a solid educational background. Some of these countries include:
- India has a large pool of highly skilled and cost-effective IT professionals, making it a popular destination for outsourcing software development, IT support, and customer service.
- China has a growing presence in the outsourcing industry, with a large pool of talented engineers and low labor costs.
- The Philippines is a popular destination for outsourcing, particularly for customer service and IT support, due to its English-speaking workforce and cultural proximity to the West.
- Eastern European countries such as Ukraine, Poland, and Romania have a strong reputation for high-quality software development and are known for their technical expertise and lower labor costs.
- Vietnam is a growing player in the outsourcing industry, known for its cost-effectiveness and highly skilled workforce.
Ultimately, the best country for outsourcing will depend on the specific needs and requirements of the project, as well as the company’s budget and goals. It’s important to carefully check the strengths and weaknesses of each potential outsourcing destination to determine the best fit for your project.
Read more: Setting Clear Expectations with IT Outsourcing Company in Six Steps
How to Evaluate an Outsourced Development Team?
To ensure an outsourced development team’s capacity to deliver a successful project, you should examine a number of crucial elements. Because adequate communication is vital for outsourcing, you should check the team’s ability to comprehend your requirements, provide feedback, and answer questions. Besides, examine the team’s technical expertise and work quality to ensure that the team has the requisite abilities and experience to provide high-quality code that meets industry standards.
One of the most crucial factors is timely delivery. Thus, assessing the team’s ability to manage scope modifications and deliver projects on time is critical. Time zones also matter. If you want to meet your developers daily to discuss priorities and establish a friendly atmosphere, consider the time zone difference between your and the team’s countries. Finally, pay attention to the team’s problem-solving abilities, project management skills, cultural fit, and cost-effectiveness.
Software Development Outsourcing with Bintime
That being said, outsourcing a development team is a win-win solution in cases when an in-house team can no longer handle the workload. Outsourcing can assist businesses in focusing on their core capabilities, allowing them to bring new products and services to market faster and more efficiently. No wonder that by 2030, the worldwide business process outsourcing market is anticipated to be worth $525 billion. The financial services, information technology, and telecommunications industries are likely to be the primary drivers of this growth.
If you still have any doubts, don’t worry. We’ve got your back. With more than 15 years on the market, 150+ passionate professionals, and an extensive portfolio, we’re ready to utilize our time and resources to make your vision come true. Our dedicated development teams will help you pave the way to a successful digital transformation of your business. Contact us to connect with our experts and learn more about working with the best tech experts in the field.