The Guide to Hiring Offshore Developers for Your Software Project.
The Guide to Hiring Offshore Developers for Your Software Project
According to a recent report from Global Capital and the TMT Group, the IT outsourcing market is expected to expand from $66.52 billion in 2019 to $763.7 billion by 2023. The business world currently faces an unprecedented surge in outsourcing for IT projects, particularly software development. In particular, small and medium-sized businesses (SMEs) benefit because using outsourcing as a mechanism allows them to better allocate their resources while also reducing costs. This is why corporate executives are already learning how to hire offshore software developers.
The global software developers’ shortage.
The tech industry is growing at an unprecedented rate. According to the US Bureau of Labor Statistics, the number of software developer jobs is projected to grow by 24% from 2019 to 2029, much faster than the average for all occupations. This rapid growth is putting a strain on companies’ ability to find and retain qualified IT workers.
There are a number of reasons why employee turnover is high in the tech industry. First, the skills required for many IT jobs are in high demand and can be difficult to find. This shortage of qualified workers gives employees more power in the job market and makes it easier for them to switch jobs if they’re unhappy with their current situation.
Second, the tech industry is notoriously fast-paced and ever-changing. This can be stressful for employees, who may feel like they have to constantly learn new things just to keep up. This can lead to burnout, which is a major factor in employee turnover.
Finally, many tech workers are attracted to the industry because of the high salaries and generous benefits that are often offered. However, these same workers may be lured away by other companies that offer even higher salaries and better benefits.
Here are the most interesting statistics that highlight just how dire the shortage of talent is:
– Around 40 million technical jobs go unfulfilled due to a lack of skilled talent.
– The US Labor Department estimates that the global shortage of software engineers may reach 85.2 million by 2030.
– By 2026, it’s estimated that there will be 1.2 million engineering job openings.
– Job openings for software developers, quality assurance analysts, and testers are projected to grow by 22% year over year between 2020 to 2030.
– Globally, companies risk losing $8.5 trillion in revenue because of the lack of skilled talent.
– There are 1.8 million software developer jobs in the US The US. Labor Department reports that there are 1.8 million software developers, quality assurance analysts, and testers in the US.
– The median US pay for software developers is $110,140 per year Software developers, quality assurance analysts, and testers are paid $110,140 on average per year or $52.95 per hour. Our own research shows how these salaries have developed over 20 years.
– Developer recruitment costs can amount to $28,548-$35,685 According to our own research, it costs employers anywhere from $28,548 to $35,685 to hire a full-time developer. However, this sum doesn’t take into account indirect costs (such as productivity losses), which can potentially raise the sum to $41,049. Without external recruiters, the cost of hiring developers is around $13,500.
– 85.2 million jobs will go unfulfilled by 2030 Around 40 million technical jobs go unfulfilled due to a lack of skilled talent. This number is expected to rise to 85.2 million by 2030.
– 58% are increasing emerging technology investments The demand for tech talent is increasing rapidly. 58% of IT executives say that they already have increased or are planning on increasing emerging technology investments. Unfortunately, the market probably can’t respond to this increase in demand.
– 35% want to hire 50+ developers in a year, and 15% want to hire 200+ developers a year Hiring managers have plenty of open positions. 35% of employers want to hire more than 50 developers this year, and 15% want to hire more than 200 developers. However, the talent shortage will make these hiring processes difficult.
More on this matter can be found in this article
For more information regarding nearshore software development services rates please take a look at this article: https://nxtide.com/offshore-development-center/global-offshore-software-development-rates-comparison-by-country/.
The concept of offshore software development.
Offshore software development is the process of outsourcing software development projects to vendors in other countries. The main reasons for doing this are to get access to a larger pool of talent, to reduce costs, and to tap into new markets. There are many benefits to offshore software development, but it’s not without its risks. In order to ensure a successful project, you need to carefully consider all of the potential risks and benefits before making a decision.
The following is a list of the advantages and disadvantages of offshore software development:
– Access to a larger pool of talent: You’ll be able to tap into new markets and find top talent that you wouldn’t be able to access locally.
– Cost savings: Offshore development can be up to 60% cheaper than local development.
