The Top 10 mistakes in Building Offshore Software Development Team.
The Top 10 mistakes in Building Offshore Software Development Team.
IT outsourcing has been with us for a long time as a perfect extension of an in-house team. It has evolved from a simple “temporary supply service” to a much larger and more serious size. The whole IT projects and departments are being moved from local headquarters to offshore / nearshore locations all over the world. This is where we get to our offshore development teams, which have become popular in recent years as businesses look to save on development costs or simply fill out the “the never-ending tech talent gaps”.
There are, however, a number of potential pitfalls that can occur when working with an Offshore Development Team (or in the recruitment of offshore software developers). In this article, we will discuss the top 10 mistakes made when building an Offshore Software Development Team.
1) Not Defining the Offshore Development Team’s Objectives
The first and most common mistake in building an offshore software development team is not having a clear understanding of what the team should be doing. What are its objectives? What specific tasks or projects need to be accomplished? Without this level of clarity, it’s impossible to put together the right team with the necessary skills and experience. Furthermore, without well-defined objectives, it will be very difficult to measure the team’s success or failure.
2) Trying to Save Money at All Costs
Many organizations try to save money by hiring low-cost offshore resources, without considering the quality of work that they will receive. In some cases, this can lead to subpar work that ends up costing the company more in the long run. It’s important to remember that you get what you pay for, and when it comes to software development, quality should always be a top priority. Your offshore development team requires quality – not quantity.
3) Not Having a Dedicated Offshore Team Development Manager
Another common mistake is not having a dedicated offshore manager who is responsible for managing the team and ensuring that projects are on track. Without this level of oversight, it’s easy for things to fall through the cracks and for deadlines to be missed. A dedicated offshore manager can help to avoid these issues and keep projects on track.
4) Not Communicating Properly with Offshore Developers
Poor communication is one of the most common problems in cooperation with the offshore software development teams. There can be a number of reasons for this, such as time zone differences, language barriers, and cultural differences. It’s important to have a clear communication plan in place from the start so that everyone is on the same page and there are no misunderstandings.
5) Not Providing adequate Training to Offshore Development Team Members
If you’re expecting your offshore development team to hit the ground running, you need to provide them with adequate training. This includes training on your company’s processes and procedures, as well as any specific tools or technologies that they will need to use. Without this training, it’s likely that there will be errors and mistakes made along the way.
6) Not Managing Expectations
One of the most common mistakes made by offshore software development teams is not managing expectations properly. This can lead to unrealistic expectations on both sides, which can eventually result in frustration and disappointment. It’s important to set realistic expectations from the start, and then manage them throughout the project.
7) Not Tracking Progress of Offshore Development Teams
Another mistake that’s often made is not tracking the team’s progress properly. This includes both tracking their work progress and also their communications. Without this level of transparency, it will be very difficult to gauge how well the team is performing and whether or not they are meeting your expectations.
8) Not Doing a Trial Run First
Before committing to an offshore software development team, it’s important to do a trial run first. This will give you an opportunity to see how well they work and whether or not they are a good fit for your organization. It’s always better to test the waters before making a long-term commitment.
9) Not Having a Contingency Plan
Even if you’ve done everything right, there’s always the possibility that things can go wrong. That’s why it’s important to have a contingency plan in place so that you know what to do if things don’t go as expected. This contingency plan should include having backups of all your data and code, as well as contact information for another software development team that you can rely on.
10) Not Staying Involved
One of the most common mistakes made by organizations is not staying involved with their offshore software development team. Once the project is underway, it’s easy to take a hands-off approach and let the team work on their own. However, this is often a recipe for disaster, as it can lead to errors and mistakes being made. It’s important to stay involved and provide feedback throughout the project so that you can catch any problems early on.
NxTides’ Supplement
As a professional nearshore / offshore software development company we have also observed some major mistakes, that can be avoided even before the project launch. Here are some of them that we think are the most important:
1) Offshore Development Team Size
The second most important thing to consider when starting with an offshore development team is the size of this team. The most frequent mistakes are:- hiring too many developers from day one- hiring developers with a lack of required skill set or experience As you might have guessed, both cases result in increased costs.
Therefore, you should start with a smaller team of 2-3 developers that will have all the necessary skills and experience to complete your project. With the right team size, you can avoid misunderstandings and miscommunications within the team. Also, it will be much easier for you to manage and control the quality of work
2) No In-house Technological Expert
The uncertainties keep mounting up with an offshore development team not having in-house technological experts. It becomes more colliding and less efficacious if you are not tech-savvy.
Hence, a technical expert is a fundamental monitoring factor for your entire web development cycle. They will be committed to organizing necessary communication with the offshore remote team and documentation of technical requirements. You need to ensure the availability of a dedicated in-house technical expert before executing the project.
