Offshore Development Model: Hire Offshore Staff
Many firms worldwide consider the option of a distributed dedicated team model in their business. This hiring method provides you with a flexible workforce that can be added or reduced, your team engagement in your project, 24 hours workday, faster issues resolution, responsibility, high expertise and reasonable costs. It is possible to save up to 50% of labor arbitrage and an onsite. In general, it provides much more benefits for your business rather than if you’d choose to hire freelancers. Outstaffing is hiring web developers overseas from an outstaffing/offshore development firm. Hire offshore staff, and you can proceed to work with the same team on further projects.
Nowadays, more than 210,000 of programming jobs are being outsourced by American companies like Oracle, Cisco, and Samsung that have been up to offshore hiring for decades. They outsource software development in countries with a strong reputation and lower costs like Ukraine and other destinations. It is a well-known fact by now, that Eastern European countries, like Ukraine, have the biggest offshore IT resources. In addition to low costs and highly educated professionals, countries like Ukraine are attracting more and more companies each day. Nowadays there are plenty of outsourcing companies in Ukraine that are ready to provide various types of services. When it comes to your business, which offshore development firm should you hire? There are countries that are considered to be the best outsourcing places.
Benefits of Hiring Offshore Teams
If you’re wondering how onboarding an offshore team can contribute to your project, take a look at the most prominent benefits of this collaboration model:
- Cost-effectiveness – as a rule of thumb, offshore teams are 2-3 times cheaper to hire than maintaining an in-house department;
- Flexibility – thanks to the on-demand business model, you can reduce or increase the amount of workforce involved in the project anytime.
- Service quality – offshore teams usually have years of working experience – you will be able to create a project that follows all industry standards and trends.
- Keep a laser-sharp focus on the company’s core activities, leaving employee and documentation management to the vendor.
- Shared responsibility moderates the company’s risk exposure and offers business managers a failsafe in case a project didn’t do as well as planned. You will be able to ask a vendor for a partial refund in case of product failure.
- Diversity gives business access to various working approaches, perspectives, and points of view that are especially valuable when designing a product with an international audience in mind.
Best Countries to Hire Offshore Freelancers
When it comes down to offshore resourcing and finding the best option for your business – there are usually a few countries that stand out the most, in terms of specialists and opportunities.
Malaysia is among top three leaders for its value-oriented services and cost-effectiveness. Its key segments for outsourcing are Systems Integration, Business Process Outsourcing, and IT consulting. Yet, Malaysia has low staff skills.
Indonesia’s decision to shift away from exports has led to an increase of outsourced business. The key component of its economy is the IT segment, which includes internet, support, training, and global professional services.
In Ukraine, many large companies like Apple, Intel, Nokia, eBay, and other giants hire developers for software development. Offshore coding in Ukraine is considered to be high-quality, so Ukraine has become a good country for outsourcing. Besides offshore engineering salary in Ukraine is lower than of those of the same expertise in the USA or UK.
Levels of Offshore Development Model
Offshore development is now changing and diversifying. If you are still hesitating which model to choose for your project, consider the levels of offshore development model to make the most effective hiring decision. These offshore models can be categorized by service models, levels, business models.
In terms of the form of partner relationship, there are different ways how the customer controls the amount of work, so there are following level based offshore models:
- Low-level Outsourcing
This model has attractive prices for customers and low engagement of the outstaffing company. Here the low-level solution coding and software delivery are outsourced. In a low-level offshore development model, the customer company handles product management, while development and QA processes are controlled by the outsourcing company.
- High-level Outsourcing
The process is still managed by the customer, as well as testing and QA outsourcing team design. However, solutions, project management, and test design are up to the offshore development firm.
- Complete Technical Outsourcing
In this offshore development model, all the technical aspects are outsourced to the third-party.
Offshore Development Model by Services
The service model of outstaffing refers specifically to the work that is shared between local teams and outstaffed teams. There are three types of service model:
- Staff Augmentation
Staff augmentation is when a company needs to empower their local staff with offshore developers to perform simple technical routines and nothing more. The client manages augmented developers directly, and their vision of the product and any improvisations are often limited, at the same time they have no responsibility for the project. Augmented staff usually deals with testing, prototyping, some routine development and least engaged work, while the technical leadership is by local devs.
This offshore software development model is good for firms seeking cost-reduction and shorter time. It is good for firms with one-off, irregular, and pilot projects of medium-low complexity. It has defined timeframes and is suitable for projects with precisely defined requirements that will not undergo any changes during the development process. If you think that your project might have some shifts, it’s better to use any other model.
- Offshore Development Center
This outsourcing model is mainly for long-term projects with loads of work. It suits best for the firms that aim to reduce development costs but keep the quality of the product. In this case they reserve a dedicated team of skilled experts to engage them in their one project and manage them independently.
Offshore Development Model by Business Models
These are common IT offshore outsourcing models that are used for companies to reduce costs and guarantee full engagement of the staff.
- Dedicated Development Team
In this model, also known as Dedicated Resources Model, offshore developers are the key factor of project success, as they are the source of all the technologies, code, and architecture. A dedicated team is involved in one project at a time. It is a long-term continuous process that requires a support team on a permanent basis. After the active development stage ends, most of the devs can be dismissed with only a few experts who will handle the code supervision and improvement implementation.
- Hourly / Time & Material model
This model is used for small or mid-sized applications when it is impossible to define the scope of work with no possibility to assign a dedicated developer, as the workload can change during in the process. However, its term cannot be shifted as there are strict time frames. The client pays for the actual amount of time and effort spent by the developers.
- Fixed Cost Model
Fixed Cost Outsourcing is one of the safest models for medium scale and small firms and has fixed prices. The company has guaranteed that there will be no hidden or additional costs involved. This model is perfect for startups and small and medium enterprises, as they might often be limited in finances.
Choose the Right Model With Us: Onshore, Onsite Offshore Model and Many Others
Establishing a business based on outsourcing is not a big deal, it helps to save money and time and is easy to implement. Due to a variety of offshore development models available, everyone can find an option that fits him best. The offshore development model is perfect for companies that are familiar with the drawbacks of project management and software development issues that might arise during work. These companies often aim for cost reduction keeping the quality of the product and are ready to invest in long-term business relations.