– Faster turnaround time: Developers in other countries often have more flexible schedules and can work longer hours if necessary. This can help you get your project completed faster.
– Increased productivity: Developers in other countries often have a different work ethic and are more accustomed to working long hours.
Disadvantages: – Language barriers: There may be a language barrier between you and the developers, which can make communication difficult. – Time zone differences: Developers in other countries may be working in a different time zone, which can make coordination difficult. – Different cultural norms: Developers in other countries may have different cultural norms, which can make it difficult to work together. – Difficult to find qualified developers: It can be difficult to find qualified developers in other countries. – Risk of project failure: There is always a risk that the project will fail, which can lead to wasted time and money.
The benefits of hiring offshore developers.
1) Hiring an offshore developer can help you tap into a larger pool of qualified candidates, giving you a better chance of finding the right person for the job. 2) Offshore developers often have more experience than their onshore counterparts, as they’ve had to deal with more diverse projects and challenges. 3) Hiring an offshore developer can be more cost-effective than hiring an onshore one, as you’ll only have to pay for the actual work done rather than overhead costs such as office space and employee benefits. 4) You’ll have access to a greater pool of talent when you hire offshore developers, as there are simply more people to choose from in countries with large populations. 5) Offshore developers are often more flexible and can work odd hours if need be, as they’re not limited by geographical boundaries.
The Offshore Development Center (ODC) model.
The Offshore Development Center (ODC) model is a type of offshore software development that involves hiring offshore developers and setting up a dedicated team in another country. This team works exclusively on your project and reports directly to you. The main advantages of the ODC model are that you have complete control over the team and the project, and you can get started quickly. The main disadvantage is that it can be more expensive than other offshore development models.
The following is a list of the advantages and disadvantages of the ODC model:
Advantages: – You have complete control over the team: The offshore development team reports directly to you like your own, in-house development team – You can get started quickly: The team is usually in place and ready to work on your project. For bigger projects, you’ll need to work with vendors to hire offshore developers – The team is dedicated to your project: The team works exclusively on your project, so you don’t have to worry about splitting their tasks between clients.
Disadvantages: – It can be more expensive: The ODC model can be more expensive than other offshore development models. Workload exclusivity of offshore development teams usually includes hiring offshore developers in a very fast way to start almost immediately. – You have to manage the offshore development team: You’ll need to manage the team and make sure that offshore developers are actively working on your project. Some vendors provide dedicated Project / Product Managers / CTOs who can take this task from you.
The challenges of hiring offshore developers.
While there are many benefits to hiring offshore developers, there are also some challenges that you need to be aware of. These include: – Language barriers: There may be a language barrier between you and the developers, which can make communication difficult. But this is something you can easilly eleiminate by hiring translator or language classess.
– Time zone differences: Developers in other countries may be working in a different time zone, which can make coordination difficult. – Cultural differences: There may be cultural differences between you and the developers eg: tradition, religion, local customs. Some cultures might not accept “anglo-saxon” sense of humor or liberal point of view.
Despite these challenges, hiring offshore developers can be a great way to get access to talented developers at a lower cost.
Building an offshore development team.
When it comes to building an offshore development team, there are a few things that you need to keep in mind. The main goal is to keep the same team quality as for in house team. Here are some tips:
– Hire a Project Manager: Hiring a dedicated Project Manager is one of the most important things that you can do when setting up an offshore development team. The Project Manager will be responsible for coordinating the work of the developers, as well as communicating with you to ensure that the project is on track.
– Hire a Lead Developer: Hiring a Lead Developer is also important, as they will be responsible for leading and mentoring the other developers on the team. The Lead Developer will also be your main point of contact for technical questions and issues.
– Hire developers with the right skills: It’s important to hire developers who have the right skills for your project. Make sure to assess the skills of each candidate before making a decision. – Hire offshore developers with Good English Skills: Hiring developers with good English skills is also important, as it will make communication easier.
– Hire offshore developers from a reputable source: Hiring developers from a reputable supplier is always a good idea, as they will have a good understanding of the offshore development process and will be able to help you avoid any pitfalls.
Building an offshore development team.
When it comes to deciding how to hire an offshore software development company, your location of origin plays a fundamental role due to the work methodology involved.