3) Undervaluing Project Budget
Undoubtedly, a Fixed-price Contract is a preferential option for small projects with pre-determined purposes. If, there will be no further additional budgeting, no need to explore, Rate Card, Time and Material, and Cost contracts.
But with instantaneous market strategy and requirements propels to increase the budget of the contract. The company accompanies several creative phases in the entire web development cycle. Hence, it is quite suggestive to keep a substantial margin while determining the final cost.
4) Disregarding Cultural Differences
Cultural differences are one of the most challenging aspects of working with an offshore development team. The lack of understanding of these differences can lead to misunderstandings, miscommunications, and conflict.
Therefore, it is important to take the time to learn about the culture of the country where your offshore team is located. This will help you to avoid misunderstandings and to build a better working relationship with your team.
5) Inappropriate Offshore Team Location
The growth of business relies on human capital, financial capital, or social capital. Hence, similarly, once you decide to offshore the development, what matters first is the location. Some contributing factors are:
– In a competitive market, every company needs to revivify the core factors like cost-effectiveness, adroit resources, experienced team, market trust, and quality work.
– After racking up all necessitous observations, the decision to choose an offshore development company ordains a perfect offshore location for your web development.
– The location must not be holding an unconstructive road map for your projects. It must not face undue technological and communication differences.
So what are the top countries to build offshore development teams?
Historically, the main location for outsourcing was Asia with its market leaders like India, China, and the Philippines. By now software development has been dispersed all over the world with software developers working in more than 65 countries worldwide. The new regions that have gained more importance are: Central & Eastern Europe – a region that stands out defined by a high concentration of software labs and R&D centers along the west coast of the Black Sea from Romania through Bulgaria, an amazingly good education system providing good education at reasonable prices combined with low-cost living. As it turns out, Poland is also one of the most significant locations with nearly 800 outsourcing companies operating with global clients South America and Mexico – a region with large metropolises and software development hubs is not a surprise since they certainly can provide software developers fast and at quite competitive rates.
We must indicate that there are significant differences between the various locations in Asia, South America, and Eastern European countries. Some of them offer more consistent delivery times and software quality, and some of them are focusing more on lower rates.
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 power of the CEE region
It’s surprising that the CEE countries’ potential for software development and IT outsourcing is so often underestimated. The total number of software developers in the region is estimated to reach 2 mln in 2020, and this is what positions it as a much more attractive IT outsourcing destination for Western European and US companies. Furthermore, CEE countries are focused on developing new financing schemes to encourage investment in R&D, including innovative technology companies; promoting their economies as favorable locations with skilled IT professionals; providing incentives such as tax deductions; and developing technologies that lower business costs, including R&D outsourcing.
A closer look at Poland
Poland is the largest country in the Central European region with 38 mln inhabitants, an impressive education system with over 47 universities, and a modern, vibrant economy. As an EU member state since 2004, Poland has been steadily developing its infrastructure and business environment. The country’s stable situation, dynamic export, and large population of young people have been the main driver of innovation for years.
The GDP per capita of around $34,800 in 2020 is placing Poland very close to developed countries.
In recent years, the country has attracted the attention of many foreign investors and is now one of the most popular outsourcing destinations in Europe. The number of new Israeli, German, American, and British companies opening their Polish offices is constantly growing.
Poland has also a well-developed business support and outsourcing services sector. This includes a wide range of services, such as legal, accounting, HR, and marketing services, which companies can use to help them set up and run their nearshore software development office or offshore development center.
Build Your Software Team in Poland with NxTide
NxTide is a company full fully focused on offshore software development services. We help forward-thinking companies to scale their software capabilities by providing know-how, resources and experience.
NxTide has specialized in 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.
Please take a closer look at a dedicated and flexible offer we have prepared based on market needs:
1) Software Development Teams: dedicated to clients looking to expand their software development teams or create small remote teams from scratch.
2) Offshore Development Center: dedicated to larger and permanent projects. We’ve implemented the innovative Build Operate Transfer model to make the whole process faster, more efficient, and transparent.
3) Nearshore Software Development Office: dedicated to larger and permanent projects within the same region, and continent.
Build Your Software Team in one or more vibrant cities in Poland
Kraków
Over 0,8M population, 13% of total IT Engineers supply
Warsaw
Over 1,8M population, 24% of total IT Engineers supply
Wrocław
Over 0,7M population, 12% of total IT Engineers supply
Katowice
Over 1,8M population, 9% of total IT Engineers supply
Poznań
Over 0,7M population, 8% of total IT Engineers supply
Łódź
Over 0,7M population, 7% of total IT Engineers supply
Gdańsk
Over 0,6M population, 6% of total IT Engineers supply
Bydgoszcz
Over 0,5M population, 4% of total IT Engineers supply
Let’s talk about your needs and requirments
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.
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