For example, thebest locations for offshore development outsourcing may vary from case to case. There are plenty of regions around the globe with talented web developers who can bring your project to life. Each country has a mix of talent with a variety of specialties to benefit from.
Latin America: Argentina, Brazil, Colombia, Mexico, and Peru – No other region has shown to be as good for outsourcing software development in general. Regardless of the sort of service supplied, these countries have shown to have some of the world’s top offshore software developers and are considered among the most productive contributors to the development business in recent years.
Asia: China, India, Philippines, and Thailand These are some of the best countries for outsourcing your development projects. However, you should take into consideration possible cultural differences, language barriers, and lack of alignment in time zones that come with working with an offshore development company from any of these locations.
Eastern Europe: Poland, Ukraine, Bulgaria, Hungary – The area in general has shown to have developers that are highly competent in English and experience with software development, making it another excellent location to employ offshore software developers.
How to hire offshore developers?
It’s When hiring an offshore software development company you need to consider a few things first:
1. Define your requirements clearly This first step might be obvious, but it’s crucial. Note down all the . This is your benchmark. Commit time and effort to this list: tech stacks, knowledge of tools/frameworks, experience, personal skills, and so on. Make sure the list is all-inclusive and thorough.
Next, refine the list. Identify and separate the ‘must-haves’ from the ‘nice-to-haves’. This will go a long way in helping you sort priorities so you only hire offshore developers who add value to your business.
Finally, create job descriptions for the relevant positions. Use your skills lists as a basis, ensuring again that you are as thorough as possible. Also, include the duties and responsibilities that the employee will undertake. This is the
2. Follow a structured interview process The next step is the interview process. To conduct an effective interview, one that can really assess the competency of candidates, you need to prepare a list of topics and questions that you want to ask them.
This not only guarantees that the key parameters are discussed but also . First impressions are significant, but they don’t tell the full story.
Your questions help you build a realistic picture of the candidate’s skills. Conduct at least a few technical tests because those fundamental skills are non-negotiable. You can then arrange for a personal interview to assess their attitude and personality fit with your company before you make your mind up.
3. Conduct strict technical tests
Because you’re hiring offshore developers, their ability to write efficient code is the most important technical skill. There are loads of online coding test platforms — HackerEarth, Codility, Talview, and HackerRank for example, which you can use. The best option will depend on your development process and business requirements. Technical tests which require programmers to of their knowledge. By demonstrating how they approach a problem, tackle roadblocks, and document and comment on their code, you can closely analyze their skill set. You can even include real business cases to challenge your candidates. While difficult, your tests shouldn’t be so difficult that candidates can’t complete them on time. If the tests deviate from your expectations, be as needed.
4. Look for cultural compatibility
It’s not uncommon for candidates to excel in technical tests and then underperform just a few months later. Barring exceptional circumstances, When hiring offshore developers, cultural fit and connection is absolutely crucial. You should know the core values, goals, and practices that define your organization. The best-fitting offshore developers will have a work ethic and . Avoiding cultural incompatibility comes back to developing a meticulous hiring process. Hire individuals who will invest time and effort into the vision of your company. They must be motivated, committed, and driven to accomplish what is expected of them.
5. Establish a time-efficient hiring process
Countries like India and Ukraine are where the software development industry is booming. This means that offshore developers don’t stay free agents for long. An . You don’t want to lose out on a good candidate because of unforeseen delays! If you think that you’ve found a diamond in the rough, don’t hesitate to invite them to interview. You can also give candidates feedback on their tests and interviews. We recommended providing this as soon as possible, preferably within two or three days. Though it may seem unnecessary, providing your candidate with a detailed review of their performance even if they aren’t selected can not only soften the blow for them but the efforts that you take to review the candidate will also significantly contribute to building a
6. Give candidates a reason to work for you
In an ideal world, candidates would walk out of interviews ready to sign up for the job. Unfortunately, the reality is usually quite different. Competition for skilled offshore developers in countries like India and Ukraine is at an all-time high, which means The interview process should be a two-way street. This is where the candidates can learn about your business culture. Remember that while you assess the candidate, they’re also They’re trying to figure out if working for you is their best choice. Candidates are not just analyzing their working conditions in your company. They’re also looking for the chance to work with cutting-edge technology for the most innovative leaders in their industry.
So before you hire offshore developers, ask yourself: why is your company unique? How is your company’s mission unlike any other? How can you pitch your company so that the very best developers want to work for you?
7. Engage and excite the candidate
You need to make sure the Don’t constantly bombard your candidate with questions. Prompt them to ask questions about your brand, what your business stands for, or any concerns they have. Remember to be as honest and open in your answers as possible. Use this opportunity to build a personal connection with the candidate, a rapport that will make their decision to work with you a lot easier.
At the NxTide, we execute the entire recruitment process on your behalf. You do get to . You don’t have to take your focus away from the rest of your business! If you want to learn more about how we recruit the very best offshore developers, then book a free consultation with one of our senior executives. We can’t wait to hear from you.
Things to consider before hiring an offshore developer.
– Make sure you have a clear idea of what you want from the developer before you start your search, as this will make it easier to find someone with the right skills and experience.
– Take into account time differences when communicating with potential candidates, as this can impact the working relationship if not managed properly.
– Make sure you understand the legal implications of hiring an offshore developer, as there may be visa and tax implications depending on the country you hire from. – Do your research on the different outsourcing providers available, as they all have different strengths and weaknesses. – Make sure you have a robust contract in place that outlines the scope of work, timeline, and deliverables before starting work with the offshore developer.
How to cooperate Offshore Development Companies to hire offshore developers?
Offshore software development is a great way to get access to top talent, save costs, and reduce turnaround time. However, it’s important to carefully consider all of the risks and benefits before making a decision. If you do decide to go ahead with offshore development, make sure to choose a reputable and qualified vendor.
Offshore Development Companies usually work in 3 ways: 1) by providing typical recruitment/outsourcing services 2) by providing specific skills to your project on a short-term basis 3) by helping you to build your own development team or Offshore Development Center
Here are some facts and tips that might help you to choose the best vendors:
1. Hiring an offshore development company is a great option if you want to get high-quality work at a lower cost.
2. Offshore development companies have a lot of experience in the software development industry and usually have a large pool of highly skilled developers to choose from.
3. When hiring an offshore development company, be sure to have a clear idea of what you want from them and understand the legal implications involved.
4. Do your research on different offshore development companies before making a decision, as they all have different strengths and weaknesses. 5. Make sure you have a robust contract in place that outlines the scope of work, timeline, and deliverables before starting work with the company.
Looking for a solid offshore or nearshore software development company?
Opening a Nearshore Software Development Office in Poland can be a great opportunity for businesses looking to outsource their software development projects. By partnering with a reliable and experienced nearshore development company, you can get access to a team of skilled software developers who can help you deliver high-quality projects on time and within budget.
Looking for a Nearshore Development Office in Poland? Contact us now! We are a reliable and experienced nearshore development company with offices in Krakow, Warsaw, Katowice and more.
The NxTide is a specialized company focusing on building local, Software Development Teams or larger Software Development Centers in major cities in Poland. We take care of all recruitment and quality control processes making it faster and more cost-effective for you. Here is some more information about our expertise: – Over 7 years of experience in creating a variety of software development teams – Over 60 teams and 300 engineers successfully hired and deployed – Several dedicated HR and IT Project Management Teams acting on your behalf.
Do you need help in building your Development Team?
Over our 7-year company activity we have helped many US and EU companies to successfully build Software Development Teams and Software Development Centers in a variety of locations in Poland.
Interested? – Let’s discuss your case on a call.
Marcin Dziedzic, CEO of Pragmatic Coders and NxTide.
Other related articles that might interests you:
10 Reasons Why IT Outsourcing in Poland is Growing Rapidly
Home 10 Reasons Why IT Outsourcing in Poland is Growing Rapidly In recent years Poland as long as the whole…
Why choose Poland for IT Outsourcing in 2022?
Home Why choose Poland for IT Outsourcing in 2022? The world of software development outsourcing changes rapidly and so do…
How to Build a Successful Nearshore Software Development Team? – a practical guide.
Home How to Build a Successful Nearshore Software Development Team - a practical guide. 1) The software development teams.Building a…